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settlement

SET-uhl-muhnt /ˈsɛtlmənt/

nounB2SATTOEFLIELTS

FormalLegalGeneral

An official agreement that resolves a legal dispute out of court without a final judicial verdict.

Implies a negotiated compromise where both parties agree to drop litigation in exchange for agreed terms.

The story behind the word. Derived from Old English setlan ('to place, seat, or cause to rest'), from sittan ('to sit'). In legal disputes, a settlement literally brings a turbulent conflict to rest by establishing a peaceful, fixed agreement.

Word relationships

compromise: Emphasizes mutual concessions made to reach an accord.
accord: Formal legal agreement settling a dispute.

litigation: The act of carrying on a lawsuit through full court proceedings.
verdict: A formal ruling handed down by a jury or judge at trial.

Commonly confused with

verdict: A verdict is a ruling handed down by a court; a settlement is a compromise agreed upon by the disputing parties.

Word family

settle (verb): To resolve a lawsuit or dispute by agreement.
settlements (noun): Plural form of settlement.

Collocations

reach a settlement
out-of-court settlement
confidential settlement
settlement agreement

Example sentences

"After months of grueling pretrial negotiations, both parties finally agreed to an out-of-court settlement." Corporate trial negotiations
"The former employee agreed to sign a confidential financial settlement and drop all claims against the firm." Employment dispute resolution

Memory hook

A settlement allows the parties to SETTLE down and stop fighting in court. Bringing a dispute to rest.

When not to use

Do not confuse with a judicial ruling or court judgment issued directly by a judge after trial.

Fun facts

Over 95% of civil lawsuits in the United States end in a settlement rather than going all the way to trial.