What does "settlement" mean in legal disputes?

In legal terms, "settlement" refers to an agreement reached between the parties involved to resolve their dispute outside of the courtroom, thereby avoiding a trial. This process allows both sides to negotiate and come to a mutually acceptable resolution, which can save time, resources, and the uncertainty of a court ruling. Settlements can occur at any stage of a legal dispute and often conclude with a written agreement that may include terms regarding compensation, responsibilities, and sometimes confidentiality.

This definition distinguishes settlement from other legal concepts. For instance, a decision made by a judge refers specifically to judicial rulings and is typically the outcome of a trial, not an agreement between the parties. The final ruling by a jury pertains to the jury's determination after hearing a case, while jury selection is the process of choosing jurors to serve on a jury and is unrelated to the resolution of a dispute. Thus, the essence of a settlement is its focus on the voluntary agreement between disputing parties to resolve their issues collaboratively rather than through adversarial litigation.