Settlement



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Definition of Settlement

A settlement is the process for resolving a dispute between two parties which eliminates the option or need to take a legal case to trial. The majority of legal cases are decided by a settlement rather than the plaintiff seeking damages in court. Taking a case to court is often avoided to eliminate the high cost for legal fees and hiring expert witnesses. Settlements will outline what each party agrees to do or to abstain from doing to resolve the legal matter in question. It generally involves one party agreeing to pay a certain amount of money to the other and agreeing not to pursue further legal action. Settlements are used in many areas of law including civil law, divorce law, and personal injury. Settlements are finalized by a judge who will issue a court order which legally binds both parties to the agreement. Claimants who sign a settlement are not admitting guilt; they are simply trying to resolve their legal issues without the cost of a trial.



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