What Is a Civil Settlement?

A civil settlement, also termed a civil settlement, occurs when the plaintiff in a civil case agrees to stop legal action and the right to pursue recourse in exchange for agreed upon terms. The terms in a civil settlement may include payment or an agreement to perform or cease actions.

Civil settlements are typically negotiated between both parties and representing attorneys. A legal contract is drawn and signed, and paperwork is filed with the courts to drop the civil case when a civil settlement is reached. Parties not in compliance with the terms of the settlement can be subject to further legal action.