What is a settlement in civil litigation?

A settlement is an agreement between two parties in a civil litigation case that settles their dispute without going to trial. This agreement is voluntary and legally binding and typically includes an agreement to end the litigation and an agreement to exchange money or other concessions. In Washington, settlements are governed by Chapter 7.06 of the Revised Code of Washington, as well as applicable state and federal rules. Generally, settlement agreements should include details of the amount of money that will be exchanged, how it will be paid, and when payments are due. The agreement may also include other terms, such as who will be responsible for costs and attorney fees. Both parties must agree to the terms of the settlement before it can be enforced by the court. The parties can either reach the settlement through negotiation or mediation or through a process known as "alternative dispute resolution." During this process, a neutral third-party mediator helps the parties to develop an agreement that is acceptable to both sides. Once the settlement is approved by the court, it is legally binding and both parties must abide by its terms. A breach of the agreement by either party can result in serious consequences, including possible financial penalties or contempt proceedings. Settlements are a common alternative to going to trial and can help to avoid the cost and time associated with a long trial.

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What is a settlement in civil litigation?

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