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conclusive resolving of a matter; especially, a compromise achieved by adverse parties in a civil suit before final judgment, whereby they agree between themselves upon their respective rights and obligations, thus eliminating the necessity of judicial resolution of the controversy. EXAMPLE: A company is accused of discriminatory hiring practices by the Equal Employment Opportunity Commission (EEOC). The Commission will usually file with the company a notice of its accusations and will attempt to reach a settlement before looking to the courts. That method generally gives each party more flexibility. In certain instances, a judge may have to approve the settlement.

compare plea bargaining
Source: Barron's Dictionary of Legal Terms, Steven H. Gifis, 5th Edition; © 2016

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