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Out of Court Settlement

Definition - What does Out of Court Settlement mean?

An out of court settlement is an agreement between the parties in a pending lawsuit to resolve the issues mutually without judicial supervision or intervention. Though judges or jury are not involved in an out of court settlement, it mostly requires an active involvement of attorneys from both the sides.

Out of court settlement is also called negotiated settlement.

Justipedia explains Out of Court Settlement

Sometimes the parties involved in a dispute come to a resolution before a judgment is made. Such resolutions between the parties without a trial process or judicial intervention is called an out of court settlement. Lawsuits can be costly and time consuming for all parties involved in a dispute. The high cost of litigation often compels the parties involved in a dispute to settle their dispute out of court.

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