What is a settlement agreement in civil litigation?

A settlement agreement in civil litigation is a legally binding contract that resolves a dispute without the need for a trial. This is significant because it allows the parties involved to come to an amicable resolution, often saving time, money, and the uncertainty associated with a trial.

These agreements can include various terms such as payment amounts, timelines for completion of actions, and obligations each party has moving forward. By entering into a settlement agreement, the parties can avoid the lengthy and often complex process of litigation, while also maintaining some control over the outcome.

In contrast, options related to appeal processes or requests to dismiss a case do not represent the nature of a settlement agreement, which is fundamentally about resolving disputes. Additionally, informal discussions without a formal agreement do not carry the same legal weight and enforceability as a settlement agreement.