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Definition of Out of Court Settlement

An out of court settlement is an agreement made out of court between the defendant and the plaintiff to resolve the dispute without a judge's approval or "going to court." Out of court settlements are very common in civil cases where the disputing parties are often asked to resolve their disputes through alternative conflict resolution methods such as mediation or arbitration.

Out of court settlements can provide compensation to the plaintiff which is similar to what they might have received if the case had gone to trial. Compensation can include lost wage compensation, payment for medical costs, and pain and suffering compensation.

An out of court settlement may allow a plaintiff to avoid a lengthy court battle, but in some cases, if an insurance company offers you an out of court settlement, they may not offer you enough money to fully compensate you for your injuries. If you are considering taking an out of court settlement, first talk to an injury lawyer.

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