Settlement
A settlement ends the claim. In exchange for an agreed amount, the injured person signs a release giving up the right to sue over the same incident. Most injury cases end this way.
What a settlement is
A settlement is a contract: the injured person accepts an amount, and in exchange gives up the right to pursue further claims against the defendant over this incident. Once signed, it's binding. That's why the release is worth reading carefully.
Full and final
Most releases are written as 'full and final' — they release all claims known or unknown from this incident. That includes claims that might appear later if an injury worsens. Unless the release specifically preserves a future claim (rare), signing closes the door.
Settlement vs. judgment
A settlement is a voluntary agreement between the parties. A judgment is a court order after a lawsuit is decided. Settlements are private; judgments are public record. Settlements typically don't include any admission of fault; judgments reflect a court's finding.
Structured settlements
In large cases, especially involving catastrophic injuries or minors, the settlement may be paid as a stream of future payments (a structured settlement) rather than a lump sum. This can be tax-efficient and provide long-term financial security. It's not common in smaller cases.
Key Takeaways
- 01A settlement is a binding contract — release is the key word.
- 02Most releases are 'full and final' and cover future claims from the same incident.
- 03Settlements are private; judgments are public.
- 04Structured settlements spread payments over time and come up mostly in large cases.
General information only. This page explains common concepts in plain language. It is not legal advice and does not create an attorney-client relationship. Laws vary by state and change over time. For any specific situation, consult a licensed attorney in your jurisdiction.