Before a lawsuit
Parties may investigate, exchange selected information, communicate with insurers, and discuss resolution without filing a court case. The process and available information vary widely.
What filing changes
A civil action begins with court filings and service under the applicable rules. Pleadings, motions, discovery, scheduling orders, and court supervision may follow. State procedures differ from federal procedures.
What settlement changes
A settlement is an agreement to resolve specified issues. Its terms may include payment, releases, confidentiality, allocation, or other obligations. Read the actual agreement; the headline amount does not show fees, costs, liens, or the rights being released.
Why the paths overlap
U.S. Courts explains that judges encourage resolution methods such as mediation and that litigants often settle; a filed case can therefore settle before trial. Filing and negotiating are not necessarily mutually exclusive phases.