A settlement is a mutual agreement between multiple parties involved in a legal issue, and it generally occurs before or after a court case. Settlement agreements often involve a money transfer of some sort for the wronged or injured person (AKA: the plaintiff). If the plaintiff wins, they could receive a large sum of money up front for their physical injuries/damages. Or the two parties could agree on invoicing and payment schedule. That way, the injured person could receive multiple payments for economic damages, non-economic damages, and even punitive damages over the course of several years.