If the lawsuit is settled prior to the scheduled court appearance, your friend will need to file a Request for Dismissal (court form) with the court.  The types of dismissal are with prejudice or without prejudice.  Dismissal with prejudice means the case cannot be reinstated.  Dismissal without prejudice means the case can be reinstated sometime in the future.If you and your friend haven't signed the Request for Dismissal and therefore it is not filed prior to the scheduled court appearance, your friend could call the court and have the matter taken off calendar which means that the scheduled hearing will be cancelled.  The Request for Dismissal will still need to be filed.If you don't appear in court for a scheduled hearing and haven't taken the above measures, you could be charged with failure to appear and a bench warrant could be issued for your arrest.  You could also be subject to monetary fines.