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Longman Dictionary of Contemporary English
out-of-court settlement
noun
EXAMPLES FROM CORPUS
▪ But Education Department lawyers made the out-of-court settlement and agreed to pay his £12,000 costs.
▪ He received an out-of-court settlement last year.
▪ Infringements can be dealt with by an out-of-court settlement or if necessary by civil proceedings.
▪ South Yorkshire police yesterday awarded Mr Long an out-of-court settlement before the case reached Sheffield high court.
▪ The advantages of trying to obtain an out-of-court settlement at a relatively early stage in the proceedings are therefore obvious.
▪ The army denied liability but agreed on an out-of-court settlement.
▪ The women, who were on legal aid, were offered an out-of-court settlement which would have barely covered their legal fees.
WordNet
out-of-court settlement

n. resolution of a dispute prior to the rendering of a final decision by the trial court