nuisance settlement

noun

Definitions of nuisance settlement

  • an early out of court settlement, often made when the claim is frivolous (=without merit)

    "Some people will file any case in the hope of achieving even a very small nuisance settlement."

Phrase Bank for nuisance settlement

  • The plaintif made burdensome demands in order to force a nuisance settlement.

  • The defendant agrees to a nuisance settlement to avoid further litigation.

  • It would have only paid a nuisance settlement without the threat of sanctions.

  • The sex harassment complaint was being disposed of as a nuisance settlement.

Additional Notes for nuisance settlement

  • The term is used when an insurance company does not believe that there is a basis for a claim against their insured but they pay out a small sum of money because it is cheaper to make a small payment than to keep the case open and risk litigation.