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Simple English definitions for legal terms
nuisance settlement
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A quick definition of nuisance settlement:
A nuisance settlement is when someone pays money to another person just to avoid a long and expensive court case, even if they don't think they did anything wrong. It's like giving someone money to make them go away.A more thorough explanation:
Term: Nuisance SettlementDefinition: A nuisance settlement is an agreement between two parties to end a dispute or lawsuit. The defendant pays the plaintiff a sum of money purely for economic reasons, rather than admitting responsibility. This is because the defendant would spend more money on legal fees and expenses caused by a prolonged legal battle than in paying the settlement amount. The money paid in such a settlement is often called nuisance money.
Example: A company is accused of polluting a river and causing harm to the environment. The company denies responsibility but agrees to pay a sum of money to the plaintiff to settle the case. The company does this because it would cost more to fight the case in court than to pay the settlement amount. This is an example of a nuisance settlement.