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out of court

adj. referring to actions, including negotiations between parties and/or their attorneys, without any direct involvement of a judge or the judicial system. Most commonly it refers to an "out-of-court settlement" in which the parties work out a settlement agreement, which they may present to the court for inclusion in a judgment approving the agreement so that the parties can request a court to enforce the settlement in case one of the parties reneges and fails to honor the terms of the settlement. Quite often a judgment approving an out-of-court settlement is held in abeyance and replaced by a dismissal if the terms are fulfilled. Some out-of-court settlements are kept confidential and the lawsuit is dismissed.

See also: settlement 

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The People's Law Dictionary by Gerald and Kathleen Hill Publisher Fine Communications