Yes it's a settlement where both parties agree to settle out of court a legal dispute.
This has to be agreed by both parties without consideration to other influences.
The settlement would not involve Wasos but the party the club is taking action against - the council and ACL in its prior guise.
So the two actions are not mutually exclusive and the council wouldn't agree to it in a million years - their legal team would block it for very obvious reasons given prior history.
I would have thought the council would be happy if legal actions were stopped.