If you have the money, try to settle, but be advised that attempting a settlement prior to court with the other side's attorney is a VERY tricky thing to do, so be careful: The problem is that they will invariably want you to sign away your legal rights for any settlement agreement by signing a document that authorizes an instant judgement. DO NOT sign such an agreement or any agreement that waives your legal rights.
NEVER, EVER trust any “advise” they give you, regardless of how “nice” they might seem on the phone. Remeber, the are 100% against you best interests. Accepting advise from them on what to do is like Tweety Bird accepting advise from Syvester the Cat. 
See this post as a warning of what can go wrong when trying to settle with the attorney’s prior to court:
http://www.ripoffreport.com/reports/0/444/ripoff0444782.htm
Be sure to get a written settlement agreement from the PRIOR to making any payments. NEVER accept settlement terms over the phone without a written agreemen