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I’m reading this movie script and don’t understand some part of it. Can you explain it to me?

Script:

-I had to settle.
-Well, your mom might think so, but a lot of people think I'm a catch.
-No. The case.
-I was this close to nailing it, and then my client gets scared and settles.
-I'm sorry.

(Don’t understand first and second sentence and I know the word “settle” in legal term)

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The script is playing with two common meanings of the word "settle" in English to create a humorous misunderstanding. In legal jargon, to "settle" is to reach a negotiated agreement (called a settlement) between the parties before the court or jury makes a ruling. The other meaning pertains to relationships. In romantic relationships, one "settles" when one becomes involved with a romantic partner who is, on paper, a less desirable romantic partner than one could reasonably expect to find. This form is typically used by other people, like a parent or friend who believe the "settler" deserves better (someone more successful, physically attractive, kinder, and so on).

In this case, the first person, who is evidently an attorney, is telling their romantic partner that their client wanted to reach a settlement in a case the attorney believes they could have won in court. The second person misunderstands, and believes the first person is telling the second person that the first person could have found a "better" romantic partner. Based on that belief, they respond by saying the mother of the first person had never liked the second person, and that many people would consider the second person a great romantic partner for themselves or their offspring. The first person responds by explaining that the second person has misunderstood, and the second person becomes embarrassed, and apologizes.

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