Well, it seems that Fox is seeking an injunction to block the release of "Watchmen" and Warner doesn't want to settle.

What this really means, IMO, is that Fox wants to push as hard as they can to force Warner to give them as much money as possible. Which will happen because Fox doesn't lose jack shit if the movie doesn't get released, and Warner loses, well, everything they put into it. It's cheaper on their part to settle eventually, and smarter. But there is always the possibility that Fox will lose the trial (I highly doubt that, though).