what does this expression means "A lean compromise is better than a fat lawsuit"?

Answer 1

It means negotiating, settling, or accepting terms that may not be the best of what you hoped to get, but which may be better than nothing at all if you proceeded to file a case in court --- or, much worse, if a case was filed against you ---which could cost you more than what you would have gotten from the compromise.

Answer 2

Better for business, they would rather cut you short with a compromise than go to court and lose their shorts.

Answer 3

settling for something that might be less than you wanted is better than sticking it out and paying out a lot of money for a lawsuit.