If you cannot reach a settlement agreement, you will be in the exact same position as you are now (minus the hope of reaching a settlement agreement). Thus, you will have the same legal recourse regarding the underlying issue as you currently have. (Note, the attempts at settlement cannot be used as evidence in a court proceeding.)
I hope this information helps answer your question(s).
~ Kem Eyo
The above answer is a general explanation of legal rights and procedures. It does not constitute legal advice. Nor does it establish an attorney-client relationship between the individual posting the question and the attorney providing the answer.