The general rule regarding taxability of amounts received from settlement of lawsuits and other legal remedies is Internal Revenue Code (IRC) Section 61. This section states all income is taxable from whatever source derived, unless exempted by another section of the code.
IRS Section 104 states that a taxpayer may exclude amounts arising from personal physical injuries and physical injuries. Unless your lawsuit involved personal physical injuries or physical injuries, then you would not negate the 1099 MISC. We would have to assume that the W2 and and 1099 MISC are coincidentally the same amount even though these are for two distinct things, wages and non wages. Otherwise, there really is no way to tell if these two amounts overlap without confirmation from the issuer of the W2 and 1099 MISC.
Let me know if this helps.
@hyang
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