Settled outside of court for a settlement against me. How to claim on taxes?

The original claim was for a fire at the apartment I had lived at.  No charges were ever brought up, but it was found that the fire started on my porch (still unknown how it started).  I had a claim against me for over $550,000.  I got a lawyer and we settled for $3,000.  I have received no tax forms from the collection agency.  How do I handle this situation on my taxes?

Deductions & credits

You don't report anything. This is a personal expense that will not be reported on your tax return. 

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