Judgements and settlements are taxed according to the kind of money they replace. For example, if this was for a return of your security deposit, then the money is not taxable because you already paid tax on the security when you gave it to the landlord. Or, if it was for damages to property, its not taxable as long as the amount is less than or equal to the price you paid for the property. Any amounts more than your actual physical damages or original cost (such as punitive damages, or replacement cost on items) is taxable. Pain and suffering is not taxable if the original injury was physical, but if the injury is not physical, awards for pain and suffering are taxable.
If the judgement is paid late and includes interest, the interest part is always taxable even if the main settlement is not.