Was there in fact a separate settlement between the WWF and WCW over Madusa trashing the women's title? Or was that incident ultimately folded into the larger lawsuit that popped up later on – if memory serves, that one was sparked by when Hall & Nash jumped and they acted a little too closely to their WWF personas at first, and we all know how that lawsuit ended.
There was a separate settlement for the belt trashing. WWF lawyers immediately laid the legal smackdown on them for intellectual property infringement and Eric was told in no uncertain terms by WCW's legal department never to do anything like that again. I don't believe terms were ever disclosed but it went REALLY badly for WCW, which is why it was so ludicrous to think that Bischoff might have let Bret bring the title belt on TV after Montreal. It's also funny because WWF freaked out about it so badly, but now it's like this iconic moment they use as a part of their Monday Night War nostalgia shows.