The on-going feud between Paris Hilton and Zeta Graff, the ex-girlfriend of Paris Latsis (who is Paris Hilton’s former fiance … are you following all this?) will have to continue outside of a courtroom. Paris decided to settle Graff’s lawsuit against her just as the trial was getting started.

Just a day before jury selection was scheduled to begin in diamond diva Zeta Graff’s much-anticipated defamation suit against the hotel heiress, Paris forked up enough cash to settle the case. Sources pegged the damage at north of $2 million. In the suit, Graff alleged that Hilton planted a story on Page Six two years ago which falsely claimed a jealous Graff – the ex-girlfriend of Paris Latsis – had ripped a necklace off Hilton’s neck and been thrown out of London nightclub Kabaret, while Barry Manilow’s “Copacabana” played mockingly in the background. Graff’s lawyer, Michael Avenatti, said, “Both parties are glad the matter could be resolved without the time and expense of a trial.”

In what is perhaps the funniest part of this whole story, the Page Six article continues with the following: “We at Page Six are just glad the matter was resolved without our editor being forced to recite the lyrics of Manilow’s hit song in court, as he did in a deposition.”

Now there’s a video I hope ends up on YouTube.