Roseanna Monk and her husband, Kevin, filed a lawsuit against LaBelle last year.
The couple lives in a Manhattan building where the Grammy Award-winning singer stayed while appearing in the Broadway musical "Fela!"
The couple's lawyer, Sam Davis, tells the New York Post ( http://bit.ly/TkIYJy) LaBelle settled the case even before being deposed. The Monks will donate the money to a children's cancer charity.
LaBelle's publicist declined to comment.
According to the lawsuit, LaBelle chastised Roseanna Monk, threw a bottle of water and launched into an obscenity-filled tirade during the Nov. 11, 2010 argument.