Winston & Strawn has settled on the eve of trial a lawsuit brought against it by a New York partner who claimed the firm broke a deal to exempt him from “decompression,” a firm policy sharply reducing partners’ pay after age 65.

Throughout the 1990s, Anthony F. LoFrisco, 74, was one of the firm’s highest-paid partners, based largely on his close relationship with former General Electric Co. Chairman John “Jack” Welch. According to a 1994 agreement with Chicago-based Winston & Strawn, LoFrisco was to be paid an amount equal to at least 13 percent of the firm’s GE billings.