LassofFyvie as KD has now herself stated in that quote you posted that she was indeed contacted twice by lawyers on behalf of SC prior to SC involving the courts, we can put your claim to bed now that he never even tried to settle this out of court. He did. Twice.
FYI KD could have settled this out of court without paying a penny had she apologised, but as I am not in a position to prove this, you may chose to disregard this assertion.
What you cannot disregard is that he did try to settle this out of court and that while there is massive disagreement over whether this joke was homophobic or not, the judge declared it not to meet objective criteria for homophobia.
I have been be the butt of many xenophobic jokes for the past 25 years because of my nationality. So have all my compatriots. Many of these "jokes" are incredibly hurtful, and they are made by large numbers of people from the lowest to the highest levels in this country. Freely, happily and with complete abandon. Splattered across front pages, on TV, on radio, on social media. Today, tomorrow and I doubt it will ever stop. Some tell the same kind of tasteless jokes that SC made, some shout their unfettered hatred in my face (though it is a thankfully rare occurrence in Scotland).
When it comes to righteous anger about abusive jokes, I can't help but reflect this tweet comes nowhere near what other groups go through (by which I do not mean myself, but my experience does put things into perspective for me).
And I find it patronising to the extreme to state that gay people can't ever be the butt of jokes, even tasteless jokes like this one, because of their sexuality.
But as I've said, I am torn about this judgement. If I'm honest, I wanted neither party to win. However, the finding KD has indeed defamed him but that that is okay seems to go against my understanding of defamation laws and to give immense power to the establishment. Which is why I'm reading emerging legal comments with great interest.