Proceeds from a law suit are not taxable unless you are recovering something with specific tax consequences.
Normally, a judgement represents damages, not income. Judgments can also represent payment for services that you purchased, such as an insurance settlement, also not taxable. (You pay insurance premiums in trade for a service--coverage. When you file a claim, you're getting the service you paid for. This is why insurance settlements can't be taxed, even if they come from a court judgment.)
You'll have to read the court judgment to see how the court arrived at the numbers and what the specific components are. The only time I've seen a lawsuit taxed is when there was an original sale, the sale went uncollected and got written off as a bad debt, and then a judgment recovered the money. In this case, the money had to be retaxed because it had been used as a deduction prematurely--a bad debt deduction. (This is called a "recapture".)