As TMZ first reported, the chef filed suit against Simon and Terri earlier this month, claiming the "American Idol" judge wouldn't return her running shoes -- equipped with $500 orthopedic insoles. The chef claims Terri made her remove the shoes before entering Cowell's Hollywood Hills mansion.
But yesterday, Team Simon and the chef reached a settlement -- the chef got her shoes back ... plus around $75 in court costs ... and $9 for the gas!
We just spoke to the chef, who told us, "I got my shoes back ... yayyyyyyy!"