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Beyonce Pays the Price for Bothering Neighbor

9/8/2010 12:00 PM PDT BY TMZ STAFF

Beyonce Knowles just ended a legal war with a guy who claimed the singer "invaded his neighborhood" for a video shoot -- but it took a whole lotta cash to end the grudge match.

Beyonce Sued By Neighbor

We just spoke with Philip Markowitz -- the guy who sued Beyonce and her production crew back in May for allegedly wreaking havoc in his neighborhood -- and dude told us he just scored a 5-figure settlement to drop the case.

As we previously reported, the trouble began when Beyonce used a home in the Hollywood Hills to shoot a music video for the song "Why Don't You Love Me" ... and the crew allegedly trespassed onto Markowitz's driveway.

Markowitz tells us, "I'm happy with the settlement, but this lawsuit shouldn't have happened in the first place."

He adds,  "They set up on my property without asking and [the settlement] should send a notice to other production companies that they need to respect the rights of property owners."

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