I am playing on the next to lowest difficulty, so maybe that has something to do with it. Anyway, I start a war with my neighbor. He has an alliance with another civ, so that civ declares war on me. They are really far away. I take a settlement from my neighbor. The war is going well. I never engage in combat with the allied civ. They are too far away. When it comes time for peace, this allied civ offers me a settlement even though they were never in any danger. I never saw any of their units. Seems weird that they would offer me anything.