Actually, it was for the short story "I Have No Mouth But Must Scream" (I believe that was the title.) The story behind the original Terminator really did pretty much borrow the entire concept from the story. And it wasn't about money. It was to get a line in the credits "acknowledging the works of HE"
It's an awesome story, and was really amazing when it was released.
Mark
The Terminator lawsuit was over the two Outer Limits episodes, but the best part of the story is that, after he won, Ellison spent all the money to rent a billboard directly opposite the Paramount Studio gates saying "PARAMOUNT STEALS FROM WRITERS."
I read "I have no mouth and I must scream" but I thought "The Terminator" was taken from the "Soldier" episode of "Outer Limits." Two opposing entities come from the future. The good guy is detained by the cops. They use animals to help detect the bad guys - cats in "Soldier" - dogs in "The Terminator".