Settlement Dismissal Orders
Before submitting a proposed order of
dismissal, counsel should review Seventh Circuit case law regarding the
retention of federal jurisdiction to enforce the terms of a settlement
agreement. See Blue
Cross and Blue Shield Ass’n v. American Express Co., 467 F.3d 634,
636 (7th Cir. 2006); Shapo
v. Engle, 463 F.3d 641, 646 (7th Cir. 2006). In general, Seventh
Circuit decisions hold that dismissals “with prejudice” leave the Court without
jurisdiction to enforce a settlement agreement. Accordingly, in most cases, the
parties would be well advised to submit a proposed order that either (a)
provides for dismissal with prejudice if the settlement terms have already been
fulfilled (e.g., payment
has been made), but make no reference to retention of jurisdiction; or (b)
provides for the case to be “dismissed without prejudice with leave to
reinstate on or before [date far enough in the future to fulfill all settlement
terms]. Thereafter, the case shall be deemed, without further order of the
Court, to be dismissed with prejudice.”
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