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. 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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