More Than Breach Required To Set Aside Consent Judgment

Weighing in on when it is appropriate to set aside a consent judgment stemming from a trademark infringement dispute, the U.S. Court of Appeals for the Sixth Circuit held that breach of a settlement agreement that is the basis for a consent judgment is not sufficient grounds by itself to set aside the judgment. Ford Motor Co. v. Mustangs Unlimited, Inc., Case No. 06-1567 (6th Cir., May 24, 2007) (Moore, C.J.).

Ford and Mustangs had settled a case Ford brought against Mustangs for trademark counterfeiting, infringement, dilution and unfair competition. Their settlement agreement was the basis for a consent judgment entered by the district court. Ford believed Mustangs had breached the settlement agreement and moved the district court to set aside the consent judgment under Rule 60(b)(6), which allows a judgment to be set aside for "any other reason justifying relief from the operation of the judgment." The district court vacated the consent judgment, and Mustangs appealed, arguing