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ARTICLE · 01 JUNE 2015

Second Circuit Rules That Unaccepted Offer Of Judgment Does Not End Case

Under Rule 68 of the Federal Rules of Civil Procedure, a defendant can settle a case by offering complete relief of the plaintiff's claims until up to two weeks before trial.

United StatesLitigation, Mediation & Arbitration

In the wake of the U.S. Supreme Court's May 18 announcement that it may decide whether a Rule 68 offer of judgment for complete relief moots potential class claims, the Second Circuit issued an amended ruling on May 21 that partially answered that question in the negative, further compounding a split among the federal circuit courts of appeal. The Second Circuit, in Tanasi v. New Alliance Bank, No. 14-1389, held that an unaccepted Rule 68 offer of judgment that provides complete relief does not, by itself, moot the claims of the named plaintiff. Instead, the named plaintiff's claims become moot for purposes of Article III's case or controversy requirement when the court enters judgment in the named plaintiff's favor in accordance with the offer. In other words, it held that only an accepted offer with a judgment against the defendants will moot claims under Rule 68. The Second Circuit court noted that the other circuits also go in different directions on the issue with

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