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Frcp Clean Scrubbed Scrubbed

Frcp Clean Scrubbed Scrubbed

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Published by: itm_mailinator on Dec 14, 2011
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PLEADINGS • Formal Documents: 1) Complaint 2) Answer 3) Possible Response • Notice Pleading o Generally: No detailed fact or legal theories required  “not require a claimant to set out in detail the facts up which he bases his claim” Conley v. Gibson o Purpose: to give fair notice to D, focus less on form and more on merits/substance  Make a complaint the starting point, instead of trying to get complaint “just right” keep the case moving instead…” Bennet v. Schmidt o Rationale: Nothing so intrinsic about form that warrants block a meritorious claim o Consequence: less specific, simplified pleading process that allows virtually all claims to be heard • Heightened Pleading Standard o Bell Atlantic v. Twombley  how much info you must give to survive 12(b)(6) is still not a clear issue  “We require only enough facts to state a claim to relief that is plausible on its face” o Ashcroft v. Iqbal  Court’s assumption that all “facts are true” only works for facts, not legal conclusions in a pleading TEXTUAL • 8(a) If any of the pleadings states a claim for relief it must include: (1) statement of jurisdiction unless already established; (2) short, plain statement show entitlement to relief; (3) demand for relief sought o A complaint is rarely thrown out because it is too long or poorly written. Bennett v. Schmidt o Lawyers avoid giving too many details or accurate details to avoid pleading themselves out of court o Looks at “face of complaint” and asks, “if the plaintiff proved everything alleged, would he/she win?” • Rule 8(e)(2) allows stating as many separate claims/defenses as you want, even if they conflict. o Careful: to avoid getting hit by Rule 11, the lawyer cannot have definitive evidence which indicates that one theory is false CONSEQUENCES • P friendly rule because so broad (almost no filter), although P cannot win at this point, D can get 12(b)(6) dismissal • give economic leverage to P because it costs almost nothing to file but expensive for D to defend • Phase meant to be brief, give way to discovery quickly PURPOSE 1. give fair notice of the nature of the claim (who, where & why) for D, so they can prepare a defense

2. state relevant facts/tell a version of the events 3. narrow the issues and clarify what’s in dispute 4. serve as gatekeeper to discovery; prevent the huge burden of discovery in unwarranted lawsuits a. expose insubstantial claims, non-meritorious cases 5. Separate factual from legal issues so that cases presenting only legal issues can be handled without trial (summary decision/judgment, for example).






OVERVIEW • Complaint does not need a legal theory, but if a defendant comes asking then you need to be ready to supply one • Complaints more often dismissed over 12(b)(6) than 8(a)(2)  sometimes because new cases on the frontier of law • Answer responds to each element in a Complaint (admit, deny, insufficient info). Include an Defenses intended to be used at trial (this can be amended later) o General denial of ALL elements of complaint –in good faith ONLY o Failure to deny is the same as if D had admitted the element • Complaints should only be dismissed if “it appears beyond a doubt that P can prove no set of facts… which would entitle him to relief” Conley v. Gibson • Motions to Dismiss o Dismissal Granted: P can amend the pleading and continue action OR allow judgment and appeal instead o Dismissal Denied: D can either answer the complaint OR allow default judgment and appeal TEXTUAL • 12(b)(1-7) Pre-Answer Motion to Dismiss: The following defenses can be asserted by motion (before providing the answer pleading): o Lack of Subject Matter Jurisdiction (case belongs in state court, not fed court) o Lack of Personal Jurisdiction (court has no power over me) o Improper Venue (convenience) o Failure to State a Claim upon which Relief can be Granted (dismissal as a matter of law)  Dismissal if claim for relief fails to assert either a legal theory of recovery that is cognizable at law or fails to allege facts sufficient to support a cognizable claim (Kirksey v. RJ Reynolds Tobacco Co)  Courts assume all well-pleaded facts of the complaint as TRUE and resolve all doubts and inferences in P’s favor (in light most favorable to P)  [PURPOSE] Even before facts are discovered, the legal theory can be settled • Determine early if there is legal basis for complaint, otherwise avoid expensive discovery • Failure to Join a Party under Rule 19 (failure to join a necessary or indispensable party) • 12(d) Courts may consider only allegations in the complaint and exhibits attached. If matter outside pleadings is considered (such as affidavits) then the motion must be treated as SJ and all parties giving an opportunity to present all material information for court’s consideration • 12(g), (h) • Objections under 12(b)(2-5) are forever waived after pleadings are complete UNLESS you brought a pre-answer motion OR put the objection in your answer OR are allowed to amend your answer to include it under Rule 15(a)(1). – Basically, bring all your motions early or don’t bring them at all. • [FORK] The cost of failing to do this is to forever lose your ability later on – harsh penalty/efficiency

It is a balance between efficiency and the public interest (of not hearing cases in wrong court. etc)  . protections the law offers but does not require for D. so if you chose to waive them the court doesn’t care  1. the judge can object Sua Sponte. even if D’s lawyer is dumb enough to forget to object. 7) are treated differently – why?  2-5 These are provisions for the individual. 6. 7 – These involve issues that have a bearing on the court and public interest so we don’t let you waive them.• [PURPOSE] Efficiency reasoning: in law if you have a complaint bring it up as soon as possible to avoid waste of time and effort [FORK] 12(b)(1. 6. That means.

if one brings a claim against the other then Compulsory Counterclaim is in effect and the other must bring any claims regarding that same transaction. D may refrain from impleader and assert his claim instead in an independent action if he prefers. duplicating effort by judge and juries. However. some don’t (using a “toll” – suspension of statute of limitations) • Third-party claims (“Impleader”) (Rule 14): D “may” bring in as a third party defendant one claimed by the D to be liable to him for all or part of the plaintiff's claim against the D.RULE 13. Also. any liability of a third-party defendant must necessarily be secondary or derivative to the liability of the original defendant. If this is allowable then people will sue out of fear the other one will sue them in this strategic way. Efficiency & Convenience • Avoid waste. not compelled to reassert  13(f) . • Convenient for fact-finder to consider a single real-world event o Exceptions 13(a)(1)(B)  Not compulsory if the court doesn’t have jurisdiction over that new party  If D has already asserted the claim by the time she is being sued. inadvertence or excusable neglect court can permit amendment if “justice so requires” – vague term can be argued over • Permissive Counterclaim 13(b): B has the OPTION (“may”) of bringing other claims he has against A that are unrelated to the main claim.) o Crossclaim must arise from the same transaction or occurrence as the original action or of a counterclaim o Crossclaim – no affect on SOL o Can include assertion that the co-party may be liable for all or part f the claim against the party asserting the crossclaim o [Purpose No-Hostility] rules never make you initiate hostility but once hostility is started then all claims about issue must get resolved o [GAME THEORY] Stag Hunt – Bring case 5 min before SOL to disallow counterclaim. paying lawyers twice. o “same transaction” – an ambiguous phrase – can argue based on purpose:  [Purpose] Harsh Penalty vs. If P’s claim against original D fails then secondary D is off the hook.If party fails to assert counterclaim through oversight. if both parties knew it wasn’t an issue they’d have no incentive to do this trick Reality: some courts allow this strategy. . etc. However. If claims are not brought they are forfeited forever (in both state and fed court). claims can instead be brought in a later suit o [Purpose] Allow B to choose a court more favorable to B’s interests. and not letting A dictate the terms of the suit B wants to bring • Cross Claims (Rule 13(g)): If A brings a suit against B and C they “may” also bring claims against each other. In order to satisfy FRCP 14(a). Downside: it leads to more litigation with economic consequences.14 JOINDERS – MULTIPLE PARTIES TEXTUAL • Compulsory Counterclaim (Rule 13(a-b)): If A sues B then B “must” bring (as a “counterclaim”) any claims he has against A arising from the same transaction. the gains in efficiency aren’t as big as with counterclaims. but they are not required to. If original D brings claim against secondary D then rule of compulsory counterclaim is in effect. o [PURPOSE] We give them the option because A should not be able to dictate terms and location of the fight between B and C that doesn’t concern him – it is a balance between civil efficiency and respecting the autonomy of B and C to choose their own fight. If B chooses.

o o o Impleader: Shared responsibility (dragging someone else into a case saying they are responsible for all or part of the liability you incur) Judge reserves right to parse out a case to make it efficient and so jury isn’t overwhelmed 3rd Party Impleader Claim: Clock doesn’t start ticking on middle party to bring claim against 3rd party until middle party loses its claim (if it loses at all) RES JUDICATA • Res Judicata (claim preclusion) concerns will often practically require joinder. it will generally be subject to claim preclusion . because if a claim could be raised and is not.

Failure to do so does not affect the result of the trial of that issue. with certain restrictions • Generally. RELATION BACK OF AMENDMENTS • Any amendments (claims/parties) made past the SOL date should be allowed if: o SOL law allows it o Amendment asserts a claim that arose out of transaction set out in the original pleading (or was attempted to be set out in the original pleading) • Additionally. AND o The new party should have known the suit would have been brought against him if P didn’t make a mistake about the proper party’s identity PURPOSE/STRATEGY • Strategy of waiting until last second to • Protecting two rights: 1) to not be sued after SOL 2) to not be notified 120 days after SOL AMBIGUITIES • “when justice so requires” o Scenario: P discovers after SOL that D is the wrong party (despite admitting it in the Answer)  Letting D off: • Means you cannot bring a suit against any other party. amendments to PARTIES made past SOL date should be allowed if: o The new party received notice within 120 days after filing of the original complaint in such a way as to not be prejudiced in defending on the merits (examples?). meritorious claim lost • Incentivizes people to be sloppy if they can get off the hook • P is injured by relying on D’s answer  sue D after dismissal for this negligence  Keeping D in: • A truly innocent party may bear the burden for a technicality (punished) . the court should freely give leave to amend a pleading when justice so requires (exceptions would be if the amendment would immediately be subject to dismissal under 12(b)(6)) • Point of 15 is to determine if person will be disadvantaged by being brought in to the suit AMENDING BEFORE TRIAL • Freebie: One free amendment within 21 days after serving or being served with the answer • Otherwise: Written consent of opposing party or court’s leave (given freely when justice requires) • If your amendment requires a response.• AMENDED RULE 15 & SUPPLEMENTAL PLEADINGS OVERVIEW • The claims and/or opposing party can be amended. it must be made within 14 days (or remaining time by other rules) AMENDING DURING/AFTER TRIAL • If there’s an objection that evidence is not within pleadings – courts should freely allow amending + continuance • If an issue not raised by the pleadings is tried (with implied consent) then courts should allow amending.

• Harsh penalty teaches people to follow the rules – happens less often this way “mistake concerning proper party’s identity” o Mistake can be interpreted as a “clerical mistake” or a “mistake in judgment”  If it is clerical (I put the wrong party’s name) – this is usually forgiven and allowed by courts  If it is a judgment mistake. courts tend not to like this: • “Next Case”: Do we allow amendments so P can sue forgotten parties with deeper pockets? This infringes on the rights of the big companies • .

the court assumes non-movant’s witnesses will all be believed and jury will draw all reasonable inferences in non-movant’s favor. hopefully afterward you don’t need a trial SJ FOR • P SJ is usually reserved for D. Babcock) o If P has a “star witness”  jury trial (or affects settlement amount) o Two pieces of material evidence in direct dispute  jury trial FAVORABLE LIGHT TO NON MOVANT • In motion for SJ. how do you show proof that someone has no proof? . Winn-Dixie Supermarkets) • SJ considers all evidence admissible at trial (preference for depositions [live] over affidavits [crafted]) o Affidavits must be based on personal knowledge (not hearsay) • Questions of FACT. however in rare exceptions it can be for P o P can win in pure dispute of law (otherwise difficult because burden of proof at this point is 90%+) o No evidentiary facts can be in dispute because even if P has all the evidence. Catrett  Placing burden on D to prove P has no evidence would be very difficult and costly for D. Exceptions include incredible testimony contrary to the laws of nature PURPOSE/STRATEGY • save public and private resources if case can only have 1 outcome o Lawsuits spend a majority of time in Discovery. credibility.• RULE 56 SUMMARY JUDGMENT (SJ) OVERVIEW • Defined: a judgment rendered because no material issue of fact exists and one party is entitled to a judgment as a matter of law GENUINE ISSUE OF MATERIAL FACT • SJ granted to a party if any evidence in the record (discovery/pleadings) show no genuine issue of material fact o “genuine dispute” – reasonable minds could differ o “material fact” – a fact the case depends on o Can a reasonable jury decide the facts more than one way? (Bates v. or inferences? o If P has NO admissible evidence to support the complaint – SJ will be granted by D simply pointing this out – D does not have the burden to prove that P has no evidence. INFERENCE DRAWING or CREDIBILITY go to a jury (Mickelson v. a jury may not believe any of it and still rule in favor of D (who has no burden of proof) o SJ is a bottleneck to compensate for big mouth funnel of people submitting complaints (hard to get trial cuz its easy to start a lawsuit) REASONS TO USE SJ: • Scenario 1: Collection of Evidence makes it clear that P has no legal basis for claim and case must be dismissed (it survived 12(b)(6) because pleadings did not include enough information to dismiss) • Scenario 2: Does the evidence collected necessitate a ruling on facts. Celotex v.

A party “may” (actually. The court can allow or deny JMOL or New Trial. but to approach evidence the same was as in SJ TEXTUAL • 50(a) Once a party has been fully heard on an issue at a jury trial the court may grant JMOL against the party if there is insufficient evidence for a reasonable jury to find for that party (JMOL against the whole issue. If it is not overturned the order for New Trial is ignored • 50(e) If JMOL is denied. attorneys fees. it MUST be brought before the case is submitted to the jury. being held in contempt and other sanctions ISSUES • There are not many “interpretive” issues with this rule JUDGMENT AS RULE 50 A MATTER OF LAW (JMOL) OVERVIEW • Defined: is a motion made by a party. • 50(c) If court decides for JMOL it must also rule conditionally on New Trial in case JMOL is overturned by appellate court. the party can renew its motion for JMOL and at the same time the request for a New Trial under Rule 59. Liberty Lobby • A judge is not suppose to consider credibility of witnesses. • JMOL may be made any time after evidence is presented but before the case is submitted to the jury. however. 2. • There are not many “interpretive” issues in this rule . 4) anything else • 56(f) Court can consider SJ on its own Sua Sponte • 56(h) Affidavit in bad faith can lead to paying costs. and 3 – good practice TEXTUAL • 56(d) If non-movant party does not yet have counter-evidence the court may: 1) defer consideration. That is wasteful. must – cuz renewal) motion before the end of the trial • 50(b) Within 28 days after either a judgment or jury discharge.PARTIAL SJ • 56(d)(1): SJ can be granted only on certain material facts that are not genuinely in dispute • 56(d)(2): SJ can be granted on liability alone requiring a jury to only determine amount of damages • Pg 46 #1. or a piece of the issue). If it will be brought at all. claiming the opposing party has insufficient evidence to reasonably support its case. a verdict should not be directed” Anderson v. during trial. 2) deny. • Difference [SJ and JMOL] – Timing & Evidence Used (admissible evidence in record v. the winning party may assert grounds for a New Trial if JMOL denial is overruled ISSUES • Why would a verdict be renewed after a jury has already decided? o Judgment before a jury decision would mean that if an appeals court reversed the judgment a new trial must take place. Have a jury decision waiting that appeals court can default to. evidence presented at trial) • Similarities [SJ and JMOL] – “a reasonably jury could only decide the case one way” o “If reasonable minds could differ as to the import of the evidence. 3) allow necessary time.

Jury’s verdict must result in a miscarriage of justice o Damages Awarded were Too High or Too Low  Remittitur: P is given two choices: reduced damages OR new trial • Typical when jury award is extravagant (juries get no guidance of past jury awards + no market measurement for pain & suffering) • Ex: 100mil judgment by jury. Court because violates 7th Amendment  7th Amendment: “no fact tried by jury shall be otherwise re-examined in any US court” • Remittitur is allowed under 7th because it is a subset of jury’s decision. Accept 10 mil then you can’t appeal. judge says you can take 10mil or have a new trial. wrong jury instructions given or other incorrect ruling o Prejudicial Misconduct: something was said or done to unfairly benefit a party o Newly discovered evidence that existed at the time of trial was excusably overlooked and would likely have altered the outcome of the trial o False Evidence on which the Verdict was Based o Jury’s Verdict Against the Great Weight of the Evidence: Lawyer can argue that the jury did an outlandishly bad job of assessing witness credibility and weighing the evidence. but using Additur is going outside realm of jury decision • New Trial: o Can be granted on any/all issues in case – if it was a non-jury trial more facts & new judgment can be made o Can be called for Sua Sponte o Amendment of damages must be made within the same 28 days as the new trial request • Mistakes can’t be inconsequential  must have the chance of changing the outcome of the trial • How to Appeal a WIN: If you win less than you sought. Accept new trial a judge still won’t give you 100mil next time. try to get a retrial and if the retrial is denied then appeal the denial of the retrial .RULE 59 NEW TRIAL OVERVIEW • After losing judgment but before filing for an appeal  motion for new trial • Reasons for a new trial: o Mistake Occurred: evidence wrongly admitted. but might give you 15mil if jury awards it.  Additur: D is given two choices: pay more damages OR new trial • Typical when damages are low • Not allowed in Fed.

newly discovered evidence that could not have been found with reasonable diligence. inadvertence. excusable neglect. applying judgment is no longer equitable. so you need to narrow it in terms of the words around it.  Maybe we don’t like evidence that comes after a case in the name of good policy since it affects finality. judgment has been satisfied. released or discharged. is that an error? Prob not. If you had to reopen for new evidence you’d be constantly reopening cases. such as “clerical error” GROUNDS FOR RELIEF • Within 1 Year: because of mistake. Accuracy o Finality: We want people to assume cases are over and balance their books accordingly and move on. fraud. What is settled is settled. We don’t want to disrupt them for minor things. it’s how intelligently you can argue points • [FORK] Finality v.RULE 60 REOPENING THE JUDGMENT CORRECTIONS BASED ON CLERICAL MISTAKES OR OVERSIGHTS/OMISSIONS • On motion or sua sponte – correct a mistake if found in judgment or record o Ex: Judgment was for $100k but was written in the judgment as $10k o [FORK] what does “clerical mistake” mean? • Semantic – comes from the work “clerical” so must mean “clerk” • Textual –What does the rest of the rule say? o “whenever one can be found” – generically allows for LOTS of time – such a broad allowance means courts narrow what is allowed to not open floodgates • Purpose – Whenever a reading of a part of a rule tends to obliterate the purpose or need for another part of the rule. what does contract law say? • Every rule has 2 purposes – its purpose and counter purpose o [EXAM TIP] statute reading: “oversight” is a broad word. misrepresentation or misconduct by an opposing party • Any reason not listed above has only “reasonable” time limit: Judgment is void.  Consequence: ignore all but the more egregious clerical errors  If “judgment” errors were relevant  slippery slope/floodgates/next case  [Next Case] if pulling the wrong case is a “clerical error” then what else might be considered a clerical error? If he pulls the wrong book and doesn’t find a specific case that’d change his opinion. any other reason • No time limit for fraud on the court ISSUES • Nit-pick ambiguities – no points for the right answer. judgment was based on another that was reversed or vacated. surprise. that reading is disfavored. Look at the “next case” do you keep reopening cases?  Finality  Administration costs (sheer amount of litigation and effort required by judges) .

o o “on just terms” – leaves it to the judge to determine how to grant Rule 60 – new trial? Reduced damages? Sanctions? Etc. Courts would rather be wrong and finished than leave open and keep trying to fix Accuracy: We don’t like when cases are held incorrectly. • Administrative Costs – judges actually limit and tie judges hands so they can focus on the 500 other cases they have. especially when we know the truth after the fact Similar to how SOL protects finality of judgment • .

The decision must be final. 3) immediate appeal may materially advance ultimate termination of litigation ii. 28 USC 1292 a. motions to dismiss.) as long as an objection was made at the time of trial and so long as the error is not found to have been “harmless” • Harmless? = Judge asks. Rationale: why waste 3 years settling something that would have been dismissed week 1? iii. courts have read clauses to mean “right to avoid a final judgment” and so an appeal would not destroy this right. Trial Judge Certifies i. When an appeal is allowed on this basis it becomes a STRONG precedent for all future similar situations. 1) controlling [pure] question of law. So bad decisions by judges can affect a settlement price. The decision must be “effectively unreviewable” on appeal from final judgment (“irreparable harm” requirement) – the appellant must show that an appeal at the end of the case will come too late i. any claim ruled on before others is appealable right then 2. On the other hand. “my decision isn’t good enough” 3. e. If the “unreviewable right” is time and cost of trial. “We want all documents related to chemical X” o If the judge allows: issue is not appeal-able but it will be costly & burdensome o If the judge does not allow: issue may be appeal-able if you can show not having docs affect outcome EXCEPTIONS TO FINAL JUDGMENT RULE (“APPEAL OF INTERLOCUTORY ORDERS”) 1. Doesn’t happen often because judge would basically be saying. Trial continues to litigate b. it is too broad ii. rather than tentative d.TIMING OF APPEALS FINAL JUDGMENT RULE (28 USC §1291) Ordinarily a losing party cannot appeal a decision until final judgment has been entered in the trial court SPECIAL NOTES The losing party can appeal any decision in the trial (during discovery. FRCP 54(b) – if lawsuit has multiple claims. Injunctions b. • Hypo: If you ask a judge. “how likely would this have been to affect the outcome?” CONSEQUENCES It is expensive to take a trial all the way to the end just to get an appeal (and if you settle you can’t appeal). Bad publicity is not an argument most courts recognize for allowing immediate appeal . you can’t get any judgment money out of them – so harm would be irreparable) ii. Issue on appeal is separate from merits of the case c. Ex: Lauro Lines: If a K guarantees a “right” to avoid litigation that right may be destroyed if it can only be vindicated at the end of trial. Collateral Order Doctrine a. which makes it rather rarely used method for exante/next case reasons i. Ex: an appeal on a trial judge’s decision to deny requiring a bond at the beginning of a lawsuit (if loser is insolvent. etc. 2) substantial grounds for difference of opinion.

violation of a clear undisputable legal right” d. An appeals court can immediately review an order that is an abuse of judicial authority. such as an order beyond the trial court’s jurisdiction or an order that violates a mandatory duty of the trial court. An appeal on this basis sets no future precedent for similar situations. each is unique 5. Petitioning party must show judge’s order “exceeded proper bounds of judicial discretion to be considered usurping in character. Petitioning party must have a clear right to relief c. . If mandamus is sought on basis of 7th Amendment right. Mandamus (“extraordinary circumstances”) . Class Action Certification (see Rule 23) a.a party “sues” the trial judge.4. the requirement for “irreparable harm” is relaxed e. Rule 23(f) allows immediate appeals from an order granting or denying class action certification. a. Petitioning party must show irreparable harm (“effectively unreviewable if heard at the end of the case”) b. Appellate court has discretion to deny appeal.

desirability of concentrating litigation. difficulties managing a class action . extent of already completed/pending related litigation. but together the claim becomes worth it (can afford an attorney) and you can “teach/punish the company”  A situation where some class members may be subject to “inconsistent adjudications” o Relief for representative claim is appropriate for the entire class o Representative claim has common question of law or fact o Class action structure is superior to other available methods  “Superior method” considers of class members’ interest.RULE 23 CLASS ACTIONS Generally • Extortion (Easterbrook)? These are “industry busters” and can destroy whole companies  high chance of settlement • Good business model: 1/3 of a HUGE settlement  lots of cash for a short period of work o Sketchy: “coupon settlements” where attorney gets cash and clients get coupons • Most powerful arg for class action: if you don’t have class-action status then you no longer have a case against the wrongdoer • 23(a) In order for a case to be a candidate for class action. it must have the following characteristics [CANT]: o (C)ommonality: questions of law or fact are common to the class o (A)dequecy: prove your lawyers and institution are prepared to handle such a case o (N)umerous: class is so numerous that joiner of all members is impracticable o (T)ypical: the leading case is representative of others claims or defenses • 23(b) Certification as class action should be granted o if separate actions would create a risk of:  Inequitable relief: Where early litigants in a class would claim all damages and thereby preclude later litigants in the class from obtaining damages  Individual Incident over Small $$: Alone the claim is not worth litigating.

etc)  Purpose #2: the case is likely fact sensitive and so a question of “uniformity” is less important (many appellate courts see their primary purpose as one of creating uniformity between lower courts) . about the facts of a case • Effect in Appeals: o Law (plenary/de novo): court considers the question “from scratch” without giving any weight at all to trial judge’s opinion  Ex: Rule 12(b)(6).  Do injustice a few times to have a lot of cases that will never come up REASONS FOR/AGAINST • Efficiency: If you do not object at the right time it may require a retrial which is expensive. This is harsh. but not in civil cases. Retrial. but in the future people will think VERY hard before building a house – which is good. JNOV… o Fact (deferential): court will only reverse if the trial judge was clearly erroneous (judge commits and error of law or abuse of discretion)  Purpose #1: a trial judge is in a better position than the appellate judge (has a comparative advantage of delicate balancing) to make factual determinations because he can hear and see witnesses and other evidence (appellate judges just read “cold” text evidence) (ex: Reopening Judgment. SJ. if anything. This is allowed in criminal cases. Incentivize lawyers to object at the least expensive moment (right away) • Public Interest: Some rights can’t be waived no matter if opposing party forgets to object • Harmless Error: If the error is harmless… allow it? Or forget about it? • Accuracy/Justice: if the consequences of forgetting are disproportionate compares to inefficiency of objecting too late o Plain Error: Sometimes an error is so plain that a court will raise it Sua Sponte. courts distinguish between findings of fact and rulings of law o Facts: Extremely difficult to get this reversed on appeal (impossible if it was decided by a jury) o Law: judges may not need to know much.STANDARDS OF REVIEW OVERVIEW • Failure to raise an objection at the right moment during trial may lead to forfeiture of the right to bring it up later o Harsh penalty may be disproportionate to the wrong. Can you use it as a civil lawyer?  Yes: Draw a parallel between purpose  No: Expressio Unius – it was intentionally left out because there is recourse against a lawyer when damages are merely monetary called “malpractice” STANDARDS OF REVIEW FOR APPEALS Overview • In considering various grounds for appeal. or disproportionately helpful to a party o Ex: If you build a house 1ft on neighbor’s property a court often errs on the side of forcing you to tear it down.

Rule 59 witness credibility o Both  difficult Side Note: If you win on appeal you probably go back to the same trial judge – yikes!  • . certification of CA. Won’t do it because of the media • SC is not the “final decision” cuz they’re “infallible” – infallible cuz they’re final decision  Ex: equitable relief.• SC is strictly uniform (doesn’t care about fixing errors from below). allowing jury to hear specific evidence. Might also take cases out of respect to Congress.

AND o A question of law or fact common to all Ds will arise in the action • Extent of Relief: Same relief need not be demanded among joined P or D • Protective Measures: To avoid unfairness or hardship the court may separate trials or make any other order to prevent delay or expense to a party RULE 54 ?? RULE 35 ?? . severally. AND o Any question of law or fact common to all plaintiffs will arise in the action • Person may be joined as a D if: o Any right to relief asserted against them jointly or alternatively having arisen out of the same transaction. or in the alternative with respect to or arising out of the same transaction.RULE 19 ?? Parties REQUIRED to be joined (for certain reasons) (compulsory) RULE 20 ?? Minimum requirements for a joined party (permissive) • Person may join as a P if: o They assert any right to relief jointly. occurrence of series of transactions.

DISCOVERY OVERVIEW • Most important phase of modern civil litigation o Shapes Settlements: removes surprises from trial.” This disclosure is “compelled.” • Disclosure at a specified time: ID of any expert who may be called at trial & Detailed expert report • Disclosure Before trial: Trial witness lists.How are rules used strategically? o 3. regarding non-impeachment evidence • Pretrial Conference: Parties are required to meet early to plan discovery and discuss the case 26(B) GENERALLY • Limitations on Frequency and Extent 26(b)(2): court may limit discovery/interrogatories/depositions if “the burden or expense of the proposed discovery outweighs its likely benefit” or is unreasonably duplicative or can be easily obtained from another source • Parties may obtain discovery regarding any non-privileged matter (attorneyclient/work product) that is relevant to any party’s claim or defense (can’t get information. g. that is not relevant to the claim at hand.) o “Relevant” is ambiguous  lets parties push boundaries of discoverable stuff o Parties can discover inadmissible evidence if its calculated to lead to admissible evidence o “Hearsay” is discoverable because it may lead to admissible evidence . How do the rules work as truth seeking? o 2. Economics and burden of parties and whether they are fair? ORGANIZATION OF RULE • Rule 26 – lays out scope and limits of Discovery process • Rules 27-36 describe various techniques of Discovery • Rule 37 – describes sanctions for parties for noncooperation or bad faith during Discovery RULE 26 DUTY TO DISCLOSE 26(A) GENERALLY • Initial Disclosure: Some information must be provided to the opposing party “without awaiting discovery request. etc. e. amount in party’s bank account. give parties a good idea of their chance of winning o Consumes enormous human and financial resources (debatable whether costs are justified) • Discover Permissions: Broad scope limited only by relevance (even inadmissible evidence can be discovered) o Judicial discretion at the fringes of the rules • There is no winner or loser at this stage • You can cause big unrecoverable expenses and get people to incriminate themselves • Rationale: Truth trumps $$ expenses and embarrassment (few exceptions that are not really about cost-benefit) • Understand: o 1.

arguments look at purposes and incentives • The more absolute the privilege is considered to be the more stingy a court may be in extending privilege to a relationship • Court balances: quest for truth versus necessary incentives o Necessary Incentive: if attorney client privilege did not exist people wouldn’t talk/consult with lawyers at all . o NO “parent-child” privilege • Privilege is common law doctrine.PRIVILEGED INFORMATION • “Privileged” information cannot be discovered or used at trial (Rule 26(b)(1)) o Additional privileges include: doctor-patient and husband-wife privileges.

that confession is inadmissible. Don’t want to penalize client for attorney’s bad advice . o Purpose is NOT to protect the client. but encourage free exchange of info between attorney and client o Purpose is NOT to protect the lawyer • Downsides: o if a client forgets something. at a minimum a lawyer would have to withdraw ACOUSTIC SEPARATION • Generally privileges are as limited as possible to secure their purpose (court’s see privilege as a shame. might let a murderer go free o if a client refuses to disclose facts communicated to the lawyer. a lawyer cannot share it o if a client confesses to a lawyer.ATTORNEY-CLIENT PRIVILEGE ATTORNEY-CLIENT • Generally: Lawyer may not disclose communications by a client or advice given in course of professional employment • Exceptions: o Client consents o Discover requires facts that happen to have been communicated to the lawyer • Requirements: o an attorney-client relationship must exist o communications must be made for purpose of securing or giving legal advice. they’ll hedge. and must be treated as confidential • Purpose: to encourage client in need of legal advice to tell the lawyer the truth. only enforce it as far as is necessary to incentivize communications) o information overheard by lawyer’s employees is still privileged. this rule only protects guilty people • For Privilege o Language translator: if they hear info between attorney and client can the translator testify? So anyone that needs a translator doesn’t get benefit of attorney client privilege  Rephrase rule as non-essential 3rd parties? o Difficult to say what information is “outside the scope of legal advice” (is advice to do something illegal outside the scope?) If lawyers in doubt. otherwise lawyer will not be of much assistance. it won’t stop people from talking o Textual Formalism: “Attorney-client” – a 3rd party is not mentioned. but a necessity to encourage people to talk. must be made in confidence. That assistance promotes justice in the system. but overheard by an outside party depends on the court o Objective intent: did it look like you meant communication in confidence or did you say it in a crowded room? • Against Privilege: o If it’s not the lawyer incriminating the client. allow it. so the info isn’t privileged o Incentivize people to guard their conversations more closely o Economic Argument: try to get as many conversations into evidence as possible until people stop talking to their attorneys o If people will talk to their attorneys either way. people will probably continue to talk with lawyer o If this was a freak circumstance and it won’t happen again.

• Protect therapist-patient privilege? o For Privilege: Same idea as attorney-client – protect the flow of information o Against Privilege: “Next Case:” slippery slope/ad absurdum – will we eventually have “best-friend” privileges to protect flow of information? At some point. neither is thinking about the courtroom when they talk . plus the court does not need to incentivize a parent-child relationship. people will still talk even if its admissible in court.

opinions or legal theories • Hickman v. Taylor: codified in Rule 26(b)(3)(a) o “forcing an attorney to repeat or write out all that witnesses have told him and to deliver the account to his adversary gives rise to grave dangers of inaccuracy and untrustworthiness (and the statements would be his language permeated with his inferences)” • Purpose: Prevent disclosure of mental impressions. consultant. insurer or agent o The document itself is not discoverable.WORK PRODUCT DOCTRINE OVERVIEW • Rule 26(B)(3)(a): party may not discover documents or tangible things prepared in anticipation of litigation or for trial by or for another party or its representatives including the attorney. but the facts inside it are not protected – so if a person is asked a question in a deposition or interrogatory they have to give the answer  Exception: Where the witnesses are no longer available or can be reached only with difficulty • Burden is on the party that would try to invade privacy of work-product doctrine  Under no circumstances will a court order discovery of an attorney’s mental impressions. conclusions. unfairness and cut-throat techniques during trial prep) • Accidental Disclosure o FRE 502 provides protection if 1) party took reasonable care to protect against disclosure and 2) the disclosure was accidental 3) takes steps to rectify in Rule 26 • Client is charged with having all the knowledge the lawyer has . avoid incentivizing lawyers to not write things down (which would lead to inefficiency.

The reason is efficiency. enforce a limitation (WHAT?) or to present a motion to terminate (if deposition in bad faith) o If intrusive question is asked during deposition. depose a witness in prison • 30(c) deposition is taken under oath. etc). don’t ask other side for expensive or time consuming discovery o Uncooperative: respond in bad faith. ask burdensome questions • Big Town v. your client probably has to answer. notice must describe area of inquiry. but can be extended if needed or if other circumstances cause delay o Sanctions can be granted for causing delays o Deposition can be terminated if conducted in bad faith or unreasonably annoys. embarrasses or oppresses the deponent or party – expenses can be awarded (also awarded for failing to show to a deposition)  If you Motion to Terminate you’d better have a good reason because judge will be annoyed and come down hard on someone with sanctions • You can negotiate about questions off the record but that doesn’t guarantee anything PRISONERS DILEMMA • Perfect world: you learn everything and other party learns nothing • Good: both cooperate. Small Town Incentives: Big city you might not see the person again. small town you might be neighbors . Permission is necessary if: o Exceeding 10 deposition limit. and are often left until the end of discovery) • Deposition questions can be followed up TEXTUAL • 30(a) allows a party up to 10 depositions without needing permission of the court. You can’t tell him not to unless you’re protecting a privilege (attorney-client. Intrusive questions may be objected to but the party must nevertheless answer. and officers ask and record answers to questions verbatim o Deposed can be forced to travel 100 miles and bring documents • 30(d) Deposition is limited to one 7 hour day. Rule 45 Subpoena can be used to compel attendance by a non-party • When deposing a corporation. if you could say “not answer” it’d take too long to get a judge to rule – it’d unnecessarily halt the deposition o Depositions can be taking in writing. Exception to preserve a privilege (attorney-client). unless. deposit a witness a 2nd time.RULE 30 ORAL DEPOSITIONS OVERVIEW • Notice of deposition is all that is required. then the corp designates a representative with respect to names area of inquiry • Any party or non-party can be deposed • Strategy – early deposition may allow you to get witnesses to lock in their testimony before being coached. but you may want to wait until you know more about the case (depositions are expensive. depose a person before complying with Rule 26(a) disclosure requirements. it’s cheaper and easier for everyone • Bad: be as uncooperative as the rules allow (ex: to protect client from embarrassment) • This really depends on if you see the other party as cooperative o Cooperative: ask questions in good faith. 5th amendment.


etc and any other tangible thing o Permission to enter another’s land to inspect. survey. by any officer or agent o A corp or gov is required to exhaust all possible employees in search of an answer o Each interrogatory must be answered under oath in writing or objected to o Grounds for objection must be stated. measure. then parties can respond by specifying the records to be used or and giving that party time to examine or copy those records  You can point people to info if it’s equally accessible to both parties. • Request must specific items to be inspected. but generally you will want to protect your privacy RULE 34 PRODUCING DOCUMENTS OVERVIEW • A party may serve request to produce or allow the copying of any following items in its possession o Documents. charts.RULE 30 ORAL DEPOSITIONS OVERVIEW • Interrogatories can ONLY be served to a PARTY. otherwise it will be compelled • Huge strain on the parties – can be used to put pressure on the other side to settle • Must turn over all requested documents. to a named party in the law suit. otherwise it’ll be waived o If an answer may be determined by doing research on records and burden to each party is about the same. etc. and sometimes it’s a cost saver. but courts can delay the answering for a later date • 33(b)(1) Interrogatories must be answered by the party to whom they are directed. Non-parties are not required to answer interrogatories. graphs. drawings. a time and place and form of information to be produced • Party must either object or perform. that is. But you can use Rule 45 to subpoena a non-party and his documents o Many times people do things informally or threaten a formal subpoena o Subpoena: force a party to arrive at a certain time and place with documents for deposition o Interrogatories are directed to the party. or if it’s a corp or gov. no matter how incriminating • Non-parties may be compelled to produce documents by subpoena under Rule 45 • Rule 35: a mental or physical exam can be compelled • Becomes important if trade secrets are involved or there is a large number of documents it would be expensive to copy or turn over to the other party . but answers are actually drafted by the attorney in most cases TEXTUAL • 33(a)(1) A party cannot serve another party more than 25 interrogatories without permission from the court • 33(a)(2) Interrogatories can ask an opinion or contention that relates to fact or the application of law to fact.

• A party can assert lack of knowledge only after he has made a reasonable inquiry and readily available info is not sufficient for admission or denial. It can ask about facts. object. it can’t be used in others. application of law to fact. the downside is poorly worded questions can be responded to with short. • An admission under this rule is only relevant to its own lawsuit. Saying “I don’t know” means no one in the company knows Sometimes interrogatories are more expensive (questions can take 2 minutes to write. but interrogatories are max 25 (and then you need special permission) . but interrogatory gives (forces) them a chance to research and recall. But. but 2 weeks to answer). deny. Deposed witnesses say “I don’t know” a lot in depositions (and aren’t necessarily lying) Interrogatory: person is required to exhaust knowledge of all those working below them. TOOLS • • • • • • • • Deposition: advantage is pressure from a face to face. non-helpful answers requiring a back and forth and special permission Depositions have no max question limit.RULE 36 REQUEST FOR ADMISSION OVERVIEW • A party can serve a written request for admission of any relevant. you can probe if you see deposed hesitate Interrogatories: good for getting names of people to depose but this is unnecessary because 26(b) gives you list of witnesses Economic: depositions can cost a lot of money (paying lawyers hourly to ask questions) instead of paying them to simply write down those same questions Both interrogatories and depositions are made under oath and both give permission to amend their statements Deposition: person may not remember the answer. can’t answer • Matters admitted will be removed from consideration via the pre-trial order • Denying a question simply means that you intend to contest it at trial • Blanket denials may subject the party to sanctions under Rule 37(c)(2) and be forced to pay the costs of the other party in proving the matters denied • Must answer truthfully or explain why one cannot answer fully. opinions. • Denial: “I’m going to put you to your proof” • If you deny something and the other party proves it is true then you can be held to pay for costs of that discovery • Options for answering – admit. and opinions about genuineness of documents • If a response is not given within 30 days it will be assumed “admitted” • If a matter is not “admitted” then answer must be either to deny or state why the party cannot truthfully admit or deny. non-privileged discoverable info. • Admissions can be amended or withdrawn • An admission doesn’t mean you think its true. and a denial doesn’t mean its false. answer partially. The response must fairly respond to the substance of the matter and qualify answers in good faith. qualify as needed.

” SIGNATURES • 11(a) Every paper filed with the court must be signed by at least one attorney (or unrepresented client). or will after further discovery o 11(b)(4) Denials of factual contentions are warranted on the evidence or reasonably based on lack of evidence o (b)(1) is rarely enforced. and attorneys’ fees reasonably incurred because of such conduct. expenses. or needlessly increase cost of litigation o 11(b)(2) [LEGAL] The claims are warranted by existing law or are non-frivolous arguments for extending/modifying the law  Protected from monetary sanctions because a client may give bad facts (sanction-able).RULE 11 SANCTIONS OVERVIEW • Establishes standards and ethical constraints for attorneys and clients when filing pleadings. within 21 days of being served. but lawyers and judges should spot “bad law” {ASK PROF}  Client will never be charged with sanctions for claims which lack legal standing (11(b)(2)) (lawyers role to know law) o 11(b)(3) [FACTUAL] Factual contentions have evidentiary support. No Monetary Sanctions IF: o Party is being sanctioned for violating “non-frivolous claims for extending/modifying the law” o Court brings sanctions after a voluntary dismissal or settlement • 11(c)(2) Safe Harbor Provision o Rule 11 motion cannot be brought to court if.C. §1927 • “Any attorney or other person admitted to conduct cases in any court of the US who so multiples the proceedings in any case unreasonably and vexatiously may be required by the court to satisfy personally the excess costs. cause unnecessary delay.S. after notice and chance to respond. motions or other papers and provides for sanctions (monetary penalties) against violators • It does not cover misbehavior during discovery (Rule 37) 18 U. • Sanctions must be limited to what suffices to deter repetition of the conduct or comparable conduct by others: o Non-monetary directives o Order to pay penalty to court o Payment of costs and reasonable attorneys fees to opposing party • Limitations. a court may impose sanctions on attorneys and law firms for violation of Rule 11 o These can be brought by motion or sua sponte • Absent exceptional circumstances firms must be held jointly responsible for violation. (b)(2-4) enforced more often SANCTIONS • In certain circumstances. certifying to the best of his knowledge after a reasonable inquiry under the circumstances that: o 11(b)(1) Purpose of paper is not to harass. the non-movant corrects the problem .

rule 11 can be brought on the next document signed that states to the contrary (such as a motion for SJ) – it MUST be made on signing of a document o Judge may use “spirit” of a rule to a find a violation or… • If Rule 11 doesn’t have enough bite. if pleading is brought in good faith. no problem • Sanctions for refusal to drop non-meritorious suit after discovery? o If lawsuit becomes obviously non-meritorious. invalidity or impeach with inconsistent statement .000 settlement offer FEDERAL RULES OF EVIDENCE 408 – COMPROMISES AND OFFERS TO COMPROMISE • Evidence made in compromise negotiations regarding the claim is not admissible on behalf of any party to prove liability. at this stage. put pressure on both parties to behave  Similar to Compensatory Damages (reimburse injured party) v. Rule 11 Sanctions for No Evidentiary Support: how much evidence is required at pleading? o Realistically.o Purpose: provides for the good-faith correction of issues before sanctions appropriately  Counter Argument: people can bring frivolous suits and drop quickly without sanctions • Courts could still sanction such a party sua sponte if they determined there was cause?? {ASK PROF – I THINK THIS WAS THE ONE I GOT WRONG} QUESTIONS • Rule 8 Notice Pleading v.000 typical final judgment value) = ~$10. Compensation:  If Compensation is the goal: collect from the firm (they have $$)  If deterrence is the goal: could go either way. Punitive Damages (deter conduct or express community outrage) • Spite & Malice are difficult intents to prove as reason for Rule 11 sanctions because if you’ve been wronged there could likely be emotion – instead courts look strictly at whether the claim has merit. use 18 USC §1927 – it is more aggressive • Firms and lawyers must be held jointly responsible for violations and sanctions o Accountability/Deterrence: make lawyers nervous o Economics: Law firms profit from lawyers work o Common Law: rule written against back drop of common law’s respondeat superior o Compensation: make injured party (from frivolous suit) whole o Economics: Strict liability and fear will create redundancy in the firm and perhaps be less efficient o Deterrence v. o 11(b)(1) about harassment is rarely enforced – because too tough and subjective and courts don’t like deterrence to others for bringing lawsuits RULE 68 OFFER OF SETTLEMENTS & COSTS JUDGMENT & FEDERAL RULES OF EVIDENCE 408 OVERVIEW • Settlements can happen at any point during the case {ASK PROF – can they happen after judgment?} • Settlement Formula: (Chance of Winning) * (Cost of Losing) o Ex: (10% chance of winning) * ($100.

prove a witness’s bias. can have bad outcomes in rare instances • Standards: are more expensive. including as evidence in Rule 11 motion (since it is not disputing liability/validity of claims • Impeachment Disallowed v. for example. Witness Credibility Allowed: {ASK PROF} o Not Allowed: to use statements from a negotiation such as “you have a good claim” to impeach a witness in court who says “you have a lousy claim”  Purpose: people say all sorts of things in negotiations to get a better settlement o Allowed: use the fact that negotiations happened in one case as proof in another case that a given issue has merit or credibility • 3rd Parties: Evidence of negotiations is barred whether a party or 3rd party hears it and tries to bring it in • Textual: “conduct or statements | made in | compromise negotiations | regarding the claim” – commas would make this statement more clear. cheaper. manufactures subsequently making a revision to a product cannot be used to prove prior liability o Want to incentivize making such changes o FRE 408 QUESTIONS • Interpretive: when do you cross the line from discussion  negotiation • Timing: does it matter if “settlement” negotiations happened before the lawsuit? o Yes: incentivize people to negotiate before a lawsuit  If we took away the privilege would people still talk? Without a lawyer? Do we like that incentive?  Lawyers may rewrite contracts to not encourage discussion o No: gives you bright line for when the rule starts to apply  Rule v. negate a contention of undue delay. Potential for Prejudice: what is said in settlement negotiations may be useful sometimes but it might enflame the jury others  we chose to avoid enflaming the jury so this is rather broad reaching rule • Incentives: people may lie and say BS if they know it can’t be used against them – good or bad? RULE 68 – OFFER OF JUDGMENT . or prove an effort to obstruct criminal investigation o Purpose: Rule is meant to encourage settlements and open discussions (“speak freely. it won’t be held against you”) o Purpose: get people to say things they might not otherwise say in settlement o People stretching the truth or admitting things for the purpose of a compromise in negotiations may confuse or “muddy” jury findings . have “fair” outcomes. cruder. require a judge • Players: does it matter if negotiators did not have the authority to make decisions in the negotiation talks? o Powerful negotiation technique to use someone with limited authority.• Exception: if it’s a criminal case.Similarly. seems to imply “regarding the claim” modifies “compromise negotiations” • Probative Value v. negation was made by a public agency while exercising investigative authority o 408(b) Any other use of settlement agreements is OK. the person will still have to testify • Rule 11: settlement negotiation can be used for any other reason. as a matter of public policy. Standard: • Rules: are easier. but will they be protected by rule? • Off Record: what if a promise is “off the record?” This doesn’t matter.

• Generally courts find offers. then immediately retracts it. even if not yet accepted (incentivizes plaintiff to think carefully) o However. and P may have to pay yours P has 14 days in which to accept the settlement offer Cost v. but does incentivize settlements before trial (efficiency/incentives)  Difficult to guess what award might be so don’t want to overly punish  Might just be unlucky (or stupid jury). • At least 14 days before trial defendant may offer plaintiff a judgment on specific terms and with accrued costs. but not fees (some states allow fees too) “Judgment finally obtained” = amount to be used in calculation is the one after being reduced after Remittitur “When one party’s liability to another has been determined but the extent of liability remains to be determined…the part held liable may make an offer of judgment”  this is not as straight forward as I thought? {ASK FARNSWORTH} RULE 68 • deals with settlements and offers of judgments before trial. stenography. courts keep consequences low (no fees. Fees o Fees: hourly rate/contingent fee for lawyers o Costs: litigation costs. etc. changes situation. o Within 14 days of this service of the offer the other party can serve acceptance. only costs) • If P does not accept and offer and eventually wins less than that offer (“not more favorable” – in a monetary sense – non monetary is not considered). once made. the court will allow revocation in extreme circumstances (example of fire which was proved to be arson after insurance offer) • Unaccepted offer = withdrawn (within 14 days is implied) does not preclude later offer. now if you win less than that you pay D’s costs.• • • • • • • Counter-intuitive cost shifting rule – the winning party pays costs because they wasted the court’s time when they rejected a better offer If you are D and you offer a settlement and P declines and the final judgment is not for more money than your settlement offer. then you do not have to pay P’s costs. o Opposite does not apply. exceptions when there is fraud or result would embarrass the court o You can reject and then accept an offer if still within 14 days  Reasoning: steep consequences so don’t make it too easy to reject an offer • Rule v. not acting in bad faith . Prevailing party can normally collect costs. copy machine. the costs accrued by the other side since the offer are payable by the winning party. and proof of unaccepted offer not admissible except to determine costs • This rule applies to an official “offer of judgment” not settlements more generally (negotiations) RULE 68 QUESTIONS • Revocation of offer during those 14 days? o Yes: new evidence comes to light. Standard – because this is a rule and can have unexpected result. P cannot make an offer to D with punishments o Costs are generally not significant. expert witnesses. makes situations more complicated (adds more variables) so maybe avoid it o Answer: generally irrevocable. to be irrevocable for the 14 day period. would be more accurate and fair to allow revocation o No: absurd scenario where D offers very high settlement. and either can file with court.

• • Settlement values are derived from looking at past cases and determining probability of an outcome – there may be outlier decisions though  P may already internalized the punishment of lost opportunity for higher settlement o High penalty would lead to meritorious claims being settled for far less than worth (justice) Purpose: penalize P for “irrational decision” and help them internalize that punishment by making them pay $$ Principle: the cruder the rule the milder the penalty  .

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