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Disclaimer:
The Treatise is based upon federal appellate court decisions from 1996
to 2008. We are currently in the process of updating the Treatise. Until
that update is complete, it is possible that certain cases cited in the
Treatise may no longer represent current law.
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22.300 Attorney's fees and other sanctions on behalf of employer
22.340 Miscellaneous issues
22.342 When does a settlement qualify as a
nuisance-value settlement?
7th Circuit
In Kitchen v. TTX Co., 284 F.3d 688 (7th Cir. 2002),
eleven plaintiffs accepted Rule 68 offers of judgment in amounts that ranged
from $20,000 to $160,000. After a hearing, the district court awarded more than
a million dollars in attorney's fees and costs. On appeal, TTX argued that the
plaintiffs were not entitled to recover attorney's fees because these were
nuisance-value settlements. The court disagreed and defined "nuisance-value
settlements" as follows:
This court has stated that a "compromise for less than
the costs of defense is a good working definition of a nuisance-value
settlement . . . ." Fletcher, 162 F.3d at 976.
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