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Parties to a federal civil suit may consent to dismiss the case pursuant
to a settlement agreement.' Because settlement is an option available until
final judgment is entered, it may occur while an appeal is pending.
When it does, the parties to the case often decide to condition settlement
on vacatur of the lower court judgment.
Vacatur has the effect of "voiding" a judgement.
Parties to a settlement agreement seek vacatur for
several reasons. For example, vacatur may allow parties to avoid the
preclusive effect of the judgment in a future action or it may enable
them to avoid the non-legal ramifications of an adverse judgment.'
The decision to grant or to deny vacatur implicates private and public
interests that sometimes conflict.In the interest of settling litigation,
some federal circuits routinely grant motions to dismiss and vacate.'
Others, however, cite the value of the lower court judgment and refuse to
grant vacatur.
From ; Settlement pnding appeal
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