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Second Circuit, on First Impression, Holds that Application of Federal Post-Judgment Interest Rate (Currently .25%) to District Court Judgment Docketed in State Court is Constitutional 0

Second Circuit, on First Impression, Holds that Application of Federal Post-Judgment Interest Rate (Currently .25%) to District Court Judgment Docketed in State Court is Constitutional

In Cappiello v. ICD Publications, Inc., the Second Circuit held that the Erie doctrine does not require that post-judgment interest on a federal judgment docketed in state court accrue at the rate provided under state law. Instead, interest on such a judgment must accrue at the rate provided by federal law.

Best Practice for Retention of Federal Jurisdiction to Enforce a Settlement Agreement 0

Best Practice for Retention of Federal Jurisdiction to Enforce a Settlement Agreement

Since the vast majority of civil cases end in settlement, litigants must remain mindful of ensuring judicial enforcement of a settlement agreement. If you thought all that was necessary to provide for continuing judicial supervision is a clause in your settlement agreement or stipulation of dismissal stating that the federal court shall retain jurisdiction to enforce its provisions, please think again. As District Judge Noel L. Hillman recently emphasized in Brass Smith, LLC v. RPI Industries, Inc., federal courts are courts of limited jurisdiction and jurisdiction cannot be created by the private agreement of the parties. Nor do district courts have “inherent power” to enforce settlements. Unless you have taken the proper steps or there is an independent basis for jurisdiction (such as diversity of citizenship or a federal question), you will probably be obliged to bring a new action in state court to enforce your settlement agreement.