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01-1380 U.S. v. Alshabkhoun

By: dmc-admin//January 21, 2002//

01-1380 U.S. v. Alshabkhoun

By: dmc-admin//January 21, 2002//

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“We agree with A&A that access to the courts is of paramount importance. However, it does not follow that an agreed upon provision that allows for the accrual of stipulated penalties during any dispute resolution is unenforceable as a matter of public policy. It is undisputed that this Consent Decree was drafted and negotiated by both parties and entered into voluntarily. A&A cannot now escape the consequences of the Consent Decree with a public policy argument that the provision inhibits its right to access the courts. A&A’s blanket statement that the ‘right to dispute resolution “rings hollow” when accompanied by the risk of penalties’ is overbroad. In fact, the stipulated penalty accrual provision does not apply to a successful claim. Unfortunately for A&A, it was not successful on its petition to modify the Consent Decree. As a result, A&A is liable for the penalties that accrued during the resolution of that dispute. To excuse A&A from the stipulated penalties would undermine the clear terms of the Consent Decree and provide any party to a Consent Decree with a method of delaying performance by invoking the dispute resolution clause with meritless claims.”

Affirmed.

Appeal from the United States District Court for the Western District of Wisconsin, Shabaz, J., Bauer, J.

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