Civil Procedure — Dismissal — settlement

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U.S. Court of Appeals
For the 7th Circuit

Civil

Civil Procedure – Dismissal — settlement

A court must resolve the merits unless the defendant satisfies the plaintiff’s demand.

“Gates v. Towery, 430 F.3d 429 (7th Cir. 2005), put this point more generally by holding that a jurisdictional dismissal is proper only if the defendant offers
more than the plaintiff’s demand. If the plaintiff asks for the moon, only offering the moon extinguishes the controversy. An excessive demand may lead to
sanctions for frivolous litigation but does not diminish the court’s jurisdiction. A defendant cannot have the suit dismissed by making an offer limited to
what it concedes the plaintiff is entitled to receive, even if the defendant happens to be right about its view of the plaintiff’s entitlement, because
deciding that entitlement resolves the merits. Smith wants more than $1,500; Greystone’s offer did not satisfy her demand; this suit therefore cannot be
dismissed for lack of jurisdiction.”

Vacated and Remanded.

14-1758 Smith v. Greystone Alliance, LLC

Appeal from the United States District Court for the Northern District of Illinois, Durkin, J., Easterbrook, J.

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