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Monday, April 23, 2007

Fifty Dollars Based on certain contractual limitations of liability, the district court held that the most that the plaintiff could recover against the two defendants was $50 against each. The Court suggested that each defendant tender $50 to the plaintiff, without conceding liability. When they did, the Court entered judgment in favor of the plaintiff in the amount of $5 from each defendant, and dismissed the action as moot and for lack of subject matter jurisdiction.

While the Second Circuit, on appeal, held that the District Court had been correct in determining the extent of liability, it held that the District Court was wrong in dismissing the action as moot and for lack of subject matter jurisdiction. Had the defendants paid the plaintiff the entire amount of its claim, then the case would be moot, but in that it only paid the amount that the District Court held was owed, the case was not moot. At any rate, since the judgment entered was final, the plaintiff could appeal.

The decision in ABN Amro Verzekeringen BV v. Geologistics Americas, Inc. can be found here.

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