... and where you say it matters!

In a case highlighting a trap for the unwary, the United States Fifth Circuit Court of Appeals held that the language in a federal court order of dismissal significantly impacts the ability of that court to subsequently enforce a related settlement agreement.

Plaintiffs sought to halt the foreclosure of their home mortgage. After reaching a settlement with the defendants, the parties filed a Joint Stipulation to Dismiss under Federal Rule of Civil Procedure 41(a)(1)(A)(ii), which motion included a provision for the court to retain jurisdiction to enforce the settlement terms. However, the subsequent order of dismissal with prejudice failed to announce that the district court explicitly retained jurisdiction, and likewise did not incorporate the settlement terms – despite the language in the stipulation which led to the order.