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Few events in the course of a litigation are as likely to prompt settlement discussion as the resolution of a dispositive motion. The parties’ claims and defenses have been tested, and the strengthened negotiating position of the successful party is clear to both. But, as a recent decision in the Southern District of New York reminds us, there are pitfalls that come with negotiating a settlement in the wake of successful motion to dismiss. If those negotiations turn sour, and one party seeks to enforce a settlement agreement, the parties may be left without a clear judicial home to resolve the dispute.
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