This column addresses recent decisions of the U.S. District Court for the Northern District of New York. This installment discusses a case evaluating when a settlement is final for enforcement, and a decision exploring how service of process affects the timeliness of removal of a case to federal court.

'Coffee Mania'

In Coffee Mania v. Coffeemania Bryant Park, 2017 WL 3396534 (N.D.N.Y. Aug. 8, 2017), Senior District Judge Fredrick J. Scullin Jr. explained the parameters of when a settlement is final and binding on the parties. Like many courts, the Northern District promotes negotiated settlements through an early mandatory mediation program. As this case illustrates, even through those efforts, litigation is not over until it is finally over.

Plaintiff Coffee Mania, an upstate coffee shop, sued defendant Coffeemania Bryant Park, a New York City coffee shop, for trademark violation over their similar names. Following some procedural maneuvers, the parties held a few mediation sessions.

After the first session, they reported to the court that they were “close to settlement.” After the second session, they reported “settled” and were preparing a final agreement. The court closed the case due to the purported settlement. Despite that report, during a following status conference, the parties said they were at an impasse regarding the settlement. Coffee Mania then moved to reopen the case, arguing that no settlement terms were ever finalized, and defendant Coffeemania Bryant Park cross-moved to enforce the “material terms” of the settlement, even though they were not written down in a final agreement.