- 16 - party, counsel for the third party had secretly negotiated a deal with the plaintiff whereby the third party would “settle” the case for $3.5 million and assign its rights to sue the insurance company, in exchange for plaintiff’s agreeing to not collect from the third party. When the plaintiff sued the insurance company and moved for summary judgment, the insurance company moved to set aside the previous judgment on the grounds that the court before which the earlier lawsuit was brought was not informed of the facts underlying the settlement and would not have approved it had the court been so aware. The court in Spence-Parker agreed, holding that such concealment constituted damage to the judicial system in that the court in the earlier lawsuit would not have approved the settlement had it been fully informed of the facts. Id. In contrast to Spence-Parker, the Court did not lack knowledge of a material fact so as to damage the judicial process when it approved the settlement in these cases. Petitioners argue in the alternative that respondent’s and Jacob’s overall conduct in these cases constituted fraud on the Court. We reject this argument. Petitioners note in their brief that “allegations that one’s attorney was grossly negligent or lacked authority are insufficient to demonstrate fraud upon the Court.” Petitioners attempt to circumvent this rule by asserting that Jacob’s conduct was deceitful and unethical, primarily on the basis of Jacob’s involvement in the cases while under RulePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011