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Court Says $10K 'Bet' Can't Settle e-Retailer Fight

By Jeff Chorney
March 15, 2005

A $10,000 “side bet” wasn't enough to persuade a Ninth Circuit U.S. Court of Appeals en banc panel to answer whether federal courts have jurisdiction over out-of-state Internet retailers.

In an 8-3 decision in February, judges decided the issue was moot because the parties, Maine-based L.L. Bean Inc. and Gator.com Corp. of Redwood City, CA, settled after last summer's oral argument. Gator.com agreed to pay L.L. Bean, but the amount remained under seal at the Ninth Circuit.

Both sides had asked the court to keep the issue alive and included a provision in their confidential settlement agreement that said Gator.com would pay L.L. Bean $10,000 more if the panel decided in favor of the well-known outdoor apparel retailer.

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