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Simple English definitions for legal terms
nuisance money
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A quick definition of nuisance money:
Nuisance money is a term used to describe money paid by a defendant to a plaintiff in a settlement purely for economic reasons, rather than taking responsibility for their actions. This type of settlement is often reached because the defendant would spend more money on legal fees and expenses caused by a prolonged lawsuit than paying the settlement amount. It is called nuisance money because it is seen as a nuisance to the defendant, who is paying it to avoid further legal costs.
A more thorough explanation:
Definition: Nuisance money refers to a settlement payment made by a defendant to a plaintiff purely for economic reasons, rather than accepting responsibility for any wrongdoing. The term is often used in cases where the defendant would spend more money on legal fees and expenses caused by prolonged litigation than paying the settlement amount.
Example: A company is sued for a minor violation of a consumer protection law. The company knows it did not violate the law, but the cost of defending the lawsuit in court would be more than the settlement amount demanded by the plaintiff. The company decides to pay the settlement amount, which is considered nuisance money.
This example illustrates how a defendant may choose to pay nuisance money to avoid the cost of litigation, even if they believe they did not violate any laws or regulations.