This section contains the nature of the case and procedural background.

Desktop Direct (P) sued Digital (D) for using P's name to market a new service it called Desktop Direct from Digital. D agreed to pay P a sum of money for the right and waiver of all damages and dismissal of the suit. P filed notice of dismissal. Several months later P moved to vacate the dismissal and rescind the settlement agreement because of misrepresentation of material facts during the settlement negotiations. The court granted the motion in that the court could determine that D had failed to disclose material facts, which would have resulted in a rejection of the settlement offer. D appealed. The Court of Appeals dismissed for lack of appellate jurisdiction; it neither ended the litigation nor fell within the collateral order exception to the final judgment requirement. The Supreme Court granted certiorari.

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