Bankcard America, Inc. v. Universal Bancard Systems, Inc.

Bankcard America (plaintiff) sued Universal Bancard Systems (defendant) for breach of a contract barring Universal from steering signed-up merchants to Bankcard's competitors. After Bankcard terminated the contract, Universal rolled over certain accounts to a competitor, explaining it believed it had reached a settlement permitting the move. At the first trial, the judge admitted limited settlement-discussion evidence to explain Universal's reasoning, while barring the terms "settlement" or "negotiation"; the jury found for Universal, but the verdict was vacated for other errors, including that evidentiary ruling, prompting Universal's appeal.