In terrorem
In terrorem, Latin for "into/about fear", is a legal threat, usually one given in hope of compelling someone to act without resorting to a lawsuit or criminal prosecution.The term was used in the 2007 U.S. Supreme Court decision Bell Atlantic Corp. v. Twombly, which stated: "The requirement of allegations suggesting an agreement serves the practical purpose of preventing a plaintiff with 'a largely groundless claim' from 'tak[ing] up the time of a number of other people, with the right to do so representing an in terrorem increment of the settlement value'" (quoting Blue Chip Stamps v. Manor Drug Stores).[citation needed] As the court alluded to in Twombly, the costs associated with discovery often underlay the economic calculus which may motivate the settlement of an in terrorem strike suit.[1] This increased particularity is a departure from the "notice pleading" standard enumerated in the Federal Rules of Civil Procedure which would otherwise apply.The unanimous judgement referred to the term when describing the doctrine of penalties and its operation in the case of unfair fees levied by large banks against their customers.