''In terrorem'',

Latin Latin ( or ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken by the Latins (Italic tribe), Latins in Latium (now known as Lazio), the lower Tiber area aroun ...

for "into/about fear", is a legal threat, usually one given in hope of compelling someone to act without resorting to a

lawsuit A lawsuit is a proceeding by one or more parties (the plaintiff or claimant) against one or more parties (the defendant) in a civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today ...

or criminal

prosecution A prosecutor is a legal representative of the prosecution in states with either the adversarial system, which is adopted in common law, or inquisitorial system, which is adopted in Civil law (legal system), civil law. The prosecution is the ...

. ''In terrorem'' clauses (referred to in English as no-contest clauses) are also used in wills to keep beneficiaries from contesting the will by either completely disinheriting them from any share, or reducing their share to a nominal amount. These clauses are not uniformly recognized.

Examples of use

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 ngup 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''). In other words, the court worried that the threat of an expensive lawsuit (that was ultimately groundless) would nevertheless encourage settlements, and thus payments by innocent defendants, particularly in the case of antitrust lawsuits, which have a long and very expensive discovery process. 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. The Private Securities Litigation Reform Act of 1995 created a heightened pleading standard for cases involving violations of

securities regulation in the United States Securities regulation in the United States is the field of Law of the United States, U.S. law that covers transactions and other dealings with Security (finance), securities. The term is usually understood to include both federal and state-level r ...

in response to perceptions of abuse in this area. This increased particularity is a departure from the "notice pleading" standard enumerated in the Federal Rules of Civil Procedure which would otherwise apply. In some US states, ''in terrorem'' clauses are disfavored, but can still be enforceable. In New York, for example, the ''Estates, Powers and Trust Law'' codifies the use of, and the limits of, ''in terrorem'' clauses in EPT 3-3.5(b). ''In terrorem'' has also been referred to by the

High Court of Australia The High Court of Australia is the apex court of the Australian legal system. It exercises original and appellate jurisdiction on matters specified in the Constitution of Australia and supplementary legislation. The High Court was establi ...

in the 2012 case of ''Andrews v Australia and New Zealand Banking Group Ltd''. 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.
Andrews v Australia & New Zealand Banking Group Ltd
' 247 CLR 205 at 0(French CJ, Gummow, Crennan, Kiefel and Bell JJ) Many

intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, co ...

attorneys send ''in terrorem'' letters to persons accused of violating their clients'

trademark A trademark (also written trade mark or trade-mark) is a form of intellectual property that consists of a word, phrase, symbol, design, or a combination that identifies a Good (economics and accounting), product or Service (economics), service f ...

rights, before resorting to court proceedings, which threaten litigation if the accused do not comply with the written demand. The Apache License prevents patent litigation, by threatening further litigation from revoking the patent rights granted under the license to anyone who sues for patent infringement. : If You institute patent litigation against any entity (including a cross-claim or counterclaim in a lawsuit) alleging that the Work or a Contribution incorporated within the Work constitutes direct or contributory patent infringement, then any patent licenses granted to You under this License for that Work shall terminate as of the date such litigation is filed. The term ''in terrorem'' is also sometimes used in law to describe slippery slope or snowball effect arguments, as in the following passage: :This state of affairs (i.e., that claims of mere forgetfulness, perhaps based on carelessness, might result in an acquittal) stirs anxiety in some people. This leads to ''in terrorem'' arguments, complete with warnings that our bail system, as we know it, will collapse if courts were to indulge such doubtful claims. ::�
R. v. Withworth, 2013 ONSC 7413 (CanLII)
( Ontario Superior Court of Justice, Trotter J.)

Examples of use

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Further reading