A more thorough explanation:

Definition: Neither party refers to a situation where both parties in a lawsuit agree to stop appearing in court to prosecute or defend the case. This agreement is recorded in a docket entry and is equivalent to a dismissal.

Example: In a divorce case, if both the husband and wife agree to settle their differences outside of court and not pursue the case any further, they can file a docket entry stating "neither party" and the case will be dismissed.

Another example: In a contract dispute, if both the plaintiff and defendant agree to drop the case and not pursue it any further, they can file a docket entry stating "neither party" and the case will be dismissed.

These examples illustrate how "neither party" is used to indicate an agreement between both parties to stop pursuing a lawsuit, resulting in the case being dismissed.