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Court rules on ADR sanctions, Open Door Law

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Trial courts can sanction government entities through the state's Alternative Dispute Resolution Rules, but officials aren't necessarily acting in bad faith if they don't immediately approve mediated agreements to comply with the Indiana Open Door Law, the Indiana Supreme Court ruled today.

Issuing a decision today in Lake County Trust Co., et al. v. Advisory Plan Commission of Lake County, No. 37S03-0904-CV-192, the Supreme Court granted transfer and ruled on an issue last addressed by the intermediate appellate court in 1995 but that justices hadn't addressed before: whether a trial court could impose ADR rule sanctions against a governmental entity.

"Like other parties to litigation who may be involved in a mediation proceeding, governmental entities are equally obligated to comply with the applicable rules and thus should be equally subject to the sanctions authorized to encourage compliance," Justice Brent Dickson wrote for the unanimous court, noting the justices disapprove a contrary view expressed previously in State v. Carter, 658 N.E.2d 618 (Ind. Ct. App. 1995).

The Lake County Advisory Plan Commission had denied a primary plat approval request for the Deer Ridge South Subdivision in an unincorporated part of the county, and the developers sought judicial review of that decision. The trial court ordered mediation and that led to a written settlement, but at a public meeting the plan commission voted to hold off on a decision for 30 days. Developers filed a motion to enforce the agreement, and the plan commission then voted to reject it. That resulted in the trial court specifically ordering the plan commission to approve the plan and issue any necessary permits; officials complied. But the trial court later conducted a hearing and determined that the plan commission had acted in bad faith in failing to approve a settlement reached by its attorneys with full settlement authority, and ordered that mediation costs be paid to the developers. The Court of Appeals ultimately held that the plan commission was immune from any sanctions under the ADR rules, and that the commission didn't act in bad faith in not approving the plat promptly.

In its decision today, justices examined the 1995 ruling in Carter and compared it to other caselaw looking at how government entities are held liable for damages and how Indiana's mediation rules are designed to be a part of the court-sanctioned process applying to civil and domestic situations. It also determined that no exemption exists for the government entities.

The court also determined that the Indiana Open Door Law must be applied to any mediation agreement and that pre-mediation public meetings don't satisfy that statutory requirement as the developers insisted in this case.

"While we generally favor the amicable settlement of disputes and encourage the use of mediation to facilitate such agreements, these processes cannot substitute for legislatively mandated official and public assent to the resulting settlement agreements," Justice Dickson wrote. " Resort to mediation can be extremely beneficial to all parties, but, as observed by the Court of Appeals, it is wise practice 'to include language in a settlement agreement that the agreement is contingent upon compliance with the Open Door Law and that it must be approved at an open meeting.'"

Justices vacated the ruling from Jasper Circuit Judge John D. Potter, which had ordered the plan commission to reimburse a developer $1,578 in mediation costs.

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  1. This is the dissent discussed in the comment below. See comments on that story for an amazing discussion of likely judicial corruption of some kind, the rejection of the rule of law at the very least. http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774#comment

  2. That means much to me, thank you. My own communion, to which I came in my 30's from a protestant evangelical background, refuses to so affirm me, the Bishop's courtiers all saying, when it matters, that they defer to the state, and trust that the state would not be wrong as to me. (LIttle did I know that is the most common modernist catholic position on the state -- at least when the state acts consistent with the philosophy of the democrat party). I asked my RCC pastor to stand with me before the Examiners after they demanded that I disavow God's law on the record .... he refused, saying the Bishop would not allow it. I filed all of my file in the open in federal court so the Bishop's men could see what had been done ... they refused to look. (But the 7th Cir and federal judge Theresa Springmann gave me the honor of admission after so reading, even though ISC had denied me, rendering me a very rare bird). Such affirmation from a fellow believer as you have done here has been rare for me, and that dearth of solidarity, and the economic pain visited upon my wife and five children, have been the hardest part of the struggle. They did indeed banish me, for life, and so, in substance did the the Diocese, which treated me like a pariah, but thanks to this ezine ... and this is simply amazing to me .... because of this ezine I am not silenced. This ezine allowing us to speak to the corruption that the former chief "justice" left behind, yet embedded in his systems when he retired ... the openness to discuss that corruption (like that revealed in the recent whistleblowing dissent by courageous Justice David and fresh breath of air Chief Justice Rush,) is a great example of the First Amendment at work. I will not be silenced as long as this tree falling in the wood can be heard. The Hoosier Judiciary has deep seated problems, generational corruption, ideological corruption. Many cases demonstrate this. It must be spotlighted. The corrupted system has no hold on me now, none. I have survived their best shots. It is now my time to not be silent. To the Glory of God, and for the good of man's law. (It almost always works that way as to the true law, as I explained the bar examiners -- who refused to follow even their own statutory law and violated core organic law when banishing me for life -- actually revealing themselves to be lawless.)

  3. to answer your questions, you would still be practicing law and its very sad because we need lawyers like you to stand up for the little guy who have no voice. You probably were a threat to them and they didnt know how to handle the truth and did not want anyone to "rock the boat" so instead of allowing you to keep praticing they banished you, silenced you , the cowards that they are.

  4. His brother was a former prosecuting attorney for Crawford County, disiplined for stealing law books after his term, and embezzeling funds from family and clients. Highly functional family great morals and values...

  5. Wondering if the father was a Lodge member?

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