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. If a class action suit or other manner of retribution is possible, count me in. I have email and voicemail from the man. He colluded with opposing counsel, I am certain. My case was damaged so severely it nearly lost me everything and I am still paying dearly.

  2. There's probably a lot of blame that can be cast around for Indiana Tech's abysmal bar passage rate this last February. The folks who decided that Indiana, a state with roughly 16,000 to 18,000 attorneys, needs a fifth law school need to question the motives that drove their support of this project. Others, who have been "strong supporters" of the law school, should likewise ask themselves why they believe this institution should be supported. Is it because it fills some real need in the state? Or is it, instead, nothing more than a resume builder for those who teach there part-time? And others who make excuses for the students' poor performance, especially those who offer nothing more than conspiracy theories to back up their claims--who are they helping? What evidence do they have to support their posturing? Ultimately, though, like most everything in life, whether one succeeds or fails is entirely within one's own hands. At least one student from Indiana Tech proved this when he/she took and passed the February bar. A second Indiana Tech student proved this when they took the bar in another state and passed. As for the remaining 9 who took the bar and didn't pass (apparently, one of the students successfully appealed his/her original score), it's now up to them (and nobody else) to ensure that they pass on their second attempt. These folks should feel no shame; many currently successful practicing attorneys failed the bar exam on their first try. These same attorneys picked themselves up, dusted themselves off, and got back to the rigorous study needed to ensure they would pass on their second go 'round. This is what the Indiana Tech students who didn't pass the first time need to do. Of course, none of this answers such questions as whether Indiana Tech should be accredited by the ABA, whether the school should keep its doors open, or, most importantly, whether it should have even opened its doors in the first place. Those who promoted the idea of a fifth law school in Indiana need to do a lot of soul-searching regarding their decisions. These same people should never be allowed, again, to have a say about the future of legal education in this state or anywhere else. Indiana already has four law schools. That's probably one more than it really needs. But it's more than enough.

  3. This man Steve Hubbard goes on any online post or forum he can find and tries to push his company. He said court reporters would be obsolete a few years ago, yet here we are. How does he have time to search out every single post about court reporters and even spy in private court reporting forums if his company is so successful???? Dude, get a life. And back to what this post was about, I agree that some national firms cause a huge problem.

  4. rensselaer imdiana is doing same thing to children from the judge to attorney and dfs staff they need to be investigated as well

  5. Sex offenders are victims twice, once when they are molested as kids, and again when they repeat the behavior, you never see money spent on helping them do you. That's why this circle continues