ILNews

Court rules on ADR sanctions, Open Door Law

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. So that none are misinformed by my posting wihtout a non de plume here, please allow me to state that I am NOT an Indiana licensed attorney, although I am an Indiana resident approved to practice law and represent clients in Indiana's fed court of Nth Dist and before the 7th circuit. I remain licensed in KS, since 1996, no discipline. This must be clarified since the IN court records will reveal that I did sit for and pass the Indiana bar last February. Yet be not confused by the fact that I was so allowed to be tested .... I am not, to be clear in the service of my duty to be absolutely candid about this, I AM NOT a member of the Indiana bar, and might never be so licensed given my unrepented from errors of thought documented in this opinion, at fn2, which likely supports Mr Smith's initial post in this thread: http://caselaw.findlaw.com/us-7th-circuit/1592921.html

  2. When I served the State of Kansas as Deputy AG over Consumer Protection & Antitrust for four years, supervising 20 special agents and assistant attorneys general (back before the IBLE denied me the right to practice law in Indiana for not having the right stuff and pretty much crushed my legal career) we had a saying around the office: Resist the lure of the ring!!! It was a take off on Tolkiem, the idea that absolute power (I signed investigative subpoenas as a judge would in many other contexts, no need to show probable cause)could corrupt absolutely. We feared that we would overreach constitutional limits if not reminded, over and over, to be mindful to not do so. Our approach in so challenging one another was Madisonian, as the following quotes from the Father of our Constitution reveal: The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse. We are right to take alarm at the first experiment upon our liberties. I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations. Liberty may be endangered by the abuse of liberty, but also by the abuse of power. All men having power ought to be mistrusted. -- James Madison, Federalist Papers and other sources: http://www.constitution.org/jm/jm_quotes.htm RESIST THE LURE OF THE RING ALL YE WITH POLITICAL OR JUDICIAL POWER!

  3. My dear Mr Smith, I respect your opinions and much enjoy your posts here. We do differ on our view of the benefits and viability of the American Experiment in Ordered Liberty. While I do agree that it could be better, and that your points in criticism are well taken, Utopia does indeed mean nowhere. I think Madison, Jefferson, Adams and company got it about as good as it gets in a fallen post-Enlightenment social order. That said, a constitution only protects the citizens if it is followed. We currently have a bevy of public officials and judicial agents who believe that their subjectivism, their personal ideology, their elitist fears and concerns and cause celebs trump the constitutions of our forefathers. This is most troubling. More to follow in the next post on that subject.

  4. Yep I am not Bryan Brown. Bryan you appear to be a bigger believer in the Constitution than I am. Were I still a big believer then I might be using my real name like you. Personally, I am no longer a fan of secularism. I favor the confessional state. In religious mattes, it seems to me that social diversity is chaos and conflict, while uniformity is order and peace.... secularism has been imposed by America on other nations now by force and that has not exactly worked out very well.... I think the American historical experiment with disestablishmentarianism is withering on the vine before our eyes..... Since I do not know if that is OK for an officially licensed lawyer to say, I keep the nom de plume.

  5. I am compelled to announce that I am not posting under any Smith monikers here. That said, the post below does have a certain ring to it that sounds familiar to me: http://www.catholicnewworld.com/cnwonline/2014/0907/cardinal.aspx

ADVERTISEMENT