ILNews

Federal Bar Update: Client representative at settlement conferences

John Maley
September 29, 2010
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In the Southern District of Indiana, settlement conferences are routinely held in most civil cases before the assigned magistrate judge. These conferences are authorized pursuant to Fed. R. Civ. P. 16 and S.D. Ind. Local Rule 16.1(c). Each magistrate judge issues a standard order (with some modest variations) setting the settlement conference, and which requires the presence of a client representative, or if an insurer is named or contractually required to defend or indemnify, the presence of a fully authorized representative of the insurer. Further, Local Rule 16.1(c) requires counsel to confer prior to all court conferences to prepare for the conference.

In Auto-Owners Ins. Co. v. Yamaha Motor Corp., No. 2:09-CV-191 (Aug. 25, 2010), these issues came into play when plaintiff and its representative appeared for a scheduled settlement conference, but defense counsel appeared without a client representative and without advance notice of no representative attending. Defense counsel did not attempt to notify plaintiff counsel until the morning of the conference that no defense representative would attend with him, and by that time both plaintiff counsel were en route to the settlement conference.

The matter was not settled at the conference, but the parties did settle the matter within several weeks thereafter. Plaintiff’s counsel moved for sanctions for travel costs of $200.20 and for the client representative’s time spent at the conference of $800.

Magistrate Judge Hussmann granted in part the motion and sanctioned defendant Yamaha $200.20 to compensate plaintiff’s client representative for travel costs incurred in attending a settlement conference with plaintiff’s counsel. Judge Hussmann denied the $800 for time spent at the conference, reasoning that “the case was ultimately resolved shortly after the settlement conference” such that the representative’s “time was not wasted.”

Judge Hussmann concluded his for-publication order, writing: “The practice of attending settlement conferences without an appropriate client is explicitly discouraged from this point forward. If a particularly difficult logistical problem arises with the client’s attendance, counsel must, pursuant to Local Rule 16.1, seek permission from opposing counsel. If opposing counsel does not agree, a motion seeking permission should be filed sufficiently in advance of the conference to allow opposing counsel to file an objection.”

Mark your calendars – The annual Federal Civil Practice Update seminar will be Dec. 17 from 1:30 to 4:45 p.m. Registration information will be available in October at www.theindianalawyer.com.•

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John Maley (jmaley@btlaw.com) is a partner with Barnes & Thornburg, concentrating on federal and state litigation. The opinions expressed in this column are those of the author.

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  1. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  2. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  3. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

  4. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

  5. While this right is guaranteed by our Constitution, it has in recent years been hampered by insurance companies, i.e.; the practice of the plaintiff's own insurance company intervening in an action and filing a lien against any proceeds paid to their insured. In essence, causing an additional financial hurdle for a plaintiff to overcome at trial in terms of overall award. In a very real sense an injured party in exercise of their right to trial by jury may be the only party in a cause that would end up with zero compensation.

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