Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_04-cv-02281/USCOURTS-azd-2_04-cv-02281-0/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:1132 E.R.I.S.A.-Employee Benefits

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Surgical Assistant Associates, LLC, an

Arizona Limited Liability Company, as

Assignee of Jason Alexander, 

Plaintiff, 

vs.

Mutual of Omaha Insurance Company, 

Defendant. 

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No. CV-04-2281-PHX-MHM

SETTLEMENT CONFERENCE ORDER

This case has been referred to United States Magistrate Judge Lawrence O.

Anderson for a Settlement Conference. 

The purpose of the Settlement Conference is to facilitate settlement of this case,

if that is appropriate. It will be conducted in such a manner as not to prejudice any party in

the event settlement is not reached. To that end, all matters communicated to the

undersigned expressly in confidence will be kept confidential, and will not be disclosed to

any other party. Rule 408, Federal Rules of Evidence, applies to all aspects of the Settlement

Conference. All communications and information exchanges made in the settlement process,

not otherwise discoverable, will not be admissible in evidence for any purpose, and shall not

be used for any purpose outside the settlement process itself. At the conclusion of the

Settlement Conference, all documents submitted by the parties shall be returned, destroyed,

or otherwise disposed of in the manner directed by the settlement judge.

Case 2:04-cv-02281-MHM Document 40 Filed 07/03/06 Page 1 of 6
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At the Settlement Conference and subject to modification by the Court depending

on the uniqueness of each case, each party, through counsel or individually if unrepresented,

shall give a brief presentation outlining the factual and legal highlights of that party’s case

and may be asked general and specific questions by the Court. Thereafter, separate and

private caucuses will be held with each party, the party’s representative and the settlement

judge. Complete candor with the Court is not only expected but required. See, In the

Matter of Fee, 182 Ariz. 597, 898 P.2d 975 (1995).

This Order mandating the parties’, representatives’, and insurers’ physical

appearance is intended to increase the efficiency and effectiveness of the Settlement

Conference by reducing the time for communication of offers and expanding the ability to

explore the varied options for settlement, to give the adverse parties the opportunity to hear

the rationale and arguments regarding the likelihood of success of the claims/defenses

directly from the lawyers who will be trying the case, to meet the litigants and representatives

themselves and to hear first-hand the candid and objective comments by the unbiased

settlement judge regarding the case or the judicial process. 

Years of experience has taught the undersigned that the physical presence, rather

than the availability by telephone, and participation of those individuals with the authority

to settle cases will substantially increase the likelihood of settlement and will lead to more

meaningful negotiations. Consequently, and pursuant to the authority granted to the Court

in 28 U.S.C. §473(b)(5), representatives of the parties with authority to bind them in

settlement discussion shall be physically present unless expressly excused by the undersigned

by formal motion and order issued prior to the subject settlement conference for good cause

shown.

Accordingly,

Pursuant to Rule 16, Federal Rules of Civil Procedure, and 28 U.S.C. §473 (b)(5),

IT IS ORDERED that:

1. Ken and Cathie Schell, company principals for Plaintiff Surgical Assistant

Associates, LLC and their counsel, and counsel for Defendant Mutual of Omaha Insurance

Case 2:04-cv-02281-MHM Document 40 Filed 07/03/06 Page 2 of 6
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Company who are responsible for trial of this case SHALL physically appear before the

undersigned settlement judge, Courtroom 302, Sandra Day O’Connor U. S. Courthouse, 401

West Washington Street, Phoenix, Arizona on Wednesday, August 2, 2006 at 1:30 p.m.

The Court has allocated 11⁄2 hours for the Settlement Conference.

Defendant's representative, with full and complete authority to discuss settlement

of the case shall be available telephonically for the duration of the settlement conference if

they choose not to be physically present. 

2. Experience teaches that settlement conferences are often unproductive unless

the parties have exchanged demands and offers of compromise before the conference and

have made a serious effort to settle the case on their own. Accordingly, before arriving at

the Settlement Conference the parties shall negotiate and make a good faith effort to settle

the case without the involvement of the Court. The parties shall exchange written

correspondence regarding settlement. The Plaintiffs’ settlement demand (offer of settlement

terms) shall be delivered to defense counsel, the insurer(s) and corporate representative, if

any, not less than 20 days before the Settlement Conference Memoranda is due. Defendants’

response to Plaintiff's settlement demand shall be delivered to Plaintiffs’ counsel not less than

12 days before the Settlement Conference Memoranda is due.

3. If a third person or corporate entity is involved, such as, a worker’s

compensation carrier or a health insurance carrier, who asserts a substantial lien on any

settlement monies for medical and hospital expenses and/or lost wages, arrangements shall

be made to notify said person or entity of the Settlement Conference. Plaintiffs’ counsel

shall promptly provide a true and complete copy of this Order to said person, entity or its

authorized representative who is invited to appear and participate in the Settlement

Conference in the sole discretion of the undersigned. See, A.R.S. §23-1023(c); Stout v. State

Compensation Fund, 197 Ariz. 238, 3P.3d 1158 (2000).

4. In the absence of a prior order by the undersigned to the contrary, all

Settlement Conference Memoranda are to be exchanged between counsel or unrepresented

party no later than five (5) business days prior to the Settlement Conference. Counsel and

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This mailbox is not to be used to communicate with the Court or his staff.

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all individuals attending the Settlement Conference shall read and review all parties’

memoranda. Counsel shall explain the settlement conference procedures to their clients and

representatives before the Settlement Conference.

Each party shall provide the Court with the original of that party’s Settlement

Conference Memoranda, at least, five (5) business days before the Settlement Conference.

The Settlement Conference Memoranda shall NOT be filed with the Clerk. The original

Memoranda is to be delivered directly to the chambers of U. S. Magistrate Judge Lawrence

O. Anderson or e-mailed to the udnersigned's CM/ECF Central Mailbox

(anderson_chambers@azd.uscourts.gov)1

. Each Memorandum shall address the following:

a. A brief statement of the facts of the case.

b. A brief statement of the claims and defenses, i.e., statutory or other grounds

upon which the claims are founded, including the citation to appropriate authorities; the

reasonable damages allegedly incurred by Plaintiff and, if appropriate, Counterclaimant; a

forthright evaluation of the parties’ likelihood of prevailing on the claims and defenses; and

a description of the major issues in dispute.

c. A summary of the proceedings to date including rulings on motions and

motions outstanding, if any.

d. An estimate of the costs and time to be expended for further discovery, pretrial

and trial, including past and future attorneys’ and experts’ fees.

e. A brief statement of the facts and issues upon which the parties agree.

f. Whether there is/are any distinct or dominant issue(s) which, if resolved, would

likely aid in the disposition of the case.

g. The relief sought.

h. Each party’s position on settlement, including the amount that the Plaintiff is

currently willing to accept and Defendant(s) is/are willing to offer and the history of past

settlement discussions, offers and demands.

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In the absence of any order by the undersigned to the contrary, each party’s

Settlement Conference Memoranda shall not exceed five (5) pages exclusive of attachments

and shall otherwise comply with the Rules of Practice for the United States District Court for

the District of Arizona. See, Rules 7.2 and 7.1(b)(1), LRCiv, Rules of Practice, District of

Arizona, as amended on December 1, 2004. No responsive memorandum shall be permitted.

5. If the Settlement Conference is held, the Court will assume that the parties

have agreed to separate meetings (caucuses) with the settlement judge. Ethical rules prohibit

ex parte caucuses without such agreement. By appearing at this conference, the Court will

deem that the parties have consented to this procedure and have waived any objection thereto

unless a written Objection is filed not less than three (3) business days before the Settlement

Conference.

6. Absent good cause shown, if any party, counsel or representative fails to

promptly appear at the Settlement Conference, fails to comply with the terms of this Order,

including the failure to timely provide the settlement conference memoranda, is substantially

unprepared to meaningfully participate in the Settlement Conference, or fails to participate

in good faith in the Settlement Conference, the settlement conference may be vacated and

sanctions may be imposed pursuant to Rules 16(f) and 37(b)(2)(B) (C), and (D), Federal

Rules of Civil Procedure which may include the entry of default judgment, dismissal of the

Complaint and/or an award of reasonable attorney’s fees and expenses and/or a finding of

contempt. See, G. Heileman Brening Inc. v. Joseph Oat Corporation, 871 F.2d 648 (7th Cir.,

1989); Lockhart v. Patel, M.D., supra.; Gee Gee Nick v. Morgan’s Foods, Inc., supra.

7. Counsel and any party, if unrepresented by counsel, shall notify the Court in

writing, at least, ten (10) business days before the Settlement Conference if one or more of

the attorneys or unrepresented parties believes that the Settlement Conference would be a

futile act resulting in an economic waste because, for example, a party or insurer has adopted

an unreasonable position from which that party or insurer refuses to deviate. The Court will

then consider whether the Settlement Conference would be helpful and, if not, whether the

Settlement Conference should be canceled or other forms of alternative dispute resolutions

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may be considered. If there is disagreement between or among the attorneys or

unrepresented parties on this issue or any other issue, they are instructed to arrange for a

telephonic conference with the Court and all counsel as soon as is reasonably practical. If

no such conference is arranged, it will be presumed that all counsel, their clients and any

unrepresented party believe that there is a reasonable, good faith opportunity for settlement,

and that the involvement of a settlement judge is needed to accomplish it.

DATED this 30th day of June, 2006.

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