Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_07-cv-00514/USCOURTS-azd-2_07-cv-00514-0/pdf.json

Parties Involved:
First Magnus Financial Corporation
Defendant
Great Southwest Mortgage
Defendant
Brian Jackson
Defendant
Suzy Jackson
Defendant
Kiplyn Ronell Lebrun
Plaintiff

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Kiplyn Ronell Lebrun, a married woman,

Plaintiff, 

v.

First Magnus Financial Corporation dba

Great Southwest Mortgage; Suzy Jackson

and Brian Jackson,

Defendants. _________________________________

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No. CV-07-514-PHX-MHM

SETTLEMENT CONFERENCE ORDER

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

Anderson for a Settlement Conference. 

District Judge Murguia’s minute entry, dated May 4, 2007 (docket #16), states

the settlement conference is to occur as soon as possible. After consultation with counsel,

the Court’s calendar cannot accommodate a settlement conference in May, 2007. Defense

counsel advises their clients are not available in the months of June and July, 2007. In light

of the Court’s, counsels’ and Defendants’ calendars, an August, 2007 date has been selected.

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 a settlement is not reached. To that end, the offer and demand, if any,

communicated to the undersigned in confidence will be kept confidential and will not be

disclosed to any adverse party absent express consent to do so. Rule 408, Federal Rules of

Case 2:07-cv-00514-MHM Document 17 Filed 05/14/07 Page 1 of 7
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Evidence, applies to all aspects of the Settlement Conference. All communications and

information exchanged in and during 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 Conference itself. At the conclusion of the Settlement Conference, all

documents submitted and exchanged by the parties shall be returned, destroyed, or otherwise

disposed of in the manner directed by the Settlement Judge upon the request of any party.

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, may be asked to give a brief presentation outlining the factual and legal

highlights of that party’s case and/or respond to general and a specific questions by the

Settlement Judge. 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 is required. In the Matter of Fee, 182 Ariz. 597, 898 P.2d 975 (1995).

This Order mandating the parties’, corporate representative's and insurer’s, if

any, 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 themselves and

to hear first-hand the candid comments, if any, made by the Settlement Judge about the case

or the judicial process. 

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

rather than the availability by telephone, of those individuals with the authority to settle cases

substantially increases the likelihood of settlement and leads to more meaningful

negotiations. 

Consequently, pursuant to the authority granted to the Court in, among others,

28 U.S.C. §473(b)(5) and Rule 16(b), FED.R.CIV.P., the parties and representatives of the

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 "Full and complete authority" within this Order means that the individual appearing

for, or on behalf of, the Defendant(s) shall have the express authority and discretion to

authorize the payment to, or accept the terms of, Plaintiff's last settlement demand. "Full and

complete authority" does not mean, however, that Defendant or representative is required to

pay such demand or any sum whatsoever. Kothe v. Smith, 771 F.2d 667, 669 (2nd Cir.1985)

(Rule 16 “was not designed as a means for clubbing the parties-or one of them-into an

involuntary compromise.”); In re Novak, 932 F.2d at 1406 n. 18.

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parties with "full and complete authority"1

 to discuss settlement of the case SHALL

physically appear at the date and time of the Settlement Conference unless expressly

excused by the undersigned by timely motion and order issued prior to the subject settlement

conference for good cause shown. In re Novak, 932 F.2d 1397, 1407 (11th Cir. 1991) (". . .

we conclude that the power to direct parties with full settlement authority at pretrial

settlement conferences is inherent in the district courts.").

IT IS ORDERED:

1. All parties and their counsel who are responsible for the case SHALL

physically appear before the undersigned Settlement Judge, Courtroom 302, Sandra Day

O'Connor U. S. Courthouse, 401 West Washington, Phoenix, Arizona on Thursday, August

2, 2007 at 2:00 p.m. The Court has allocated 11⁄2 hours for the Settlement Conference or

longer if meaningful progress is being made towards settlement.

If the Defendant is an insured party, a representative of that party’s insurer with

full and complete authority to discuss and settle the case SHALL physically appear at the

aforesaid date and time. An uninsured or self-insured corporate party SHALL physically

appear at aforesaid Settlement Conference through its authorized representative with full and

complete authority to discuss and settle the case. Pitman v. Brinker International, Inc., 216

F.R.D. 481 (D. Ariz. 2003), amended on review in part in Pitman v. Brinker International,

Inc., 2003 WL 23353478, 1 (D. Ariz. 2003); Gee Gee Nick v. Morgan’s Foods, Inc., 270

F.3d 590 (8th Cir. 2001) (District judge acted well within his discretion by imposing a

monetary fine payable to the Clerk of the District Court as a sanction for failing to prepare

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requested memorandum and deciding to send a corporate representative to ADR conference

with limited authority.); Lockhart v. Patel, M.D., 115 F.R.D. 44 (E.D.Ky 1987) (In medical

malpractice action, answer stricken for failure of insurance representative with authority to

settle to appear at settlement conference.). 

2. Experience teaches that settlement conferences are often unproductive

unless the parties have exchanged settlement demands and compromise offers 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 good faith

efforts to settle the case without the involvement of the Court. The parties shall exchange

written correspondence regarding settlement. The Plaintiff's demand shall be delivered to

defense counsel and the insurer’s representative, if any, not less than 20 days before the

Settlement Conference. Defendant’s response to the demand shall be delivered to Plaintiffs’

counsel not less than 12 days before the Settlement Conference.

3. If a third person or entity asserts a substantial lien on any settlement monies

for medical and hospital expenses and/or lost wages paid, such as, a worker’s compensation

carrier or a health insurance carrier, arrangements shall be made to notify said person or

entity of the Settlement Conference so that such person, entity or its authorized representative

may appear and participate in the Settlement Conference. Plaintiff’s counsel shall promptly

provide a true and complete copy of this Order to such person, entity or its authorized

representative. A.R.S. §23-1023(c); Stout v. State Compensation Fund, 197 Ariz. 238, 3 P.3d

1158 (2000).

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

all Settlement Conference Memoranda shall be exchanged between counsel, at least, five (5)

business days before the Settlement Conference. Counsel shall provide a copy of all

memoranda to their client(s) for review prior to the Settlement Conference and shall explain

the settlement conference procedures to their clients before the Settlement Conference.

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 This mailbox is not to be used as a general means of communication to the Court or

its staff.

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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

Settlement Conference Memoranda shall be delivered directly to the chambers of U. S.

Magistrate Judge Lawrence O. Anderson or e-mailed to the undersigned's ECF mailbox

(anderson_chambers@azd.uscourts.gov).2

 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; a forthright evaluation of the parties’ likelihood of

prevailing on the claims and defenses; the damages allegedly and reasonably incurred by

Plaintiff and, if appropriate, Counterclaimant and a discussion of the major issues in dispute.

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 brief 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 and

disagree.

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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.

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

Settlement Conference Memoranda shall not exceed seventeen (17) pages exclusive of

attachments and shall otherwise comply with LRCiv 7.2, 7.2(a) and 7.1(b)(1), Rules of

Practice for the United States District Court for the District of Arizona, as amended on

December 1, 2006. 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. Judicial and lawyer

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 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 insurer’s 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

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of contempt. 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 a waste of time and money, inconsistent with Rule 1, FED.R.CIV.P.,

because, for example, either side has adopted an unreasonable position from which that party

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 the alternative dispute resolutions be considered. If there is disagreement between or

among the attorneys or unrepresented parties on this issue or any other issue which warrants

vacating the Settlement Conference, they are instructed to arrange a telephonic conference

with the Court and all counsel as soon as 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 11th day of May, 2007.

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