Opinion ID: 4521882
Heading Depth: 2
Heading Rank: 1

Heading: Judicial Settlement Conference

Text: [¶22] The Bank argues that the court abused its discretion by extending the July 16, 2015, stay on Manning’s motion for reconsideration and “forcing” the Bank to participate in the judicial settlement conference. We review court orders supervising and managing proceedings for an abuse of discretion. See Geary v. Stanley, 2007 ME 133, ¶ 12, 931 A.2d 1064; see also M.R. Civ. P. 16(a)-(b). “The touchstone of determining whether the court has properly exercised its discretion is whether in a given case that discretion is exercised in furtherance of justice.” Unifund CCR Partners v. Demers, 2009 ME 19, ¶ 8, 966 A.2d 400 (alterations omitted) (quotation marks omitted). [¶23] Here, upon remand in 2014, the court ordered the parties to attend a settlement conference. See M.R. Civ. P. 16(b). A settlement conference was not held because, in part, the Bank filed a motion to voluntarily dismiss its complaint without prejudice, which was granted by the court. Manning then filed a motion for reconsideration of the dismissal and, at the parties’ request, 11 the court stayed Manning’s motion in anticipation of our decision in Greenleaf II.6 [¶24] During this stay, the court again ordered the parties to attend a settlement conference and extended the stay until after that conference was held. A settlement conference eventually took place on September 23, 2016; however, it was unsuccessful and, on November 18, 2016, Manning filed a motion for contempt based on the Bank’s alleged conduct at the settlement conference. This was followed by a hearing on Manning’s motion for contempt and a second unsuccessful settlement conference. [¶25] In the circumstances of this case, where Manning filed a motion for reconsideration and the parties then both agreed to stay further proceedings on that motion, the court’s decision to require the parties to attend a settlement conference was “exercised in furtherance of justice,” Unifund CCR Partners, 2009 ME 19, ¶ 8, 966 A.2d 400, and, thus, was not an abuse of discretion.7 6 Manning’s motion for reconsideration, which we treat as a motion to alter or amend a judgment, see Arsenault v. Arsenault, 2008 ME 75, ¶ 5, 946 A.2d 412; M.R. Civ. P. 59(e), “suspend[ed] the finality of the initial judgment and defer[red] the running of the appeal period,” Most v. Most, 477 A.2d 250, 258 n.12 (Me. 1984). 7 Although we do not take issue with the court’s decision to require a settlement conference during the stay, the court’s management of this case, in general, did not comport with “the overall purpose of the [Maine] Rules of Civil Procedure, which is to ensure the speedy and inexpensive resolution of a case.” Merrifield v. Hadlock, 2009 ME 1, ¶ 6, 961 A.2d 1107 (discussing a pretrial scheduling order); see M.R. Civ. P. 1. 12
[¶26] The Bank also challenges the sanctions imposed by the court (L. Walker, J.) following the settlement conference, arguing that the court abused its discretion when it attempted “to force [the Bank] to settle and accept Manning’s settlement demands.” We review a court’s imposition of sanctions for an abuse of discretion. See Bayview Loan Servicing, LLC v. Bartlett, 2014 ME 37, ¶ 10, 87 A.3d 741. [¶27] A court may conduct a settlement conference and direct the parties to appear and “participate in good faith.” M.R. Civ. P. 16(b). If a party fails to comply with a pretrial rule or order, a court may impose “such sanctions as the circumstances warrant,” including a dismissal of the action or an award of attorney fees. M.R. Civ. P. 16(d). “Although the court cannot force a settlement on the parties, the failure to negotiate in good faith may lead to an abuse of the litigation process and be sanctionable.” Chiappetta v. LeBlond, 544 A.2d 759, 761 (Me. 1988) (citation omitted). A court also has “the inherent authority to sanction a party’s failure to comply with the rules.” Baker’s Table, Inc. v. City of Portland, 2000 ME 7, ¶ 16, 743 A.2d 237; see Green Tree Servicing, LLC v. Cope, 2017 ME 68, ¶ 18, 158 A.3d 931 (stating that even when a plaintiff lacks 13 standing, a “court is not divested of its inherent authority to dismiss the complaint with prejudice as a sanction for misconduct”). [¶28] When imposing sanctions, a court must consider certain factors, including “(1) the purpose of the specific rule at issue; (2) the party’s conduct throughout the proceedings; (3) the party’s basis for its failure to comply; (4) prejudice to other parties; and (5) the need for the orderly administration of justice.” Bayview Loan Servicing, LLC, 2014 ME 37, ¶ 12, 87 A.3d 741. [¶29] In this case, the court possessed the authority to impose sanctions on the Bank for its conduct at the settlement conference. See Green Tree Servicing, LLC, 2017 ME 68, ¶ 18, 158 A.3d 931; Baker’s Table, Inc., 2000 ME 7, ¶ 16, 743 A.2d 237. At the February 9, 2018, hearing on Manning’s motion for sanctions, the court found, and the Bank acknowledged, that the Bank had failed to ensure that a person with “full authority” to settle attended the settlement conference. Therefore, the court did not abuse its discretion in imposing sanctions for the Bank’s conduct during the settlement conference. See Bayview Loan Servicing, LLC, 2014 ME 37, ¶ 23, 87 A.3d 741.