Opinion ID: 767140
Heading Depth: 3
Heading Rank: 2

Heading: Neilson's Prospects at Trial

Text: 93 The majority also affirms the district court's decision to approve the proposed settlement, without waiting for the general guardian to review the agreement, because Neilson had limited prospects for recovery at trial. See ante at 654-55, 657. Neither the district court nor the majority has, however, undertaken any detailed analysis of the merits of Neilson's claims, particularly her claim of retaliatory discharge. Federal courts, in determining the fairness of a proposed settlement, should consider a variety of factors, including the range of reasonableness of the settlement fund in light of the best possible recovery. County of Suffolk v. Long Island Lighting Co., 907 F.2d 1295, 1323-24 (2d Cir. 1990) (citation and quotation marks omitted); see also Maywalt v. Parker & Parsley Petroleum Co., 67 F.3d 1072, 1079 (2d Cir. 1995) (In determining whether a proposed settlement is fair, reasonable, and adequate, the primary concern is with the substantive terms of the settlement: Basic to this is the need to compare the terms of the compromise with the likely rewards of litigation.) (citations, alterations and quotation marks omitted). 94 There is an extraordinary aspect of this case that the majority ignores altogether: it is undisputed that Colgate expressly conditioned Neilson's continued employment on the withdrawal of her EEOC complaint. When Neilson refused to withdraw the charge, Colgate fired her. In light of this potential smoking gun evidence, I believe a jury would have little difficulty finding that Neilson suffered a materially adverse change in the terms and conditions of her employment under circumstances giving rise to an inference of discrimination. See Torres v. Pisano, 116 F.3d 625, 640 (2d Cir. 1997) (It is conceivable that a demand to withdraw an EEOC charge could constitute retaliation, if it truly had so great an effect on the plaintiff as to alter the conditions of her employment in a material way.). 7 This evidence alone thus immediately places this case whether or not it can ultimately be defended successfully on sounder footing than many employment discrimination cases that are settled for significantly greater amounts. 8 It is undoubtedly this sort of consideration that might prompt an attorney to leap at the opportunity to represent a client in a retaliatory discharge case. Indeed, Neilson's former attorneys, the prominent employment law firm of Vladeck, Waldman, Elias & Engelhard, strenuously opposed the settlement negotiated by the guardian ad litem and even offered to reenter the case and vigorously pursue Ms. Neilson's claims on a pro bono basis. 9 95 While I agree that a district court has the authority to approve a settlement negotiated by a guardian ad litem notwithstanding the subsequent appointment of a general guardian in state court, see ante at 657, I cannot disregard the fact that a general guardian invariably has more information about the personal and financial circumstances of an incompetent party than a guardian ad litem appointed pursuant to Fed. R. Civ. P. 17(c). Where, as here, the appointment of a general guardian is imminent, this factor should weigh heavily on a district court's decision whether to approve a settlement on behalf of an incompetent party, particularly if the only negative consequence of an adjournment is a short delay with no appreciable prejudice to either the plaintiff or the defendant. In my view, the benefits of a brief adjournment to allow Neilson's general guardian to review the proposed settlement so far outweighed any speculative harm caused by a few months' delay in the case that the district court's refusal to defer consideration of the settlement amounted to an abuse of discretion. For this reason, and because the procedures employed by the district court in appointing the guardian ad litem failed to satisfy due process, I respectfully dissent. Notes: 1 I concur in Part A of the majority's discussion, which holds that Neilson's general guardian has standing to bring this appeal. See ante at 650-51. 2 Even Colgate does not attempt to defend the propriety of the district court's August 15 order. 3 Some of Neilson's initial comments to the court referred to a guardian ad litem and an attorney conjunctively. See, e.g., Letter from Francine Neilson to Court dated September 15, 1997 (I again consent to the appointment of a guardian ad litem in addition to an attorney . . . .). Viewed in its entirety, however, the record demonstrates that Neilson perceived no distinction between a guardian ad litem and a lawyer who would litigate her case. See, e.g., Transcript of October 27, 1997 Proceeding (He's not acting as a guardian ad litem. I do not need a guardian for day-to-day affairs. I need someone to litigate the case.); Transcript of November 25, 1997 Proceeding (I still have to go back to the issue that we initially asked for an ad litem, a guardian ad litem, for powers of litigating this case. That's why I consented to it. No other reason. For litigating this case.). 4 I note that under New York law, copies of an application for a general guardian must, if possible, be served on the allegedly incompetent person's spouse, parents and adult children, among others. See N.Y. Mental Hyg. Law 81.07(d)(ii). Although the precise procedure for appointing a guardian ad litem is left to the district court's discretion under Fed. R. Civ. P. 17(c), see Thomas, 916 F.2d at 1035 (holding that district court may apply any procedure [for determining competency] that meets the requirements of due process), there is no reason why a district court should not attempt to follow the state procedures, where possible, for notifying the individual's family. The state procedures for notice to families have a sound basis in logic and experience, and district courts should use them as a guideline for competency proceedings in federal court. Asking an allegedly incompetent party about his or her family, and attempting to obtain their names and addresses, are simple steps that courts can and should take before proceeding with the appointment of a guardian ad litem. Had the court below taken these measures, this case might not have progressed to its current unfortunate state. Neilson's son, who commenced a state court proceeding to appoint a general guardian soon after the district court appointed the guardian ad litem, appears to have been both willing and able to help her oversee her affairs until a general guardian was appointed. Had Scott Neilson been apprised of the proceedings in federal court regarding his mother's competency, he might have been able to explain more fully the import of the competency proceedings to his mother and to assist her in deciding whether to consent to a psychiatric examination or to a guardianship ad litem. 5 These representations proved accurate. Neilson's general guardian was appointed on February 27, 1998, just nine days after the district court issued its order approving the settlement and dismissing this action with prejudice. The state court's order appointing the general guardian was entered in the New York County Clerk's Office on March 18, 1998, and her commission was issued on March 31, 1998. 6 Although the majority points to Dr. Pulver's report indicating that Neilson was apparently living on financial handouts from friends and relatives and not eating regularly, ante at 657, the district court had no reason to believe that Neilson's basic subsistence needs were not being met, or were not likely to be met during the few months required for the general guardian to review the matter, particularly given the imminent appointment of a general guardian and Scott Neilson's demonstrated concern for his mother's welfare. 7 Given the documentation and testimony by Colgate employees evidencing the company's quid pro quo offer, moreover, I question the district court's view that Neilson's testimony would have been crucial to her retaliation claim. See 993 F. Supp. at 228. Even if her testimony would have been vital, Dr. Pulver suggested that a general guardian could have helped Neilson obtain psychiatric treatment, which might have improved her ability to communicate to a jury. Neilson, whose obvious intelligence and articulateness the district court repeatedly noted, see, e.g., id. at 226, might well have been capable, with appropriate medical care, of testifying credibly. 8 The majority speculates that even if Neilson were to prevail at trial, her damages would be limited in light of the jury's awareness of Neilson's mental disorder and of its early onset. Ante at 654-55. Because Neilson disputes the guardian ad litem's conclusion that her illness began while she was working at Colgate, however, the majority's assessment of this factual question entirely fails to support its conclusion that the settlement was reasonable. 9 In light of Judith Vladeck's expressed willingness to forego fees for the remainder of the case, I am puzzled by the district court's suggestion, echoed by the majority, see ante at 657, that counsel was motivated only by a desire to recoup her fees. See 993 F. Supp. at 228 n.4.