Opinion ID: 4521882
Heading Depth: 3
Heading Rank: 2

Heading: Sanctions Imposed at Settlement Conference

Text: [¶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.