Document: 404 U.S. 16 92 S.Ct. 170 30 L.Ed.2d 136 Alexander McCLANAHAN, Petitioner,v.MORAUER & HARTZELL, INC., et al. No. 70—5097. Argued Oct. 21, 1971. Decided Nov. 8, John Louis Smith, Jr., Washington, D.C., for petitioner. James C. Gregg, respondents. PER CURIAM. 1 Under § 33(g) of the Longshoremen's and Harbor Workers' Compensation Act, an employer is not obligated to pay compensation employee who, without employer's written approval, settles a claim against third person amount less than which entitled under Act. 44 Stat. 1441, as amended, 33 U.S.C. 933(g). Certiorari was granted in this case, 402 1008, 91 2196, 29 430 (1971), on assumption that it presented question whether consent judgment entered by District Judge awarding petitioner damages evidenced 'compromise' subject 33(g), or award 'determined * independent evaluation trial judge,' Banks v. Chicago Grain Trimmers Assn., 390 459, 467, 88 1140, 1145, 20 (1968). Fuller examination case oral argument discloses record does adequately present question. The writ certiorari therefore dismissed improvidently granted. 2 Writ dismissed. 3 Mr. Justice DOUGLAS, dissenting. 4 I am unable agree circumstances fail pose pursuant federal pre-trial conference constitutes within meaning reads: 5 'If compromise with such made would be shall liable determined subdivision (f) section only if his approval.' 6 Petitioner McClanahan employed respondent when steel bar struck head. On August 24, 1964, Bureau Employees' found injury had caused temporary total disability ordered compensate $3,780. While these proceedings were pending, instituted civil action Court party, alleging its employees contributed injury. Before came trial, judge conducted pretrial conference, during he spoke counsel first together then individually. During conversations suggested reviewed file believed plaintiff's worth about $5,000 (although sued $9,000). Other sums discussed but parties accepted suggestion. March 3, 1967, $5,000, petitioner's wife received $3,000 $2,000. Of share $800 retained lawyer remaining $1,200 transferred insurance carrier partial reimbursement payments previously Board's 1964 order. 7 Thereafter, July 26, filed modification award, injuries more serious realized. Deputy Commissioner agreed at least part assertions added $2,328.70 prior award. 8 appeal, however, lower courts persuaded immune from further liability because 'compromised' party. Act provides excess worker's over any worker may recover Thus, benefited injured obtains larger To protect employers ill-advised compromises generally relieves if, servant another possible defendant. instant subscribed judgment, held been spared McClanahan. 9 We consider courts' holdings conflict our decision (1968), employee's acceptance judicially remittitur lieu new 33(g). (1971). involved similar chain events except Banks, unlike McClanahan, went jury awarded him $30,000, thought excessive. court accordingly said order unless reduce to.$19,000. obtaining consent. acquiescence constituted induced 'independent judge' danger Banks' accepting too little present. U.S., 466, 1145. 10 Similarly, no risk unwise faced McClanahan's employer. Pretrial conferences are last stop before final stage litigation process. Preceded pleadings discovery, previews expected scenario, weeds out illusory frivolous issues, exposes substance conflicting claims. Because judges review evidence light clarified they position assess outcome. one widely applauded function has encouragement settlements personal-injury cases. some dispute continues degree persuasion should exercise settlement, critics have complained unreasonable unfair. See F. James, Civil Procedure 228 (1965); Wright, Pre-trial Conference, 28 F.R.D. 141, 145—147 (1960); Brennan, Introduction Problem Protracted Case, 23 376, 378—379 (1958); Clark, Objectives Pre-Trial Procedure, 17 Ohio St.L.J. 163, 167 (1956). below surveyed after discussion both adversaries value $5,000. That assessment experienced understanding how juries likely view claim. Absent shown here, we presume evaluations reasonable do prejudice employers' interests. 11 In Banks—unlike here—the seen full trial's evidence. But situations there critical assessments values plaintiffs' future prospects. might well adduced different, stronger second or, vacated appeal. settling $11,000 extrapolated hindsight more, perhaps even less, information concerning eventual success important similarity between cases informed forecast yet unfold. 12 Moreover, construed so confine defense those where can demonstrate actual unilateral employee. Chapman Hoage, 296 526, 56 333, 80 L.Ed. 370 (1936), opinion discussing claimed unilaterally discontinued lawsuit simply failed prosecute case. This ultimately worthless absent showing windfall result dismissal. 13 trend other jurisdictions avoid harshness resulting strict applications statutes requiring third-party settlements. analogous provision New York employees' statute, modeled,1 facts nonprejudicial employers. Sadowski J. W. Danforth Co., A.D.2d 728, 152 N.Y.S.2d 626 (1956), effectively differed courtroom rather chambers: 14 'Prior action, attorneys concerned two three discussions settlement. day reached claimant's attorney told settled later asked approve settlement figure $10,000, did. presence company representative, claimant signed paper, far appears effort subpoena paper hearing herein. When reached, appeared waived jury. Claimant testified all relevant exhibits received. Defendant's did cross-examine put proof. defendant negligent plaintiff free negligence directed $10,250. 'We cannot say, matter law, upon us, represent court's considered evaluation, based evidence, adequate enable reach fair determination. somewhat favorable represented 'trial sustained compromise.' Klump Erie County Highway Department, 275 App.Div. 1017, 689, leave appeal denied 300 N.Y. 761, 90 N.E.2d 69.'2 15 purpose guarantee minimum level covered employees. clearly reveals statutory minimum. depart holding Banks. Where rely experience district judge, choice refuse disposition short numerous appeals. days crowded dockets, effect rule adopted Appeals will discourage judgments kind force through process, overwhelming already overburdened judges. Finally, something most inequitable person-injury who relies good faith thereafter penalized deprived reliance. reverse enforce congressional mandate contained Inc., Klump, party plaintiff-employee jury, latter briefly, former conceded liability, ranged $4,000 $4,500, $4,300. board argued unsuccessfully compromise. denied, 69. state workman's reported State Workman's Board, Special Bulletin 229, p. 192 (1949).

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