G. Heileman Brewing Co., Inc. v. Joseph Oat Corporation

871 F.2d 648, 13 Fed. R. Serv. 3d 8, 1989 U.S. App. LEXIS 4563, 1989 WL 30098
CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 27, 1989
Docket86-3118
StatusPublished
Cited by496 cases

This text of 871 F.2d 648 (G. Heileman Brewing Co., Inc. v. Joseph Oat Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
G. Heileman Brewing Co., Inc. v. Joseph Oat Corporation, 871 F.2d 648, 13 Fed. R. Serv. 3d 8, 1989 U.S. App. LEXIS 4563, 1989 WL 30098 (7th Cir. 1989).

Opinions

KANNE, Circuit Judge.

May a federal district court order litigants — even those represented by counsel —to appear before it in person at a pretrial conference for the purpose of discussing the posture and settlement of the litigants’ case? After reviewing the Federal Rules of Civil Procedure and federal district courts’ inherent authority to manage and control the litigation before them, we answer this question in the affirmative and conclude that a district court may sanction a litigant for failing to comply with such an order.

I. BACKGROUND

A federal magistrate ordered Joseph Oat Corporation to send a “corporate representative with authority to settle” to a pretrial conference to discuss disputed factual and legal issues and the possibility of settlement. Although counsel for Oat Corporation appeared, accompanied by another attorney who was authorized to speak on behalf of the principals of the corporation, no principal or corporate representative personally attended the conference. The court determined that the failure of Oat Corporation to send a principal of the corporation to the pretrial conference violated its order. Consequently, the district court imposed a sanction of $5,860.01 upon Oat Corporation pursuant to Federal Rule of Civil Procedure 16(f). This amount represented the costs and attorneys’ fees of the opposing parties attending the conference.

II. THE APPEAL

Oat Corporation appeals, claiming that the district court did not have the authority to order litigants represented by counsel to appear at the pretrial settlement conference. Specifically, Oat Corporation contends that, by negative implication, the language of Rule 16(a)(5) prohibits a district court from directing represented litigants to attend pretrial conferences.1 That is, because Rule 16 expressly refers to “attorneys for the parties and any unrepresented parties” in introductory paragraph (a), a district court may not go beyond that' language to devise procedures which direct the pretrial appearance of parties represented by counsel. Consequently, Oat Corporation concludes that the court lacked the authority to order the pretrial attendance of its corporate representatives and, even if the court possessed such authority, the court abused its discretion to exercise that power in this case. Finally, Oat Corporation argues that the court abused its discretion to enter sanctions.

A. Authority to Order Attendance

First, we must address Oat Corporation’s contention that a federal district court lacks the authority to order litigants who are represented by counsel to appear at a pretrial conference. Our analysis requires us to review the Federal Rules of Civil Procedure and district courts’ inherent authority to manage the progress of litigation.

Rule 16 addresses the use of pretrial conferences to formulate and narrow issues for trial as well as to discuss means for dispensing with the need for costly and unnecessary litigation. As we stated in Link v. Wabash R.R., 291 F.2d 542, 547 (7th Cir.1961), aff'd, 370 U.S. 626, 82 S.Ct. 1386, 8 L.Ed.2d 734 (1962):

Pre-trial procedure has become an integrated part of the judicial process on the [651]*651trial level. Courts must be free to use it and to control and enforce its operation. Otherwise, the orderly administration of justice will be removed from control of the trial court and placed in the hands of counsel. We do not believe such a course is within the contemplation of the law.

The pretrial settlement of litigation has been advocated and used as a means to alleviate overcrowded dockets, and courts have practiced numerous and varied types of pretrial settlement techniques for many years. See, e.g., Manual for Complex Litigation 2d, §§ 21.1-21.4 (1985); Federal Judicial Center, Settlement Strategies for Federal District Judges (1988); Federal Judicial Center, The Judge’s Role in the Settlement of Civil Suits (1977) (presented at a seminar for newly-appointed judges); Federal Judicial Center, The Role of the Judge in the Settlement Process (1977). Since 1983, Rule 16 has expressly provided that settlement of a case is one of several subjects which should be pursued and discussed vigorously during pretrial conferences.2

The language of Rule 16 does not give any direction to the district court upon the issue of a court’s authority to order litigants who are represented by counsel to appear for pretrial proceedings. Instead, Rule 16 merely refers to the participation of trial advocates — attorneys of record and pro se litigants. However, the Federal Rules of Civil Procedure do not completely describe and limit the power of the federal courts. HMG Property Investors, Inc. v. Parque Indus. Rio Canas, Inc., 847 F.2d 908, 915 (1st Cir.1988) (citations omitted).

The concept that district courts exercise procedural authority outside the explicit language of the rules of civil procedure is not frequently documented, but valid nevertheless. Brockton Sav. Bank v. Pete, Marwick, Mitchell & Co., 771 F.2d 5, 11 (1st Cir.1985), cert. denied, 475 U.S. 1018, 106 S.Ct. 1204, 89 L.Ed.2d 317 (1986). The Supreme Court has acknowledged that the provisions of the Federal Rules of Civil Procedure are not intended to be the exclusive authority for actions to be taken by district courts. Dink v. Wabash R.R., 370 U.S. 626, 82 S.Ct. 1386, 8 L.Ed.2d 734 (1962).

In Link, the Supreme Court noted that a district court’s ability to take action in a procedural context may be grounded in “ ‘inherent power,’ governed not by rule or statute but by the control necessarily vested in courts to manage their own affairs so as to achieve the orderly and expeditious disposition of cases.” 370 U.S. at 630-31, 82 S.Ct. at 1389 (footnotes omitted).3 This authority likewise forms the basis for continued development of procedural techniques designed to make the operation of the court more efficient, to preserve the integrity of the judicial process, and to control courts’ dockets.4 Because the rules [652]*652form and shape certain aspects of a court’s inherent powers, yet allow the continued exercise of that power where discretion should be available, the mere absence of language in the federal rules specifically authorizing or describing a particular judicial procedure should not, and does not, give rise to a negative implication of prohibition. See Link, 370 U.S. at 629-30, 82 S.Ct. at 1388;5 see also Fed.R.Civ.P.

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Bluebook (online)
871 F.2d 648, 13 Fed. R. Serv. 3d 8, 1989 U.S. App. LEXIS 4563, 1989 WL 30098, Counsel Stack Legal Research, https://law.counselstack.com/opinion/g-heileman-brewing-co-inc-v-joseph-oat-corporation-ca7-1989.