Monroe v. Corpus Christi Independent School District

236 F.R.D. 320, 2006 U.S. Dist. LEXIS 48465, 2006 WL 1991738
CourtDistrict Court, S.D. Texas
DecidedJuly 17, 2006
DocketCiv.A. No. C-05-412
StatusPublished

This text of 236 F.R.D. 320 (Monroe v. Corpus Christi Independent School District) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monroe v. Corpus Christi Independent School District, 236 F.R.D. 320, 2006 U.S. Dist. LEXIS 48465, 2006 WL 1991738 (S.D. Tex. 2006).

Opinion

ORDER

OWSLEY, United States Magistrate Judge.

This is a civil rights action alleging employment discrimination. Pending is plaintiffs motion for reimbursement of a mediation fee and sanctions. (D.E. 20). A hearing was conducted regarding this pending motion on Friday, July 7, 2006.

I. BACKGROUND

On October 5, 2005, an order was issued referring the case to mediation. (D.E. 13). It had been previously explained to the litigants that “[a]ny party, as the case is discovered, who determines that the case is not suitable for mediation shall file a motion to vacate [the] mediation order and it will be vacated as to that party only. The Court will not force any party to mediation that does not believe the case suitable for mediation.” (D.E. 12, at 2-3). In conducting the mediation, the parties were under certain strictures. First, they had to mediate in good faith:

8. Commitment to Participate in Good Faith. While no one is asked to commit to settle their case in advance of mediation, all parties commit to participate in the proceedings in good faith with the intention to settle, if at all possible.

(D.E. 8, at 3). Second, they both were supposed to have individuals with authority to negotiate a settlement at the mediation:

10. Presence and Authority of Representatives. Named parties shall be present during the entire mediation process if needed to settle, and each corporate party must be represented by an executive offi[322]*322cer with authority to negotiate a settlement.

Id.

On April 25, 2006, a mediation was conducted, and the case was settled subject to the approval of the school board of trustees. (D.E. 20, at 112). Indeed, the mediator filed an ADR Memorandum with the Clerk of the Court indicating that the case had settled. (D.E. 15).

In her motion, plaintiff asserts that she first learned on May 15, 2006 that defendant would not settle the case when she received its motion for summary judgment. (D.E. 20, at 112). On May 25, 2006, plaintiffs counsel claims that he learned from defendant’s counsel “that Defendant had initiated a new policy that provided, among other things, that the Defendant would no longer pay any money to settle lawsuits.” Id. at 114. Plaintiffs counsel further asserts that neither he nor the mediator were apprised of this new policy. Id. at U 5. Plaintiff argues that “the Defendant represented during the mediation it had the requisite authority to negotiate a settlement of Plaintiffs claims.” Id. She seeks reimbursement of the $1,000 mediation fee as well as $1,225 in attorney’s fees expended during the seven hour mediation. Id. at 116.

Defendant asserts that “[o]n or about May 8, 2006, a Board meeting was held with Corpus Christi ISD where the Board rejected said proposed settlement.” (D.E. 24, at 111). It alleges that “plaintiffs counsel was notified that the Board had rejected the settlement proposal on or about May 11, 2006 and again on May 15, 2006.” Id. It denies that its counsel stated “that the Board had initiated a new policy that provided, among other things, that it would no longer pay any money to settle lawsuits.” Id. at 113. Instead, it claims that “plaintiff was informed ... that the Board was not going to pay lawsuits merely to get rid of them.” Id.

At the July 7 hearing, the parties’ arguments shifted slightly from those in their briefs. Plaintiff argued that defendant’s decision to attend the mediation when it did not have settlement authority constituted bad faith. While her counsel acknowledged that the school board had to approve any settlement, it was his experience that typically, any school district representative would have attended the mediation with a pre-approved limit for the negotiation. Consequently, any settlement agreement would already have the tacit approval of the school board. Then the agreement would simply be approved officially by the school board as within the pre-approved limits it had authorized for the negotiations.

Defendant argues that it attended the mediation and negotiated the settlement in good faith. Prior to the mediation, it made clear to plaintiff that any settlement had to be approved by the school board. After the mediation, defendant’s counsel presented the settlement to the school board, but they declined to approve it.

II. DISCUSSION

A. The Court Has Authority To Sanction Defendant For Failing To Adhere To Mediation Orders.

As the Fifth Circuit has explained, “[fjederal courts have inherent powers which include the authority to sanction a party or attorney when necessary to achieve the orderly and expeditious disposition of their dockets.” Scaife v. Assoc. Air Ctr. Inc., 100 F.3d 406, 411 (5th Cir.1996) (citations omitted). As a general rule, the standards for imposing sanctions pursuant to a court’s inherent powers is very high. Crowe v. Smith, 151 F.3d 217, 236 (5th Cir.1998).

The Federal Rules of Civil Procedure also provide sanctions for parties that fail to comply with orders:

If a party or party’s attorney fails to obey a scheduling or pretrial order, or if no appearance is made on behalf of a party at a scheduling or pretrial conference, or if a party or party’s attorney is substantially unprepared to participate in the conference, or if a party or party’s attorney fails to participate in good faith, the judge, upon motion or the judge’s own initiative, may make such orders with regard thereto as are just, and among others any of the orders provided in Rule 37(b)(2)(B), (C), (D). In lieu of or in addition to any other [323]*323sanction, the judge shall require the party or the attorney representing the party or both to pay the reasonable expenses incurred because of any noncompliance with this rule, including attorney’s fees, unless the judge finds that the noncompliance was substantially justified or that other circumstances make an award of expenses unjust.

Fed.R.Civ.P. 16(f). The Fifth Circuit has explained that a party who ignores a pre-trial order does so at its own peril. See Rushing v. Kansas City S. Ry., 185 F.3d 496, 508 (5th Cir.1999).

In Scaife, the plaintiff filed a diversity action for breach of contract. Pursuant to Rule 16, the district court issued a mediation order that stated in relevant part: “The named parties shall be present during the entire mediation process and each party which is not a natural person must be represented by an executive officer with authority to negotiate a settlement. Counsel and parties shall proceed in a good faith effort to try to resolve this case.” 100 F.3d at 408. When the defendant learned that plaintiff did not intend to appear at the mediation, but instead would send his agent, the defendant raised the matter with the district court. Id. After a conference, the court made clear that plaintiff was to attend the mediation. Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Scaife v. Associated Air Center Inc.
100 F.3d 406 (Fifth Circuit, 1996)
Crowe v. Smith
151 F.3d 217 (Fifth Circuit, 1998)
Norman Jett v. Dallas Independent School District
7 F.3d 1241 (Fifth Circuit, 1994)
McKinney Independent School District v. Carlisle Grace, Ltd.
83 S.W.3d 205 (Court of Appeals of Texas, 2002)
Favero v. Huntsville Independent School District
939 F. Supp. 1281 (S.D. Texas, 1996)
Bowman v. Lumberton Independent School District
801 S.W.2d 883 (Texas Supreme Court, 1990)
La Villa Independent School District v. Gomez Garza Design, Inc.
79 S.W.3d 217 (Court of Appeals of Texas, 2002)
Nick v. Morgan's Foods, Inc.
99 F. Supp. 2d 1056 (E.D. Missouri, 2000)
Davis v. Duncanville Independent School District
701 S.W.2d 15 (Court of Appeals of Texas, 1985)
Dvorak v. Shibata
123 F.R.D. 608 (D. Nebraska, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
236 F.R.D. 320, 2006 U.S. Dist. LEXIS 48465, 2006 WL 1991738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monroe-v-corpus-christi-independent-school-district-txsd-2006.