White v. Raymark Industries, Inc.

783 F.2d 1175, 4 Fed. R. Serv. 3d 1146
CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 21, 1986
DocketNo. 84-1743
StatusPublished
Cited by16 cases

This text of 783 F.2d 1175 (White v. Raymark Industries, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. Raymark Industries, Inc., 783 F.2d 1175, 4 Fed. R. Serv. 3d 1146 (4th Cir. 1986).

Opinion

ERVIN, Circuit Judge:

This is an appeal from the district court’s order assessing juror costs in the amount of $2,000.00 against appellant Raymark Industries, Inc., pursuant to Local Rule 20(C) of the Federal Local Rules for the Eastern District of Virginia. Raymark challenges the validity and application of the local rule. Finding no merit in Raymark’s arguments, we affirm the district court’s order.

I.

The jury cost order arose out of a multiparty personal injury suit against Raymark and others, claiming that the plaintiffs had been injured by exposure to the defendants’ asbestos products. The trial was calendared for April 11, 1984. During the months preceding trial, all defendants, except Raymark and Pittsburgh Corning Corporation, entered settlement agreements with plaintiffs. Settlement negotiations between Raymark and plaintiffs occurred infrequently prior to trial.

Counsel for plaintiffs sent a letter containing a settlement demand dated January 25, 1984 to Raymark. Raymark responded with a counter-offer on or about March 23, 1984. There was nominal movement toward settlement from March 23 to April 6, 1984. Between April 6, 1984 and the trial date, plaintiffs’ counsel vigorously attempted to negotiate a final settlement with Ray-mark. Raymark’s counsel, however, was prohibited from agreeing on a settlement figure without the permission of Ray-mark’s insurance carrier. This authorization was unobtainable from April 6 to April 11. The National Coordinator for the insurance company was “out of town,” and no other company representative had the power to approve a settlement.1

On the morning of trial, Raymark’s counsel, having received the belated authorization from the insurance carrier, entered a settlement'agreement with the plaintiffs. The agreement was made, however, after 65 veniremen had been summoned and appeared for jury duty. Upon learning of the settlement, the court reminded Raymark’s counsel of the court’s warning on the previous day that jury costs would be assessed in the event of an unjustified delay in settling the case. Raymark’s counsel was given opportunity to state reasons why Ray-mark should not incur the costs. The court, citing the insurance carrier’s misconduct, ordered Raymark to pay the expense for the jury’s unnecessary presence. Ray-mark appeals from this order.2

II.

The first issue on appeal is whether Local Rule 20(C) of the Federal Local Rules for the Eastern District of Virginia is valid. The rule states:

Whenever any civil action scheduled for jury trial is settled or otherwise disposed of in advance of the actual trial, then, except for good cause shown, juror costs, including Marshal’s fees, mileage and per diem, shall be assessed equally against the parties and their counsel or otherwise assessed as directed by the Court, unless the Clerk's Office is notified at least one full business day prior to the day on which the action is scheduled for trial in time to advise the jurors that it will not be necessary for them to attend.

Raymark claims that the district court did not have the power to promulgate the rule. We disagree.

The district court’s authority to adopt Local Rule 20(c) stems from three sources: (1) the inherent power vested in federal courts; (2) 28 U.S.C. § 2071 (1982); and (3) Fed.R.Civ.P. 83. In emanating from these sources, a local rule must not be inconsist[1177]*1177ent with or preempted by federal statutes or uniform federal rules.

The inherent judicial power to control and protect the administration of court proceedings has been recognized and invoked many times. The most recent and indeed the most pertinent recognition and application of the inherent power of federal district courts is the Third Circuit’s en banc decision in Eash v. Riggins Trucking Inc., 757 F.2d 557 (3rd Cir.1985). Dividing 6 to 4, the en banc court held that, even in the absence of any local rule on the subject, a federal district court has inherent power to impose on defendants’ attorney the costs of impaneling a jury for one day for the attorney’s alleged abuse of the judicial process. The abuse was akin to that found in the instant case — an unjustified delay in settling a personal injury case until the day the trial was to begin and the jury venire had assembled.3

The Eash opinion contains an in-depth analysis of the inherent power concept as used in the federal court system. That analysis need not be repeated here. We agree with it and the conclusion arising therefrom that the power to impose juror costs on those responsible for delaying a settlement until the jury venire has been assembled is an ingredient of a federal court’s inherent powers.

We find no merit in Raymark’s assertion that the concept of inherent power is limited to cases, like Eash, that involve disciplining attorneys, not litigants. Federal courts have long recognized their inherent power to sanction litigants for misbehavior in the judicial process. See, e.g., Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 258-59, 95 S.Ct. 1612, 1622-1623, 44 L.Ed.2d 141 (1975) (courts have the inherent power to tax counsel fees against a party who has litigated in bad faith); Link v. Wabash Railroad Co., 370 U.S. 626, 630-31, 82 S.Ct. 1386, 1388-1389, 8 L.Ed.2d 734 (1962) (the court’s authority to dismiss a party’s case is an inherent “control necessarily vested in courts to manage their own affairs so as to achieve the orderly and expeditious disposition of cases”).

There is no distinction between attorney and litigant abuses of the judicial process when applying the inherent power of the federal courts to penalize those responsible for the wrongful conduct. Indeed, the Supreme Court has cited the judicial inherent power to sanction litigants as authority for penalizing an attorney. Roadway Express, Inc. v. Piper, 447 U.S. 752, 765-66, 100 S.Ct. 2455, 2463-64, 65 L.Ed.2d 488 (1980) (citing Link, 370 U.S. at 629-30, 82 S.Ct. at 1388-89 and Alyeska Pipeline Service Co., 421 U.S. at 258-59, 95 S.Ct. at 1622-23). Likewise, the Eash court relied on cases of litigant discipline to support its holding that an attorney can be assessed with juror costs. Eash, 757 F.2d at 565, 567, 569.

The inherent power of the courts to impose sanctions on attorneys and litigants has been codified at 28 U.S.C. § 2071 (1982)4 and Fed.R.Civ.P. 83.5 Both the [1178]

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
783 F.2d 1175, 4 Fed. R. Serv. 3d 1146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-raymark-industries-inc-ca4-1986.