*1 648 So, naturally, the district court questions also read revive an ground abandoned complaint deprivation limited to as a See, e.g., reversal. Heil v. Morrison (the
property rights “or con- otherwise” 546, Corp., (7th Knudsen 863 F.2d 548-49 cluding passage quoted earlier from Cir.1988) Hornick, United States v. the district opinion court’s was throwa- 1156, (7th F.2d Cir.1987); Bonds v. way) analyzed accordingly. the case Co., Coca-Cola (7th F.2d Cir.1986). The ground contract was argument
Until oral in this court—which by being waived abandoned and the (or proper was too late advancing new what is ty ground properly rejected. was the same thing, reviving abandoned) The dis missal grounds of the suit is reversal—Lim therefore acquiesced in the district interpretation court’s of his AFFIRMED. case. opening His and reply briefs argue only that he deprived was RIPPLE, Judge, Circuit dissenting. property rights. The sole reference to con I would judgment reverse the of the dis- tract is as a source of property rights. trict court and remand the case for further Property rights normally do arise out of proceedings. my view, complaint contract, every but not contract creates a adequately alleges racially based interfer- property right. Psychological Illinois ence with the contract rights of appel- Falk, Ass’n v. supra, 1344; 818 F.2d at lant. I do not believe that say we can Brienen, Brown v. 722 F.2d 363-65 the claim was waived in the district court. (7th Cir.1983). In particular, a contract Nor do I read the appellant’s brief as waiv- right merely specified procedures—the ing question in this Therefore, court. only right that Lim possessed appli as an under the stands, law as it now appel- cant for reappointment to the medical staff right lant has a to progress beyond the after his one-year current appointment was pleadings and, initial view, in my it was up property not a right in the constitu —is error for the district court to cut off the tional sense. See Rаcine, Archie v. City of litigation so summarily. 1211, 1217(7th 847 F.2d Cir.1988)(en banc), there; and cases cited also cited in cases Jurich, Shango v. Cir.1982). True, many of the cases cited
these opinions, two itself, like Shango in liberty
volve rather property; than
some are property cases, Archie, as was
and the principles are the same in both types of true, case. And none of these is a G. CO., HEILEMAN INC., case; BREWING contract all are cases where a state Plaintiff-Appellee, statute, ordinance, or regu administrative lation had procedural created right. But we cannot see what difference it makes CORPORATION, JOSEPH OAT whether procedural right is created Defendant-Appellant. statute, ordinance, regulation, or other public enactment; No. 86-3118. a contract between a public agency plaintiff; or, and the here, United States Court Appeals, by private contract. Contracts can create Seventh Circuit. property rights, but a contract that creates merely right procedure Argued does not May 20, create 1987. a property right within the meaning Rehearing En Sept. Banc 1988. process due clause. Decided March Having staked his all on showing that he deprived was of property in sense, Lim
cannot be allowed reverse field at oral
argument agile and in response to our *2 Metzner, Bell, Carroll Metzner & Gier- II. THE APPEAL hart, S.C., Madison, Wis., defendant-ap- Oat Corporation appeals, claiming that pellant. the district court did not have the authority Florsheim, Richard S. *3 Thomas Shriner, L. litigants represented order by counsel to Jr., Lardner, Foley & Milwaukee, Wis., for appear pretrial at the settlement confer- plaintiff-appellee. Specifically, ence. Corporation Oat con- BAUER, Before Judge, Chief that, tends by negative implication, the lan- CUMMINGS, WOOD, Jr., CUDAHY, guage 16(a)(5) of Rule prohibits a district POSNER, COFFEY, FLAUM, court directing from represented litigants
EASTERBROOK, RIPPLE, MANION pretrial attend is, conferences.1 That KANNE, and Circuit Judges. because Rule expressly refers to “attor- neys parties for the unrepresented any KANNE, Judge. Circuit parties” in introductory (a), paragraph May a federal district court order liti- distriсt court may go not beyond that' lan- gants those by counsel —even guage procedures to devise which direct appear person —to it in pretrial before at a pretrial appearance parties repre- of discussing of sented counsel. Consequently, Oat Cor- posture litigants’ and settlement of the poration concludes that the court lacked case? After reviewing the Federal Rules the authority order pretrial attend- of Civil Procedure and federal district ance of its corporate representatives and, courts’ manage and even if the possessed court such authority, control the litigation them, before an- the court abused its discretion to exercise swer question in the affirmative and in this Finally, case. Oat Cor- conclude that a district court sanction poration argues that the court abused its litigant failing for to comply with such discretion to enter sanctions. order. I. BACKGROUND Authority A. to Order Attendance A federal magistrate Joseph ordered Oat First, we must address Corporation’s Oat Corporation to “corporate send a represent- contention that a federal district court ative with authority to settle” pretrial to a lacks the authority to order who conference to disputed discuss factual and by counsel at a legal issues and the possibility of settle- pretrial conference. analysis Our requires Although ment. counsel for Oat Corpora- us to review the Federal Rules of Civil appeared, tion accompanied by another at- Procedure and district courts’ inherent au- torney who was speak authorized thority to manage the progress litiga- of behalf the principals of the corporation, tion. no principal corporate representative Rule 16 personally addresses the attended use the cоnference. The conferences to formulate and narrow determined that the is failure of Oat sues for trial well Corporation as as to discuss send a means principal of the cor- poration dispensing with the costly need conference violated unnecessary litigation. its order. As we Consequently, stated in the district court Link v. R.R., imposed Wabash $5,860.01 sanction of upon Oat (7th Cir.1961), Corporation pursuant aff'd, U.S. S.Ct. Federal 1386, 8 (1962): L.Ed.2d 734 16(f). Civil Procedure This amount repre- sented the and attorneys’ costs fees of the procedure Pre-trial has become an inte- opposing parties attending the grated conference. part of the process on the 16(a)(5) provides: ence or conferences before pur- trial for such (a) Conferences; Objectives. poses Pretrial any action, the court in its discretion direct attorneys (5) unrepre- facilitating the settlement of the case. sented before it for a 16(a)(5). confer- Fed.R.Civ.P. completely do not Procedure Rules of it Civil use free to must level. Courts trial power of the limit the describe and operation. enforce to control Investors, Inc. v. Property courts. HMG Otherwise, orderly administration Canas, Inc., 847 F.2d Rio Parque Indus. from control removed
justice will
omitted).
Cir.1988) (citations
(1st
908, 915
the hands
placed in
trial
such
believe
do not
counsel.
exercise
district courts
concept that
contemplation
is within
course
explicit
authority outside
procedural
law.
procedure
civil
language of the rules
documented,
but valid
frequently
litigation has
Bank
Brockton Sav.
nevertheless.
aas means
*4
and used
advocated
been
5,
Co.,
Marwick,
Pete,
&
771 F.2d
Mitchell
dockets,
overcrowded
alleviate
denied,
Cir.1985),
475 U.S.
cert.
(1st
11
types
varied
numerous
practiced
(1986).
1204,
L.Ed.2d 317
1018,
89
106 S.Ct.
many
techniques for
settlement
of
acknowledged has
Supreme Court
Liti- The
See,
Complex
for
e.g.,
Manual
years.
of Civil
Federal Rules
of the
provisions
Ju-
(1985);
2d,
Fеderal
21.1-21.4
gation
§§
exclu
to be the
are not intended
Procedure
Strategies
Center,
Settlement
dicial
for
by
taken
authority for
actions
(1988);
sive
Federal
Judges
District
Federal
R.R., 370
v. Wabash
district courts. Dink
in the
Judge’s Role
Center,
The
Judicial
1386,
L.Ed.2d 734
626,
8
82 S.Ct.
(1977) (presented U.S.
Suits
Civil
Settlement of
(1962).
judges);
newly-appointed
for
seminar
at a
Center, The Role
Judicial
Federal
of
Link,
noted that
Supreme Court
(1977).
Process
the Settlement
Judge in
in a
action
ability to take
district court’s
expressly provided
1983,
16 has
Rule
Since
in
grounded
may be
context
procedural
“
several
is one of
a case
of
or
by rule
not
power,’ governed
‘inherent
and dis-
pursued
should
which
subjects
necessarily vest-
by the control
statute but
confer-
during pretrial
vigorously
cussed
affairs so
manage their
own
in courts
ed
ences.2
expeditious
orderly and
as to achieve
630-31,
370 U.S.
cases.”
disposition of
not
Rule 16
of
does
language
The
omitted).3
(footnotes
This
1389
82 S.Ct. at
upon
the district
any direction
give
for con-
forms the basis
authority likewise
authority to order
a court’s
of
the issue
tech-
procedural
of
development
tinued
counsel
who
are
operation
designed to make
Instead,
niques
proceedings.
for
efficient,
preserve
more
the court
participation
refers to
merely
16
Rule
process,
of the
integrity
attorneys of record
of trial advocates —
the rules
Because
dockets.4
courts’
However,
control
the Federal
se
litigants.
pro
proce
specific
examples
(court discussing
16(c)(7) states:
2. Rule
con
dures,
punish for
power to
as the
such
Con-
(c)
Subjects
Pretrial
to be Discussed
friv
persons who file
tempt, power to sanction
any conference
participants at
The
ferences.
whether
determine
pleadings,
olous
action
and take
consider
this rule
under
— U.S. -,
granted,
jurisdiction), cert.
there
respect to
773;
781,
v. Jack
Stranded
102 L.Ed.2d
109 S.Ct.
Cir.1988);
884,
(7th
Cоunty,
886
838 F.2d
son
use
(7)
of settlement or
possibility
Angeles, 782
Housing Auth.
Los
Thompson v.
dis-
procedures to resolve
extrajudicial
denied,
829,
Cir.),
(9th
479 U.S.
cert.
831
F.2d
pute; ....
(1986);
112,
Halaco
829,
60
L.Ed.2d
S.Ct.
93
107
16(c)(7).
Fed.R.Civ.P.
376,
(9th
Costle,
Cir.
380
F.2d
Eng'g
v.
843
Co.
long
"the
held that
has
Supreme Court
Supreme
has
Court
1988) (court stating
those
federal courts
powers of
inherent
inherent
has
recognized
a district
of all oth-
necessary to
exercise
‘are
which
discovery
impose sanctions
authority to
”
Piper, 447 U.S.
Roadway Express, Inc.
ers.’
violation
be a technical
abuses which
2463,
2455,
488
764,
L.Ed.2d
752,
65
100 S.Ct.
rules).
discovery
Good-
Hudson &
States v.
(1980) (quoting United
requiring
judges
district
practice of some
32,
34,
32,
L.Ed. 259
win,
U.S.
3
11
7 Cranch
(or by
person
(1812)).
par-
part and
has been
representative)
corporate
many
conferences
of such
Newman-Green,
cel
years.
Inc. v.
4. See
Alfonzo-Larrain
(6th
LaMarre,
756
494 F.2d
banc)
In re
Cir.1988) (en
See
R.,
921-22
shape
aspects
form and
certain
place
a court’s
is no
procedural
the federal civil
powers, yet
allow the continued
system
proposition
that rules hav-
exercise of that
where discretion ing
statute,
the force of
though in der-
available,
should be
the mere
absence
ogation
law,
of the common
are to be strict-
language in
specifically
federal rules
ly
Wright
Miller,
construed. C.
A.&
Fed-
authorizing
describing particular judi-
eral Practice and Procedure: Civil 2d
procedure
not,
cial
not,
should
and does
(1987).
§
give
negative
rise to a
implication
prohi-
spirit, intent,
“[The]
[of
Link,
bition.
629-30,
See
370 U.S. at
broadly remedial,
is ...
allowing courts
16]
1388;5
S.Ct. at
see also Fed.R.Civ.P. 83
actively manage
the preparation of cases
(“In all
provided
rule,
cases not
Baker,
for trial.”
In re
744 F.2d
judges
district
magistrates may regu-
(10th Cir.1984)(en banc),
denied,
cert.
practice
late their
manner not incon-
471 U.S.
105 S.Ct.
85 L.Ed.2d
sistent with
rules or those
these
(1985).
designed
16 is not
as a
they act.”).
district in which
device to restrict or limit the authority of
court,
Obviously,
district
in de
judge
in the
conduct of
*5
vising means
it,
to control cases before
conferences. As the Tenth Circuit Court of
may not
its
authority
exercise
inherent
in a
Appeals sitting en
Baker,
banc
stated
manner inconsistent with rule or statute.
spirit
“the
and
of the amendments
As we stated in Strandell v. Jackson
to
always
Rule 16
within
been
County,
(7th
838
Cir.1988),
F.2d
886
power
inherent
of the
manage
courts to
power
such
should “be exercised in a man
their affairs
independent
as an
constitution
ner that is in harmony with the Federal
al
government.”
branch of
Id.
1441
Rules of Civil Procedure.” This means
(citations omitted).
that “where the
directly
rules
mandate a
specific procedure to the exclusion
oth
of
agree with
interpretation
We
of
ers,
authority
inherent
proscribed.”
Rule 16.
wording
of the rule and the
Landau
Cleary,
&
Ltd. v. Hribar Truck
accompanying commentary
plain
make
Inc.,
ing,
867
Cir.1989)
the entire thrust of the amendment to Rule
(emphasis added).
urge
16 was
judges
to make wider use of
case,
In this
we
required
are
deter-
powers
their
and to manage actively their
mine whether a
power
court’s
to order the
early stage.
dockets from an
We therefore
pretrial appearance
litigants
of
are
who
interpretation
conclude
our
of Rule 16
represented by
with,
counsel is inconsistent
to allow district
represented
courts to order
or
derogation of,
Rule 16.
must
pretrial
settlement con
states,
remember that
with unmis-
ferences merely represents another applica
clarity,
takable
that the Federal
of
Rules
tion of
judge’s
district
authority
inherent
Civil Procedure “shall be construed to se-
preserve
the efficiency,
impor
more
just,
cure the
speedy,
inexpensive
de-
tantly
integrity,
judicial
process.
termination
every
action.” This lan-
guage explicitly
summarize,
To
indicates that the
simply
we
hold that the
rules are to be liberally
action
construed.
taken
the district court in this
Cf.
495, 507,
Hickman v. Taylor, 329 U.S.
67 case constituted
proper
use of inherent
385, 392,
S.Ct.
(1947).
Having Oаt authority to order (1985). possessed at the where a situation If this case conference,7 now rep- corporate had sent a Corporation Oat abused the court whether must examine because and was sanctioned resentative order. issue such discretion an offer to make refused person *6 is, refused to submit money pay —that outset, important it is theAt faced would be coercion—we settlement coerce cannot court a district
note that
issue—a situation
decidely different
awith
Smith,
F.2d
771
Kothe v.
settlement.
countenance.
we would not
case, considera
Cir.1985).8
(2d
this
In
669
Notes to
Advisory Committee
because
generated
has been
ble concern
pur-
is not
“[although it
the
16 state that
representa
“corporate
court ordered
the
impose settlement
16(b)(7)to
of Rule
pose
the
to attend
settle”
tives with
is be-
unwilling litigants, it
negotiations
view, “authority to set
In our
conference.
neutral forum
providing a
case,
lieved
of this
tle,”
in
context
used
the
when
it.”
might foster
discussing
representative”
[settlement]
“corporate
the
means that
note,
advisory committee’s
16
Fed.R.Civ.P.
re
was
pretrial conference
attending
clearly
(1983).
*7
Moreover,
trate’s order was
powers
prior
made
“[b]eeause
to the date
pretrial
shielded from
the
direct
controls,
democratic
conference resumed. Oat Cor-
they
poration
must be
with
contacted
magistrate’s
exercised
restraint and
the
office
discretion.”
Express,
concerning
Roadway
the
requirements
v.
Inc.
order’s
Piper,
752, 764,
447 U.S.
2455,
was
S.Ct.
advised of
requirements
the
now at
2463,
(1980) (citation
insufficient information about those conse- by sented pretrial counsel attend a con- quences give able to a confident an- ference. swer, fortunately we need not answer COFFEY, Judge, Circuit this case —so clear is it that question in with whom EASTERBROOK, RIPPLE and magistrate discretion, abused his which MANION, Judges, Circuit join, is to say, acted unreasonably, demanding dissenting. Corporation Oat an send executive having “full authority” to the Because Rule 16 of the Federal Rules of demand, conference. This which is Procedure, Civil amended Supreme different from a demand that a who Congress Court and 1983, as recently as has not closed the door to settlement send specifically designates may who be ordered possible terms, executive to discuss pretrial conference, at a I dis- would be defensible if had a agree with majority’s determination duty good bargain over faith settle- “that the action taken the district court trial,
ment resorting before and neither in this case constituted the proper use of any rule, Rule 16 statute, nor other inherent authority to aid in accomplishing imposes doctrine such duty on federal and intent of Major- Rule 16.” litigants. See Strandell v. Jackson Coun- ity Opinion at 652. Rule 16 of the Federal ty, Cir.1987); 838 F.2d 887 Kothe Rules of Civil Procedure states relevant Smith, v. (2d 771 Cir.1985); F.2d part: Co., Del Rio v. Northern Blower 574 F.2d “(a) Conferences; Pretrial Objectives. (1st Cir.1978); Maine, Perez v. action, any the court inmay its discre- (1st Cir.1985); F.2d National Ass’n tion direct attorneys Employees, Government Inc. Nation- any unrepresented al Federation Federal Employees, before conference or conferences .it (5th Cir.1988); Advisory Com- before purposes (1) trial for such ex- mittee Notes to 1983 Amendments Fed. pediting disposition action; (2) R.Civ.P. 16. There is no federal establishing early continuing control power to coerce settlement. Oat had made so that the case will protracted not be clear it prepared that was not to settle the (3) because of management; lack of dis- any case on terms required pay it to couraging (4) wasteful activity; money. prerogative, That was its improving which the quality trial once magistrate’s exercised made the through con- thorough more preparation; and tinued (5) sending insistence Oat’s an exec- facilitating the settlement of utive to arbitrary, unreasonable, Madison case.” willful, and petulant. indeed This is apart Unlike majority, I am convinced that from the fact that since no one officer of Rule 16 does not authorize a judge trial Oat have had authority to settle the require party litigant to at- case, compliance with the might demand tend a together with his required ship Oat to its entire board or her attorney because the rule mandates of directors to Madison. Ultimately Oat in clear and unambiguous terms that did money settlement, make a but there is only an unrepresented party litigant and no indication that it would have settled attorneys appear. ordered to sooner if only it had complied with the Although recognize courts, I that all in- magistrate’s demand for the dispatch of an cluding those jurisdiction, pos- possessing executive “full settlement au- sess certain inherent authority, such as the
thority.” contempt power and the to deter- mine whether day jurisdiction,
Sufficient the court has unto the evil there- of: this authority recently should reverse the limited. We district court reaching without warned that: question whether “ there circumstances in which a authority’ ‘Inherent is not a substitute reason_ may compel party repre- good ‘Inherent authori-
659
elected
court has
‘because a
overlooked
the
law
in criminal
cousin
like its
ty’
super-
question under the
analyze the
name
just another
is
power’,
‘supervisory
Payner,
v.
States
visory power.’ United
common
to make
courts
power of
for the
2447,
2439,
736,
[727,
100 S.Ct.
447 U.S.
ad-
do not
rules
statutes
law when
(1980)].”
468
65 L.Ed.2d
topic. Cf. United
particular
dress
325,
F.2d
328-29
Widgery,
778
v.
States
in an
Supreme Court observed
As the
Cir.1985).”
(7th
use of
the broad
rejecting
decision
earlier
Su
(inherent authority)
& Lake
power
v. Escanaba
supervisory
Line R. Co.
the
Soo
(7th
546,
Co.,
Cir.
determina-
F.2d
551
court’s
R.
justify
840
an individual
perior
clear
placed
required
has
criminal
public policy
1988).
Supreme Court
tion that
protec-
“inherent au
certain
reliance
to be
judicial
defendants
extended
limits on
in
criminal
in
Constitu-
or,
the
allowed
the
beyond
it is labeled
those
thority”
tions
context,
power”:
tion,
“supervisory
such
law
the
use of
to a substitution
“reasoning
amounts
sensible
efficient
...
“Even a
controlling
if
con-
is invalid
it
power
judgment
...
supervisory
of individual
statutory pro-
to ac-
we
this Court. Were
constitutional
decisions of
flicts with
power,
confer
supervisory
‘would
the
contrary
cept
result
this use of
A
visions.
discretionary power to
discre-
judiciary
on the
would confer
judiciary
on the
con-
disregard
limitations
the
tionary power
the considered
disregard
”
enforcing.’
law it
charged with
limitations
law it
sidered
enforcing.
hold
with
charged
148,
140,
Arn, 474 U.S.
106
v.
Thomas
extend so
does not
supervisory power
(1985) (quot
471,
466,
L.Ed.2d 435
88
S.Ct.
far.”
727,
v. Payner,
447 U.S.
States
ing United
727, 737,
2447,
468
Payner,
2439,
447
v.
65 L.Ed.2d
U.S.
States
737,
United
S.Ct.
100
(1980)
recognizes,
2447,
2439,
Thus,
majority
65 L.Ed.2d
(1980)).
as the
100 S.Ct.
omitted).
procedural
court,
devising means
Like the
(footnote
in
“the
Scotia,
Nova
it, may not exercise
Bank
before
rule
cases
involved
control
Procedure, including
inconsistent
authority in a manner
Rules of Civil
Federal
inherent
pro-
Majority Opinion
16,
of a
careful
product
statute.”
“are
rule or
Rule
with
designed to
reflection
study
cess of
652.
need
cognizance both
‘due
take
recently under-
very
Court
Supreme
protection
and the
of cases
expedition
not
that district
the fact
scored
”
v. Jackson
Strandell
rights.’
individual
inherent
alleged
attempt
to utilize
Cir.1987)
County,
contravenes
a manner
Cong., 2d
No.
85th
S.Rep.
(quoting
has
varying interests
between
balance
Cong. &
Code
U.S.
Sess.,
reprinted proce-
in a federal
struck
been
previously
Furthermore,
3026).
Admin.News
of Civil
rule,
as Federal
such
dural
where
practice
of trial
areas
“in those
Nova Scotia
In Bank
Procedure
acting
Congress,
—
Court and
Supreme
States,
-,
108 S.Ct.
U.S.
United
appropriate
addressed
togethеr, have
(1988), the
L.Ed.2d
effi-
judicial
needs
between
balance
not
invoke
judge
held
Court
liti-
rights of
individual
ciency and
(labeled “supervisory”
by
innovation
the individual
gant,
Court)
an indict-
to dismiss
Id.
that balance.”
must conform
officer
in a
error”
upon “harmless
ment based
at 886-87.
proceeding:
jury
grand
dis-
only provided
1983, Rule 16
Prior to
a federal court
hold that
“We now
the discretion
judges trict court
to circum-
supervisory
invoke
par-
attorneys for
attendance
require the
pre-
inquiry
error
harmless
vent
out
pointed
As
proceedings.
such
Pro-
ties at
of Criminal
Federal Rule
scribed
Supreme Court
opinion,
in this
by the
earlier
52(a).
struck
The balance
cedure
look
good hard
Congress took
costs and
societal
Rule between
judicial effi-
improving
hopes of
16 in
casually be
may not
accused
rights of the
*12
ciency
only
power
increased the
each party participating in any conference
judges
district court
to the extent of autho-
before trial shall
authority
to enter
rizing
compel
them to
the attendance of
stipulations
into
and to make admissions
“unrepresented parties” at pretrial confer-
regarding all matters that
participants
ences.
may reasonably anticipate may be dis-
However,
very
it is
clear that the amend-
cussed.” Similarly,
16(d),
concerning
ment explicitly stopped
of providing
short
pretrial
final
conferences, provides that
trial judges with the broad and sweeping
shall
“[t]he
attended
at
compel
presence
“repre-
least one of
attorneys
who will conduct
parties”
pretrial
sented
conferences that
the trial
parties
for
each
by any
the majority now
by judi-
seeks to achieve
unrepresented parties.”
cial
Supreme
fiat.
Court
Con-
“[T]he
The majority’s creation of this new inher-
gress,
together,
acting
... addressed the
ent
compel
attendance of liti-
аppropriate
between the
balance
needs for
gants (represented parties) also contra-
judicial efficiency
rights
and the
of the
venes the terms of at least one other rule
litigant,”
individual
they
when
chose to
regulating compulsory
judi-
amend
attendance at
Rule 16 in a limited manner. The
cial proceedings.
majority upsets this
Federal Rule
careful
of Civil
balance and
contrary
acts
Supreme
to the
Procedure 45 does not
subpoenas
Court’s man-
authorize
date in the
Nova
Bank
case when
to be
pretrial
Scotia
issued for
conferences and
upon
it relies
alleged
an
“inherent authori- permits the invocation of the subpoena
ty”
permit
judges
district court
to exer- power only
hearings
for
and trials. On the
cise a
which the drafters of Rule 16 federal level neither
Supreme
Court nor
explicitly denied them. See United States Congress
given
has
the courts the authori-
R.
Fritz,
Retirement Board v.
449 U.S.
ty to
litigants’
direct
attendance much less
166, 179,
453, 461,
101 S.Ct.
4. into the settle- actively injecting himself judge power” "supervisory or inher- expansive use presence of in the procedure rely upon ment context criminal in the ent furthers, the than compromises, rather justifica- process as a integrity cоurt,” the integrity of the "protect[ion of] authori- allowing to exercise tion for super- of the exercise "major purpose behind the Payner, 447 U.S. ty. States See United 100 S.Ct. visory powers." U.S. at 2451-52, 745-46, 65 L.Ed.2d S.Ct. case, J., dissenting). (Marshall, In our (1980) Congress struck between the ju- needs for why should this against count him? Be- dicial efficiency rights and the of the indi- Fitzpatrick cause is part-time rather than litigant. vidual But on hand, the other if agent full-time corporation? Why grant wish federal trial judges the can’t the corporation make own its decision power, let it be accomplished through the about how much agent’s time accepted channels of the Supreme Court hire? Is Oat being held in contempt be- Congress of the United States.5 Be- cause it is too small to have a legal cadre of cause judges district court lack employees general counsel —because require the attendance of liti- practices awith law firm being rather than gants at a conference as of this “in house”? date, I dissent.6 At events, all *15 the use of outside attor- neys as negotiators is common. Many a EASTERBROOK, Judge, Circuit firm sends its labor lawyer the bargain- to whom POSNER, COFFEY and ing table when a collective bargaining MANION, Judges, join, Circuit agreement is about expire, to there to dick- dissenting. er with (or the union with labor’s lawyer). Our case has three logically separate is- Each side has a statutory right to choose First, sues. whether a district may court its representatives. U.S.C. demand the attendance of other someone 158(b)(1)(B). Many § a firm sends its cor- than the party’s counsel of Second, record. porate counsel to the bargaining table may whether court insist that this addi- when merger is under discussion. See tional person employee be an rather than Gilson, Ronald J. Value Creation Busi- agent an selected for the Third, occasion. ness Lawyers: Legal Skills and Asset whether the rep- insist Pricing, 94 Yale (1984). L.J. 239 Oat did resentativе have “full settlement authori- thing same to explore settlement of ty” meaning the authority agree to pay to — litigation. A lawyer is no less suited to cash in (maybe authority with- this task than to negotiating the terms out cap, although that clear). was not collective bargaining merger or agree- Even if one resolves the first issue as the prefer ments. Firms to send negoti- skilled does, majority it does not follow that dis- to ators negotiating sessions (lawyers are trict courts second or pow- third especially useful when the value of ers, a claim or that their exercise here pru- was depends on the legal resolution of ques- dent. tions) while reserving the time of execu- The proposition magistrate that a tives for business. Oat understandably require a firm to send an employee rather wanted its management team to conduct its representative than a puzzling. Corpo- construction business. “employees” rate simply agents of the firm. Corporations As for agents choose their subject, third whether the powers decide what give representative to them. must have “settlement au- agents Which have which powers thority”: magistrate’s is a mat- only reason for ter of internal corporate ordering affairs. Joseph corporate representative to Corp. Oat sent to the only conference come was to facilitate settlement then and its counsel of record but also John Fitz- there. IAs understand Magistrate Groh’s patrick, who had authority speak opinion, Judge Crabb’s, the directive Oat. Fitzpatrick Now Mr. is an attorney, was to person send with “full settlement which magistrate’s raised the hackles, authority”. Fitzpatrick was deemed inade- 5. "If surgery such performed, radical is to be conference, ed to attend the if it expect can that the rule-making national process power conclude, did have such I would outlined Enabling in the Rules Act will under- Posner, reasons Judge enumerated that the quite explicit take Strandell, it fashion.” magistrate improperly acted exercising (footnote omitted). F.2d at 888 require Corporation that Oat send to the settlement possess- conference an executive Although I am convinced that the district ing "full authority." authority lacked the require represent- management report back tiators instruc- was under he quate because union, of which reserves Mr. each E.g.: “While money. pay not to
tions
agent.
position of
speak
approve
reject
Fitzpatrick claimed
espe
16—and
Fed.R.Civ.P.
no
know from
had
Oat,
that he
he stated
com
Thus,
repre-
Advisory
no
Committee’s
cially from
[monetary] offer.
amake
having
“refer
16(c)
author-
the Rule’s
or National
to Rule
of Oat
ment
sentative
at the
present
was
insist
‘authority’
not intended
the case
ity to settle
ence
(magis-
directed”
litigation”—
the order
ability to settle the
upon
added). On learn-
emphasis
compelled
opinion,
trate’s
cannot
Oat’s
not command
did
Fitzpatrick
ing that
A defendant
good faith”.
“in
negotiate
him from
ejected
magistrate
treasury, the
may insist
wrong
no
it did
convinced
to what
listened
never
the conference
Jersey
New
Hess v.
See
vindication.
total
behalf, never
Oat’s
say on
had
he
Inc.,
Operations,
Transit Rail
re-
might Fitzpatrick
whether
learned
Smith, Cir.1988),
Kothe v.
(2d
(We know
proposals.
ceptive to others’
Cir.1985),
judge
that a
(2d
holding
F.2d 667
case
ultimately
settle
did
Oat
settle
party to make
compel a
may not
“prevailed”
part
it took
money, after
accept one.
offer,
alone
let
ment
*16
and
participation
summary jury
at a
trial —
down
turns
party
a
who
requires
which
willing-
demonstrating Oat’s
each
payment
if
only
costs
to bear
proposal
a settlement
settlement.)
magis-
to consider
ness
trial, implies the
does wоrse
if the Chair-
implies that
approach
trate’s
obliged
are not
if
thing. Yet
same
had
with
Oat
arrived
of
CEO
man
faith,
ground
what
good
on
in
negotiate
settle
Board to
from
instructions
authority
obliged to come with
they
can
negotiate
cash, and to
paying
without
case
authority agents
spot
on the
to settle
—an
when the
considera-
the Board’s
bring back
requires
law
carry even
need not
still would
Oat
proposals,
any financial
tion
today
affirm
The order
negotiation?
contempt.
been in
have
no
have committed
persons who
compels
judge demanded
magistrate
Both
of
every requirement
pass
wrong, who
representa-
“corporate
aof
presence not
oppor
only the
who want
11 and
Rules
employee
a full-time
of
in the sense
tive”
merits,
on
a decision
tunity to receive
with “full
representative
a
but of
open checkbooks
court with
to come
pow-
corporations reserve
Most
settle”.
contempt.
being held
of
pain
discuss)
power to
(as
opposed
agree
er to
valuable,
courts
Settling litigation is
their boards
managers
toor
to senior
litiga-
it. Is settlement
promote
should
on the
depending
difference
directors—the
of labor
than
valuable
tion more
$4
Heileman wanted
involved.
amounts
may do what
that courts
disputes,
so
province
million,
a
within
sum
framework
statutory
may not? The
single
even
a
executive
NLRB
than
rather
board
in labor
required
negotiations
Fitz-
than Oat.
larger
—bona fide
firms much
op-
litigation suggests
power to discuss
not
came
patrick
law
—
case on
desirability
settle the
of settlement
recommend; he could
posite. Does
pow-
cash;
allocating
he lacked
than
state law
other
rules of
imply
terms
magistrate’s order
yield?
sign a check.
must
corporation
er
within
(a)
required either
have
must
that settle-
therefore
in other cases
We have held
responsibility
changing the allocation
within
negotiated
must
ments
(b)
sending
corporation,
rules;
within
the desire
existing
framework
Board.
quorum Oat’s
not
does
done with
over and
get a case
applicable
generally
modifying
justify
un
power
exercised
Groh
Magistrate
Carey,
F.2d
Dunn v.
E.g.,
norms.
law,
is a
where there
in labor
even
known
decrees, and
Cir.1986) (consent
(7th
29 U.S.C.
good
faith.
duty
bargain
if
settlement, may be more attractive
hence
management common
158(d).
Labor
§
law,
state
follow
agree
may
not
au
through persons with
negotiate
ly
does
autho-
of settlement
value
nego
but the
agree. The
but not
thority to discuss
that);
rize
Kasper v. Board
Election
ability
was the
sign
Oat Corp.’s
check in
Commissioners,
(7th
F.2d
340-42
magistrate’s
presence. What the mag-
Cir.1987)(same); In
Hospital
re Memorial
istrate found unacceptable was that Fitz-
Inc.,
County,
Iowa
(7th
cern
County,
v. Jackson
Strandell
consen-
evaluation
process
careful
recog-
Strandell, we
Cir.1988). In
Enabling Act
Rules
up by
set
sus
exercise
must
courts
rules.
nized
district
local
proliferation
through the
harmony with the
“in
power
Today’s de-
inherent
their
401-407,
4648-52.
102 Stat.
§§
After
Procedure.”
of Civil
Federal Rules
to reconcile
hard
is indeed
cision
its accom-
examining
uni-
Rule 16
carefully
concern
Congressional
underlying
note, we held
advisory
courts.
committee
the federal
panying
in
practice
formity of
may not
indi-
court
encourages
district
that a
majority
Indeed,
Strandell
own
participate
litigant
to its
unwilling
march
court
district
order
vidual
no doubt
Rule
long, we shall
trial because
summary jury
Before
drummer.
justi-
used to
opinion
courts’
district
rhetoric
see the
addresses
which
“innovations”
questionable
proceedings,
more
fy
far
on
settlement
insist
method-
strong-arm
to conduct
courts
than
district
authorize
did not
issue in
magistrate
id. at
See
ology
summary jury
trials.
mandatory
holding is that no
opinion.
in this
Implicit
186-88.
conduct mandato-
exists
joined
trials;
16 shut
Judge,
Rule
MANION,
summary jury
ry
Circuit
COFFEY,
proceedings.
EASTERBROOK
such
door
dissenting.
RIPPLE,
Judges,
Circuit
district
here—whether
issue
16 states
Procedure
of Civil
Rule
Federal
appear at
party to
may order
attor-
“the
may order
courts
that district
slightly differ-
conference—is
a settlement
unrepresented
neys
But the
in Strandell.
issue
ent from
parties”
Since
the same.
analysis is
proper
clear
seemingly
Despite this
conferences.
of settlement
the use
addresses
specifically
that district
majority holds
language,
courts,
must
in the federal
conferences
compel
power” to
“inherent
limits a
whether
determine
by counsel
or-
who the
power over
court’s
*18
Rule
Because
settlement.
discuss
court to
conferences.
at those
appear
der
any such use
room for
no
16 leaves
statute,
proper
or
any rule
As
dissent.
respectfully
I
power,
inherent
16 is the
Rule
interpreting
starting point
feder
for
a license
is not
power
Inherent
content
not be
We should
language.
rule’s
necessary
seems
whatever
to do
courts
al
“lib-
about
statements
general
rely on
is
power
along.
Inherent
a case
move
“broadly
construction,”
16’s
Rule
and
eral
power
for the
name
“another
simply
at
majority opinion
See
“spirit.”
remedial”
statutes
law when
common
to make
courts
1 commands
Rule
true that
It is
652-53.
area.”
particular
address
do not
rules
secure
“to
rules
the federal
to construe
us
Su
Lake&
v. Escanaba
R. Co.
Line
Soo
determi-
inexpensive
speedy,
just,
Cir.
Co.,
R.
perior
action;”
that command
every
nation
is to
power’s
1988).
inherent
Since
words
ignore
us to
for
excuse
is
an
rule, it necessar
or
statute
left
gaps
fill
goal.
pursue
used to
the drafters
rule
or
a statute
where
ily follows that
enacted,
provided
Rule
originally
As
area, it
particular
addresses
specifically
attor-
could “direct
that district
to invoke
inapproрriate
pretrial
parties”
neys for
rule
the statute
bounds
to exceed
amend-
16 was
Rule
In
conferences.
v. United
Scotia
Nova
Bank
sets. Cf.
things, that the
other
among
provide,
—
ed to
2369, 2373-
U.S. -,
108 S.Ct.
States,
appropriate
is an
settlement
possibility
(a
(1988)
L.Ed.2d
conferences.
pretrial
at
consider
subject to
inher
supervisory
invoke
may not
—i.e.
Fed.R.Civ.P.
16(c)(7); see also
Fed.R.Civ.P.
proceedings
criminal
over
ent—
settlement). But
(“facilitating”
16(a)(5)
52(a)’s harmless
Fed.R.Crim.P.
circumvent
partid-
“the
only
16(c)
states
Rule
inquiry).
error
pants at any conference under this
ing
and,
rule”
and skill
Judge
notes,
Posner
may consider
(emphasis added);
“to
economize
their own investment of
16(c)
Rule
does not say who
“partici-
those
time in resolving disputes.” Dissenting
pants” may
16(a),
Rule
opinion
be.
on the other
Part of an attorney’s ex-
hand, provides that
pertise
includes evaluating cases, advising
“direct the attorneys
parties
whether or
settle,
not to
and con-
”
unrepresented
any
parties
ducting
negotiations.
I realize that attor-
pretrial
conference.
16(a)
Rule
neys may
thus de-
sometimes convey inadequate in-
fines who the “participants”
aat
formation to their clients regarding settle-
attorneys
are:
and unrepre- ment. But an attorney has a strong self
parties.
sented
interest
in realistically conveying to the
client relevant information necessary for
Judge Coffey notes,
As
dissenting opin-
the client to make an informed settlement
ion
parts
other
of Rule 16 echo
decision, and in accurately conveying the
16(a)’s
Rule
reference to attorneys and un-
client’s
position
to the court and
represented parties.
16(b)
Rule
requires
opposing litigants. The attorney also has
courts to
scheduling
enter
orders after con-
an ethical duty
convey
that information.
sulting with “the attorneys
”
malpractice
threat of
suits
discipli-
and any unrepresented parties....
nary proceedings should be sufficient to
16(d) requires that “one of the attorneys
any
make
attorney think twice
try-
before
who will conduct the trial for each of the
ing to mislead his client or the court. At-
unrepresented
...
parties”
torneys play
important
role in our ad-
must attend the
final
conference.
versary system, and we should not deni-
The language of Rule 16’s
pro-
sanctions
grate that
role
presuming that attor-
vision,
16(f),
reinforces Rule 16’s dis- neys will
incompetent
perform
one of
tinction
between
unrepre-
the most important functions for which
parties.
sented
language in Rule
their clients hire them. Nor should we
16(f) specifically addressing appearance
presume that Rule 16’s drafters meant to
does not authorize sanctions if “a party
on litigant’s
encroach
right to conduct his
appear;”
fails to
instead, sanctions are ap-
case through counsel. Rule 16’s clear lan-
propriate if “no appearance is made on
guage shows that the rule’s
pre-
drafters
a party_”
(Emphasis added.)
behalf of
sumed otherwise.
This choice of language
significant.
The majority asserts that Rule 16 “does
course,
the normal
an attorney appears “on
not give any direction to the district court
behalf of” a
client at a
upon the issue of a court’s authority to
*19
conference. An unrepresented party has
order
who
represented
are
by
nobody to appear on his behalf except him-
appear
counsel to
for
proceedings.”
self.
Majority opinion at
given
651. But
Rule
Congress
provided
has
that litigants may
16’s clear language and consistent distinc-
“conduct their own
personally
cases
or
tion
represented
between
and unrepre-
counsel_”
28 U.S.C.
(emphasis
§
parties (a
sented
consistent distinction the
added). Rule 16’s distinction between rep- majority ignores), thаt
spe-
assertion is
resented and unrepresented parties is con- cious.
majority
The
seems to
saying
litigant’s
sistent with a
statutory right to
that district courts can order represented
representation by an attorney.
It is also parties
appear
to
at settlement conferences
consistent with the attorney’s traditional
because Rule 16 does not explicitly say
litigation.
role in
Litigants
attorneys
hire
that district courts
represent-
order
cannot
to
advantage
take
of the attorneys’
parties
train-
ed
to appear.1
ignores
But that
the
majority, citing
1.
Co.,
The
Link v.
ing
Wabash R.
describing particular judicial
or
procedure
a
370 U.S.
82 S.Ct.
not,
not,
670 ber- judicial officer or a opposing advisory com- language, 16’s clear Rule going is walk position, litigation for con- his no room ate leave comments mittee’s feeling he will experience a district away rule to allow from that struing that threat under partiеs, at trial the court represented from order fair get a shake 16(f) and (see Fed.R.Civ.P. contempt capitulate. pressure to resists if he to discuss in court appear 37(b)(2)(D)),to unreasonably re- litigants who Obdurate settlement. strains majority why the headaches ask cause One to settle fuse language and clear Rule 16’s But liti- get litigants. around opposing and courts admonition advisory committee’s settle, nego- even duty or gants have no Im- practices. coercive against that tiate, clear federal 16 makes and Rule explicit opinion majority’s in plicit —and trying to force no business have courts panel opinion to the the dissent in —is litigant’s posi- If a negotiate. litigants to manage their case effectively that notion unsound, proce- factually legally is tion power to need the loads, courts district pleadings, judgment on the as such dures set- at appear represented order judg- dismissal, summary 12(b) and Rule opinion majority See conferences. tlement at an the case dispose of exist to ment Brewing Co. 650-51; G. Heileman at have sub- courts also stage. District early F.2d Corp., Joseph Oat they should take which stantial —of see also opinion); Cir.1988)(dissenting (7th punish friv- and advantage deter full 657. at —to dissenting opinion Judge Posner’s delay. See and undue litigation is), olous it it (and think I do not so if is Even among (mentioning, other F.2d at 1421-22 interpreting expansively justify does scheduling pow- courts’ things, to ex- the district courts’ district Moreover, the courts’ sanction- 16 sets. 16 and under Rule Rule er the bounds ceed demon- Judge Posner and Coffey Judge and powers under ing from allow- do result strate, if benefits courts 1927). district still And U.S.C. § par- to order ing forcing un- methods—without other conferences, those ties to attend in court under willing litigants appear substantial without not come do benefits settle- contempt facilitate threat —to expan- is that costs of those One costs. mеthod ments, including the time-honored power encour- construing inherent sively id; See early trials. cases to pushing This case high-handedness. judicial ages Strandell, also see la- accurately has Judge Posner (in which set- not produce do methods these Where as “arbi- magistrate’s actions beled will. tlements, unlikely that coercion it is willful, pet- unreasonable, and indeed trary, pro- does succeed coercion where And 658) ulant,” dissenting opinion at settlement, unlikely suc- ducing it involving Secretary of La- the case justice or the the cause will advance cess bor, Coffey, dissenting by Judge cited forum. image as a neutral court’s 661-62, aptly demonstrate that opinion at expense cost danger. Another justify attempt to to be what seems In try litigants that imposition coercing repre- by implying result cost is thirdA attorneys. hiring avoid con- at settlement appear parties to sented role in attorney’s denigration widespread has received ferences cost, as greatest Perhaps the litigation. “requir- asserts that majority approval, dissenting detail, explains Coffey Judge person parties to ing appear- damage to the 662, is the opinion settle- of ... parcel part has been ... court’s the federal fairness ance Majority years.” conferences ment forum, factors neutral image as a only case the n. 4. The at 651 opinion functioning. proper court’s to the essential is In re statement for this majority cites be- difference will about Say what Cir.1974). LaMarre, F.2d 753 coercing at- coercing settlement tween and defen- plaintiffs LaMarre, counsel to believe tendance, is difficult it on the district court to the indicated dants forced has been who litigant they had reached trial that morning of listen will, possibly his against *22 settlement. The defendant’s insurer’s The rule consistently distinguishes between manager, however, clаims would not accept attorneys unrepresented parties on one the settlement. The district court ordered hand, represented parties on the other. the claims manager appear to in court to That distinction is consistent litigants’ with discuss and, the matter when the claims statutory right to representation by coun- manager appear, failed held him in crimi- sel and with the attorney’s traditional role contempt. nal at Id. 754-55. The court of litigation, including settlement. No rea- appeals upheld the general court's authori- son exists why Rule 16’s drafters wrote the ty to order the claims manager appear. rule as they did if they did not mean Id. at what they said. Finally, the advisory committee LaMarre distinguishable. Because of note to the 1983 amendment of Rule 16 the conflict defendant, between the his states that Rule 16 was not (hired meant counsel “to the insurance company), impose negotiations company, insurance arguable it is unwill- ing litigants,” company and, insurance was not a rep- more generally, that resented party (assuming that it was a Rule 16 is dead set against any coercion in all); party at though even the insurer hires settlement. Taken together, all this can pays the attorney, the attorney’s alle- lead to only one conclusion: Rule 16 leaves giance is to the defendant, not the insurer. no room for any power in the If so, that’s even the amended Rule 16 district courts to order parties would prohibit ordering the insurer’s appear at settlement conferences. representative in court because “Federal judges spend amended Rule 16 lots expressly of time telling authorizes dis- trict courts to order unrepresented other officials to stay within constitutional appear. and statutory bounds, however those may bounds particular
More chafe in importantly, LaMarre, circum desрite its broad language, see stances.” Newman-Green, id. at does not Inc. Alfon stand for any widespread judicial approval R., zo-Larrain 854 F.2d Cir. ordering represented parties 1988). However much federal courts may at settlement conferences. LaMarre power desire the to address unwilling par appellate (besides only case case) ties directly endeavoring to induce settle has even dealt with the impor- issue. More ments, Rule 16 commands that the courts tantly, the Sixth Circuit decided LaMarre through parties’ work attorneys if that long before the 1983 amendments to Rule is what desire. Rather than 16. Since the Sixth Circuit could not con- straining to circumvent Rule 16’s clear sider Rule 16 amended, as simply LaMarre command, we should demand that those of does not address whether as it in the us judiciary practice what we stands, now limits the pow- district court's preach so others, much to er order work within parties to appear at the entirely settlement conferences. reasonable limits that Rule 16 sets. magistrate Because the did not have The answer to question that La- to order corporate Oat send a Marre could not address is clear. Rule representative amended, to the settlement confer authorizes district courts to ence, order attorneys I unrepresented would reverse the district court’s parties to appear at conferences. judgment.2 majority 2. The also holds that Oat has waived trate had the order toOat send a objection magistrate’s to the order corporate representative, because other than attor- object Oat did not before ney, conference, the settlement confer- to the magistrate majority opinion ence. See exercising 654-55. For abused his power. discretion in panel opinion, reasons stated in the Even if corporate district court order a 1418,1 would hold that has representative Oat not waived its appear, the court not in- right object magistrate’s to the I representative order. also sist that the "authority agree Judge magis- Posner that even if the settle.” advisory See Fed.R.Civ.P. committee *23 M.D., MAYOZA, an individual C. James Mayoza, C. the James Trustee Trust, Plan M.D., Pension Defined Inc. trust, C. the James an Oklahoma Inc., Roll M.D., Fund Pension Mayoza, trust, Plain Trust, an Oklahoma over
tiffs-Appellants, INC., COMMODITIES,
HEINOLD corporation,
Delaware
Defendant-Appellee.
No. 88-1432. Appeals, Court of States
United Circuit.
Seventh 10, 1988.
Argued Nov. 29, 1989. March
Decided Judge Easterbrook’s litigation”); 16(c) see also ‘authority’ in ("The reference note opinion at dissenting ability upon to settle not intended insist Notes (c) These corpo subdivision within position hold quired to being required between a distinction defini draw speak allowing him to entity rate and be- conference settlement to attend a to a corporation tively to commit in settlement participate required to ing do litigation. We position in the particular Thus, the scheme under negotiations. require as a “authority settle” not view conferences, corpo- pretrial settlement must representatives corporate ment that free, on behalf remains representative rate someone to settle on willing court come to entity, propose terms corporate come to terms, only they else’s compel 8.Likewise, cannot a court not are Civil Procedure Rules The Federal 6. Constr. Co. stipulate facts. J.F. Edwards grounded the district in only set of rules Corp., F.2d authority. Safeway not Rail 542 Guard Circumstances Anderson courts' inherent explicitly curiam). Cir.1976) Rules can a (7th (per the Federal in Nor authorized 1318 rulings derived participate such as limine a non- litigants Evidence compel authority to Strandell, district court’s from the summary jury 838 binding trial. v. United See manage States, trials. Luce the course of vein, force a a court cannot the same 887. n. 463 n. S.Ct. U.S. Corp. v. discovery. Identiseal engage omitted). (citations (1984) 83 L.Ed.2d Inc., Sys., 560 F.2d Positive Identification Cir.1977). magis- authorized had pursuant to pretrial matters all trate to resolve 636(b)(1)(A). § 28 U.S.C. independently he litigation This involved a for $4 claim —but required pretrial to state terms in a those million—a claim which upon turned the res- judge magistrate. before a complex olution of factual legal is- litigants sues.9 The expected the trial to position, As an alternative Oat Cor last from one to three par- months and all poration argues that the court abused its ties stood to incur legal substantial fees discretion corporate representa to order expenses. and trial This trial also would litigants tives of the to attend the have preempted large segment Corporation settlement conference. Oat insignificant time—not an Thus, factor. determined that because business was a because the high, stakes were we do not “going concern”: believe requiring burden of a cor- It would be magis- unreasonable for the porate representative to attend a require trate to president of that settlement conference was propor- out of corporation to leave his business Cam- [in tion to the gained, benefits to be not den, Jersey] Madison, New to travel to but also the court. Wisconsin, to participate in a settlement Additionally, corporation did send an conference. The expense and burden on attorney, Mr. Fitzpatrick, from Philadel- part of Joseph comply Oat to phia, Pennsylvania Madison, Wisconsin clearly order was unreasonable. to “speak for” the principals corpo- Consequently, Oat Corporation believes ration. It is difficult to see how ex- that the district court authority. abused its penses involved in sending Fitzpatrick Mr. recognize, court, did the district from Philadelphia to Madison would hаve that circumstances could arise in which re- greatly exceeded expenses involved in quiring corporate (or representative sending corporate representative from litigant) at a Camden to Madison. Consequently, we do conference would be onerous, clearly so so expenses think the and distance to be unproductive, or expensive so in relation to traveled are unreasonable in this case. size, value, and complexity of case might Furthermore, it objection be an no magis- abuse of to the discretion.
Notes
suggests
the amendments
Notes [that]
were in-
facts,
etcetera.”
tended to make the rule coercive.” Stran-
85-1640,
No.
unpublished
(7th
order at 2-3
dell,
