Eastern District of Michigan
IN BRIEF
Process summary
Case valuation (Michigan Mediation).
In cases involving money damages only, judges in the Eastern District of Michigan may order parties to participate in a case valuation program administered by the nonprofit Wayne County Mediation Tribunal. See below.
Other ADR.
No other ADR programs have been formally authorized by the Eastern District of Michigan, although individual judges may authorize other types of ADR at the request of the parties, and a general blessing of ADR is included in the court's CJRA plan, effective December 1, 1993.
Judicial settlement conferences.
All judges are available to conduct settlement conferences in the cases assigned to them and, on request of a colleague, in cases assigned to others. Settlement conferences are held at the request of the parties at any time.
Of note
Obligations of counsel.
Attorneys must be prepared to discuss the ADR options for their case with the assigned judge.
Evaluation.
The court conducted an evaluation in 1987. The report, Mediation in the Federal Court System, was prepared by and is available from the court's administrative manager.
For more information
Judith K. Christie, Administrative Manager, 313-226-7802
IN DEPTH
Case Valuation (Michigan Mediation) in Michigan Eastern
Overview
Description and authorization.
Under Local Rule 53.1, the Eastern District of Michigan provides a mandatory case valuation program known as Michigan Mediation. This program was first established twenty years ago by the state courts and is run by the Wayne County Mediation Tribunal, a nonprofit corporation. The court has referred cases to the program for more than ten years. According to the court, the name mediation is a misnomer because the process is in essence an abbreviated hearing, which results in a nonbinding case valuation. The assigned district or magistrate judge may refer to the program any civil case in which the United States is not a party and the primary relief sought is monetary. After discovery has been completed, parties meet with a panel of three attorney-neutrals, who hear fifteen-minute presentations by each party and then return a nonbinding evaluation of the case. Each party pays a $75 fee.
Number of cases.
From January through September 1994, valuation hearings were held in approximately 145 cases. During a comparable time period in 1993, 14% accepted the valuation and settled.
Case selection
Eligibility of cases.
The court may refer to the program any civil case in which the United States is not a party and the relief sought is primarily money damages. The most commonly referred cases are contract, personal injury, and civil rights cases. No case types are presumed ineligible.
Referral method.
District or magistrate judges may order cases to case valuation at their own motion or at the request of one party. Parties may also stipulate to referral, with the approval of the court. When a case is referred, an order of reference is sent to the parties.
Opt-out or removal.
Party objections to a referral order must be made within fourteen days of the order and must be served on all parties. Referral is stayed pending the decision on the objection.
Scheduling
Referral.
Cases are referred to mediation after completion of discovery.
Written submissions.
At least fourteen days before the hearing, each party must file with the mediation clerk three copies of documents pertaining to the issues to be heard and three copies of a concise summary setting forth that party's factual and legal position on the issues. One copy of the documents and summary must also be served on each attorney of record. Failure to file the required materials or to serve copies on other parties subjects the offending party to a $60 penalty, which the attorney may not charge to the client without the client's written consent.
Case valuation session.
The brief hearings, called mediation sessions, are arranged by the Wayne County Mediation Tribunal and are held at the tribunal's office. Notification must be sent to the parties at least forty-two days before the date set for the mediation hearing. The local rule does not specify a time period within which the mediation session must be held.
Length of sessions.
Presentations are generally limited to fifteen minutes per side. In multiparty cases, some alterations in the time allotments may be made.
Program features
Discovery and motions.
Cases are referred to the program after completion of discovery. Any remaining events in the case must proceed according to schedule during the valuation process.
Party roles and sanctions.
Parties are not required to attend and generally do not. If they choose to attend, no testimony may be taken or permitted by any party.
Filing of award.
Within fourteen days of the hearing, the panel must make a written valuation of the case and provide it to each party. If the panel's valuation is accepted by all parties, judgment is entered by the court. If the panel's valuation is rejected, the case proceeds to trial.
De novo request.
Parties have twenty-eight days from receipt of the written valuation to file a written acceptance or rejection with the tribunal clerk. Failure to file a response constitutes a rejection. If the party rejecting the valuation does not obtain a verdict at trial that is more than 10% better than the valuation, that party must pay the other party's actual costs, which include "those costs and fees taxable in any civil action" and may, "where permitted by law or upon consent of the parties," include attorneys' fees.
Confidentiality.
Parties are not accorded any special confidentiality protections beyond those specified by Fed. R. Evid. 408.
Neutrals
Qualifications and training.
Neutrals must have at least five years of litigation experience, membership in the Michigan State Bar for five years, and substantial trial and personal injury experience representing both plaintiffs and defendants. No special training is required of neutrals. A brief orientation is offered to new members of the roster.
Selection for case.
Unless the parties agree otherwise, a hearing panel is selected by the Wayne County Mediation Tribunal from a roster of attorneys maintained by the tribunal. Each panel is made up of an attorney from the plaintiff's bar, the defense bar, and an attorney not identified as either. In cases in which special expertise or particular neutrals are desired, the parties may jointly request a "blue ribbon" panel and may select the panel members themselves from the tribunal's roster or from other sources.
Disqualification.
The rules for disqualification of a neutral are the same as the Michigan state rule for disqualification of a judge.
Immunity.
There is no explicitly authorized immunity protection for the neutrals.
Fees.
Each party pays a $75 fee to the Mediation Tribunal. The tribunal pays the mediators. If the parties suggest a "blue-ribbon panel" of particular neutrals, they pay the selected neutrals at the market rate.
Program administration
The program is administered by the staff of the Wayne County Mediation Tribunal. Referrals are sent directly to the tribunal by the judges. Case valuations are returned to the administrative manager in the Eastern District's clerk's office, who logs the results and forwards the information to the referring judge.
Excerpted from
ADR and Settlement in the Federal District Courts: A Sourcebook for Judges & Lawyers, 1996,
a publication of the Federal Judicial Center and CPR Institute for Dispute Resolution