Eastern District of Pennsylvania


IN BRIEF

Process summary

Arbitration. The Eastern District of Pennsylvania is one of ten district courts authorized by 28 U.S.C. §§ 651-658 to establish a mandatory, nonbinding court-annexed arbitration program. See below.

Mediation. Local Rule 53.2.1 authorizes the district's mandatory early mediation program for selected civil cases. See below.

Other ADR. The court's CJRA plan, effective December 31, 1991, allows a judge or any party to suggest use of ADR procedures other than arbitration or mediation.

Judicial settlement conferences. The court authorizes mandatory settlement conferences.

Of note

Plans. An ADR committee is currently considering other ADR options.

Evaluation. Evaluations of the court's mediation and arbitration programs have been conducted. See Court-Annexed Early Mediation Program: Questionnaire Findings (U.S. District Court for the Eastern District of Pennsylvania December 1992). See also Barbara Meierhoefer, Court-Annexed Arbitration in Ten District Courts (Federal Judicial Center 1990). As one of the ten pilot courts under the CJRA, the Eastern District of Pennsylvania is also part of the RAND study of pilot and comparison districts, which will be reported to Congress by the Judicial Conference in 1996.

For more information

Michael E. Kunz, Clerk of Court, 215-597-9221


IN DEPTH

Arbitration in Pennsylvania Eastern

Overview

Description and authorization. The Eastern District of Pennsylvania is one of the ten districts authorized by 28 U.S.C. §§ 651-658 to provide mandatory, nonbinding court-annexed arbitration in cases involving money damages only of $100,000 or less. Referral to arbitration, which is automatic by case type, is generally made after the answer is filed. A panel of three arbitrators hears presentations by each party and makes a ruling, which becomes binding unless the parties request a trial de novo. Arbitrators are not permitted to discuss settlement with the parties or their counsel or to participate in any settlement discussions concerning the case. The fee of $100 per arbitrator per case is paid by the court. Local Rule 53.2 governs the program, which was established in 1978.

Number of cases. Between January and September 1994, 1,453 civil cases were referred to arbitration.

Case selection

Eligibility of cases. Eligible cases are those in which money damages of $100,000 or less are sought, excluding the following case types: Social Security appeals, cases in which a prisoner is a party, cases involving violation of a constitutional right, and actions in which jurisdiction is based in whole or in part on 28 U.S.C. § 1343.

Referral method. All eligible cases are automatically referred to arbitration after an answer is filed.

Opt-out or removal. The assigned judge may, on his or her own motion or pursuant to a party motion filed before appointment of the arbitrators, exempt the case from arbitration on grounds that it involves complex legal issues, legal issues predominate over factual issues, or for other good cause.

Scheduling

Referral. After an answer is filed, the arbitration clerk sends parties notice of referral, including the date and time of the arbitration hearing.

Discovery and motions. Other case activities must go forward during the arbitration referral. Parties have ninety days from the date the answer is filed to complete discovery, unless the assigned judge specifies otherwise.

Written submissions. Only submissions requested by the arbitrators or required by order of the court in a particular case must be made before the arbitration hearing. The clerk sends the arbitrators a copy of all pleadings.

Arbitration hearing. The arbitration hearing is held within 120 days of the filing of the answer. Thirty days before the hearing date, the assigned judge issues an order setting the date and time of the hearing and the names of the arbitrators. If a party has filed a motion to dismiss, a motion for summary judgment, a motion for judgment on the pleadings, or a motion to join parties, the judge does not issue the order until the motions are decided. Arbitration hearings are arranged by court staff and are held at the court house.

Length of hearing. Arbitration sessions generally last one day, but can range from a half day to several days.

Program features

Party roles and sanctions. Parties must attend the arbitration hearing. If a party fails to participate in the hearing in a meaningful way, the court may impose sanctions, including striking the demand for trial de novo filed by that party.

Filing of award. The arbitration clerk enters on the docket only the date and the statement "arbitration award filed." The award is placed in a separate file in the clerk's office. If no request for trial de novo is made, the arbitration award is entered on the docket as the judgment of the court and is placed in the case file.

De novo request. Within thirty days of entering the arbitration award on the docket, any party may request a trial de novo. When a party makes a demand for trial de novo, it must, unless permitted to proceed in forma pauperis, deposit with the clerk a sum equal to the arbitration fees of $100 for each arbitrator. This sum is returned to the party if it obtains a final judgment more favorable than the arbitration award. If the party does not obtain a more favorable judgment, the sum is forfeited.

Confidentiality. The arbitration hearing is confidential, and no evidence of the hearing may be introduced at a trial de novo.

Neutrals

Qualifications and training. To be on the court's roster, an arbitrator must be a member of the bar for at least five years, admitted to practice in the district, and determined by the chief judge to be competent. No training is required.

Selection for case. The court randomly assigns three arbitrators from the court's roster-one plaintiff's attorney, one defense attorney, and one attorney who specializes in neither area.

Disqualification. Arbitrators must disqualify themselves for bias or prejudice as provided in 28 U.S.C. § 144 and in any action in which they would be required under 28 U.S.C. § 455 to disqualify themselves if they were a justice, judge, or magistrate judge.

Immunity. The court believes that arbitrators have judicial immunity.

Fees. The court pays each arbitrator $100 per case. Arbitrators are not reimbursed for actual expenses incurred in the performance of their duties.

Program administration

The program is administered by the clerk's office.

Mediation in Pennsylvania Eastern

Overview

Description and authorization. In the Eastern District of Pennsylvania, Local Rule 53.2.1 authorizes a mandatory early mediation program. Since January 1, 1991, all civil cases assigned odd civil action numbers have been required to participate in a mediation conference conducted by an attorney-mediator early in the litigation process, except Social Security cases, cases in which a prisoner is a party, cases eligible for arbitration, asbestos cases, or any case a judge determines is not suitable for mediation. The mediation conference is a facilitated negotiation process and is provided pro bono by attorneys selected from the court's roster of neutrals.

Number of cases. Between January and September 1994, 101 civil cases were scheduled for mediation.

Case selection

Eligibility of cases. Cases eligible for early mediation are those randomly assigned odd civil case numbers at filing, excluding the following case types: Social Security cases, cases in which a prisoner is a party, cases eligible for arbitration, asbestos cases, cases appealed, withdrawn, or transferred from a bankruptcy judge, cases on the Special Management Track, or any case that a judge determines is not suitable for mediation.

Referral method. All eligible cases are automatically referred. After the first appearance of a defendant, the mediation clerk sends notice to counsel and any unrepresented party.

Opt-out or removal. A judge may determine sua sponte or on application by a party or a mediator that a case is not suitable for mediation.

Scheduling

Referral. After the first appearance by the defendant, the court's mediation clerk sends notice to counsel and any unrepresented party setting the date, time, and location of the mediation conference and the name, address, and telephone number of the mediator.

Written submissions. When the notice of mediation is mailed to the parties, the mediation clerk mails the mediator copies of the complaint and any motions or pleadings filed to date. At least three days before the mediation session, each party must give the mediator and other parties a memorandum no longer than two pages, summarizing the nature of the case and the party's position on the issues, the relief sought, and settlement.

Mediation session. The mediation conference is held within sixty days of the first appearance by the defendant. Court staff schedule the mediation hearing, which is generally held at the courthouse.

Number and length of sessions. Mediation sessions generally last one hour, and only one session is usually held.

Program features

Discovery and motions. Other case activities go forward during the mediation process.

Party roles and sanctions. Counsel primarily responsible for the case and each unrepresented party must attend the mediation conference. Counsel must arrange for their clients to be available by telephone or in person to discuss settlement. Willful failure to attend or be available is reported to the court and may result in sanctions.

Outcome. If no settlement is reached, the mediator files a statement with the mediation clerk and the assigned judge that the parties have complied with the requirements of the process but have not reached settlement. If settlement is achieved, the mediator files a report with the mediation clerk and the assigned judge stating that a settlement was reached.

Confidentiality. All proceedings at a mediation conference are confidential and may not be reported, recorded, placed in evidence, made known to the trial judge or jury, or construed for any purpose as an admission. No party is bound by anything done or said at the mediation conference unless a written settlement is reached and signed by parties and counsel.

Neutrals

Qualifications and training. Those listed on the court's roster must be members of the bar for at least fifteen years, admitted to practice before the court, and determined by the chief judge to be competent. There is no training requirement for the neutrals.

Selection for case. The clerk or other court staff randomly selects a neutral from the court's roster.

Disqualification. Mediators may be disqualified for bias or prejudice as provided by 28 U.S.C. § 144 or in any action in which they would be required by 28 U.S.C. § 455 to disqualify themselves if they were a justice, judge, or magistrate judge.

Immunity. The court believes mediators have judicial immunity because they are assisting the court in performing its judicial function.

Fees. The attorney-neutrals serve pro bono.

Program administration

The mediation program is administered by the clerk's office. A joint committee of the court and the Philadelphia Bar Association Federal Courts Committee handles problems and makes evaluations.


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