Western District of Pennsylvania
IN BRIEF
Process summary
Arbitration.
The Western District of Pennsylvania is one of ten federal district courts authorized by 28 U.S.C. §§ 651-658 to offer voluntary, nonbinding court-annexed arbitration to civil litigants. See below.
Neutral evaluation (mediation/neutral evaluation).
By local rule, the court instituted a program for neutral evaluation by volunteer lawyers. See below.
Judicial settlement conferences.
Settlement conferences are held as needed by district and magistrate judges.
Of note
Evaluation.
An evaluation of the voluntary arbitration program in the Western District of Pennsylvania is reported in the Federal Judicial Center's study of the voluntary arbitration programs: David Rauma & Carol Krafka,
Voluntary Arbitration in Eight Federal Districts: An Evaluation
(Federal Judicial Center 1994).
For more information
Alfred L. Wilson, Clerk of Court, 412-644-3550; Diane Gunn, Clerk's Secretary and Arbitration Clerk, 412-644-3530
IN DEPTH
Arbitration in Pennsylvania Western
Overview
Description and authorization.
The Western District of Pennsylvania is one of ten federal district courts authorized by 28 U.S.C. §§ 651-658 to offer voluntary, nonbinding court-annexed arbitration to civil litigants. It is one of four districts (see D. Ariz., M.D. Ga., and N.D. Ohio) using an opt-out system. Instituted in 1991 as an experimental program, the arbitration process is governed by Local Rule 16.2 and is open to almost all civil cases seeking only money damages. Eligible cases are referred to arbitration automatically, but any party may opt out of the referral without explanation. If the parties consent to arbitration (by not opting out), they may proceed before one arbitrator or a panel of three arbitrators selected from the court's roster. The arbitrators receive a small fee from the court.
Number of cases.
Between January and September 1994, 266 cases were referred to arbitration.
Case selection
Eligibility of cases.
Cases eligible for arbitration include almost all civil cases in which money damages only are sought. Excluded from participation are Social Security cases, cases in which a prisoner is a party, cases alleging a violation of a constitutional right, and actions in which jurisdiction arises under 28 U.S.C. § 1343.
Referral method.
All eligible cases are automatically referred to arbitration by notice from the arbitration clerk after answer is filed. Because this is a voluntary program and all parties must consent to arbitrate, any party may opt out of the arbitration program without explanation by filing an opt-out notice.
Opt-out or removal.
Any party may opt out of the arbitration referral for any reason by filing a notice with the clerk of court within ten days of filing the answer. Later in the case, the assigned judge may, sua sponte or on motion of a party before appointment of the arbitrators, exempt a case from arbitration.
Scheduling
Referral.
Eligible cases are referred to arbitration after answer is filed.
Discovery and motions.
Parties have 120 days from the date answer is filed to complete discovery, unless the assigned judge alters this time period. The assigned judge retains authority to conduct status conferences, hear motions, and otherwise supervise the progress of the case.
Written submissions.
After completion of discovery, counsel for the plaintiff must file a pretrial statement within ten days, the defendant must file within ten days of the plaintiff's filing, and third-party defendants must file within ten days of the defendant's filing. When counsel for the plaintiff receive the notice scheduling the hearing, they must send the arbitrator all pleadings and all pretrial statements.
Arbitration hearing.
After pretrial statements are filed, the assigned judge issues an order setting the date and time of the arbitration hearing and naming the arbitrators. If certain motions are pending, the court will withhold the order until the motions are decided. The hearing, which is held at the courthouse and arranged by the arbitration clerk, should occur within 150 days of the last answer.
Length of hearing.
Arbitration hearings usually last about three hours.
Program features
Party roles and sanctions.
The hearing may go forward in the absence of any party who, after notice, fails to be present. If a party fails to participate in a meaningful manner, the court may impose appropriate sanctions, including striking any demand for trial de novo filed by that party.
Filing of award.
The arbitration award must be filed promptly with the court after the hearing. To shield the court from the award, the arbitration clerk retains the award in a separate file and notes only "arbitration award filed" on the docket. If a timely request for a trial de novo is not made, the award is entered as the judgment of the court.
De novo request.
A party desiring trial de novo must file a request within thirty days of the filing of the arbitration decision.
Confidentiality.
At the trial de novo, the court may not admit evidence of the arbitration, the nature or amount of the award, or any other matter concerning the arbitration proceeding. The arbitration decision is not entered on the docket and is kept in a separate file in the clerk's office until and if it becomes the final judgment in the case.
Neutrals
Qualifications and training.
To be eligible for appointment to the court's roster of arbitrators, an attorney must have been admitted to practice for at least ten years; be admitted in this district or be a member of the faculty of an accredited Pennsylvania law school; be recommended by the court's committee on arbitration; and be determined by the chief judge competent to perform the duties of an arbitrator. The court does not require training for the arbitrators.
Selection for case.
The parties may elect to proceed before a single arbitrator or a panel of three arbitrators and may select their arbitrators. If the parties are unable to agree on arbitrators from on or off the court's roster, the arbitration clerk randomly selects the arbitrators from the court's roster. To use arbitrators not certified by the court, approval by the chief judge is required.
Disqualification.
The court has no disqualification rules for arbitrators.
Immunity.
The court has not addressed this question.
Fees.
The court pays the arbitrators' fees. For single arbitrators, the rate is $250 per day. For members of a three-person panel, the rate is $100 per day per arbitrator.
Program administration
The program is administered by the clerk's office. The court's arbitration committee handles problems arising out of the program.
Neutral Evaluation (Mediation/Neutral Evaluation) in Pennsylvania Western
Overview
Description and authorization.
On January 1, 1995, the Western District of Pennsylvania instituted a neutral evaluation process for civil cases. Under Local Rule 16.3, cases are referred to this nonbinding ADR process on a case-by-case basis by the assigned judge on his or her own motion or on motion of a party. The sessions are conducted by volunteer lawyers called adjunct settlement judges, who have expertise in the subject matter of the dispute. A principal purpose of the settlement session is to give litigants an opportunity to articulate their positions, to hear their opponent's version of the matters in dispute, and to receive a neutral assessment of the relative strengths of the opposing positions. The court calls this program mediation/neutral evaluation. The adjunct settlement judges serve without compensation.
Number of cases.
Caseload information is not available.
Case selection
Eligibility of cases.
All civil actions are eligible for the program, including adversary proceedings in bankruptcy and actions in which a trial de novo has been requested after arbitration. No case types are presumed ineligible or inappropriate.
Referral method.
The assigned district judge or magistrate judge may, sua sponte or on motion of a party, order any civil action to this process. A judicial order of referral is entered.
Opt-out or removal.
The local rule does not address this subject.
Scheduling
Referral.
A case may be referred to the process at any appropriate time. After the referral order is entered, counsel are notified of the adjunct settlement judge appointed in the case and the date of the session.
Written submissions.
Once counsel receive the notice of referral, they are required to send copies of all pleadings to the adjunct settlement judge. In addition, if pretrial statements have not been filed, each party is required to submit an evaluation statement to the adjunct settlement judge and opposing counsel ten days before the session. The statement identifies the parties with decision-making authority who will attend the session, describes the substance of the suit, and notes whether there are legal or factual issues whose resolution might facilitate settlement. Documents may also be submitted.
Mediation/evaluation session.
The date of the mediation/evaluation session is set by the assigned judge in the referral order. The session may be rescheduled by the adjunct settlement judge to take place within fifteen days of the original date. Other changes in dates must be approved by the assigned judge. The session may be held at the courthouse or at another location agreeable to the adjunct settlement judge and the parties.
Number and length of sessions.
This information is not available.
Program features
Party roles and sanctions.
In addition to counsel, clients are required to attend the session unless excused for good cause by the adjunct settlement judge. In litigation involving a corporation or other association, a settlement-empowered representative of the party, other than outside counsel, must attend the session. Willful failure to attend may result in sanctions.
Outcome.
The adjunct settlement judge must send a report to the clerk and the assigned judge indicating that there has been compliance with the requirements of the rule and noting whether settlement has been achieved.
Confidentiality.
The mediation/evaluation session is confidential, and all information arising from the settlement event is shielded from the trial judge. Other than the brief report filed at the session's conclusion, communication between the adjunct settlement judge and the assigned judge is prohibited.
All proceedings, including any statements made by a party, counsel, the adjunct settlement judge, or other participants, may not be reported or recorded or disclosed to the trial judge. All counsel and parties must treat as confidential all written and oral communications made in connection with or during any conference. These communications may not be disclosed to anyone not involved in the litigation and may not be used for any purpose (including impeachment) in the litigation or in any other proceedings. Except for a written settlement agreement or any written stipulations executed by the parties or counsel, no party or counsel is bound by anything done or said at any of the conferences.
Neutrals
Qualifications and training.
To be selected for the court's roster of adjunct settlement judges, a candidate must have practiced law for at least ten years, be a member of the court or a law professor in the state, be recommended by the court's committee on mediation/neutral evaluation, and be approved by the chief judge. Candidates must also complete training requirements set by the court committee and take the oath of affirmation prescribed in 28 U.S.C. § 453.
Selection for case.
The adjunct settlement judge is appointed by the assigned judge and the clerk from the roster of certified volunteer attorneys. Where possible, a neutral with subject matter expertise is selected. Alternatively, the parties may select an adjunct settlement judge from another source, with the approval of the chief judge.
Disqualification.
Adjunct settlement judges are disqualified for bias or prejudice as provided in 28 U.S.C. § 144 and must disqualify themselves in any action in which they would be required to do so under 28 U.S.C. § 4555 if they were a justice, judge, or magistrate judge.
Immunity.
The court has not addressed this question.
Fees.
Adjunct settlement judges serve without compensation. In unusual cases and at the request of the parties, an adjunct settlement judge selected by the parties and approved by the court may be compensated by the parties.
Program administration
The program is administered by the clerk's office.
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