Free Order to Show Cause - District Court of California - California

Case 3:08-cv-00038-JAH-BLM

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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

) ) ) ) ) Plaintiff, ) ) v. ) FIDELITY AND DEPOSIT COMPANY OF ) ) MARYLAND, ) ) Defendant. ) LPL FINANCIAL CORPORATION, formerly known as LINSCO/PRIVATE LEDGER CORP, On July 7, 2008, the

Case No. 08cv0038-JAH(BLM) ORDER TO SHOW CAUSE WHY SANCTIONS SHOULD NOT BE IMPOSED

Court

convened

an

Early

Neutral

Evaluation Conference.

Plaintiff failed to provide a corporate

representative with full and complete settlement authority. In the Notice and Order for Early Neutral Evaluation Conference filed May 30, 2008, this Court ordered that: Full Settlement Authority Required: In addition to counsel who will try the case, a party or party representative with full settlement authority1 must be

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"Full settlement authority" means that the individuals at the

settlement conference must be authorized to explore settlement options fully and to agree at that time to any settlement terms acceptable to the parties. Heileman Brewing Co. v. Joseph Oat Corp., 871 F.2d 648, 653 (7th Cir. 1989). The

08cv0038-JAH (BLM)

Case 3:08-cv-00038-JAH-BLM

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present for the conference. In the case of a corporate entity, an authorized representative of the corporation who is not retained outside counsel must be present and must have discretionary authority to commit the company to pay an amount up to the amount of the Plaintiff's prayer (excluding punitive damages prayers). The purpose of this requirement is to have representatives present who can settle the case during the course of the conference without consulting a superior. (emphasis in original) Doc. No. 8. of the Court's order. Therefore, it is hereby ordered that Plaintiff's corporate representative with full settlement authority appear with counsel before the Honorable Barbara L. Major on July 22, 2008 at 9:00 a.m. in Courtroom A, U.S. District Court, 940 Front Street, San Diego, California 92101 to show cause why sanctions should not be imposed for failing to comply with this Court's order. Plaintiff and its Plaintiff violated this aspect

counsel shall file declarations and may file legal briefs regarding the imposition of sanctions on or before July 11, 2008. Those

parties who complied with this Court's order may file declarations on or before July 18, 2008 detailing the costs they incurred as a result of Plaintiff's failure to comply. IT IS SO ORDERED. DATED: July 8, 2008 BARBARA L. MAJOR United States Magistrate Judge

person needs to have "unfettered discretion and authority" to change the settlement position of a party. 485-86 (D. Ariz. 2003). Pitman v. Brinker Int'l, Inc., 216 F.R.D. 481,

The purpose of requiring a person with unlimited

settlement authority to attend the conference contemplates that the person's view of the case may be altered during the face to face conference. limited or a sum certain of authority is not adequate. Foods, Inc., 270 F.3d 590, 595-97 (8th Cir. 2001). Id. at 486. A

See Nick v. Morgan's

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08cv0038-JAH (BLM)

Case 3:08-cv-00038-JAH-BLM

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COPY TO: HONORABLE JOHN A. HOUSTON U.S. DISTRICT JUDGE ALL COUNSEL AND PARTIES

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08cv0038-JAH (BLM)