Procedures for Settlement Conferences

A. Before the Settlement Conference – Initial Status Hearing, and Exchange of Proposals

The Court will generally hold an initial status hearing or conference call to set dates for the settlement conference and the exchange of pre-conference letters to opposing counsel and the Court. Counsel primarily responsible for representing the parties must participate in this status hearing or call. If a party is claiming an inability to pay a judgment, counsel should raise it at this initial hearing and provide verification of that assertion prior to the settlement conference.

Consistent with the schedule that is set, Plaintiff’s counsel must submit a position statement to Defendant’s counsel, describing the nature of the action, the theory of liability, Plaintiff’s demand and its reasoned basis, an itemization of damages, and citation to legal authority supporting the claimed damages. Plaintiffs are expected to include a demand that is not what they expect to win at trial, but rather a number that takes into account the risk of loss and cost savings from settling before trial. For cases involving personal, physical, or similar injuries, Plaintiffs should include a listing of comparable jury verdicts and/or settlements to support their demand amount. Plaintiffs should also identify the individuals who will be present at the settlement conference, and their roles, including those having settlement authority on behalf of Plaintiffs.

Defendant’s counsel must thereafter submit a position statement to plaintiff’s counsel, describing the theory of defense and defendant’s offer, including an explanation for it. Defendants are expected to offer a number that does not assume that there will be no liability. Additionally, Defendants should identify who will be present at the settlement conference and their roles, including those having settlement authority on behalf of Defendants and whether any insurance representatives are participating.

Position statements should be no more than 10 pages each. Both parties’ counsel are required to provide the full set of the settlement letters to their clients to read prior to the conference. On occasion, this exchange process itself will lead to a settlement. Indeed, the parties should have multiple discussions about settlement between the date the Court sets the settlement conference and the actual date of the conference. The parties should establish that each party has the necessary information to engage in meaningful settlement discussions.

In preparing their statements, the parties are encouraged to consider whether there are any areas of agreement; whether there are any creative solutions (e.g., licensing agreement, allowing the use of a trademark, re-employment); and whether there are any outstanding lien holders, particularly a Worker’s Compensation lien or a Medicare lien. In some circumstances, after reviewing the settlement letters, the Court will set a telephonic status hearing before the settlement conference. The Court may also separately contact counsel for one or both parties and will let the other party know if/when this happens.

Upon submission to the other side, the parties are required to submit their statements to the Court by e-mail. All settlement correspondence should be sent to: Settlement_Correspondence_Jantz@ilnd.uscourts.gov

These statements are not to be filed with the Clerk’s Office, will not be made part of the Court’s record, and will not be admissible as evidence.

B. Persons Required to Attend the Settlement Conference

Individuals with full and complete settlement authority on behalf of the parties are ordered to personally attend the conference, by whatever format the parties and the Court have decided upon (video, in person, etc.). An insured party shall appear with a representative of the insurer who is authorized to negotiate and who has full authority to settle the case. If a party is an individual, that individual must personally attend. If a party is an uninsured corporation or governmental entity, a representative of that corporation or governmental entity (other than counsel of record) with authorization to negotiate and full authority to settle the case must personally attend.

Failure to comply with this provision without good cause will result in an order requiring the party in violation to reimburse the opposing party’s attorney fees and costs related to preparing for and appearing at the settlement conference.

C. Conference Format

In an effort to keep everyone as safe and comfortable as possible, the Court will discuss with the parties in advance the format for the conference, whether it be by video or in person. Both by video and in person, the Court generally holds a joint session with short opening remarks and questions by the Court, generally with no opening presentations by the parties. This short, joint session will be followed by each party having private caucuses with the Court. The Court expects both the lawyers and the party representatives to be fully prepared to participate openly during these discussions. Statements made by any party during the settlement conference are not to be used in discovery and will not be admissible at trial.

D. Prepare for Success

If the parties are successful in reaching an agreement, they will be required to detail on the record the terms of the agreement at the conclusion of the conference, so that the terms are binding on the parties.