U.S. DISTRICT JUDGE IAIN D. JOHNSTON
327 South Church Street
Rockford, IL 61101
Courtroom 5200 Web Site: http://www.ilnd.uscourts.gov
Chambers 6200 Telephone: (815) 987-4255
Operations Specialist: Yvonne Pedroza (779) 772-8609
STANDING ORDER FOR SETTLEMENT CONFERENCE
The Court believes that the parties should fully consider settlement at the earliest
reasonable opportunity in the case. Even if the case cannot be settled, early consideration
of settlement often can result in focusing the issues to be litigated– which can save the
parties considerable time and money.
A settlement conference requires serious and thorough preparation. This Order sets
out the procedures the parties are to follow in preparing for the settlement conference,
and the procedures that the Court typically will employ in conducting the conference.
Counsel must provide a copy of this Order to their clients, and discuss these procedures
with them before the settlement conference.
STATUS HEARING
In most cases, Judge Johnston will hold a status hearing to set the date for the
settlement conference and the dates for the exchange of pre-settlement conference letters.
Counsel primarily responsible for representing the parties must attend the status
hearing and bring their calendars. Often Judge Johnston will discuss with counsel
preliminary matters for the settlement conference, such as whether there is additional
information that must be exchanged before a settlement conference can be useful, or
whether the parties have engaged in previous settlement discussions. Counsel will also
be expected to name on the record the individuals who will be present on behalf of their
respective parties.
All parties and their lead counsel are ORDERED TO APPEAR at the Stanley J.
Roszkowski, U.S. Courthouse, 327 South Church Street, Courtroom No. 5200, Rockford,
Illinois on the date and time set for the settlement conference.
Revised March 4, 2024
SETTLEMENT CONFERENCE PREPARATION
1. PRE-SETTLEMENT CONFERENCE LETTERS. The Court requires the
following two (2) letters from each party: an initial settlement position letter
exchanged by the parties and a confidential letter provided only to the Court. The
letters provide Judge Johnston with information that he needs to assist the parties with
exploring settlement. At the status hearing, Judge Johnston will set a schedule for the
exchange of the initial settlement position letters and submission of the confidential
letters to chambers.
A. INITIAL SETTLEMENT POSITION LETTERS.
Before the conference, the parties must exchange initial settlement position
letters. The plaintiff’s counsel’s initial letter must set forth at least the following
information: (a) a brief summary of the evidence and legal principles that plaintiff
asserts will allow it to establish liability; (b) a brief explanation of why damages or
other relief would appropriately be granted at trial; (c) an itemization of the damages
plaintiff believes can be proven at trial, and a brief summary of the evidence and legal
principles supporting those damages; and (d) a settlement demand. The defendant’s
counsel’s letter in response to the plaintiff’s initial letter must set forth at least the
following information: (a) any points in plaintiff’s letter with which the defendant
agrees; (b) any points in plaintiff’s letter with which defendant disagrees; and (c) a
settlement offer. Each of these letters typically should be five pages or fewer. The
parties’ counsel shall email or deliver copies of their respective letters to Judge
Johnston’s operations specialist no later than the date set at the status hearing, so that
Judge Johnston can review them in advance of the conference. DO NOT FILE
COPIES OF THESE LETTERS IN THE CLERK’S OFFICE. Counsel must
provide his/her client with the opposing party’s letter before the settlement conference.
B. CONFIDENTIAL LETTERS TO CHAMBERS.
The second set of letters are confidential. Counsel are to provide these letters
only to the Court. This second set of letters should not be filed or provided to the
other side. The second set of letters shall include only the following information: a
specific dollar figure (or, in the appropriate case, other specific settlement proposal) at
which the party is willing to settle. The parties shall not include additional
information or argument in their confidential letters. In addition to the confidential
letters, by agreeing to have the Court conduct a settlement conference, the parties also
consent to allowing the Court to have ex parte telephone conferences with counsel
before the settlement conference.
2. ATTENDANCE OF PARTIES REQUIRED. Unless the Court allows otherwise by
separate order, parties with full settlement authority are required to attend the
conference in person. If a party is an individual, that individual must personally
attend; if a party is a corporation or governmental entity, a representative of that
corporation or governmental entity (other than counsel of record) with full settlement
Revised March 4, 2024
authority must personally attend; and if a party requires approval by an insurer to
settle, then a representative of the insurer with full settlement authority must attend in
person. The presence of the parties and their direct participation in the discussions and
“give and take” that occur materially increase the chances of settlement. Moreover, a
"few minutes of observation of the parties in the courtroom is more informing than
reams of cold record.” Ashcraft v. Tennessee, 322 U.S. 143, 171 (Jackson, J.,
dissenting). Thus, absent a showing of extraordinary circumstances, the Court will not
permit a client or an insurance adjuster merely to be available by telephone. If
extraordinary circumstances arise, counsel shall contact opposing counsel and jointly
call Judge Johnston’s operations specialist to make an oral motion to excuse a person’s
presence. All participants in the settlement conference must stay until 5:00 p.m.
(Central time), unless the Court terminates the conference earlier.
3. FULL SETTLEMENT AUTHORITY. The Court reserves a substantial block of
time for each settlement conference. The Court’s time is wasted and opposing parties
incur unnecessary expense if a party comes to the settlement conference with limited
authority. “Full settlement authority” means that the person present at the
settlement conference must be the decision maker. In cases involving
governmental entities that require approval from a legislative body for settlement over
a certain dollar amount, the Court will explain to counsel and the person present what
it expects to be conveyed to the governmental entity. The decision maker must have
both authority to make a final and binding settlement and authority to make the
decision to the last offer or demand. It does not require that any party make any
particular offer or demand, but it does require that the person who is personally present
be fully authorized to make the decision to the last offer or demand without having to
get additional authorization from any person not present at the conference. A party
who comes to a settlement conference without full settlement authority may be
sanctioned. If a conference must be adjourned so that a party may obtain additional
authority, that party may be sanctioned, including, but not limited to, the opposing
party’s attorney’s fees incurred by the need to reconvene.
4. CONFERENCE FORMAT. The Court generally will follow a mediation format:
that is, each side will make an opening presentation to the other side, which will be
followed by joint discussion with the Court and private meetings by the Court with
each side. The Court expects both the lawyers and the party representatives to be fully
prepared to participate in the discussions. Additionally, the Court notes that a
settlement is a compromise that concludes a legal dispute. And compromise occurs
when the parties make concessions. The Court encourages all parties to be willing to
reassess their previous positions and to explore creative means for resolving the
dispute. If a party requests a settlement conference but refuses to compromise in any
way during the requested conference, the Court will impose appropriate sanctions on
that party.
5. CONFIDENTIALITY. The pre-settlement conference letters required by this Order
and the settlement conference are governed by Local Rule 83.5 relating to
Confidentiality of Alternative Dispute Resolution Proceedings. Settlement
Revised March 4, 2024
communications are confidential, including pre-settlement conference letters and
statements made during the settlement conference. These communications are
confidential under Federal Rule of Evidence 408, as well as Western Division ADR
Local Rule 4-10. The communications are also “confidential” in the generic, common
understanding of the word. The Court expects the parties to address each other with
courtesy and respect, but also to speak frankly and openly about their views of the
case.
6. THE PARTIES SHOULD BE PREPARED TO DISCUSS THE FOLLOWING
AT THE SETTLEMENT CONFERENCE:
a. What are your objectives in the litigation?
b. What issues (in and outside of this lawsuit) need to be resolved? What are the
strengths and weaknesses of your case?
c. Do you understand the opposing side’s view of the case?
d. What are the impediments to settlement?
e. What remedies are available through litigation or otherwise?
f. Are there possibilities for creative resolution of the dispute?
g. Do you have adequate information to discuss settlement? If not, how will you
obtain sufficient information to make a meaningful settlement discussion
possible?
h. Are there outstanding liens? Do we need a representative of the lienholder at the
settlement conference? If Medicare has paid any of the plaintiff’s medical
expenses, does the plaintiff have a conditional payment letter from Medicare
identifying the amounts Medicare has paid for which it will seek reimbursement?
ANY PARTY WHO WISHES TO VARY ANY OF THE PROCEDURES SET
FORTH IN THIS STANDING ORDER SHOULD MAKE AN APPROPRIATE
REQUEST TO THE COURT AT THE STATUS HEARING.
ENTER:
IAIN D. JOHNSTON
United States District Judge
Revised March 4, 2024
