Settlement conference
Encyclopedia
A settlement conference is a meeting between opposing sides of a lawsuit
at which the parties attempt to reach a mutually agreeable resolution of their dispute without having to proceed to a trial
. Such a conference may be initiated through either party, usually by the conveyance of a settlement offer
; or it may be ordered by the court
as a precedent (preliminary step) to holding a trial. Each party, the plaintiff
and the defendant
, is usually represented at the settlement conference by their own Counsel
or attorney
. Conferences are frequently conducted by a judge or other neutral party, in the form of a mediation
.
system, a case conference may be used to settle a case.
In some courts, the rules require that before certain types of motions or petitions will be heard by the judge, the lawyers must "meet and confer" to try to resolve the matter.
, and cannot be introduced as evidence
in court. All such information would be considered privileged or hearsay
. There is one exception to this rule: statements of fact made by criminal defendants in settlement discussions over disputed civil claims asserted by government agencies are admissible in the criminal case.
On December 15, 2009, Governor David Paterson signed into law an expanded version of the mandatory settlement conference legislation. Section 3408 of the Civil Practice Law and Rules of New York now provides that the court shall hold a mandatory settlement conference for all loans for one to four family homes within sixty days following the date proof of service is filed with the county clerk. The new law also provides that both the defendant homeowner and the plaintiff lender negotiate in good faith during their mandated settlement conference. The plaintiff lender is required to have a representative or attorney appear at the settlement conference with the authority to fully negotiate and settle the matter.
The foreclosure proceedings are effectively stopped until the referee or judicial hearing officer (JHO) in the settlement conference determines that the settlement conferences are concluded, either because the parties have successfully modified the home loan or obtained some other foreclosure alternative or the referee has determined that one of the parties has not satisfied its requirements under the law. Settlement conferences do not produce formal dispositions but may facilitate loan modifications and stop foreclosure. The referee or JHO will make a recommendation to the judge overseeing the foreclosure proceedings once the settlement conference is concluded.
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
at which the parties attempt to reach a mutually agreeable resolution of their dispute without having to proceed to a trial
Trial (law)
In law, a trial is when parties to a dispute come together to present information in a tribunal, a formal setting with the authority to adjudicate claims or disputes. One form of tribunal is a court...
. Such a conference may be initiated through either party, usually by the conveyance of a settlement offer
Settlement offer
A settlement offer or offer to settle is a term used in a civil lawsuit to describe a communication from one party to the other suggesting a settlement - an agreement to end the lawsuit before a judgment is rendered....
; or it may be ordered by the court
Court
A court is a form of tribunal, often a governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in accordance with the rule of law...
as a precedent (preliminary step) to holding a trial. Each party, the plaintiff
Plaintiff
A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...
and the defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
, is usually represented at the settlement conference by their own Counsel
Counsel
A counsel or a counselor gives advice, more particularly in legal matters.-U.K. and Ireland:The legal system in England uses the term counsel as an approximate synonym for a barrister-at-law, and may apply it to mean either a single person who pleads a cause, or collectively, the body of barristers...
or attorney
Lawyer
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...
. Conferences are frequently conducted by a judge or other neutral party, in the form of a mediation
Mediation
Mediation, as used in law, is a form of alternative dispute resolution , a way of resolving disputes between two or more parties. A third party, the mediator, assists the parties to negotiate their own settlement...
.
Case conference
In many courts in the common lawCommon law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
system, a case conference may be used to settle a case.
In some courts, the rules require that before certain types of motions or petitions will be heard by the judge, the lawyers must "meet and confer" to try to resolve the matter.
Consequences
Matters discussed in a settlement conference are confidentialConfidentiality
Confidentiality is an ethical principle associated with several professions . In ethics, and in law and alternative forms of legal resolution such as mediation, some types of communication between a person and one of these professionals are "privileged" and may not be discussed or divulged to...
, and cannot be introduced as evidence
Evidence (law)
The law of evidence encompasses the rules and legal principles that govern the proof of facts in a legal proceeding. These rules determine what evidence can be considered by the trier of fact in reaching its decision and, sometimes, the weight that may be given to that evidence...
in court. All such information would be considered privileged or hearsay
Hearsay
Hearsay is information gathered by one person from another person concerning some event, condition, or thing of which the first person had no direct experience. When submitted as evidence, such statements are called hearsay evidence. As a legal term, "hearsay" can also have the narrower meaning of...
. There is one exception to this rule: statements of fact made by criminal defendants in settlement discussions over disputed civil claims asserted by government agencies are admissible in the criminal case.
Pre-foreclosure Settlement Conferences
On December 1, 2008, the New York State Unified Court System began sending notices to borrowers in default who have high cost mortgages, whose mortgages were being foreclosed prior to September 1, 2008, offering voluntary settlement conferences. Borrowers with high cost mortgages whose mortgages entered or are entering into foreclosure from September 2008 on, will be required to attend a mandatory settlement conference prior to foreclosure proceedings. High cost loans are considered to have excessive fees, risk-based sub-prime percentage rates, negative amortizing payment options, and other features which may or may not be considered predatory lending practices.On December 15, 2009, Governor David Paterson signed into law an expanded version of the mandatory settlement conference legislation. Section 3408 of the Civil Practice Law and Rules of New York now provides that the court shall hold a mandatory settlement conference for all loans for one to four family homes within sixty days following the date proof of service is filed with the county clerk. The new law also provides that both the defendant homeowner and the plaintiff lender negotiate in good faith during their mandated settlement conference. The plaintiff lender is required to have a representative or attorney appear at the settlement conference with the authority to fully negotiate and settle the matter.
The foreclosure proceedings are effectively stopped until the referee or judicial hearing officer (JHO) in the settlement conference determines that the settlement conferences are concluded, either because the parties have successfully modified the home loan or obtained some other foreclosure alternative or the referee has determined that one of the parties has not satisfied its requirements under the law. Settlement conferences do not produce formal dispositions but may facilitate loan modifications and stop foreclosure. The referee or JHO will make a recommendation to the judge overseeing the foreclosure proceedings once the settlement conference is concluded.
See also
- Allocation questionnaireAllocation questionnaireAn allocation questionnaire is a form used in English legal practice. After a claim is made, if a defence is filed each party is required to complete and return an allocation questionnaire to the court so that the judge may properly allocate the claim to a track and give further directions towards...
for the paperwork used to set up the settlement conference for small claims matters in England - In open courtIn open courtIn open court is a legal term in the United States defined by the appearance by a party or their attorney in a public court session such as during a trial...