New York State Court Passes Directive Requiring Settlement Meetings Prior to Trial
On January 7, 2022, the Commercial Division of the New York State Supreme Court amended Rule 30 of the Rules of the Commercial Division of the Supreme Court, Section 202.70(g) to enact a new directive requiring all parties to enter into a settlement negotiation prior to trial. This directive requires the parties to meet at a critical stage of the case to negotiate, after discovery is complete and the note of issue is filed but before a trial begins.
Once the Notice of Issue has been filed, the court will require that the parties submit a request to proceed to a Mandatory Settlement Conference (MSC). This request must cite which of the four options for MSCs the parties would prefer. If all parties agree on the same MSC option, they may file one request jointly. If all parties do not agree they must each file their own separate request with a statement of their preference as far as options.
When deciding how to proceed with the MSC, parties have four options:
1) They may have a settlement conference before their assigned judge;
2) The parties may request a Judicial Hearing Officer/Special Referee be assigned to the MSC;
3) The parties may request a court official assign a “neutral” to oversee the conference from a roster of neutrals held by the court; or
4) The parties may agree to a private neutral.
Not only does the new rule outline the different ways MSCs can take place but it also outlines other requirements of these conferences. Some of these additional rules require that the MSC must be attended by someone with knowledge of the case and authority to settle the case must be present, that the MSC be confidential, and that a justice may exempt parties from engaging in an MSC with a showing of good cause.
Since a negotiation conference is now a court requirement, the new directive will be helpful in forcing parties to come together thus cleaning up dockets from courts that are already overscheduled.
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