KOTHE V. SMITH
771 F.2d 667 (2nd Cir. 1985)
NATURE OF THE CASE: Smith (D) sought review of an order imposing costs and attorneys'
fees pursuant to Fed. R. Civ. P. 16(f) for failure to settle a case prior to the start of
trial.
FACTS: Three weeks prior to trial, Judge Sweet held a pretrial conference and directed
that settlement negotiations be held. The judge recommended that the case be settled between
$20,000 and $30,000 and warned the parties that if they settled for a comparable figure
after the trial had begun, he would award sanctions against the dilatory party. Smith (D)
offered $5,000 on the day before trial but that was rejected. Kothe's (P) attorney indicated
to the judge that his client would settle for $20,000 but requested that that figure not be
disclosed to D; the lowest settlement communicated was for $50,000. The case was settled for
$20,000 after one day of trial. The district court penalized D alone. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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