Johnson v. Tinwalla
Filing
119
OPINION AND NOTICE TO SHOW CAUSE: Motion to Cancel Settlement Conference (d/e 115 ) is ALLOWED. The settlement conference set for September 7, 2017 is CANCELED. Plaintiff Terry Johnson's counsel is directed to file by September 26, 2017, docu mentation establishing the $801.83 in non-refundable airfare and hotel reservations incurred to attend the now canceled settlement conference, and the attorney fees incurred in preparing the confidential settlement statement filed with the Court pursuant to the July 3, 2017 Text Order and the attorney fees incurred to respond to the Motion. Defendant Abdi Tinwalla and his counsel are directed to show cause in writing by October 17, 2017 why either or both of them should not be ordered to pay the $801.83 and the said attorney fees. Plaintiff Johnson may file a reply by October 27, 2017. SEE WRITTEN OPINION. Entered by Magistrate Judge Tom Schanzle-Haskins on 9/5/2017. (Attachments: # 1 Email Attachment) (MJC, ilcd)
E-FILED
Tuesday, 05 September, 2017 05:19:38 PM
Clerk, U.S. District Court, ILCD
IN THE UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF ILLINOIS SPRINGFIELD DIVISION
TERRY C. JOHNSON,
Plaintiff,
v.
ABDI TINWALLA,
Defendant.
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No. 13-3227
OPINION
AND NOTICE TO SHOW CAUSE
TOM SCHANZLE-HASKINS, U.S. Magistrate Judge:
This matter comes before the Court on Defendant Abdi Tinwalla’s
Motion to Cancel Settlement Conference (d/e 115) (Motion). The District
Court referred this matter to this Court for a settlement conference. Text
Order entered June 1, 2017. This Court ordered the parties to participate
in a settlement conference on September 7, 2017. In preparation for that
settlement conference, this Court directed the parties to submit statements
“describing prior negotiations, including demands, offers, and counteroffers that have been made and rejected and identify any particular
circumstances which may have impeded settlement efforts.” This Court
directed that the statements “should not be filed with the Court or submitted
to opposing counsel but submitted directly to Judge Schanzle-Haskins on
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or before the close of business on August 31, 2017.” Text Order entered
July 3, 2017.
Defendant Tinwalla did not submit the required statement to this
Court on August 31, 2017. Instead, counsel for Tinwalla sent an email on
August 31, 2017 at 1:40 p.m. to the Court’s law clerk and opposing counsel
stating that he was going to file a motion to cancel the hearing. The law
firm representing Tinwalla recently reassigned his representation to a
different attorney. The new attorney stated in the email that “having
conferred with my client and now being up to speed on the file since
recently taking it over, I’m going to be moving to cancel this conference
currently set for September 7 at 9:30. I apologize for the late notice.
Thanks.” A copy of the email is attached.
No motion to cancel was filed on August 31, 2017. At the close of
business at 4:59 p.m. on August 31, 2017, counsel for Plaintiff Terry
Johnson submitted his confidential statement as required by this Court’s
July 3 Text Order.
On September 1, 2017, the day after confidential statements were
due, Tinwalla filed this Motion. The Motion states “Defendant does not
wish to participate in settlement discussions and has no authority to do so.”
Motion, ¶ 2. The Motion further states that Tinwalla’s counsel “regrets the
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timing of this request for cancellation being a week prior to the conference.”
Id. ¶ 3.
Johnson filed a timely response to the Motion. Johnson stated that
his pro bono counsel had already purchased discounted non-refundable
airfare to fly to Springfield, Illinois, and discounted non-refundable hotel
reservations for two persons to attend the conference. The airfare and
hotel reservations totaled $801.83. Johnson stated that he was ready to
attend the conference and settle the case on appropriate terms. Johnson
requested that if the Court granted the Motion that the Court also order
Tinwalla to pay Johnson’s counsel the $801.83 for the airfare and hotel
reservations. Response to Motion to Cancel Settlement Conference (d/e
117) (Response), ¶¶ 1-4.
Upon careful review of the Motion and the Response, the Court
allows the Motion. Tinwalla is not interested in settlement and lacks
authority to settle. A conference would be futile under these
circumstances.
The Court, however, orders Tinwalla and his counsel to show cause
why either or both of them should not be ordered to pay Johnson’s counsel
the cost of the non-refundable airfare and hotel in the sum of $801.83, and
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the attorney fees incurred to prepare the Johnson’s confidential settlement
statement and responding to the Motion.
Tinwalla’s email notice was inadequate and inappropriate under the
circumstances. Tinwalla’s counsel sent the notice at 1:40 p.m. central
daylight time on August 31, 2017, the day the confidential statements were
due. Three months earlier, on June 1, 2017, Tinwalla and his counsel
knew that the District Court referred the matter for settlement conference.
Almost two months earlier, on July 3, 2017, the Court ordered Tinwalla to
participate in the settlement conference on September 7, 2017. Waiting to
send the notice until the afternoon of the due date for the required
confidential settlement statements was just too late.
The inadequate and inappropriate notice imposed significant costs on
Johnson’s pro bono counsel. Johnson’s counsel is located in New York.
His counsel, therefore, received the notice at 3:40 pm eastern daylight time
on the day that confidential settlement statements were due, and just a
week before the scheduled conference. By 3:40 p.m. on August 31, 2017,
Johnson’s counsel had paid for non-refundable discounted airfare and hotel
reservations and had surely spent considerable time preparing the
confidential statement that was due that day.
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Moreover, Tinwalla’s counsel neither filed the promised motion on
August 31, nor submitted the confidential settlement statement when due.1
With no promised motion on file, Johnson’s counsel properly submitted the
statement to this Court at the close of business on August 31.
Tinwalla and his counsel should be required to show cause why
either or both of them should not be required to pay Johnson’s counsel
both the $801.83 in non-refundable airfare and hotel reservations, and the
attorney fees incurred to prepare the confidential settlement statement
submitted to this Court pursuant to the July 3, 2017 Text Order and to
respond to the Motion. Tinwalla and his counsel should make this showing
to the District Court because the District Court has the inherent authority to
require parties to pay such costs after notice and opportunity to be heard.
See United States v. 1948 South Martin Luther King Dr., 270 F.3d 1102,
1115-1116 (7th Cir. 2001); cf. 28 U.S.C. § 636 (limited authority of the U.S.
Magistrate Judge).
THEREFORE, Motion to Cancel Settlement Conference (d/e 115) is
ALLOWED. The settlement conference set for September 7, 2017 is
CANCELED. Plaintiff Terry Johnson’s counsel is directed to file by
September 26, 2017, documentation establishing the $801.83 in non-
1
Furthermore, He thereby violated the July 3, 2017 Text Order.
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refundable airfare and hotel reservations incurred to attend the now
canceled settlement conference, and the attorney fees incurred in
preparing the confidential settlement statement filed with the Court
pursuant to the July 3, 2017 Text Order and the attorney fees incurred to
respond to the Motion. Defendant Abdi Tinwalla and his counsel are
directed to show cause in writing by October 17, 2017 why either or both of
them should not be ordered to pay the $801.83 and the said attorney fees.
Plaintiff Johnson may file a reply by October 27, 2017.
ENTER: September 5, 2017
s/ Tom Schanzle-Haskins
UNITED STATES MAGISTRATE JUDGE
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