GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 907

Short Title:  Mediated Settlement/Family Issues.	(Public)

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Sponsors: Representatives Baddour, Hackney (Cosponsors); Bonner, Boyd-McIntyre, Braswell, Dedmon, Easterling, Gamble, Goodwin, Hensley, R. Hunter, Hurley, Insko, Mercer, Moore, Morris, Mosely, Nichols, Russell, Saunders, Sutton, Tolson, Wainwright, Warwick, Watson, C. Wilson, and Womble.

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Referred to:  Judiciary II.

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April 10, 1997

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH A PILOT PROGRAM OF MEDIATED SETTLEMENT CONFERENCES IN DISTRICT COURT ACTIONS INVOLVING CERTAIN FAMILY ISSUES.
The General Assembly of North Carolina enacts:
Section 1. Chapter 7A of the General Statutes is amended by adding the following new section to read:
"§ 7A-38.4.  Mediated settlement conferences in district court actions.
(a)	The purpose of this section is to authorize the design, implementation, and evaluation of a pilot program in which parties to district court actions involving equitable distribution, alimony, and support may be required to attend a pretrial mediated settlement conference or other settlement procedure.
(b)	The Dispute Resolution Commission established under the Judicial Department shall, with the advice of the Director of the Administrative Office of the Courts, design the pilot program and its coordination with existing settlement programs.  The pilot program may be implemented in any judicial district if the Director of the Administrative Office of the Courts and the chief district court judge of that district determine that use of the program is appropriate.  A pilot program may be terminated by the Director of the Administrative Office of the Courts after consultation with the chief district court judge.
(c)	The Supreme Court may adopt rules to implement this section.  The definitions in G.S. 7A-38.1(b)(2) and (b)(3) apply to this section.
(d)	The chief district court judge of any participating district may order a mediated settlement conference for any action pending in the district involving issues of equitable distribution, alimony, or child or spousal support.  The chief district court judge may by local rule order all such cases, not otherwise exempted by Supreme Court rule, to mediated settlement conference.
(e)	The parties to a district court action in which a mediated settlement conference is ordered, their attorneys, and other persons or entities with authority, by law or by contract, to settle the parties' claims shall attend the mediated settlement conference, or other settlement procedure ordered by the court, unless excused by the rules of the Supreme Court or by order of the chief district court judge.  Nothing in this section shall require any party or other participant in the conference to make a settlement offer or demand which it deems is contrary to its best interests.
(f)	Any person required to attend a mediated settlement conference or other settlement procedure ordered by the court who, without good cause, fails to attend in compliance with this section and the rules adopted under this section, shall be subject to any appropriate monetary sanction imposed by a chief or presiding district court judge, including the payment of attorneys' fees, mediator fees, and expenses incurred in attending the conference.  If the court imposes sanctions, it shall do so, after notice and hearing, in a written order, making findings of fact and conclusions of law.  An order imposing sanctions shall be reviewable upon appeal where the entire record as submitted shall be reviewed to determine whether the order is supported by substantial evidence.
(g)	The parties to a district court action in which a mediated settlement conference is to be held pursuant to this section shall have the right to designate a mediator.  Upon failure of the parties to designate within the time established by the rules of the Supreme Court, a mediator shall be appointed by the chief district court judge or its designee.
(h)	The chief district court judge, at the request of and with the consent of the parties, may order the parties to attend and participate in any other settlement procedure authorized by rules of the Supreme Court or by local district court rules, in lieu of attending a mediated settlement conference.  Neutral third parties acting pursuant to this section shall be selected and compensated in accordance with the rules or pursuant to agreement of the parties.  Nothing herein shall prohibit the parties from participating in other dispute resolution procedures, including arbitration, to the extent authorized under State or federal law.
(i)	Mediators and other neutrals acting pursuant to this section shall have judicial immunity in the same manner and to the same extent as a judge of the General Court of Justice, except that mediators and other neutrals may be disciplined in accordance with enforcement procedures adopted by the Supreme Court pursuant to G.S. 7A-38.2.
(j)	Costs of mediated settlement conferences and other settlement procedures shall be borne by the parties.  Unless otherwise ordered by the court or agreed to by the parties, the mediator's fees shall be paid in equal shares by the parties.  The rules adopted by the Supreme Court implementing this section shall set out a method whereby parties found by the court to be unable to pay the costs of settlement procedures are afforded an opportunity to participate without cost.
(k)	Evidence of statements made and conduct occurring in a mediated settlement conference shall not be subject to discovery and shall be inadmissible in any proceeding in the action or other actions on the same claim.  However, no evidence otherwise discoverable shall be inadmissible merely because it is presented or discussed in a mediated settlement conference.
No mediator, or other neutral conducting a settlement procedure pursuant to this section, shall be compelled to testify or produce evidence concerning statements made and conduct occurring in a mediated settlement conference or other settlement procedure in any civil proceeding for any purpose, except proceedings for sanctions under this section, disciplinary hearings before the State Bar or any agency established to enforce standards of conduct for mediators, and proceedings to enforce laws concerning juvenile or elder abuse.
(l)	The Supreme Court may adopt standards for the certification and conduct of mediators and other neutrals who participate in the mediated settlement conference program established pursuant to this section.  The standards may also regulate mediator training programs.  The Supreme Court may adopt procedures for the enforcement of those standards.  The administration of mediator certification, regulation of mediator conduct, and decertification shall be conducted through the Dispute Resolution Commission.  An administrative fee not to exceed two hundred dollars ($200.00) may be charged by the Administrative Office of the Courts to applicants for certification and annual renewal of certification for mediators and mediator training programs operation under this section.  The fees collected may be used by the Director of the Administrative Office of the Courts to establish and maintain the operations of the Commission and its staff.
(m)	Nothing in this section or rules adopted pursuant to it shall restrict the right to jury trial."
Section 2.  The Administrative Office of the Courts may solicit funds from private sources to design, establish, conduct, and evaluate the pilot program authorized under Section 1 of this act.
Section 3.  The Administrative Office of the Courts shall evaluate the pilot program authorized under this act and shall report its findings and recommendations to the 1999 General Assembly upon its convening.
Section 4.  The pilot program designed by the Dispute Resolution Commission becomes effective January 1, 1998, and expires September 1, 1999.
Section 5. This act is effective when it becomes law.