Koehn v. Tobias, No. 16-3482 (7th Cir. 2017)Annotate this Case
In 2012, Koehn filed a pro se complaint against his former employers. A magistrate held a settlement conference and appointed counsel for Koehn. The parties did not settle. Koehn obtained new counsel. The court held a telephonic status hearing and inquired about settlement negotiations. Defense counsel explained that he was new to the case and that, based on conversations with Defendants’ prior counsel, he believed that Defendants’ insurer had proposed a settlement of about $150,000. Koehn’s counsel stated that she had never heard that figure and that, given that information, a settlement conference might be productive. Defense counsel agreed and the court scheduled a conference. At that conference, Defendants offered less than $75,000, which Koehn had rejected in 2015. Koehn rejected the offer again. When the conference ended, the court stated: “At the conclusion of the jury trial, counsel for the Plaintiff may submit a request for attorney’s fees and costs associated with the unnecessary settlement conference held based upon defense counsel’s representations.” Koehn lost at trial but requested $3,744 in fees and $552.85 in costs associated with the 2016 conference. The district court granted Koehn’s motion; FRCP 16 allows the imposition of sanctions where a party’s failure to timely and candidly communicate a change in settlement posture results in an unnecessary settlement conference. The Seventh Circuit affirmed. Defendants did not participate in the settlement conference in good faith.