Nick v. Morgan’s Food, Inc.

In August 1999, Gee Gee Nick (plaintiff) and Morgan’s Food, Inc. (Morgan) (defendant) received a court order to participate in an alternative dispute resolution (ADR) concerning Nick’s sexual-harassment and retaliation claim against Morgan. The court order required the parties to participate in the ADR process in good faith and according to the local rules adopted by the Eastern District of Missouri. Specifically, the court instructed the parties to prepare a memorandum prior to the ADR conference to detail the disputed facts, the party’s position, and the name and position of the party’s representative participating in the ADR conference. The court further instructed the parties that the representative participating in the ADR conference had to have authorization to settle claims. At the time of the ADR conference, Morgan had failed to provide the court-ordered memorandum. Morgan also sent a representative to participate in the conference that did not have authority to settle claims beyond $500. Morgan later admitted to failing to comply with the court order in order to save money and time. During the ADR conference, Nick made two settlement offers. The representative from Morgan rejected both offers. The conference was terminated without reaching a settlement. The court then imposed sanctions on Morgan and on Morgan’s counsel for failing to participate in the ADR process in good faith. Morgan filed a motion for reconsideration.