§ 7A-38.4A. Settlement procedures in district court actions. - North Carolina Statutes

§ 7A‑38.4A.  Settlementprocedures in district court actions.

(a)        The GeneralAssembly finds that a system of settlement events should be established tofacilitate the settlement of district court actions involving equitabledistribution, alimony, or support and to make that litigation more economical,efficient, and satisfactory to the parties, their representatives, and theState. District courts should be able to require parties to those actions andtheir representatives to attend a pretrial mediated settlement conference orother settlement procedure conducted under this section and rules adopted bythe Supreme Court to implement this section.

(b)        The definitions inG.S. 7A‑38.1(b)(2) and (b)(3) apply in this section.

(c)        Any chief districtcourt judge in a judicial district may order a mediated settlement conferenceor another settlement procedure, as provided under subsection (g) of thissection, for any action pending in that district involving issues of equitabledistribution, alimony, child or post separation support, or claims arising outof contracts between the parties under G.S. 52‑10, G.S. 52‑10.1, orChapter 52B of the General Statutes. The chief district court judge may adoptlocal rules that order settlement procedures in all of the foregoing actionsand designate other district court judges or administrative personnel to issueorders implementing those settlement procedures. However, local rules adoptedby a chief district court judge shall not be inconsistent with any rulesadopted by the Supreme Court.

(d)        The parties to adistrict court action where a mediated settlement conference or othersettlement procedure is ordered, their attorneys, and other persons or entitieswith authority, by law or contract, to settle a party's claim, shall attend themediated settlement conference or other settlement procedure, unless the rulesordering the settlement procedure provide otherwise. No party or otherparticipant in a mediated settlement conference or other settlement procedureis required to make a settlement offer or demand that the party or participantdeems contrary to that party's or participant's best interests. Parties whohave been victims of domestic violence may be excused from physically attendingor participating in a mediated settlement conference or other settlementprocedure.

(e)        Any person requiredto attend a mediated settlement conference or other settlement procedure underthis section who, without good cause fails to attend or fails to pay any or allof the mediator or other neutral's fee in compliance with this section issubject to the contempt powers of the court and monetary sanctions imposed by adistrict court judge. A party seeking sanctions against another party or personshall do so in a written motion stating the grounds for the motion and therelief sought. The motion shall be served upon all parties and upon any personagainst whom sanctions are being sought. The court may initiate sanctionproceedings upon its own motion by the entry of a show cause order. If thecourt imposes sanctions, it shall do so, after notice and hearing, in a writtenorder making findings of fact and conclusions of law. An order imposingsanctions is reviewable upon appeal, and the entire record shall be reviewed todetermine whether the order is supported by substantial evidence.

(f)         The parties to adistrict court action in which a mediated settlement conference is to be heldunder this section shall have the right to designate a mediator. Upon failureof the parties to designate within the time established by the rules adopted bythe Supreme Court, a mediator shall be appointed by a district court judge.

(g)        A chief districtcourt judge or that judge's designee, at the request of a party and with theconsent of all parties, may order the parties to attend and participate in anyother settlement procedure authorized by rules adopted by the Supreme Court oradopted by local district court rules, in lieu of attending a mediatedsettlement conference. Neutrals acting under this section shall be selected andcompensated in accordance with rules adopted by the Supreme Court. Nothingherein shall prohibit the parties from participating in other disputeresolution procedures, including arbitration, to the extent authorized underState or federal law. Nothing herein shall prohibit the parties fromparticipating in mediation at a community mediation center operating under G.S.7A‑38.5.

(h)        Mediators and otherneutrals acting under this section shall have judicial immunity in the samemanner 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 withenforcement procedures adopted by the Supreme Court under G.S. 7A‑38.2.

(i)         Costs of mediatedsettlement conferences and other settlement procedures shall be borne by theparties. Unless otherwise ordered by the court or agreed to by the parties, themediator's fees shall be paid in equal shares by the parties. The rules adoptedby the Supreme Court shall set out a method whereby a party found by the courtto be unable to pay the costs of settlement procedures is afforded anopportunity to participate without cost to that party and without expenditureof State funds.

(j)         Evidence ofstatements made and conduct occurring in a mediated settlement conference orother settlement proceeding conducted under this section, whether attributableto a party, the mediator, other neutral, or a neutral observer present at thesettlement proceeding, shall not be subject to discovery and shall be inadmissiblein any proceeding in the action or other civil actions on the same claim,except:

(1)        In proceedings forsanctions under this section;

(2)        In proceedings toenforce or rescind a settlement of the action;

(3)        In disciplinaryproceedings before the State Bar or any agency established to enforce standardsof conduct for mediators or other neutrals; or

(4)        In proceedings toenforce laws concerning juvenile or elder abuse.

As used in this subsection,the term "neutral observer" includes persons seeking mediatorcertification, persons studying dispute resolution processes, and personsacting as interpreters.

No settlement agreement toresolve any or all issues reached at the proceeding conducted under thissection or during its recesses shall be enforceable unless it has been reducedto writing and signed by the parties and in all other respects complies withthe requirements of Chapter 50 of the General Statutes. No evidence otherwisediscoverable shall be inadmissible merely because it is presented or discussedin a settlement proceeding.

No mediator, other neutral, orneutral observer present at a settlement proceeding under this section, shallbe compelled to testify or produce evidence concerning statements made andconduct occurring in anticipation of, during, or as a follow‑up to amediated settlement conference or other settlement proceeding pursuant to thissection in any civil proceeding for any purpose, including proceedings toenforce or rescind a settlement of the action, except to attest to the signingof any agreements, and except proceedings for sanctions under this section,disciplinary hearings before the State Bar or any agency established to enforcestandards of conduct for mediators or other neutrals, and proceedings toenforce laws concerning juvenile or elder abuse.

(k)        The Supreme Courtmay adopt standards for the certification and conduct of mediators and otherneutrals who participate in settlement procedures conducted under this section.The standards may also regulate mediator training programs. The Supreme Courtmay adopt procedures for the enforcement of those standards. The administrationof mediator certification, regulation of mediator conduct, and decertificationshall be conducted through the Dispute Resolution Commission.

(l)         An administrativefee not to exceed two hundred dollars ($200.00) may be charged by theAdministrative Office of the Courts to applicants for certification and annualrenewal of certification for mediators and mediator training programs operatingunder this section. The fees collected may be used by the Director of theAdministrative Office of the Courts to establish and maintain the operations ofthe Commission and its staff. The administrative fee shall be set by theDirector of the Administrative Office of the Courts in consultation with theDispute Resolution Commission.

(m)       The AdministrativeOffice of the Courts, in consultation with the Dispute Resolution Commission,may require the chief district court judge of any district to reportstatistical data about settlement procedures conducted under this section foradministrative purposes.

(n)        Nothing in thissection or in rules adopted by the Supreme Court implementing this sectionshall restrict a party's right to a trial by jury.

(o)        The Supreme Courtmay adopt rules to implement this section.  (1997‑229, s. 1; 1998‑212, s. 16.19(a);1999‑354, s. 6; 2000‑140, s. 1; 2001‑320, s. 2; 2001‑487,s. 39; 2005‑167, s. 3; 2008‑194, s. 8(c).)