Mediation Case Law Teaching Videos
Subject Area
Sanctions
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Document Type
Video
Publication Date
11-22-2022
Recommended Citation
Coben, James, "Allstate Prop. & Cas. Ins. Co. v. Harbin, 333 So.3d 655 (Ala. 2021)" (2022). Mediation Case Law Teaching Videos. 45.
https://open.mitchellhamline.edu/dri_mclvideo/45
Allstate Prop v. Harbin.srt (4 kB)
Comments
Playtime: 2:05 minutes (based on transcript of oral argument to the trial judge)
Plaintiff argued that Allstate was engaging in a “Delay, Deny, and Defend Strategy” and should be sanctioned. Plaintiff maintained that Allstate engaged in similar tactics in other cases and sought sanctions for costs and fees in the amount of $52,375. Noting the repetitive misconduct of Allstate in the other cases, the trial judge granted sanctions in the amount of $620,141.36 (reasoning that "the good and efficient functioning of the Alabama Court System requires ... Allstate's egregious conduct to cease.”). The Alabama Supreme Court reversed the award of sanctions in excess of the compensatory claim.
Quote from the Court: “The only evidence offered by [plaintiff] -- and relied on by the trial court in the order sanctioning Allstate -- in support of his contention that Allstate's counsel lacked full authority to settle was the apparent lack of back-and-forth settlement negotiations during mediation, a fact that Harbin terms 'the archetype of failing to send someone with authority.' However, Allstate's alleged failure to extend a settlement offer to Harbin during mediation does not demonstrate a lack of settlement authority. Instead, as Allstate's counsel also explained to the trial court, it became apparent that the parties’ settlement expectations were so disparate that compromise was unlikely.” 333 So.3d at 667.