Court of Claims orders settlement conference, requires senior agency officials to attend

Judge James Robert Redford of the Court of Claims ordered the parties in a large environmental class action to attend a settlement conference before the Hon. Christopher Murray and directed that senior agency officials attend in person.

Redford said the court will "require in attendance at the discussions with Judge Murray" either the director of the Department of Environment, Great Lakes, and Energy (EGLE) or the director of the Department of Natural Resources (DNR), or an unclassified deputy; he also directed that state counsel Nathan Gamble and Richard Cole and plaintiffs' lead contact be present. "If we do not have the principals in the room discussing back and forth, the likelihood of resolution is non existent," Redford told counsel.

The judge said he would draft an order that also requires plaintiffs to have named proposed class representatives physically present at the mediation and indicated he expects the plaintiffs to provide a settlement demand ahead of the conference. Richard Cole, counsel for the state defendants, told the court the state is "always open to discussing resolution" but has not yet received a settlement demand. Plaintiffs' counsel said they will provide demands "from a mass torts" administrator and one per class as appropriate.

Why this matters: The court said it believes having high-level decision-makers present materially increases the chance of a meaningful settlement. Redford cited his experience running hundreds of settlement conferences and said the in-person presence of officials with authority to resolve or meaningfully advance settlement talks is essential.

What the order says and how parties reacted: Redford cited court rules permitting settlement conferences and said he is issuing the order under MCR 1.105 and 2.401(f). Nathan Gamble, counsel for the state, requested clarification whether the court meant "director or an unclassified deputy," and the judge confirmed that either a director or a deputy with unclassified status would satisfy the requirement so long as the individual can meaningfully engage. Gamble and Cole said they would consult with agency leadership and, if necessary, ask the court to adjust the identity of the person required to attend.

Next steps: Redford said he will draft the order and circulate it, expecting to issue it in the coming week. He asked counsel to confer with each other and with Judge Murray’s chambers to schedule the conference at a mutually workable date in April. The order will be without prejudice to later motions to alter the list of required participants if parties agree or circumstances change.