September 17, 2008
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[3822 Federal Register/ Vol. 58, No. 6 / Monday, January 11,
1993 / Proposed Rules]
DEPARTMENT OF LABOR
Office of the Secretary
29 CFR Part 18
RIN 1290-AA12
Use of Settlement Judges In Proceedings Before the Office of
Administrative Law Judges
AGENCY: Office of the Secretary, Labor.
ACTION: Notice of proposed rulemaking.
SUMMARY: The purpose of this proposal is to permit the appointment
of settlement judges in proceedings before the Office of Administrative Law
Judges. The procedure would use informal conferences to encourage claim
settlement without adjudication. This is a voluntary procedure intended to
reduce the costs to parties of filing and defending complaints and to expedite
the resolution of complaints pursuant to Executive Order No. 12778 (Oct. 23,
1991) and the Department of Labor's Alternative Dispute Resolution Interim
Policy, 57 FR 7292 (1992).
DATES: Comments must be received on or before February 25, 1993.
ADDRESSES: Submit comments to John M. Vittone, Deputy Chief
Administrative Law Judge, room 4150, Office of Administrative Law judges, 800 K
Street, NW., suite 400, Washington, DC 20001-8002.
FOR FURTHER INFORMATION CONTACT:
John M. Vittone, Deputy Chief Administrative Law Judge, Office of
Administrative Law Judges. Telephone: (202)633-0341.
SUPPLEMENTARY INFORMATION: In furtherance of its Alternative Dispute
Resolution Interim Policy, 57 FR 7292 (1992), the Department is studying and
implementing alternative dispute resolution methods appropriate to agency
adjudications. This rule proposes use of settlement judges in certain
proceedings before the Office of Administrative Law Judges. It is modeled on
Recommendation 88-5 of the Administrative Conference of the United States, 1 CFR
305.88-5, and the settlement judge procedures of other agencies. See 18 CFR
385.603 (FERC); 24 CFR 104.620 (HUD); 29 CFR 2200.101 (OSHRC); 47 CFR 1.244
(FCC); 48 CFR 6302.30 (DOT). The procedure supplements rather than supplants
settlement techniques traditionally used by administrative law judges. See,
e.g., 29 CFR 18.8 (discussion of negotiation, compromise or settlement at
prehearing conferences); 29 CFR 18.9 (deferment of hearing for settlement
negotiations by the parties). It is expected that the Office of Administrative
Law Judges would train a group of judges in mediation techniques. This group
would be the pool from which settlement judges would be chosen.
The regulation permits appointment of a settlement judge by the Chief
Administrative Law Judge upon motion by the parties or the presiding judge. Any
party could veto use of the procedure. The settlement judge would be an active
or retired administrative law judge other than the presiding judge. The
settlement judge would direct settlement negotiations, assess the relative
merits of the case for the parties, and consult with the parties either jointly
or individually. The duration of the procedure would be limited because it is
meant to quicken rather than delay dispute resolution, and because an exigent
hearing motivates serious negotiation. The settlement judge would be prohibited
from discussing any aspect of the case with the presiding judge. Any statements
or conduct by the parties or the settlement judge at settlement negotiations
would not be admissible in later proceedings before the Department.
Settlement judges would not be available in Black Lung or Longshore cases.
The Benefits Review Board has found that the Black Lung Benefits Reform Act
prohibits settlements. See Gerzarowski v. Lehigh Valley Anthracite, Inc.,
12 BLR 1-62 (1988); Ladigan v. Central Industries, Inc., 7 BLR
1-192 (1984). Even without the prohibition, settlement judge procedures are not
appropriate where entitlement to a benefit is an all-ornothing question, as in
Black Lung cases, since a settlement judge could do nothing except convince one
party to concede.
Longshore cases are often settled; but neither the Department nor the
public would benefit from a formal settlement judge procedure. The Longshore
bar is comfortable with techniques used by the Office of Administrative Law
judges for many years, such as early preheating exchanges, calendar calls in
which settlement possibilities are discussed; and opportunities for discussion
immediately prior to a hearing. See Notice of
Amendment to Interim ADRPolicy, 57 FR 28701, 28702-3 (June 26,
1992). See also Joseph & Gilbert, Breaking the Settlement Ice: The Use of
Settlement judges in Administrative Proceedings 2 Administrative L.J. 571,
594-595 (1989/1990) (indicating that if large numbers of cases are currently
settled without the use of settlement judges, imposing the procedure is not
advised).
Procedural Matters
This is not a major rule asdefined by Executive Order 12291. The
Agency Head has certified that this rule, if promulgated, will not have a
significant economic impact upon a substantial number of small entities as
defined in the Regulatory Flexibility Act (5U.S.C. 601et
seq.). The rule does not contain any information collection or recordkeeping
requirements as defined in the Paperwork Reduction Act of 1980 (44 U.S.C. 3501
et seq.).
List of Subjects in 29 CFR Part 18
Administrative practice and procedure.
Accordingly, part 18 of title 29 of the Code of Federal Regulations is
proposed to be amended as follows:
PART 18--RULES OF PRACTICE AND PROCEDURE FOR ADMINISTRATIVE HEARINGS BEFORE
THE OFFICE OF ADMINISTRATIVE LAW JUDGES
1. The authority citation for part 18 is revised to read:
2. Section 18.9 is amended by revising the section heading and by adding
new paragraph (e) to read as follows:
§ 18.9 Consent order or settlement; settlement judge procedure.
(e)(1) Settlement judge procedure; purpose. This paragraph
establishes a voluntary process whereby the parties may use a settlement judge
to mediate settlement negotiations. A settlement judge is an active or retired
administrative law judge who convenes and presides over settlement conferences
and negotiations, confers with the parties both jointly and individually, and
seeks voluntary resolution of issues. Unlike a presiding judge, a settlement
judge does not render a formal judgment or decision in the case; his or her role
is solely to facilitate fair and equitable solutions and to provide an
assessment of the relative merits of the respective positions of the parties.
(2) How initiated. A settlement judge may be appointed by the
Chief Administrative Law Judge upon a request by a party or the presiding
administrative law judge. The Chief Administrative Law Judge has sole
discretion to decide whether to appoint a settlement judge, except that a
settlement judge shall not be appointed where-
(i) A party objects to referral of the matter to a settlement judge;
(ii) Such appointment is inconsistent with a statute, executive order, or
regulation;
(iii) The proceeding arises pursuant to the Longshore and Harbor
Workers' Compensation Act, 33 U.S.C. 901 et seq., and associated acts such as
the District of Columbia Workmen's Compensation Act, 36 DC Code 501 et seq.; or
(iv) The proceeding arises pursuant to Title IV of the Federal Mine Safety
and Health Act, 30 U.S.C. 901 et seq., also known as the Black Lung Benefits
Act.
(3) Selection of settlement judge. The selection of a settlement
judge is at the sole discretion of the Chief Administrative Law Judge,
provided that the individual selected
(i) Is an active or retired administrative law judge, and
(ii) Is not the administrative law judge assigned to hear and decide the
case.
The settlement judge shall not be appointed to hear and decide the case.
(4) Duration of proceeding. Unless the Chief Administrative Law
Judge directs otherwise, settlement negotiations under this section shall not
exceed thirty days from the date of appointment of the settlement judge, except
that with the consent of the parties, the settlement judge may request an
extension from the Chief Administrative Law judge. The negotiations will be
terminated immediately if a party unambiguously indicates that it no longer
wishes to participate, or if in the judgment of the settlement judge, further
negotiations would be fruitless.
(5) General powers of the settlement judge. The settlement judge
has the power to convene settlement conferences; to require that parties, or
representatives of the parties having the authority to settle, participate in
conferences; and to impose other reasonable requirements of the parties to
expedite an amicable resolution of the case, provided that all such powers shall
terminate immediately if negotiations are terminated pursuant to paragraph
(e)(4).
(6) Suspension of discovery. Requests for suspension of
discovery during the settlement negotiations shall be directed to the presiding
administrative law judge who shall have sole discretion in granting or denying
such requests.
(7) Settlement Conference. Ingeneral the settlement
judge should communicate with the parties by telephone conference call. The
settlement judge may, however, schedule a personal conference with the parties
where:
(i) A conference may be scheduled in a place and on a day that the
settlement judge is scheduled to preside in other proceedings;
(ii) The offices of the attorneys or other representatives of the parties,
and the settlement judge, are in the same metropolitan area; or
(iii) The settlement judge, with the concurrence of the Chief
Administrative Law Judge, determines that a personal meeting is necessary for a
resolution of substantial issues, and represents a prudent use of resources.
(8) Confidentiality of settlement discussions. All discussions
between the parties and the settlement judge shall be off-the-record. No
evidence regarding statements or conduct in the proceedings under this section
is admissible in the instant proceeding or any subsequent administrative
proceeding, except by stipulation of the parties. Documents disclosed in the
settlement process may not be used in litigation unless obtained through
appropriate discovery or subpoena. The settlement judge shall not discuss any
aspect of the case with any administrative law judge or other person, nor be
subpoenaed or called as a witness in any hearing of the case or any subsequent
administrative proceedings with respect to any statement or conduct during the
settlement discussions.
(9) Contents of consent order orsettlement agreement.
Any agreement disposing of all or part of the proceeding shall be written
and signed by all parties. Such agreement shall conform to the requirements of
paragraph (b) of this section.
(10) Report of the settlement. The parties shall report to the
presiding judge in writing within seven working days of the termination of
negotiations. The report shall include a copy of the settlement agreement
and/or proposed consent order.
(11) Review of agreement by presidingjudge.
A settlement agreement arrived at with the help of a settlement judge shall
be treated by the presiding judge as would be any other settlement agreement.
(12) Non-reviewable decisions. Decisions concerning whether a
settlement judge should be appointed, the selection of a particular settlement
judge, or the termination of proceedings under this section, are not subject to
review by Department officials.
Signed at Washington, DC this 5th day of January, 1993.