Arbitration: Kentucky River Community Care, Inc. v. Creeda Stallard (COA 12/19/2008)

Kentucky River Community Care, Inc. v. Creeda
Stallard
Abritration:  Model Mediation Rules
2007-CA-002013
PUBLISHED: VACATING AND REMANDING
PANEL:  COMBS PRESIDING; KELLER, HENRY CONCUR
BREATHITT (HONORABLE SAMUEL T. WRIGHT, III, JUDGE)
DATE RENDERED: 12/19/2008

The Court vacated and remanded an order of the circuit court imposing a fine
upon appellant of $40,500 plus the costs of mediation and attorney fees for its
failure to file a certification of authority that its insurer’s
representatives at mediation had the full authority to settle. The Court first
held that the trial court had authority to require or to enforce the directives
of the certification letter even though it exceeded the requirements of the
Model Mediation Rules. The Court then held that, even if appellant should have
assumed responsibility for the filing of the certification, the sanctions were
imposed to punish for conduct already committed and was not contingent upon the
filing of a certificate of authority but rather as a reprisal for the failure to
file it after the fact. The contempt, therefore, was criminal rather than civil
and appellant was entitled to a jury trial to determine whether it was guilty of
contempt. 

Digest from COA Monthly Summaries – Dec.
2008
 

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