Legislature(1997 - 1998)

03/12/1997 03:22 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 HB 10 - MANDATORY MEDIATION/DESIGN PROF LAWSUITS                            
                                                                               
 Number 1990                                                                   
                                                                               
 JEFF LOGAN, Legislative Assistant to Representative Green, came               
 forward to present testimony on HB 10, "An Act requiring mediation            
 in a civil action against an architect, engineer, or land surveyor;           
 amending Rule 100, Alaska Rules of Civil Procedure; and providing             
 for an effective date."  This legislation is an effort to keep                
 people out of court, not by restricting their rights to file an               
 action, but by providing an alternative venue and method to address           
 their complaint.  The goal is to facilitate a mutually agreeable              
 pre-trial settlement.                                                         
                                                                               
 MR. LOGAN continued that if a plaintiff is seeking damages from a             
 design professional the case must go to meditation with a few                 
 limited exceptions.  These are firstly, if all parties to the suit            
 desire to by-pass mediation they go straight to trial.  Secondly,             
 if in those cases where the judge determines that the plaintiff is            
 indigent the judge can require the defendant to pay all the costs             
 of mediation.  In those cases the defendant can refuse this option,           
 by-pass mediation, and go to trial.                                           
                                                                               
 Number 2078                                                                   
                                                                               
 MR. LOGAN walked the committee through the steps allowed for in               
 this legislation.  The process begins by someone filing out a                 
 motion.  The case is assigned to a judge.  On a form the judge will           
 indicate when a case should go through mandatory mediation.  After            
 the defendant is notified there is communication between the judge            
 and the parties.  The court system keeps a list of mediators on               
 file.  If the parties agree on the mediator the judge appoints this           
 choice.  If the parties don't agree there is a process already                
 incorporated in the court rules for the judge to select three                 
 names.  The parties each get an opportunity to challenge and from             
 this list the judge selects the mediator.                                     
                                                                               
 MR. LOGAN stated that the plaintiff and defendant meet with the               
 mediator in formal conference.  Before they meet, the parties can             
 provide the mediator with a brief of not more than five pages                 
 explaining the situation as they see it.  The mediator can meet               
 individually with each party after an initial meeting with everyone           
 present.  The meetings are private, the discussions are                       
 confidential and the mediator cannot be called upon in court to               
 discuss what happened during these meetings.  After these meetings,           
 the information is reviewed and each party's position is assessed.            
 If someone wants out and they don't believe they can get what they            
 want from this process the mediation is terminated.  If the parties           
 do want to continue they do so with help from the mediator and when           
 or if they reach settlement, the plaintiff files for a motion for             
 dismissal.  The defendant writes the check and that's the end of              
 it.                                                                           
                                                                               
 Number 2165                                                                   
                                                                               
 MR. LOGAN noted a letter of support from the Alaska Design                    
 Professionals in the packet and this 5,000 member organization,               
 through their Legislative Action Committee, have asked for this               
 legislation.  He added that after a review of the files related to            
 this legislation, before HB 414 was proposed last session (a bill             
 that addressed this issue), he found a letter from a constituent on           
 December 10, 1994 asking for some type of a pre-trial process to              
 avoid these types of cases.  He gave an historical overview of this           
 legislation's progress and all the work that has gone into this               
 effort.                                                                       
                                                                               
 Number 2330                                                                   
                                                                               
 REPRESENTATIVE HUDSON referred to the Rules of Court and asked if             
 these were the original province of the legislature or the courts.            
                                                                               
 MR. LOGAN stated that he had no idea.                                         
                                                                               
 Number 2355                                                                   
                                                                               
 DOUG WOOLIVER, Administrative Attorney, Alaska Court System, came             
 forward to provide information on HB 10.  He stated that the court            
 has the primary responsibility for writing court rules, but under             
 the Alaska constitution the legislature can amend these rules by a            
 two-thirds majority vote out of both houses.  The court originally            
 writes them, the legislature can amend them.                                  
                                                                               
 CHAIRMAN ROKEBERG asked what would happen to the rest of a piece of           
 legislation with an incorporated court rule if a two-thirds vote              
 was not obtained.                                                             
                                                                               
 MR. WOOLIVER responded that the rest of the bill would stay as is,            
 just like an effective date.  This happened with tort reform last             
 year.  All the court rules didn't pass so they all got dropped and            
 the rest of the bill stood.                                                   
                                                                               
 Number 2411                                                                   
                                                                               
 REPRESENTATIVE RYAN noted that Alaska has an excellent set of                 
 statutes related to arbitration and asked if anyone had considered            
 putting this as a first step, arbitration as the second and finally           
 a courtroom hearing for the third option to help relieve the court            
 load.                                                                         
                                                                               
 MR. LOGAN responded that this was considered.  The agreement that             
 the trial attorneys and the design professionals came to was that             
 they wanted something to bind the parties to mediation.  Under                
 Court Rule 100 as it is now, there is an option for mediation, but            
 both sides wanted a motivator to compel people to go through this             
 process.  This is why they seek these changes.                                
                                                                               
 MR. LOGAN added that this process began with a Certificate of Merit           
 which means a tribunal of an attorney, an engineer and some other             
 public member would review these cases as they came in to determine           
 the merits of each.  This original option didn't get the support              
 they needed.  This present legislation did.                                   
                                                                               
 TAPE 97-20, SIDE B                                                            
 Number 005                                                                    
                                                                               
 REPRESENTATIVE HUDSON asked what the response has been from the               
 trial bar.                                                                    
                                                                               
 Number 020                                                                    
                                                                               
 MR. LOGAN stated that he did not know why they weren't present at             
 this meeting.  No written testimony has been received.  They did              
 testify in the past.  A Mr. Russ Winter testified throughout the              
 process last year.  On April 17, of last year, in the House                   
 Judiciary Committee hearing he said, "This may be one of the first            
 instances when the trial lawyers and possible defendants have                 
 reached agreement on change in the court system which is actually             
 quite a nice thing to be able to say."  Mr. Winter did make some              
 points he was still concerned about, one of which was why the scope           
 of the bill was limited only to design professionals.  Mr. Logan              
 noted the simple reason for this was that no one has asked to be              
 included in this during the entire time they've been working on               
 this piece of legislation.                                                    
                                                                               
 Number 079                                                                    
                                                                               
 MR. WOOLIVER noted that the only thing the court asks is that the             
 effective date be dropped, in large part, because this legislation            
 does include court rule changes.  Even if this legislation makes it           
 through both the House and Senate, it might not be transmitted to             
 the governor or signed immediately.  Last year there were several             
 bills signed at the end of June with a July 1 effective date, this            
 makes it extremely difficult to get all the court rules written in            
 a timely manner.  They also ask that it become effective 90 days              
 after the governor's signature.                                               
                                                                               
 Number 120                                                                    
                                                                               
 REPRESENTATIVE HUDSON made a motion to amend HB 10 by technically             
 removing the section 4, line 18, page 2, the effective date by                
 deleting this entire section.  Hearing no objection it was so                 
 moved.  Amendment number one was conceptually adopted.                        
                                                                               
 Number 142                                                                    
                                                                               
 REPRESENTATIVE RYAN moved and asked unanimous consent to move HB 10           
 out of committee with individual recommendations and accompanying             
 fiscal note as amended.  Hearing no objection CSHB 10(L&C) was                
 moved out of the House Labor and Commerce Committee.                          

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