Friday, May 29, 2020

Litigating in Overtime - How to "undo" a final judgment and reported decision.


The law exists to give us finality. Litigants seek final dispositions of their business disputes, whether by mediation, arbitration, trial or appeal. Future conduct is often guided by a final decision by a court. As a law firm, we work hard to achieve litigated outcomes that benefit our clients. Recently, our work lead to a reported decision from the Maryland Court of Special Appeals. We both won for our specific client, and obtained broad statements of law that would guide similar cases involving others. The case was done, except that we were not done with the case.

My client was sued in the Circuit Court for breach of an alleged contract. The Plaintiff demanded significant money damages. Our client prevailed in the trial court, persuading the judge that a trial was not necessary. Our client received a summary judgment.  On appeal, the Court of Special Appeals affirmed the trial court-- issuing a reported decision.

Reported decisions are important. They represent a small percentage of cases decided on appeal. A reported case becomes part of Maryland’s permanent body of judge-made law. A reported case goes beyond resolution of the dispute between those particular litigants. A reported decision guides the future conduct of all similarly situated persons in Maryland, until the case is over-ruled or the law is modified by yet another case. This is how Maryland’s common law grows and evolves.

Trial lawyers, like us, really do enjoy winning. And we enjoy it just a bit more when the win also results in a reported decision.

In our recent case, however, our opponent filed a timely motion for reconsideration to the Court of Special Appeals, tolling the issuance of the Court’s mandate.  While the motion was pending, and before an opposition was due, counsel for the losing party made a settlement offer that would greatly benefit our client. But to accept the offer would require that we work with the other side to vacate a reported decision.

How does that work? My client was eager to accept the offer -- who wouldn’t want a check, despite being sued?  But the hangup, I thought, was: how do you vacate a reported decision?

The answer, it turns out, lies in Md. R. 17-404(f), which permits the Court plenary authority to dispose of cases that are resolved through the CoSA ADR division.  And so, with the assistance of the director of the CoSA ADR division, we submitted a consent order which was vetted and approved by the Chief Judge.  Within a matter of days, a consent order was issued by the CoSA vacating the reported decision, withdrawing the decision for reporting, and remanding the case with instructions for the Circuit Court to vacate its order and dismiss the case with prejudice.

Final judgment, then, need not impede a favorable settlement. A winner might do just a little better, and a loser might avert complete catastrophe, by continuing settlement negotiations right through the very end of a case.