Pohl v. United Airlines, Inc.

• Decision Date: 21 October 1999
• Docket Number: No. IP 97-1246-C B/S.,IP 97-1246-C B/S.
• Citation: 110 F.Supp.2d 829
• Parties: Michael G. POHL, Plaintiff, v. UNITED AIRLINES, INC., Defendant.
• Court: U.S. District Court — Southern District of Indiana

110 F.Supp.2d 829

Michael G. POHL, Plaintiff, v. UNITED AIRLINES, INC., Defendant.

No. IP 97-1246-C B/S.

United States District Court, S.D. Indiana, Indianapolis Division.

October 21, 1999.

COPYRIGHT MATERIAL OMITTED

Lawrence M. Reuben, Indianapolis, IN, for Plaintiff.

James W. Clark, Baker & Daniels, Indianapolis, IN, for Defendant.

ENTRY GRANTING DEFENDANT'S MOTION TO ENFORCE SETTLEMENT AGREEMENT

BARKER, Chief Judge.

Defendant, United Airlines, Inc. ("United"), has requested that we enforce a settlement agreement purportedly entered into between itself and Plaintiff, Michael G. Pohl ("Pohl"). An evidentiary hearing on the motion was conducted on October 1, 1999. For the reasons discussed below, we GRANT United's motion and order Pohl to adhere to the settlement agreement terms as negotiated by United's counsel and Pohl's attorney, Christopher Herrmann ("Herrmann") of Haskin Lauter Cohen & Larue ("Firm").

Findings of Fact

Pohl commenced a lawsuit against United, pursuant to the Uniformed Services Employment and Reemployment Rights Act ("USERRA"), 38 U.S.C. §§ 4301, et seq, contending that United had discriminated against him in various ways based upon his service in the United States Air Force Reserves ("Reserves"). See Complaint. Pohl brought three claims: discrimination based on Pohl's military status ("Count I"), retaliation ("Count II"), and the failure to properly credit Pohl's benefits for the periods when Pohl was serving in the Reserves ("Count III"). See Compl.

In May 1997, Pohl retained the Firm to represent him in his case against United. (Direct Examination of Michael G. Pohl ("Pohl Direct")). In a meeting with John H. Haskin ("Haskin"), Pohl signed one of the Firm's standard retainer agreements, although he added a handwritten note in the margin of page four. (Pohl Direct; Pl.Ex. B., at 4). For the purposes of this matter, the two key provisions of this contract are part II, titled "Scope of Representation," and part X, titled "Power of Attorney to Execute Documents." Id. Part II provides that

[t]he Client empowers the Firm to settle and compromise the matter in controversy or to bring such legal action as may be necessary to fully and completely represent and protect Client's interest based upon the attorney's experience and training, within his/her sole discretion, which may include, but is not limited to correspondences ... negotiation, [and] drafting of legal documents ....

Id. at 1. Part X gives the Firm the "Power of Attorney to execute all documents connected with the claim ... including ... settlement agreements, compromises and releases ...." Id. at 4. In the margin next to Part X, appears Pohl's handwritten note, "with my authorization." Id. (Pohl Direct).

At their initial meeting, Haskin gave Pohl the standard retainer agreement and left Pohl and his wife alone to discuss it. (Pohl Direct). He and his wife "did not like the idea of [the Firm] having total authority to settle this matter without [their] intervention." (Pohl Direct). When Haskin returned to the room, he told Pohl that, in light of their concern, he should write "`with my authorization' and basically do a line towards the settlement agreements, [and] that should relieve any fears or misgivings [Pohl] might have." (Pohl Direct).

Some months later the parties attended a December 15, 1998 settlement conference with Magistrate Judge Shields after attempts between the parties at informal resolution of the matter had failed. (Direct Examination of James W. Clark ("Clark Direct")). Attending this conference were Clark, who was counsel for United; a representative from United; Haskin and Herrmann, co-counsel for Pohl; Pohl; and his wife, Barbara J. Pohl ("Mrs.Pohl"). (Clark Direct). The parties dispute portions of the conversations that occurred at this conference, but all parties agree that the conversations focused on Count III. Pohl maintains that he tried to raise for discussion Counts I and II but was told by Judge Shields that they were not going to be able to settle those claims at the conference and that they should address Count III. (Pohl Direct). According to Pohl, the discussion focused on Count III because it was

the only issue that appeared we could actually resolve and get it [sic] off the Court's docket ... because it basically boiled down to those two questions: Am I entitled to those shares for time spent doing military duty, yes or no? If the answer was yes, then the question was whether or not I had been fully credited.

(Pohl Direct). Pohl also claims that he informed everyone at the conference that he wanted to see the documentation related to crediting his ESOP account before he would consider settling that claim. (Pohl Direct). In contrast, Clark states that the discussions centered on Count III because the parties had "narrowed the issues" to Count III, (Clark Direct), and Herrmann claims Count III "took the lead [because it was] the most viable action against United that we had at that point." (Direct Examination of Christopher Herrmann ("Herrmann Direct")).

The settlement conference adjourned after United was unable to determine at that time the status of Pohl's employee stock ownership ("ESOP") account. (Clark Direct). Thereafter, Herrmann took over from Haskins the lead role in litigating Pohl's military discrimination case against United. (Pohl Direct; Herrmann Direct).

Herrmann and Haskin had left the December 15 settlement conference feeling that settlement of the entire case would result if United properly credited Pohl's ESOP account. (Herrmann Direct). By January 1999, United had determined that it had inadvertently omitted credits to Pohl's ESOP account and that it was appropriate to negotiate a settlement. (Clark Direct). In late January or early February 1999, Clark and Herrmann conferred and "quickly agreed on the basic conceptual outlines of what a settlement would look like." (Clark Direct).

Under the terms of their proposed settlement, United was to credit Pohl's ESOP account and provide Pohl with documentation explaining how the credits had been determined. (Clark Direct). In addition, United promised to not retaliate against Pohl for filing this litigation and to pay his reasonable attorneys' fees. (Clark Direct). In response, Herrmann promised on behalf of Pohl that the entire Complaint would be dismissed, that Pohl would release United from any liability for claims arising from the facts alleged in his complaint, except to the extent these facts form the basis for a claim under the Americans With Disabilities Act ("ADA"), 42 U.S.C. §§ 12101, et seq, and that Pohl would maintain the confidentiality of the settlement agreement. (Def. Ex. 1, Attach. B; Clark Direct). Finally, the attorneys agreed that nothing in the settlement agreement would constitute an admission of liability by either party. (Clark Direct). The only aspect left unsettled was the specific amount of attorneys' fees to be included within the terms of the agreement. (Clark Direct).

Over the next few weeks, Clark and Herrmann negotiated the amount of attorneys' fees to be included as part of the settlement agreement. (Clark Direct). Finally, on February 24, 1999, Clark and Herrmann agreed that United would pay $15,000 as attorneys' fees. (Clark Direct; Herrmann Direct). The Firm's billing records show a forty-two minute phone call between Herrmann and United's counsel on that day. See Def. Ex. 3, at 14. During this phone call, Herrmann and Clark reviewed each of the terms of the agreement, including the negotiated attorneys' fees and agreed on the settlement. (Herrmann Direct). Believing that they had successfully negotiated a settlement, either Clark or Herrmann contacted Judge Shields who vacated the next day's status conference with the Court. (Clark Direct).

Based upon the attorneys' conversations, United prepared a written document "that memorialized the settlement agreement" and forwarded that draft to Herrmann in April 1999. (Clark Direct). Herrmann made a couple of revisions to the draft submitted by Clark and faxed the document back to Clark on May 7, 1999; the majority of the draft, however, appears to have been satisfactory to Herrmann. See Def. Ex. 1, Attach. A.¹ The only substantive paragraph added at Herrmann's request provided that United would give Pohl the documentation that he had requested. See id. Clark apparently "had simply forgotten to include" this paragraph in the draft and thus willingly incorporated the changes. (Clark Cross). Clark forwarded a copy of the final document to Herrmann on May 28, 1999. See Def Ex. 1, Attach. B. On June 1, 1999, Clark forwarded to Herrmann another copy of the agreement which United had executed and told Herrmann that a check covering the attorneys' fees would be sent soon. See Def. Ex. 1, Attach. C.

Clark acknowledges that he had never specifically verified with Herrmann his authority to settle this case on Pohl's behalf. (Clark Cross). He admits that Herrmann never provided Clark with any documentation relating to the scope of his authority to act on Pohl's behalf. (Clark Cross). Herrmann also never explicitly stated to Clark that he had the authority to negotiate a settlement for Pohl. (Clark Cross). However, Herrmann had told Clark that he had conferred with Pohl about the settlement negotiations from time to time. (Clark Cross). In fact, after Pohl refused to sign the agreement on June 2, 1999, Herrmann told Clark that Herrmann had spoken with Pohl about each element of the agreement and Pohl had approved in advance each element. (Clark Redirect)

Herrmann testified that he kept Pohl advised about the settlement negotiations and that Pohl expressly agreed to dismiss all three counts as part of the settlement. (Herrmann Direct). One way Herrmann kept Pohl informed as to the status of the negotiations was through a series of phone conversations with Pohl and Mrs. Pohl.² Herrmann testified that in those conversations he and Pohl covered...