Rule 11. Rules for Neutral Evaluation

(a) Nature of Neutral Evaluation. Neutral evaluation is an informal, abbreviated presentation of the facts and issues by the parties to a neutral at an early stage of the case. The neutral is responsible for evaluating the strengths and weaknesses of the case, providing a candid assessment of the merits of the case, the settlement value, and a dollar value or range of potential awards if the case proceeds to trial. The neutral is also responsible for identifying areas of agreement and disagreement and suggesting necessary and appropriate discovery. (b) When the Neutral Evaluation Conference Is to Be Held. As a guiding principle, the neutral evaluation conference should be held at an early stage of the case, after the time for the filing of answers has expired but in advance of the expiration of the discovery period. (c) Preconference Submissions. No later than twenty days prior to the date established for the neutral evaluation conference to begin, each party shall provide the neutral with written information about the case and shall certify to the neutral that they provided a copy of such summary to all other parties in the case. The information provided to the neutral and the other parties shall be a summary of the significant facts and issues in the party’s case and shall have attached to it copies of any documents supporting the parties’ summary. Information provided to the neutral and to the other parties under this paragraph shall not be filed with the court. (d) Replies to Preconference Submissions. No later than ten days prior to the date set for the neutral evaluation conference to begin, any party may, but is not required to, send additional information to the neutral in writing in response to a question from an opposing party. The response furnished to the neutral shall be served on all other parties and the party sending such response shall certify such service to the neutral, but the response shall not be filed with the court. (e) Neutral Evaluation Conference Procedure. Prior to a neutral evaluation conference, the neutral may request additional information in writing from any party. At the conference, the neutral may address questions to the parties and give the parties an opportunity to complete their summaries with a brief oral statement. (f) Modification of Procedure. Subject to the approval of the neutral, the parties may agree to modify the procedures required by these rules for neutral evaluation. (g) Neutral’s Duties. (1) Neutral’s Opening Statement. At the beginning of the neutral evaluation conference, in addition to the matters set out in Rule 10(c)(13)(b), the neutral shall define and describe for the parties: a. the fact that the neutral evaluation conference is not a trial, that the neutral is not a judge, that the neutral’s opinions are not binding on any party, and that the parties retain the right to a trial if they do not reach a settlement; and b. the fact that any settlement reached will be only by mutual consent of the parties. (2) Oral Report to Parties by Neutral. In addition to the written report to the court required under these rules, at the conclusion of the neutral evaluation conference, the neutral shall issue an oral report to the parties advising them of the neutral’s opinion about the case. The opinion shall include a candid assessment of the merits of the case, an estimated settlement value, and the strengths and weaknesses of each party’s claims in the event that the case proceeds to trial. The oral report shall also contain a suggested settlement or disposition of the case and the reason for the neutral’s suggestion. The neutral shall neither reduce his or her oral report to writing nor inform the court of the oral report. (3) Report of Neutral to Court. Within ten days after the completion of the neutral evaluation conference, the neutral shall file a written report with the court using a NCAOC form. The report shall inform the court when and where the conference was held, the names of those who attended the conference, and the name of any party or attorney known by the neutral to have been absent from the conference without permission. The report shall also inform the court whether an agreement was reached by the parties. If a partial agreement is reached at the conference, then the report shall state the issues that remain for trial. In the event of a full or partial agreement, the report shall also state the name of the person designated to file the consent judgment or voluntary dismissal with the court. Local rules shall not require the neutral to send a copy of any agreement reached by the parties to the court. (h) Neutral’s Authority to Assist in Negotiations. If all parties to the neutral evaluation conference request and agree, then a neutral may assist the parties in settlement discussions. However, if the parties do not reach a settlement during such discussions, then the neutral shall complete the conference and make his or her written report to the court as if the settlement discussions had not occurred. If the parties reach an agreement at the conference, then they shall reduce their agreement to writing as required under Rule 10(c)(8)(b). History Note. 373 N.C. 708.