Kothe v. Smith

Patricia Kothe (plaintiff) sued Dr. James Smith (defendant) and others for medical malpractice. At a pretrial conference, the presiding judge told the parties he expected serious settlement negotiations and that the case should ultimately settle for $20,000 to $30,000, warning he would sanction any party that settled after trial began within that same range. The case settled for $20,000 after the first day of trial, and the judge sanctioned Dr. Smith alone, partly to punish Smith's malpractice insurer for what the judge saw as its slow settlement practices. Smith appealed the sanctions.