Violation of the ADR Local Rules (a) Informal Resolution. Without prejudice to the use of more formal procedures set forth in sections (b) and (c) below, a complaint alleging that any person or party,

(b) Reporting Violation. (1) Complaints Alleging Material Violations. A formal complaint alleging that any person or party, including the neutral, has materially violated any of the ADR local rules other than ADR L.R. 7 (pertaining to judicially hosted settlement conferences) must be presented in writing directly to the ADR Magistrate Judge in care of the ADR Unit at the address listed in ADR L.R. 2-1(c), or emailed to [email protected]. Such a letter of complaint must be accompanied by a competent declaration.

Copies of the letter of complaint and declaration must be sent contemporaneously to all other parties and the neutral (if a neutral has been appointed). The letter of complaint and declaration must be marked “Confidential–Not to be Filed” and must neither be filed nor disclosed to the assigned Judge. (2) Report by Neutral. A neutral who perceives a material violation of these ADR local rules shall make a written report directly to the ADR Magistrate Judge in care of the ADR Unit at the address listed in ADR L.R. 2-1(c), or emailed to [email protected] and contemporaneously provide copies to all counsel.

Such report must be marked “Confidential–Not to be Filed” and must neither be filed nor disclosed to the assigned Judge. (c) Proceeding in Response to Complaint or Report of Violation and Sanctions. If, upon receiving an appropriately presented and supported complaint or report of a material violation of these ADR local rules, the ADR Magistrate Judge determines that the matter warrants further proceedings, the ADR Magistrate Judge may refer the matter to the ADR Director to explore the possibility of resolving the complaint informally in accordance USDC ADR Local Rules – Effective May 1, 2018 ADR-3 with section (a) above. If no such referral is made, or if the matter is not resolved informally, the ADR Magistrate Judge shall take appropriate action.

The ADR Magistrate Judge may issue an order to show cause why sanctions should not be imposed. The response to any such order to show cause, and any additional briefing on the matter, shall be marked “Confidential–Not to be Filed,” must neither be filed nor disclosed to the assigned Judge, and must be presented in writing directly to the ADR Magistrate Judge in care of the ADR Unit at the address listed in ADR L.R. 2-1(c), or emailed to [email protected], with copies sent contemporaneously to all other parties and the neutral (if a neutral has been appointed). Any such sanctions proceedings shall be conducted on the record but under seal. The ADR Magistrate Judge will afford all interested parties an opportunity to be heard before deciding whether to impose sanctions.

Any objections to the ADR Magistrate Judge’s order resolving the sanctions issue must be made by motion under Civil L.R. 7 before the General Duty Judge, unless the General Duty Judge is the assigned Judge or is otherwise precluded from hearing the matter, in which case the objections shall be made to the Chief Judge. Any such objection shall be marked “Confidential-Not to be Filed” and must be delivered directly to the appropriate Judge in care of the ADR Unit at the address listed in ADR L.R. 2-1(c), or emailed to [email protected] within 14 days of the filing of the ADR Magistrate Judge’s order resolving the sanctions issue. Such objection shall not be filed or disclosed to the assigned Judge, and shall be served immediately on the ADR Magistrate Judge, all other counsel, the neutral and the ADR Unit. Commentary The Court encourages parties to use the informal resolution procedure set forth in ADR L.R. 2-4(a) prior to submitting a formal complaint.

Under Zambrano v. City of Tustin, 885 F.2d 1473 (9th Cir. 1989), the district court may impose fee shifting sanctions for a violation of a local rule only on a finding of bad faith, willfulness, recklessness, or gross negligence.