Lockhard (P) filed a medical malpractice action against Patel (D). P claimed the loss of sight in one eye due to D's negligence. In a summary jury trial, an advisory jury offered P $200,000. The court then held several formal and informal settlement conferences. At one of these conferences, D's insurer, St. Paul Fire and Marine Insurance Company, advised the court that it had been authorized to offer P $125,000 and no more. P's demand was $175,000 at that time. The court then directed the parties to appear at another conference and told St. Paul to send a representative to the conference who had authority to negotiate and settle the case. St. Paul sent an adjuster to the conference who told the court that she was to reiterate the offer previously made and not to call St. Paul back if it were not accepted. The court then struck D's pleadings, declared him in default, and ordered a hearing to show cause why St. Paul should not be punished for criminal contempt. St. Paul then settled with Lockhart (P) for $175,000 and appealed the court's order.

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