Raygoza

Appeal from a court order imposing sanctions for participating in a voluntary, privately conducted settlement conference without full authority to settle. We reverse.

Respondents filed this action to recover damages for personal injuries arising from an automobile accident. The defendants in the action are insured by appellant.

The parties agreed to have a voluntary settlement conference on January 6, 1986, before a retired superior court judge, whose fees for such services were to be shared equally by the parties. The conference was continued to March 5 by agreement of the parties.

At the hearing on March 5, the retired judge suggested a settlement figure of $200,000. This amount exceeded the settlement authority of the representative of the insurance company present at the hearing. He required approval to settle for that sum from the “home office.” The voluntary settlement conference was continued to March 24.

On March 13, counsel for respondents notified appellant she would not attend any further voluntary settlement conferences because of the insurance company’s representative’s lack of sufficient authority to settle on March 5. She filed a motion for sanctions…