Adams v. Continental Carbon Co.

2012 OK CIV APP 74, 285 P.3d 703, 2012 Okla. Civ. App. LEXIS 63, 2012 WL 3264301
CourtCourt of Civil Appeals of Oklahoma
DecidedJune 8, 2012
DocketNo. 108,694
StatusPublished

This text of 2012 OK CIV APP 74 (Adams v. Continental Carbon Co.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adams v. Continental Carbon Co., 2012 OK CIV APP 74, 285 P.3d 703, 2012 Okla. Civ. App. LEXIS 63, 2012 WL 3264301 (Okla. Ct. App. 2012).

Opinion

LARRY JOPLIN, Viece-Chief Judge.

1 1 Appellant, Continental Carbon Company, et al., seeks review of the trial court award of attorney fees to two non-party witnesses, appraisers David Helton and Craig Wittmer, who successfully sought to quash Defendants' subpoenas.

T 2 Defendants were sued by five-hundred property owners in seven consolidated lawsuits, alleging diminution in the value of the owners' various properties, due to emissions from a Continental Carbon Company plant and a ConocoPhillips refinery.

[705]*70513 In preparing discovery to defend the actions, Defendants issued more than twenty subpoenas to various realtors, closers and appraisers in the Ponea City, Oklahoma area. All the subpoenas were the same in seope as those requested of Wittmer and Helton, but only Wittmer and Helton did not respond, eventually filing motions to quash the subpoenas served upon them. Both Wittmer and Helton asserted a number of protests to the subpoenas, including an appraiser's privilege and Financial Privacy Act privilege. The court ultimately quashed the Wittmer and Helton subpoenas, finding acquisition of the information to be an undue burden upon the small business owners.

1 4 Originally, the subpoenas requested information about the value of hundreds of properties over a five year time span, the owners of which may or may not have actually worked with the identified appraiser. There were three hearings addressing the Wittmer and Helton subpoenas and Defendants eventually honed their request, asking for information relating to property owners who identified the particular appraiser as having appraised his/her property; this narrowed the search to approximately twenty owners. The more narrowly focused subpoena was also quashed by the trial court as unduly burdensome.

15 Defendants maintained they offered clerical and financial assistance to those who were subpoenaed and complied, assistance Defendants claim they were willing to give Wittmer and Helton as well. However, Witt mer and Helton maintain the subpoenas made no provision for compensation for the witnesses' time or expenses and it was only after two hearings that some compensation was discussed.

T6 Initially, Appellant sought to appeal both the trial court's decision to quash the subpoenas and the attorney fee awards. However, Defendants' need for production of the valuation materials became moot when the parties reached a settlement of all Plaintiffs' claims. As a result, only the attorney fee issue is before this court on appeal.

T7 With respect to the attorney fees, Appellant asserts 12 O.S. § 2004.1 does not authorize attorney fees to the prevailing party for the granting or denying of a motion to quash a subpoena duces tecum. Furthermore, Appellant asserts that a subpoena which is unanswered ereates no undue burden and no justification for attorney fees. In the alternative, Appellant argues the trial court abused its discretion in awarding the attorney fees, because Defendants had a valid need for the information in defense of Plaintiffs' claims, all recipients but Appellees were able to respond, Defendants made genuine efforts to reduce the burden on Appel-lees and offered compensation and assistance in helping Appellees comply with the subpoenas.

§8 Whether a statute provides a basis for the award of attorney fees is a question of law and is reviewed de movo. Midwest Financial Corp. v. Equity Holding Co., 2000 OK CIV APP 108, ¶ 4, 12 P.3d 475. 477. However, if the question is one of the correctness of the trial court's imposition of sanctions, the decision is reviewed for an abuse of the trial court's discretion. Hammonds v. Osteopathic Hospital Founders Ass'n., 1996 OK 100, 934 P.2d 319, 322. For the following reasons, the trial court's order awarding attorney fees to the non-party Ap-pellees is affirmed.

19 Appellant's first proposition of error maintains that $ 2004.1 does not authorize attorney fees under these cireumstances, citing the American Rule that each litigant pays for their legal representation and any exceptions are narrowly defined to avoid a chilling effect on the goal of open access to the courts. Crutchfield v. Marine Power Engine Co., 2009 OK 27, ¶ 26, 209 P.3d 295, 304. For an award of attorney fees to be authorized under a particular statute, the authorization must be found within the strict confines of the statute. Id.

110 However, both Wittmer and Hel-ton note § 2004.1(C)(1) provides as follows:

C. PROTECTION OF PERSONS SUBJECT TO SUBPOENAS.
1. A party or an attorney responsible for the issuance and service of a subpoena shall take reasonable steps to avoid imposing undue burden or expense on a [706]*706person subject to that subpoena. The court on behalf of which the subpoena was issued shall enforce this duty and impose upon the party or attorney, or both, in breach of this duty an appropriate sanction, which may include, but is not limited to, lost earnings and a reasonable attorney fee. (Emphasis added.)

Oklahoma's statutory provision was modeled after its federal counterpart. 1 For this reason, federal jurisprudence can be instructive in the interpretation of the state statute. Barnett v. Simmons, 2008 OK 100, ¶ 16, 197 P.3d 12, 18; Payne v. Dewitt, 1999 OK 93, ¶¶ 8-9, 995 P.2d 1088, 1092-93.

111 The Tenth Cireuit Court of Appeals addressed a similar situation in Byrd, Inc. v. Smith, 927 F.2d 1135 (10th Cir.1991). In Byrd, a mortgagee sought to enforce subpoenas duces tecum issued to the debtor's appraiser. The subpoenas were deemed invalid, the mortgagee having failed to comply with certain procedural rules. The Tenth Circuit upheld the lower court's attorney fee award to the appraiser under the authority provided in Fed.R.Civ.P. 26(g), which contains language mimicking Federal Rule 45 and 12 0.8. Supp.2007 § 2004.1.2

112 Similarly, in Huntair, Inc. v. Climatecraft, Inc., 254 F.R.D. 677 (N.D.Okla.2008), the federal district court reviewed the attorney fee awarded to a nonparty, who had defended against subpoenas that were deemed overly broad and unduly burdensome. The court determined "[al nonparty who seeks to quash or modify a subpoena 'in essence, is the same as moving for a protective order that such discovery not be allowed." " Huntair, 254 F.R.D. at 679 (quoting Mannington Mills, Inc. v. Armstrong World Indus., Inc., 206 F.R.D. 525, 529 (D.Del.2002). The test is whether there was a breach by the one issuing the subpoena of the duty to take reasonable steps to avoid imposing an undue burden upon the one subpoenaed. Id. And "(aln award of reasonable attorneys' fees may be the appropriate measure of sanction for violation of Rule 45." Id.

[ 13 In light of the language making reference to the award of an attorney fee as a sanction in § 2004.1 and federal jurisprudence supporting the imposition of sanctions in the form of attorney fees to a nonparty who must defend an overly burdensome or invalid subpoena, we find no merit in Appellant's position that § 2004.1 does not authorize the awarded attorney fees.

1 14 With respect to Appellant's related proposition that an unanswered subpoena does not create an undue burden, we note § 2004.1 does not contain language to this effect. Appellant cited Young v.

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Related

Payne v. Dewitt
1999 OK 93 (Supreme Court of Oklahoma, 1999)
Pracht v. Oklahoma State Bank
592 P.2d 976 (Supreme Court of Oklahoma, 1979)
Hammonds v. Osteopathic Hospital Founders Ass'n
1996 OK 100 (Supreme Court of Oklahoma, 1996)
Young v. MacY
2001 OK 4 (Supreme Court of Oklahoma, 2001)
Ray v. Ray
2006 OK 30 (Supreme Court of Oklahoma, 2006)
Crutchfield v. Marine Power Engine Co.
2009 OK 27 (Supreme Court of Oklahoma, 2009)
Barnett v. Simmons
2008 OK 100 (Supreme Court of Oklahoma, 2008)
Midwest Financial Corp. v. Equity Holding Co.
2000 OK CIV APP 108 (Court of Civil Appeals of Oklahoma, 2000)
McClellan v. Wilber
2007 OK CIV APP 64 (Court of Civil Appeals of Oklahoma, 2007)
Huntair, Inc. v. Climatecraft, Inc.
254 F.R.D. 677 (N.D. Oklahoma, 2008)

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Bluebook (online)
2012 OK CIV APP 74, 285 P.3d 703, 2012 Okla. Civ. App. LEXIS 63, 2012 WL 3264301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adams-v-continental-carbon-co-oklacivapp-2012.