Bonilla v. Volvo

CourtCourt of Appeals for the First Circuit
DecidedJuly 31, 1998
Docket97-1599
StatusPublished

This text of Bonilla v. Volvo (Bonilla v. Volvo) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bonilla v. Volvo, (1st Cir. 1998).

Opinion

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<pre>                 United States Court of Appeals <br>                     For the First Circuit <br> <br> <br> <br>No. 97-1599 <br> <br>                      LUIS BONILLA, ET AL., <br> <br>                      Plaintiffs, Appellees, <br> <br>                                v. <br> <br>                      VOLVO CAR CORPORATION, <br> <br>                      Defendant, Appellant. <br>                       ____________________ <br> <br>No. 97-1600 <br> <br>                      LUIS BONILLA, ET AL., <br> <br>                      Plaintiffs, Appellees, <br> <br>                                v. <br> <br>                TREBOL MOTORS CORPORATION, ET AL., <br> <br>                      Defendants, Appellees. <br>                            __________ <br>  <br>NEREIDA MELENDEZ, RAFAEL PEREZ-BACHS, RUBEN T. NIGAGLIONI, MANUEL <br>FERNANDEZ-BARED, JEANNE HABIB-FIGUEROA, ABELARDO RUIZ-SURIA, <br>FRANCISCO OJEDA, ANTONIO A. ARIAS-LARCADA and McCONNELL VALDES, <br> <br>                           Appellants. <br>                      _____________________ <br> <br>No. 97-1790 <br> <br>                      LUIS BONILLA, ET AL.,  <br> <br>                      Plaintiffs, Appellees, <br> <br>                                v. <br> <br>                TREBOL MOTORS CORPORATION, ET AL., <br> <br>                      Defendants, Appellees. <br> <br>                            __________ <br> <br>    RICARDO GONZALEZ-NAVARRO and CONCHITA NAVARRO DE GONZALEZ, <br> <br>                     Defendants, Appellants. <br> <br>                       ____________________ <br> <br>          APPEALS FROM THE UNITED STATES DISTRICT COURT <br> <br>                 FOR THE DISTRICT OF PUERTO RICO <br> <br>       [Hon. Jaime Pieras, Jr., Senior U.S. District Judge] <br> <br> <br> <br>                              Before <br> <br>                      Selya, Circuit Judge, <br>                                 <br>Campbell, Senior Circuit Judge, <br> <br>and Boudin, Circuit Judge. <br>___________________ <br>     Michael J. Rovell with whom Jewel N. Klein and Law Offices of <br>Michael J. Rovell were on brief for defendants Ricardo Gonzalez- <br>Navarro and Conchita Navarro de Gonzalez. <br>     Allan Kanner with whom Conlee Schell Whiteley, Allan Kanner & <br>Associates, P.C., Paul H. Hulsey, Frederick J. Jekel, Theodore H. <br>Huge, Ness, Motley, Loadholt, Richardson & Poole, P.A., Jose F. <br>Quetglas Jordan, Eric Quetglas Jordan, Zygmunt Slominski, Quetglas <br>Law Offices, Daniel Harris and Law Offices of Daniel Harris were on <br>brief for plaintiffs Luis Bonilla, et al. <br> <br> <br> <br> <br> <br>July 28, 1998 <br> <br> <br> <br> <br> <br> <br>

 BOUDIN, Circuit Judge.  This opinion is a companion to <br>two others issued today, growing out of the same district court <br>case.  In No. 97-1135, we are reversing the principal judgment <br>against Volvo.  In Nos. 97-1140 and 97-1143, the principal judgment <br>against Trebol and the Gonzalez defendants is being vacated and the <br>matter remanded for further proceedings as to damages, subject to <br>the possibility that proceedings against Trebol may be stayed under <br>the bankruptcy laws; that opinion also dismisses the plaintiffs' <br>cross-appeal in No. 97-1145. <br>  This final volume in the trilogy concerns appeals by <br>Volvo (No. 97-1599), Volvo's attorneys (No. 97-1600), and the <br>Gonzalez defendants (No. 97-1790) directed to a sanctions order and <br>an attorney's fee order, entered together in the district court on <br>March 27, 1997.  The effect of the two orders taken together was to <br>award attorney's fees and costs in favor of the plaintiffs in the <br>amount of $3,518,844.41.  In setting forth the history pertinent <br>to the orders under review, we assume familiarity with our two <br>opinions issued this day in Nos. 97-1135, 97-1140, 97-1143 and 97- <br>1145. <br>     Between the filing of the original complaint on June 16, <br>1992, and the start of trial on June 24, 1996, the plaintiffs <br>conducted extensive discovery.  Rancorous disputes ensued.  <br>According to the district court, there are 500 docket entries that <br>relate to discovery matters.  On several occasions the district <br>court made preliminary references to alleged misconduct by one or <br>more of the defendants with a promise of future attention to the <br>matter and possible sanctions. <br>     After discovery was completed and the case proceeded to <br>trial, the issue of sanctions reemerged.  On July 2, 1996, the <br>seventh day of trial, the district judge announced, sua sponte but <br>outside the presence of the jury, that he had examined documents <br>filed under seal by Trebol in August 1995 comprising invoices sent <br>by AUM to Trebol and purporting to be genuine Volvo invoices for <br>cars shipped by Volvo to Trebol.  A number of these invoices, as we <br>now know, included inflated figures significantly exceeding the <br>original invoice prices.  The true prices were shown on invoices <br>for the same sales sent directly by Volvo to Trebol. <br>     Volvo had earlier resisted producing to plaintiffs its <br>own copies of the invoices it had sent directly to Trebol on the <br>ground that they would simply duplicate invoices that Trebol itself <br>had been asked to produce.  On the morning of July 2, the district <br>judge said that when Volvo objected to this earlier production <br>request, Volvo "knew" that its own production of the invoices was <br>not a moot issue and also "knew" that the invoices produced by <br>Trebol did not include specified cost information.  The court said <br>that it would keep this in mind when deciding on the nature of <br>sanctions to be imposed thereafter.  The next day, July 3, 1996, <br>the plaintiffs filed a motion for sanctions, and the court reported <br>that it would sanction Volvo by an instruction to the jury that it <br>could draw a negative inference that the unproduced documents were <br>harmful to Volvo's case.  The court issued an order to this effect <br>on July 12, 1996. <br>     Thereafter, during the trial, the district court limited <br>Volvo's attempt to cross-examine certain of plaintiffs' witnesses <br>on topics involving the relationship between Volvo and AUM.  The <br>judge was seemingly prompted by what he thought was Volvo's alleged <br>misconduct relating to the Volvo-Trebol invoices.

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