Bullion Monarch Mining, Inc. v. Newmont USA Ltd.

271 F.R.D. 643, 2010 U.S. Dist. LEXIS 91440, 2010 WL 2985496
CourtDistrict Court, D. Nevada
DecidedJuly 23, 2010
DocketNo. 3:08-CV-0227-ECR (VPC)
StatusPublished
Cited by3 cases

This text of 271 F.R.D. 643 (Bullion Monarch Mining, Inc. v. Newmont USA Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bullion Monarch Mining, Inc. v. Newmont USA Ltd., 271 F.R.D. 643, 2010 U.S. Dist. LEXIS 91440, 2010 WL 2985496 (D. Nev. 2010).

Opinion

ORDER

VALERIE P. COOKE, United States Magistrate Judge.

Before the court is Bullion Monarch Mining, Inc.’s (“Bullion”) emergency motion for sanctions and for order compelling production of documents claimed to be privileged (#243). Newmont USA Limited (“New-mont”) filed an opposition (#254), and Bullion replied (# 257).

I. Procedural History1

Bullion brought this action against New-mont in April 2008 concerning a dispute over a 1979 agreement relating to certain mining interests (# 1). Bullion asserts five claims for relief: (1) for declaratory judgment, seeking a ruling that Bullion is entitled to a royalty and/or compensation for mining activities and production from within the Area of Interest; (2) for breach of contract for New-mont’s obligations under the 1979 agreement to pay Bullion royalties; (3) for breach of the covenant of good faith and fair dealing under the 1979 agreement; (4) for unjust enrichment; and (5), for an accounting for all royalties owed to Bullion for Newmont’s mining activities in the Area of Interest. Id.

Newmont promptly filed both an answer and a motion for judgment on the pleadings, and in August 2008, this court issued its first scheduling order, which provided a discovery cut-off date of April 27, 2009, and further stated that no extensions would be granted, since the court was initially expanding the time for discovery from 180 days to 339 days (# 17). The parties stipulated to delay the Rule 26(f) conference until July 30, 2008, but Bullion would not agree to stay discovery further (#27-1; Declaration of Matthew Hippier). On October 3, 2008, the District Court ordered a thirty-day briefing schedule limited to the question of the court’s jurisdiction over the ease (# 18), and on October 23, 2008, Bullion served its first set of written discovery on Newmont (# 27-1). On November 3, 2008, Newmont moved for a stay of discovery, given the District Court’s request for further briefing, which this court granted (#32). This court stayed discovery until issuance of the District Court’s order on the pending motion and directed the parties to submit an amended discovery plan and scheduling order five days after entry of that order, and further admonished the parties that no further extensions would be granted. Id. On March 24, 2009, this court issued a discovery plan and scheduling order setting a deadline of September 1, 2009 for the close of discovery (# 35); therefore, all parties were on notice in March 2009 that six months remained in which to complete all remaining discovery in this action. By Bullion’s calculation, Newmont’s discovery responses were due April 4, 2009 (# 257). Prior to responding to discovery, Newmont requested Bullion enter into a confidentiality agreement, which the court approved (# 39). On June 2, 2009, Newmont responded to document production requests by stating that it would do so on a “rolling basis,” given the volume of documents to be produced (#257). During the summer of 2009, the parties engaged in deposition discovery, despite the absence of New-mont documents. Id.

In June 2009, Bullion filed a stipulated amended complaint to add Barriek Gold Corporation and Barriek Goldstrike Mines, Inc. (“Barriek”) as defendants (#48), which precipitated Newmont’s request for a case management conference to sort out how the parties would proceed with the newly added defendants (# 58). After hearing and discussion as to how best to proceed, Bullion agreed to sever the Barriek defendants from this case, which the court approved (# 118). This court allowed one final extension of the discovery plan and scheduling order setting the discovery cut-off at October 16, 2009, with dispositive motions to follow on November 17, 2009 (# 122). The case had now been pending for approximately fourteen months.

[645]*645A. Newmont’s Response to Requests for Production of Documents

As noted earlier, on June 2, 2009, New-mont responded to Bullion’s request for production of documents. Newmont responded that documents would be produced “on a rolling basis” as Newmont uncovered them (# 148, p. 8; # 152; # 257). Through the course of deposition discovery that ensued over the summer, Newmont’s counsel repeatedly advised Bullion that because the documents were voluminous, they needed to be carefully reviewed and bates-stamped.

This discovery dispute came to a head on October 5, 2009 at a case management conference. Bullion’s counsel told the court that as of October 1, 2009, Bullion had not received one document from Newmont (# 152). Newmont’s counsel responded that as of July 21, 2009, Bullion had propounded four requests for production of documents and three sets of interrogatories. Id. By July and August 2009, Newmont’s attorneys had gathered in excess of 30,000 pages of documents, and they assigned six attorneys to review them for relevance and privilege. Id. The documents spanned thirty years and included in-house counsel and outside counsel communications, as well as communications with third parties. Id. Newmont’s counsel advised that the documents had to be formatted and that it had assigned a team of six lawyers to work diligently to complete document production. Id.

What followed at the hearing was a discussion of discrete groups of documents, and each is addressed in turn.

1. Friday, October 2, 2009 Newmont Production

On Friday, October 2, 2009, one business day prior to the Monday, October 5, 2009 hearing, Newmont produced approximately 2,500 pages of documents, which Bullion reported were not responsive to its document production requests. For example, included in the production were Bullion’s own filings with the Securities and Exchange Commission. Id. This was Newmont’s first production since discovery re-commenced in April 2009. At this time, Newmont did not provide any privilege log.

2. Newmont’s Belated Production of the “Leeville Mine” Documents Responsive to Interrogatory # 9

As of October 5, 2009, Newmont had not produced documents concerning the Leeville mine that it had previously promised to deliver to Bullion. This action generally concerns Bullion’s claims against Newmont for royalties owed to Bullion pursuant to the May 1979 Agreement, and the Agreement provides, in part, that Bullion would be paid royalties on production from the Leeville Mine and a one percent royalty on all production from mines in what is called the Area of Interest (# 112). In June 2009, Bullion propounded Interrogatory # 9(c) to determine the annual gross smelter returns for each mineral recovered from each mine from December 1, 1991 through 2008 (# 124, Ex. 5). Newmont answered on August 11, 2009, and disclosed that Newmont could not locate data for certain mines (# 124, Ex. 6). Bullion later learned during depositions that Newmont had destroyed documents necessary for Newmont to calculate the amount of royalties allegedly owed to Bullion for the period 1993-1998, and it brought a motion for sanctions (# 112). Newmont claimed the records were destroyed pursuant to its records retention policy, although deposition testimony suggests Newmont had no retention policy (# s 114, 124 & 143). Newmont offered to reconstruct the destroyed documents from other sources, but as of the September 21, 2009 case management hearing, Bullion had still not received the information about the Leeville Mine (# 147).

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271 F.R.D. 643, 2010 U.S. Dist. LEXIS 91440, 2010 WL 2985496, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bullion-monarch-mining-inc-v-newmont-usa-ltd-nvd-2010.