Calzaturficio S.C.A.R.P.A. S.P.A. V. Fabiano Shoe Co.

201 F.R.D. 33, 2001 U.S. Dist. LEXIS 8233, 2001 WL 682744
CourtDistrict Court, D. Massachusetts
DecidedJune 14, 2001
DocketNo. Civ.A.1999-12056-MLW
StatusPublished
Cited by40 cases

This text of 201 F.R.D. 33 (Calzaturficio S.C.A.R.P.A. S.P.A. V. Fabiano Shoe Co.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Calzaturficio S.C.A.R.P.A. S.P.A. V. Fabiano Shoe Co., 201 F.R.D. 33, 2001 U.S. Dist. LEXIS 8233, 2001 WL 682744 (D. Mass. 2001).

Opinion

MEMORANDUM AND SECOND 1 ORDER ON SCARPA AND BLACK DIAMOND’S JOINT EMERGENCY MOTION TO COMPEL, IMPOSE SANCTIONS AND AMEND THE COURT’S SCHEDULING ORDER (# 32)

COLLINGS, United States Chief Magistrate Judge.

/. BACKGROUND2

Calzaturficio S.C.A.R.P.A. s.p.a. (“Scar-pa”), an Italian company that manufactures [35]*35footwear, commenced a breach of contract action against Fabiano Shoe Company, Inc. (“Fabiano”), a Boston-based shoe distributor, to recover amounts allegedly due on unpaid invoices for footwear that Scarpa manufactured and delivered to Fabiano for distribution in the United States. (See generally Complaint # 1) Fabiano counterclaimed against Scarpa for breach of a claimed exclusive distributorship agreement dating back to 1981 and brought an action against Black Diamond Equipment, Ltd. (“Black Diamond”), a sports equipment manufacturer and distributor, for tortious interference. (Answer and Counterclaim #4) The actions were consolidated in the United States District Court for the Southern District of New York and then transferred to the United States Distinct Court for the District of Massachusetts. (Order from the United District Court for the Southern District of New York # 2) The case has been referred to the undersigned for the purposes of deciding the instant discovery motion. (Order of Referral #40)

Fabiano and Scarpa did business with each other for over thirty years. (# 1, 1Í1Í1, 11) In its counterclaim, Fabiano claims that it had an exclusive distributorship agreement with Scarpa which Scarpa breached by distributing products to Black Diamond and wrongfully terminating Fabiano. (# 4, HU 6, 44) Further, Fabiano claims that by purchasing Scarpa products and distributing them in the United States, Black Diamond intentionally interfered with Fabiano’s contractual relationship with Scarpa in violation of the exclusive distributorship agreement. (# 4, HH, 46, 52) Fabiano’s claims are based on a two-page Italian document entitled “Convenzione” signed in June, 1981 by, inter alia, Andrew Fabiano, the founder of Fabiano, who died in 1992. (#4, 111142, 48) Michael and Edward Fabiano, Andrew Fabiano’s sons, who started managing Fabiano in 1987, claim to have had no knowledge of the Convenzione until 1998, when Scarpa referenced it in its termination notice. (# 4,111148, 50)

Both Scarpa and Black Diamond noticed Rule 30(b)(6) depositions of Fabiano.3 Eventually, those depositions took place on August 17-18, 2000, February 28-March 1, 2001 and March 26-27, 20014 with Michael and Edward Fabiano having been designated by Fabiano as the corporate representatives with knowledge of the topics listed in the 30(b)(6) deposition notices. Despite several requests that Fabiano do so, Fabiano did not make a written designation of the witnesses it intended to produce to testify at the 30(b)(6) depositions. (Affidavit of Bruce W. Edmands # 35,114)

In their Motion to Compel and supporting memorandum and affidavits, Scarpa and Black Diamond assert, inter alia, that Michael and Edward Fabiano (the “Fabiano sons”) were not adequately prepared to testify regarding many of the topics listed in the 30(b)(6) notices. Moreover, Scarpa and Black Diamond complain that Mark D. O’Connor, Esquire, Fabiano’s counsel, acted improperly during the 30(b)(6) depositions by, for example, coaching the witnesses, making improper objections and verbally attacking opposing counsel.

Fabiano’s counsel, on the other hand, argues in his Opposition to the Motion to Compel, that the Fabiano sons already have been deposed for nearly 37 hours, that the Fabiano sons are the only witnesses available who have any knowledge of the subject matters of this litigation and can speak for the Fabiano company, and that the Fabiano sons have no more knowledge of the documents that have been produced other than what can be learned from reading them. This Court agrees with Scarpa and Black Diamond that the Fabiano sons were not properly prepared to be designated at 30(b)(6) witnesses and that Fabiano’s counsel stepped over the line of acceptable behavior during the depositions. Specific examples of the inadequate preparation of the Fabiano sons and the improper behavior of Fabiano’s counsel, as well [36]*36as the appropriate remedy for these discovery violations, are addressed below.

II. ANALYSIS

A. Witnesses at 30(b)(6) Depositions

Scarpa and Black Diamond cite to numerous examples in support of their argument that the Fabiano sons were not properly prepared to be designated as 30(b)(6) witnesses testifying on behalf of Fabiano. The deposition transcripts provide ample support for Scarpa and Black Diamond’s assertions.

First, for example, when asked if he was speaking on behalf of the Fabiano company, Edward Fabiano responded that he “can’t represent what the company knew. I can only represent what I knew at that time.” (Affidavit of Jayni L. Edelstein # 34,. H 22 and Ex. G thereto at 99). Fabiano’s counsel agreed with Edward Fabiano, stating that Mr. Fabiano “has the knowledge he has”, that he has “absolutely no obligation whatsoever to go out and educate himself’ and that he has “no obligation to sit there and read through all the [documents] in preparation for a deposition.” (# 34, Ex. G at 101-04). At the deposition of Michael Fabiano, Fabiano’s counsel took a similar position, stating that Michael Fabiano would only testify as to what he had “firsthand knowledge about” and if the Fabiano sons “don’t have knowledge, they don’t have knowledge.” (# 34, Ex. I at 19-21)

Fabiano’s counsel is quite simply wrong in his assertion that the Fabiano sons did not have a duty to educate themselves about the 30(b)(6) topics. Indeed, the law is well-established that a 30(b)(6) deponent does have an affirmative obligation to educate himself as to the matters regarding the corporation.

Rule 30(b)(6) explicitly requires [a company] to have persons testify on its behalf as to all matters known or reasonably available to it and, therefore, implicitly requires persons to review all matters known or reasonably available to it in preparation for the 30(b)(6) deposition. This interpretation is necessary in order to make the deposition a meaningful one and to prevent the “sandbagging” of an opponent by conducting a half-hearted inquiry before the deposition but a thorough and vigorous one before the trial. This would totally defeat the purpose of the discovery process ____[Preparing for a Rule 30(b)(6) deposition can be burdensome. However, this is merely the result of the concomitant obligation from the privilege of being able to use the corporate form in order to conduct business----[A company] does not fulfill its obligations at the Rule 30(b)(6) deposition by stating that it has no knowledge or position with respect to a set of facts or area of inquiry within its knowledge or reasonably available....

United States v. Taylor, 166 F.R.D. 356, 362 (M.D.N.C., 1996), aff'd 166 F.R.D. 367 (M.D.N.C., 1996). See also Poole ex rel. Elliott v. Textron, Inc., 192 F.R.D. 494, 504 (D.Md., 2000) (“Upon notification of a deposition, the corporation has an obligation to investigate and identify and if necessary prepare a designee for each listed subject area and produce that designee as noticed.”); Dravo Corp. v. Liberty Mut. Ins. Co., 164 F.R.D. 70, 75 (D.Neb., 1995) (citing Marker v. Union Fidelity Life Ins. Co.,

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201 F.R.D. 33, 2001 U.S. Dist. LEXIS 8233, 2001 WL 682744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calzaturficio-scarpa-spa-v-fabiano-shoe-co-mad-2001.