Casper v. Esteb Enterprises, Inc.

82 P.3d 1223
CourtCourt of Appeals of Washington
DecidedJanuary 21, 2004
Docket29078-2-II
StatusPublished
Cited by2 cases

This text of 82 P.3d 1223 (Casper v. Esteb Enterprises, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Casper v. Esteb Enterprises, Inc., 82 P.3d 1223 (Wash. Ct. App. 2004).

Opinion

82 P.3d 1223 (2004)
119 Wash.App. 759

Joseph CASPER and Amy Casper, husband and wife, and the marital community comprised thereof, Respondents/Cross-Appellants,
v.
ESTEB ENTERPRISES, INC., a Washington Corporation; Jerome Esteb and Nancy Esteb, husband and wife, and the marital community comprised thereof, both individually and as owners, operators and officers of defendant Esteb Enterprises, Inc; and Old Republic Surety Corporation, a Wisconsin corporation, Appellants/Cross-Respondents.

No. 29078-2-II.

Court of Appeals of Washington, Division 2.

January 21, 2004.

*1226 Gary Alan Boe, James W. Talbot, O'Brien Hutson & Boe, Michael Barr King, June A. Jackson, Lane Powell Spears Lubersky LLP, Seattle, WA, for Appellants/Cross-Respondents.

Howard Mark Goodfriend, Edwards Sieh Smith & Goodfriend PS, Seattle, WA, John Joseph Dunbar, Attorney at Law, Ball Janik, LLP, Portland, OR, for Respondents/Cross-Appellants. *1224

*1225 ARMSTRONG, J.

Esteb Enterprises, Inc., appeals a $290,067 jury verdict in favor of Joe and Amy Casper on their breach of contract claim arising out of numerous defects in the custom home Esteb partially built for them. Esteb argues that the trial court improperly bound him to his CR 30(b)(6) deposition testimony on behalf of Esteb Enterprises, Inc., and that the trial court unconstitutionally commented on the evidence when it enforced its orders at trial. The Caspers cross-appeal, contending they are entitled to judgment as a matter of law on their Consumer Protection Act, chapter 19.86 RCW, claim. Because the decision to bind Esteb to his CR 30(b)(6) testimony was a discovery sanction within the trial court's discretion and because the judge's trial statements were necessary to enforce the sanction, we find no reversible error. We also reject the Caspers' claim to a Consumer Protection Act judgment as a matter of law because the evidence, when viewed favorably to Esteb, supports the jury's verdict.

FACTS

I. Background

Joe and Amy Casper and Jerry Esteb, the principal of Esteb, Enterprises, Inc. (EEI), contracted for construction of a custom home in Washougal, Washington.[1] The parties blame each other for most of the home's many serious construction defects that gave rise to the lawsuit. But the issues on appeal concern the trial judge's discovery rulings, the manner in which he enforced those rulings at trial, and his denial of the Caspers' motion for a judgment as a matter of law on their Consumer Protection Act (CPA) claim.

II. Discovery

On April 30, 2002, the Caspers deposed EEI under CR 30(b)(6). Jerry Esteb testified for EEI. Esteb provided a balance sheet of the corporation dated April 29, 2002, but he did not extensively prepare for this deposition. Esteb testified that he had not seen the deposition notices.

In their deposition notice, the Caspers designated a number of topics for inquiry, including the amount of EEI's profit on the Casper project and how it was calculated, EEI's profits from 1998 to 2002, the indirect expenses and overhead on the Casper project, the costs associated with building Esteb's personal residence, the source of the funds used to build it, and an explanation of the difference in draws on the project and the amount actually spent on it.

But Esteb made no effort to investigate EEI's profits or losses from 1998 to 2001. Similarly, Esteb did not know how much EEI made on the Casper project. Nor could he testify to the project's indirect expenses. And Esteb said he did not know the cost of his own home. Further, Esteb could provide no information on the difference in the amount of the project's loan draws and the amounts actually spent on the project. Although Esteb repeatedly said that he did not have the information requested, he also said he would have it for trial.

On May 8, 2002, the court granted the Caspers' motion to exclude testimony that *1227 would contradict EEI's "don't know" responses in its CR 30(b)(6) deposition. The order bound EEI to Esteb's "don't know" responses as to (1) the amount of profit on the Casper project, (2) its overhead and indirect expenses on the Casper project, (3) the costs associated with building Esteb's personal residence, and (4) the difference in draws on the Casper project and the amount spent on it.

But the May 8 order gave EEI a grace period to provide Esteb's personal residence costs and the difference in draws and amounts spent on the Casper project; if the information was not provided by May 10, EEI would be limited to Esteb's "don't know" answers.[2] The court also granted the Caspers' third motion to compel EEI to produce certain financial information relating to EEI, subject to a protective order where applicable, by May 10.[3]

The Caspers' counsel faxed his signature on the protective order to Esteb's counsel at 2:32 p.m. on May 10, but the Caspers' own signatures were not received until 6:59 p.m. Because of this, Esteb contends that he was not obligated to provide the disputed financial information until he received both signatures.

But Esteb produced no information on the cost of his personal residence and the difference in draws and amounts spent on the Casper project by the May 10 deadline. He did produce a "Profit and Loss on Casper Job" summary on May 13. Clerk's Papers (CP) at 1433. And he provided reconstructed balance sheets on May 14.

On May 17, 2002, the court granted the Caspers' motion to strike the profit and loss summary and granted their motion for sanctions. This ruling bound the Esteb defendants to the CR 30(b)(6) "don't know" responses as to the costs of Esteb's personal residence and the difference between draws and amounts spent on the Casper project; it also excluded the profit and loss summary because it was inconsistent with the court's prior discovery orders.

On May 20, 2002, the court granted most of the Caspers' motions in limine, excluding evidence that would violate the court's previous May 8 and May 17 orders binding Esteb to the "don't know" answers.

III. Trial

At trial, the judge corrected or answered several times for Esteb when he tried to testify to matters covered by the CR 30(b)(6) orders. For example, when the Caspers' counsel asked Esteb, "Pursuant to an order of the Court, your answer to the question, `Do you know how much your house cost?' is, `I don't know"; correct?" XIII-A Report of Proceedings (RP) at 1207. When Esteb replied, "I'm not going to say that," the court stated: "Pursuant to a court order, that [`I don't know'] is his response." XIII-A RP at 1207-08. When Esteb answered that he did have a breakdown for his engineering counterclaim, the court stated, "By the order of the Court, he does not have a breakdown for that." XIII-B RP at 1265. The court made similar statements during cross-examination of Esteb on EEI's counterclaim[4] and during Esteb's attempts to testify about his Casper profit and the difference between draws taken and amounts spent.[5]

*1228 On re-cross about the same topics, Esteb gestured for the court to answer for him. The court answered for Esteb that it was "[c]orrect" that Esteb did not know the amount of overhead or indirect expenses and the difference between the draws and amounts spent on the Casper project. XII-B RP at 1323.

The jury awarded the Caspers $290,067 on their breach of contract claim. The jury also rejected Esteb's counterclaims, but it found in his favor on Caspers' fraud and Consumer Protection Act claim.

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Cite This Page — Counsel Stack

Bluebook (online)
82 P.3d 1223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/casper-v-esteb-enterprises-inc-washctapp-2004.