Christopher Ryan v. James Surprise

CourtCourt of Appeals of Tennessee
DecidedJanuary 23, 2003
DocketW2001-02853-COA-R3-CV
StatusPublished

This text of Christopher Ryan v. James Surprise (Christopher Ryan v. James Surprise) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Christopher Ryan v. James Surprise, (Tenn. Ct. App. 2003).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON January 23, 2003 Session

CHRISTOPHER G. RYAN V. JAMES W. SURPRISE AND JOHNSON, GRUSIN, KEE & SURPRISE

Appeal from the Circuit Court for Shelby County No. 305916-6 T.D. George H. Brown, Jr., Judge

No. W2001-02853-COA-R3-CV - Filed August 27, 2003

This case involves discovery sanctions. The plaintiff sued the defendants, a lawyer and his law firm, for legal malpractice. The plaintiff requested certain documents from the defendants at least three times, which were not produced. The trial court ordered production of the documents at a deposition. The documents were not produced at the deposition. Twenty-eight days after the deposition, on the eve of a hearing on the defendants’ alleged discovery abuses, the documents were produced. In response to the plaintiff’s request for sanctions, the trial court ordered that the defendants pay the plaintiff’s attorney a monetary sanction. The defendants appeal, arguing that the imposition of the sanction was an abuse of discretion, because there was no evidence indicating the amount of attorney time spent on the alleged discovery abuse and, therefore, no evidentiary basis for the amount of the sanction. We vacate the order of the trial court and remand for further proceedings, because the record does not support the trial court’s award.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Vacated and Remanded

HOLLY M. KIRBY, J., delivered the opinion of the court, in which W. FRANK CRAWFORD , P.J., W.S., and ALAN E. HIGHERS, J., joined.

Richard Glassman and Douglas Hanson, Memphis, Tennessee, for the appellant, James W. Surprise and Johnson, Grusin, Kee & Surprise.

R. Sadler Bailey and Christopher M. Robinson, Memphis, Tennessee, for the appellee, Christopher G. Ryan. OPINION

In 1988, Plaintiff/appellee Christopher G. Ryan (“Ryan”) engaged Defendant/appellant James W. Surprise (“Surprise”), a Memphis attorney, to represent him in a lawsuit to collect on a promissory note. Surprise obtained a judgment on the promissory note in favor of Ryan. Surprise told Ryan that the judgment would be valid for only ten years and that, to remain enforceable beyond the ten-year period, it would have to be revived prior to the ten-year expiration date.

In 1998, Ryan alleges that he contacted Surprise by telephone and mail regarding the judgment, which was soon to expire. Ryan contends that Surprise did not respond to Ryan’s attempts to contact him, and the judgment lapsed prior to being revived. As a result, Ryan filed a lawsuit against Surprise and his law firm, alleging legal malpractice and seeking $500,000 in compensatory damages and $500,000 in punitive damages jointly and severally from Surprise and his firm.

In a request for production of documents made on December 13, 1999, Ryan’s counsel requested certain billing documents from Surprise’s counsel. The documents were pertinent to the issue of whether a continuing attorney-client relationship existed between Ryan and Surprise at the time the judgment lapsed. The documents produced by Surprise in response to the request did not include the billing records.

On May 19, 2000, Ryan notified Surprise that his deposition would be taken on May 25, 2000. The notice requested that Surprise produce the billing records sought in the prior request for documents. Surprise did not bring the requested billing records to the deposition. In response to questions in the deposition, however, Surprise testified that he had reviewed the billing records in preparation for his deposition testimony.

In May 2001, Ryan served on Surprise a “Notice to Take Deposition of Rule 30(B)(6) Corporate Representative Duces Tecum,” which again sought the same billing records. Surprise filed a motion to quash certain portions of the notice. On June 20, 2001, after a hearing, the trial judge ordered that the disputed billing documents be produced at the Rule 30(b)(6)1 deposition. At the Rule 30(b)(6) deposition on August 22, 2001, the disputed documents were not produced.

Following Surprise’s failure to produce the documents as set forth in the trial court’s June 20, 2001 order, Ryan moved for discovery sanctions, including default judgment. The hearing on the sanctions was scheduled for September 20, 2001. On the afternoon of September 19, 2001, Surprise’s attorney told counsel for Ryan that the documents in question had been located. They were delivered to Ryan’s counsel that day.

At the hearing the following day, Ryan’s counsel argued stridently that his client should be granted a default judgment based on the failure to produce the oft-requested billing records until the

1 Rule 30.02(6) of the Tennessee Rules of Civil Procedure.

-2- eve of the hearing for sanctions. He asserted that Surprise’s counsel should be penalized for this latest in “a never ending stream of problems” not set forth in the record, such as failing to produce documents on numerous occasions and improperly identifying expert witnesses. Accusations and hyperbole were abundant. During the argument, the trial judge patiently admonished Ryan’s counsel to “talk a little more civil,” describe the prior events in “less melodramatic and more professional tones,” and “elevate [the conversation] just a little bit more.” Indicating a reluctance to grant the request for default judgment, the trial court asked Ryan’s counsel what other sanctions would be appropriate. In response, Ryan asked that one or both of Surprise’s experts be excluded from testifying, and also asked for “an extreme monetary sanction.”

In response to Ryan’s argument, counsel for Surprise explained that the documents Surprise reviewed prior to his deposition were misfiled after he reviewed them. He asserted that, despite a diligent search, they could not be located until the day just before the hearing. He noted that counsel for Ryan did not file a motion to compel production of the documents, and the documents were not the subject of a court order until the August 22, 2001 Rule 30(b)(6) deposition. Consequently, the documents were produced only twenty-eight days after Surprise was ordered by the court to do so. Surprise’s counsel argued that the appropriate penalty, if any, should be monetary sanctions in the form of attorney’s fees for opposing counsel’s time consumed pursuing the documents.

Telling the attorneys that he was not inclined to grant a default judgment, the trial court again asked counsel for Ryan about suggested alternatives. Ryan’s counsel responded:

Mr. Bailey: I want a monetary sanction of $25,000.00. That’s what I think is an appropriate monetary sanction for abuse that has been going on for years.

The Court: Well, how do you arrive at that?

Mr. Bailey: I arrive at that with basically if I were – if I were asked how many hours have been devoted by my firm to all of these types of things, how many hours coming down here, probably 50 hours total, okay, which at my hourly rate of [$]250 would be $12,500.00, all right.

I think there ought to be a lodestar application here that we ought to get more than our hourly rate because I can assure you that there are a lot better ways to make $250.00 than to deal with these kinds of issues which are acrimonious, tension filled, difficult. . . .

* * *

This sanction needs to be significant enough to send them a message that you’re not going to tolerate this anymore. And that message would reverberate through the halls of this courthouse and put a stop to a lot of these things.

-3- In response, counsel for Surprise argued:

Mr. Glassman: Under the issue of monetary sanctions, the proper procedure I believe would be to have a writ of inquiry at some point in the future where Mr. Bailey can be examined about how much time he spent on this one issue.

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