City & County of San Francisco v. Tutor-Saliba Corp.

218 F.R.D. 219, 2003 U.S. Dist. LEXIS 17306
CourtDistrict Court, N.D. California
DecidedOctober 2, 2003
DocketNo. C-02-5286 CW (EMC)
StatusPublished
Cited by62 cases

This text of 218 F.R.D. 219 (City & County of San Francisco v. Tutor-Saliba Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City & County of San Francisco v. Tutor-Saliba Corp., 218 F.R.D. 219, 2003 U.S. Dist. LEXIS 17306 (N.D. Cal. 2003).

Opinion

ORDER GRANTING DEFENDANTS’ MOTION TO COMPEL FURTHER SUPPLEMENT TO PLAINTIFFS’ RULE 26(a)(1)(C) DISCLOSURE; DENYING DEFENDANTS’ REQUEST FOR JUDICIAL NOTICE OF THE JUNE 5, 2003 SAN FRANCISCO DAILY JOURNAL ARTICLE (Docket No. 90)

CHEN, United States Magistrate Judge.

Defendants move to compel Plaintiffs to further supplement the Rule 26(a) disclosures regarding damages. Having reviewed the parties’ briefs and accompanying submissions, having considered the oral argument of counsel on September 17, 2003, and good cause appearing therefor, the Court hereby GRANTS Defendants’ motion and orders Plaintiffs to supplement their initial damages disclosure pursuant to Federal Rule of Civil Procedure 26(a)(1)(C). Further, the Court DENIES Defendants’ request for judicial notice of the June 5, 2003, San Francisco Daily Journal article.

I. DISCUSSION

In their suit, Plaintiffs have filed a Second Amended Complaint (“SAC”) containing detailed allegations of, inter alia, fraud and breaches of contract by Defendants in connection with several construction contracts [220]*220related to the San Francisco International Airport. The claims involved alleged fraud, contract and RICO claims in connection with six contracts in particular. Plaintiffs contend that Defendants fraudulently claimed to use minority subcontractors to increase their chances of winning the contracts. After winning them, Defendants are accused of fraudulently claiming increased payment for delays and schedule changes they were responsible for, fraudulently claiming payments and double billing for costs Defendants should have or did anticipate, and for unlawfully pressuring other actors to either assist or not disclose their fraud.

In their supplemental initial disclosure pursuant to Rule 26(a)(1)(C), submitted July 16, 2003, Plaintiffs stated damages for the general categories identified in their SAC’s Prayer for Relief. Plaintiffs have stated $42,284,757 for Compensatory Damages, $6,880,000 for Liquidated Damages, $126,854,271 for Punitive Damages, and at least $16,965,000 in Statutory Penalties. They have also created an “Other” category with an unspecified amount of damages. This yields a total of $319,838,299 in specified damages as of the filing of their supplement. (Plaintiffs’ Supplemental Damages Disclosure, pp. 2-3). Plaintiffs have also stated damages in their SAC, citing specific examples of fraud but without aggregating those claims into total damages categories. For example, in their discussion of fraud related to the minority subcontractor program, Plaintiffs claimed that Defendants fraudulently received $4,196,220 for using the subcontractor Scotb-Norman Mechanical Joint Venture on the New International Terminal Contract (SAC, p. 16, lines 3-7).

Plaintiffs have offered their supporting documents to the Defendants for inspection as required by Rule 26(a)(1)(C), but are currently still in the midst of organizing them into a document depository in the manner Defendants have requested. Plaintiffs have promised to produce documents relied upon.

Defendants have filed a motion to compel further disclosures, arguing that Plaintiffs’ initial damages disclosure is inadequate. Under Rule 26(a) governing initial disclosures, the parties must, among other things, disclose “a computation of any category of damages claimed” and make “available for inspection and copying ... the documents or other evidentiary material, not privileged or protected from disclosure on which such computation is based.” Fed.R.Civ.P. 26(a)(1)(C). These initial disclosure must be based on the information “reasonably available” to the party at or within 14 days of the Rule 26(f) initial discovery conference. Rule 26(a)(1). Rule 26(e) also imposes a continuing obligation to supplement the initial disclosures whenever the parties find that the initial disclosures were “incomplete or incorrect,” making the operation of Rule 26 the “functional equivalent of a Standing Request for Production under Rule 34.” Rule 26(e) and West’s Federal Rules Decisions, 1993 Advisory Committee Notes to Rule 26, 146 F.R.D. 401 at 631-632 (1993).

Rule 26 does not elaborate on the level of specificity required in the initial damages disclosure. While Defendants cite a number of cases in which courts have excluded evidence or granted summary judgment for failure to make adequate disclosures, these cases do not define the specificity required by Rule 26(a)(1)(C). These cases involve extreme situations in which the defendant was either prejudiced by plaintiffs conduct or entitled to summary judgment because of lack of any supporting evidence. See Gilvin v. Fire, 2002 U.S. Dist. Lexis 15249 (D.D.C. 2002), American Realty Trust, Inc. v. Matisse Partners, L.L.C., 2002 WL 1489543 (N.D.Tx.2002), Midwest Grain Products, Inc. v. Envirofuels Marketing, Inc., 1996 WL 445070 (D.Kan.1996) and Colombini v. Members of the Board of Dirs. of the Empire College School of Law, 2001 WL 1006785, 2001 U.S. Dist. Lexis 13405 (N.D.Cal.2001).

None of these cases are apposite the instant case. In Gilvin, the court excluded from trial claims for damages because the plaintiff failed to disclose the claim until just weeks before trial and provided no substantial quantification of the elements or computation of the claimed damages. Gilvin, 2002 U.S. Dist. Lexis 15249 at *8-10 (D.D.C.2002). In American Realty Trust, plaintiff suddenly claimed $30 million-more in damages on the eve of trial. American Realty Trust, 2002 [221]*221WL 1489543, at *1, 2002 U.S. Dist. Lexis 12560 at *4 (N.D.Tx.2002). The previous damages claim had been limited to $200,000. Id., 2002 WL 1489543 at *1, 2002 U.S. Dist. Lexis 12560 at *3. Because of the huge increase, the manner in which it fundamentally changed the nature and import of the case and the lateness of the disclosure, the court found that plaintiff had not complied with the requirements of Rule 26(a)(1)(C) and thus excluded the damages claim. In both Midwest Grain Products and Colombini the plaintiffs “made no showing” whatsoever and “utterly failed” in their disclosure obligations. Colombini 2001 WL 1006785 at *11, 2001 U.S. Dist. Lexis 13405 at *24 (2001).

Such extreme facts are not at issue here. Plaintiffs have identified documents and provided some damages estimates for various categories of damages claims. Its SAC contains a fair amount of detail. Absent more specific direction from the case law, guidance as to the adequacy of the disclosures must be gleaned from Rule 26(a)’s purpose: to “accelerate the exchange of basic information” that is “needed in most eases to prepare for trial or make an informed decision about settlement.” Id., 1993 advisory committee notes. See Monroig v. RMM Records & Video Corp., 194 F.R.D. 388, 392 (D.Puerto Rico 2000) (accord). Moreover, early disclosure also functions to assist the parties in focusing and prioritizing their organization of discovery.

Given these purposes, the plaintiff should provide more than a lump sum statement of the damages allegedly sustained. As one treatise explained:

The meaning of “category” of damages is not clear. Presumably, however, it requires more than merely the broad types of damages (“wrongful death,” or “ property damage,” “bodily injury,” etc.).

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218 F.R.D. 219, 2003 U.S. Dist. LEXIS 17306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-county-of-san-francisco-v-tutor-saliba-corp-cand-2003.