Colonial Capital Co. v. General Motors Corp.

29 F.R.D. 514, 5 Fed. R. Serv. 2d 433, 1961 U.S. Dist. LEXIS 5238
CourtDistrict Court, D. Connecticut
DecidedDecember 29, 1961
DocketNo. 8288
StatusPublished
Cited by19 cases

This text of 29 F.R.D. 514 (Colonial Capital Co. v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colonial Capital Co. v. General Motors Corp., 29 F.R.D. 514, 5 Fed. R. Serv. 2d 433, 1961 U.S. Dist. LEXIS 5238 (D. Conn. 1961).

Opinion

ANDERSON, Chief Judge.

This action is in two counts: the first, against General Motors alone, under 15 U.S.C.A. § 1221 et seq., concerns transactions between automobile dealers and manufacturers; and the second, against General Motors and alleged co-conspirators, is brought under the Sherman Act. The plaintiff has noticed the deposition of General Motors through seven individuals presently or formerly associated with it. General Motors now moves to have the notices vacated and set aside. The plaintiff also noticed the deposition of General Motors through Alfred P. Sloan, Jr., its Honorary Chairman, and Frederic C. Donner, its Chairman of the Board and Chief Executive Officer; and the defendant has moved to have these depositions taken on written interrogatories.

Three of the seven depositions may be disposed of summarily. Charles E. Wilson, one of the seven noticed, has since died. Plaintiff now concedes that two others, Jeanne Metzger and Ruth Moffatt, are secretaries or stenographers, and are not managing agents or officers of the defendant, so that the deposition of the defendant cannot be taken through them.

Considering each of the remaining four, individually, it appears that William F. Hufstadter retired from General Motors on June 30, 1960 when he was a Vice President of the corporation. Since that time he has not been an officer, employee, or agent of the defendant, nor is he presently a director. of the corporation. Though the general rule appears to be that the deposition of a party may not be taken through one no longer employed by the party, Park & Tilford Distillers Corp. v. Distillers Co., 19 F.R.D. 169 (S.D.N.Y.1956), the plaintiff contends that the primary consideration in ruling on the question of who is a “managing agent” for purposes of deposing a corporate party is whether the individual can be expected to identify himself with the interests of the corporation or with those of the adverse party. Viewed in this [516]*516light, plaintiff argues, a former employee may be considered a “managing agent” for purposes of F.R.Civ.P. Rule 26, 28 U.S.C.A.; and, since there has been no showing that Mr. Hufstadter is no longer loyal to the defendant or does not still identify himself with its interests, the deposition of the defendant may be taken through him. Plaintiff cites Independent Production Corp. v. Loew’s Inc. et al., 24 F.R.D. 19, (S.D.N.Y.1959), for this proposition. While it is true that the persons whose depositions were allowed to be taken as speaking for the corporate party in that case had resigned their positions prior to the time the depositions were to be taken, the peculiar facts of the case radically limit its value as a general precedent"!» this area. The individuals, whose depositions were sought to have been taken, had resigned because of the suit, on the advice of their attorneys, who felt the corporation’s case might be damaged if the individuals were interrogated and refused to answer or were forced to admit that they had refused to testify as to their political affiliations before the House Un-American Activities Committee. It was also shown that they had, subsequent to their retirement, provided certain services to the corporation and that they were financially interested in it to the extent that they would each be entitled to a percentage of any recovery by the corporation in the case.

In arriving at its decision in the Independent Production case, the court relied on two prior cases: Curry v. States Marine Corp., 16 F.R.D. 376 (S.D.N.Y. 1954) and O’Shea v. Jewel Tea Co., 233 F.2d 530 (7 Cir. 1956). Neither of these cases, however, stands for the proposition enunciated in Independent Production. The individual whose deposition was sought, in the Curry case, had been master of a vessel alleged to have been the cause of injuries to the plaintiff. At the time for which the deposition was noticed, he was first mate on another vessel of the corporate defendant. The court found that he had been a “managing agent” at the time of the accident, that he was still employed by the same corporation in a position of trust, and fully expected that when a vacancy occurred he would again be appointed a master. The deposition of the corporation was, therefore, allowed to be taken through him. The O’Shea case did not involve deposition proceedings. It was concerned with the correctness of examining a person as an adverse witness when he had been called by the party examining him. The witness had been an employee of the corporate defendant at the time of the alleged accident and had left its employ shortly thereafter to accept employment from another firm in the same type of business. He admitted at the trial that he considered himself to be still in the camp of the defendant and testified in such manner as to make it apparent he was a hostile witness. Thus the only real question on this aspect of the case was whether the witness sufficiently identified himself with the interests of the opposing party as to allow his examination at the trial as a hostile witness by the party calling him.

This court concludes that there is no authority for taking the deposition of General Motors through William F. Hufstadter on the basis of his relationship to the company as a past employee. The motion as to him is therefore granted.

A more difficult question is presented with regard to the three persons remaining of the seven whose depositions are sought by the plaintiff. The general rule is that the person whose deposition is sought must, in order to bind the corporate party, be a “managing agent” of the corporation. The court, in Rubin v. General Tire and Rubber Co., 18 F.R.D. 51, (S.D.N.Y.1955) synthesized the authorities and arrived at three useful criteria for determining who is a “managing agent”. These are:

“ * * * First,, the employee should be ‘a person invested by the corporation with general powers to [517]*517exercise his judgment and discretion in dealing with corporate matters.’ * * * Second, the employee should be a person who ‘could be depended upon to carry out his employer's direction to give testimony at the demand of a party engaged in litigation with the employer.’ * * * Third, the employee should be a person who can be expected to identify himself with the interests of the corporation rather than with those of the other parties. * * * ”

18 F.R.D. 51, at 56.

In its affidavits General Motors has averred that O’Boyle, Schwartz, and Moran do not have the general powers referred to in the first criterion above. This, however, is only a conclusion of the affiants and is not controlling.

On October 5,1961, a motion by defendant to vacate notices to take depositions of G. J. Clemenson and Fredrie H. Murray was argued in this court. The motion was denied without prejudice and held in abeyance while plaintiff filed two series of interrogatories to be answered by the named individuals in order to determine whether interrogatories would serve as satisfactorily as depositions. These two individuals had submitted two of the affidavits which underlie the present motion to vacate. Pursuant to that order plaintiff propounded certain interrogatories to the affiants regarding the duties and responsibilities of the three persons referred to in the affidavits. From the answers to these interrogatories, and the material in the affidavits, the following facts appear:

J. J. O’Boyle is 'employed in the Distribution Department of the Sales Section of the Cadillac Division.

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Bluebook (online)
29 F.R.D. 514, 5 Fed. R. Serv. 2d 433, 1961 U.S. Dist. LEXIS 5238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colonial-capital-co-v-general-motors-corp-ctd-1961.