CRSS Inc. v. Montanari

902 S.W.2d 601, 1995 Tex. App. LEXIS 866, 1995 WL 257838
CourtCourt of Appeals of Texas
DecidedApril 27, 1995
DocketNo. 01-92-00893-CV
StatusPublished
Cited by3 cases

This text of 902 S.W.2d 601 (CRSS Inc. v. Montanari) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CRSS Inc. v. Montanari, 902 S.W.2d 601, 1995 Tex. App. LEXIS 866, 1995 WL 257838 (Tex. Ct. App. 1995).

Opinions

OPINION ON MOTION FOR REHEARING

O’CONNOR, Justice.

In March 1990, Riziero F. Montanari sued CRSS, Inc. and CRSS + Metcalf & Eddy Joint Venture (collectively, CRSS) for breach of an employment contract, and for various related causes of action in tort. In March 1992, the trial court granted Montanari’s motion for sanctions, struck CRSS’s pleadings, and entered an interlocutory default judgment. The next month, after a six-day jury trial limited to damages, the jury returned a verdict in favor of Montanari for approximately $5.9 million, including $486,000 in actual damages for breach of contract, $817,000 in actual tort damages, and $4,050,000 in punitive damages.

CRSS appeals, bringing 10 points of error, contending that the trial court erred in striking its pleadings as a discovery sanction (point one), committed various trial errors in the ensuing damages trial (points two through four), erred in the recovery it awarded Montanari on his tort claims and claim for attorneys’ fees (points five through nine), and erred in refusing to allow CRSS to file a complete bill of exceptions (point 10). The panel overrules the motions for rehearing, withdraws its previous opinion, and substitutes the following opinion. As on original submission, we reverse and remand. The full court overrules the motion for rehearing en banc.

Facts

In 1987, Montanari and CRSS entered into a contract for Montanari’s employment as a construction engineer for CRSS in connection with its work on the Peace Shield program of the United States Air Force. The program called for the Air Force to build an air defense system in and for Saudi Arabia, consisting of 17 remote radar sites and five central command centers. Under its contract with the Air Force, CRSS’s role was to provide the requisite construction engineering, design and management services for the program.

Montanari began his work in Saudi Arabia in November 1987. In May 1988, his job title changed to “senior inspector.” In September 1988, Montanari was arrested by Saudi Arabian police for possession of alcohol, proscribed by Saudi law. He remained in custody for approximately two months. While in custody, Montanari made an oral confession to possession of two bottles of beer, and signed a written confession (in Arabic), admitting to various crimes.

Under his employment contract, CRSS had the right to terminate Montanari for cause for violating the laws or regulations of Saudi Arabia. Upon his release from prison, however, CRSS allowed Montanari to complete the two-year term of his written contract. CRSS did not renew Montanari’s contract after the two year term, even though, according to Montanari, he had been told when he was recruited that he could expect to be a “permanent [CRSS] employee for at least ten years.”

Montanari’s term with CRSS ended in November 1989, and he filed this suit on March 22, 1990. In his suit Montanari made the following claims: (1) CRSS did not give him the opportunity to work overtime, as it said it would; (2) CRSS did not pay him for overtime work he had actually performed; (3) CRSS misrepresented the vacation time he had available; (4) CRSS did not pay him the [604]*604extra compensation due when he became a senior inspector; and (5) CRSS encouraged and assisted him and other employees in the preparation of alcoholic beverages, which is illegal in Saudi Arabia, for which Montanari was imprisoned. The case was initially assigned to Judge Russell Lloyd, in the 334th district court.

The discovery

Discovery disputes marred the entire lawsuit. As far as this record reveals, the parties were not able to agree on any discovery matter.

On May 24, 1990, Montanari noticed the deposition of Gary Anderson, an employee of CRSS, for June 5, in Houston, and CRSS noticed Montanari’s deposition. On June 4, CRSS filed a motion for protection and asked, inter alia, that Anderson’s deposition notice be quashed because Anderson was in Saudi Arabia working for one of the defendants, but would be available for deposition in Chicago, Illinois, at the end of June.1 On June 6, Montanari filed a motion to quash the notice of his own deposition, and for protective order, as well as a response to CRSS’s motion for protection.

On June 6, 1990, less than three months after the suit was filed, Montanari filed the first of his numerous “emergency” motions for sanctions, asking the court to strike defendant’s pleadings and enter judgment in his favor. In this motion, Montanari said he had obtained information that Anderson would not be an employee of CRSS beginning June 7, 1990. Montanari’s complaint was, in essence, that CRSS had been slow to respond to his attempts to confirm that information. The emergency motion went on to say,

Defendants and their counsel have refused to cooperate in regard to obtaining the testimony of this important witness and are attempting to stall the deposition until such time as Mr. Anderson is no longer an employee of defendant and no longer in its custody and control as provided in Rule 201(3) of the Texas Rules of Civil Procedure. As such, plaintiff could be required to track down Mr. Anderson anywhere in the world. Defendants’ acts constitute clear abuse of the discovery process in intentionally failing to respond to plaintiffs inquiries relative to the continued employment of Mr. Anderson and his whereabouts, and agreeing to produce him for a deposition, which evidences bad faith on the part of defendant to suppress discovery in this matter. Such abuse of the discovery process is clearly a violation of rule 215 of the Texas Rules of Civil Procedure in defendants’ attempt to reset discovery. Plaintiff moves to strike defendants’ pleadings in this cause and for entry of judgment against defendants and in favor of plaintiff, and for sanctions against defendants. Alternatively, plaintiff moves that the court prohibit Gary Anderson from testifying as a witness in this cause of action.... Alternatively, plaintiff moves the court to compel defendants to produce Mr. Anderson at plaintiffs counsel’s office for deposition at defendants’ cost and expense and at such time and date as reasonably agreeable with plaintiff and his counsel.

The court heard the emergency motion on June 7, 1990, and on July 2, the trial court signed its “order relative to conducting depositions in Saudi Arabia.” The trial court ordered the defendants to cooperate with plaintiffs counsel in arranging in Saudi Arabia the depositions of individuals then present there, including Montanari himself; ordered both parties to share equally in the travel expenses; and ordered that Anderson’s deposition be taken either in Houston or in Chicago at a mutually agreeable date and time, on or before July 20, 1990. The trial court did not find, in the July 2, 1990, order, that CRSS engaged in any sanctionable conduct.

Discovery proceeded. The parties served each other with interrogatories and requests for production, and depositions began. [605]*605Meanwhile, the case was set for trial for the week of April 6, 1992.

On July 30, 1990, Montanari served interrogatories and a request for production of documents on CRSS. Interrogatory number two of that set asked CRSS to “[i]dentify all persons with knowledge of information relevant to the subject matter of this lawsuit.” The requests for production germane here are included in the footnote.2

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Cite This Page — Counsel Stack

Bluebook (online)
902 S.W.2d 601, 1995 Tex. App. LEXIS 866, 1995 WL 257838, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crss-inc-v-montanari-texapp-1995.