Dambrowski v. Champion International Corp.

2000 MT 149, 3 P.3d 617, 300 Mont. 76, 57 State Rptr. 581, 2000 Mont. LEXIS 145
CourtMontana Supreme Court
DecidedJune 6, 2000
Docket99-021
StatusPublished
Cited by9 cases

This text of 2000 MT 149 (Dambrowski v. Champion International Corp.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dambrowski v. Champion International Corp., 2000 MT 149, 3 P.3d 617, 300 Mont. 76, 57 State Rptr. 581, 2000 Mont. LEXIS 145 (Mo. 2000).

Opinion

JUSTICE LEAPHART

delivered the Opinion of the Court.

¶1 Rex Palmer appeals the orders of the District Court.

¶2 We affirm.

¶3 We restate the issues as follows:

¶4 1. Whether the District Court abused its discretion in imposing discovery sanctions.

¶5 2. Whether the District Court erred in denying Palmer’s motion to disqualify the Honorable Judge Larson.

Standard of Review

¶6 We review a district court’s grant of sanctions pursuant to Rule 37, M.R.Civ.R, for abuse of discretion. See Eisenmenger v. Ethicon, Inc. (1994), 264 Mont. 393, 402, 871 P.2d 1313, 1319.

*78 Factual and Procedural Background

¶7 We note the pertinent facts in what is an extraordinarily lengthy record. While employed with Champion International Co. (Champion), Michael Dambrowski (Dambrowski) filed claims for employment-related injuries. At the time of those claims, Champion was self-insured for purposes of workers’ compensation and employed Compensation Adjusters, Inc. (Compensation Adjusters) to handle the adjustment of workers’ compensation claims for Champion’s employees. In September, 1994 Dambrowski filed a complaint against the Respondents in the present case “for intentional torts, statutory violations and violation of the covenant of good faith and fair dealing in the adjusting and settling of his Montana Workman’s Compensation claim.” Dambrowski’s claims arose out of his employment with Champion. In May, 1996 Compensation Adjusters and Carol Posterino (Posterino) listed Dambrowski’s attorney, Rex Palmer (Palmer), as a trial witness. Compensation Adjusters later contended that it had a compelling need to obtain Palmer’s opinion work product regarding his handling of Dambrowski’s case. In June, 1996 Palmer filed a motion to bar Respondents from calling him as a witness. In August, 1996 Compensation Adjusters and Posterino moved to compel Palmer to submit to a discovery deposition. Palmer opposed that motion at a hearing.

¶8 In January, 1997 the District Court denied Dambrowski’s motion in limine to prevent Respondents from calling Palmer as a witness and granted Respondents’ motion to depose Palmer, concluding that their motion would “not work substantial prejudice to any party and additional discovery was clearly contemplated under the Pre-Trial Order.” At a scheduling conference held later in January, 1997, the District Court requested that the deposition be done before the end of April.

¶9 In April, 1997 Compensation Adjusters’ counsel and Palmer agreed on May 28, 1997 as the date for his deposition. Thereafter, Compensation Adjusters and Posterino filed a notice of Palmer’s deposition. On May 13, 1997 Compensation Adjusters faxed Palmer a proposed subpoena duces tecum. On May 27, 1997 Palmer filed a motion to quash subpoena and motion for protective order and canceled his deposition. Following a hearing, the District Court denied Dambrowski’s motion for a protective order, ordered that Palmer’s deposition be taken within ten days, and directed Palmer to log the items in his file that he claimed were privileged.

*79 ¶10 Palmer’s deposition was reset for June 4, 1997. At his deposition, Palmer stated that unless Respondents agreed to a stipulation that he had prepared, he would not answer questions about his file for Dambrowski or his representation of him. Respondents rejected Palmer’s proposed stipulation and the deposition was concluded. That same day, the District Court held a hearing on Palmer’s deposition. Thereafter, Compensation Adjusters and Posterino moved to disqualify Palmer as counsel. Champion moved for the imposition of sanctions against Palmer pursuant to Rules 11 and 37, M.R.Civ.P., and for dismissal of the case with prejudice. On June 16, 1997 the District Court stayed all existing discovery obligations and deadlines until further order of the District Court. On June 23, 1997 Palmer responded to Champion’s motion for sanctions but did not request a hearing on sanctions. The parties jointly moved the District Court to vacate all deadlines, including the trial date, and the District Court granted their motion on July 28, 1997. In October, 1997, Palmer filed a “Local Rule 3F Reminder to Court” but again did not request a hearing on Champion’s motion for sanctions.

¶11 In an Opinion and Order entered in April, 1998, the District Court denied Compensation Adjusters and Posterino’s motion, which Champion joined, to disqualify Palmer from representing Dambrowski but also directed Palmer’s associate to “act as lead counsel in this matter in both the pre-trial and trial phases, until the litigation has concluded.” Turning to Dambrowski’s motions to quash subpoena and for a protective order regarding the deposition of Rex Palmer, the District Court concluded that it had previously determined those issues in its January, 1997 Order and that Palmer “must pay as sanctions the cost of Champion’s and Compensation Adjust[e]rs’ response to the Motion ...” The District Court further ordered that Palmer would “appear and cooperate at a deposition to be scheduled by Defendants at their convenience. Prior to the deposition, Palmer must submit a new document log to the Court with specific reasons for the withholding of any documents.”

¶12 Further, the District Court denied Champion’s motion to dismiss the action but found that “Palmer’s behavior and lack of respect toward opposing counsel, and this Court is reprehensible.... Palmer personally, not Dambrowski, must pay all costs of Champion’s and Compensation Adjuster’s preparation for and participation in the two scheduled depositions as well as the hearings that resulted from Palmer’s failure to cooperate. Additionally, Palmer must pay the cost *80 of preparation of all briefs filed as a result of his failure to comply with the Court’s orders beginning January 6, 1997.” Champion submitted a sealed statement of fees; Compensation Adjusters and Posterino submitted statements of fees and costs. Palmer filed objections to Respondents’ fees and costs and requested “a hearing regarding the reasonableness and factual accuracy of [Respondents’] fees and cost statement.” The District Court set a hearing for July 15, 1998. Compensation Adjusters and Posterino filed a notice of deposition for Palmer, scheduling his deposition for June 26, 1998.

¶13 On June 16, 1998 Dambrowski petitioned this Court for a writ of supervisory control. Three days later, Dambrowski moved the District Court for a stay of proceedings; the District Court denied Dambrowski’s motion. On June 22, 1998 Dambrowski filed a motion to amend and a request for stay with this Court. On June 26, 1998 Palmer attended his deposition and produced his file together with an objection log. At his deposition Palmer answered under objection Respondents’ questions about his handling of Dambrowski’s case. Thereafter, this Court granted Dambrowski’s motion for a stay of proceedings. In response, the District Court vacated the July, 1998 hearing on Defendants’ costs and fees. In August, 1998 we denied Dambrowski’s petition for supervisory control without prejudice, concluding that “whether Palmer’s deposition should have been ordered and taken is moot” as his deposition had been taken.

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Bluebook (online)
2000 MT 149, 3 P.3d 617, 300 Mont. 76, 57 State Rptr. 581, 2000 Mont. LEXIS 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dambrowski-v-champion-international-corp-mont-2000.