Doanbuy Lease and Co. v. Melcher

488 P.2d 339, 448 P.2d 339, 83 N.M. 82
CourtNew Mexico Supreme Court
DecidedAugust 30, 1971
Docket9215
StatusPublished
Cited by12 cases

This text of 488 P.2d 339 (Doanbuy Lease and Co. v. Melcher) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Doanbuy Lease and Co. v. Melcher, 488 P.2d 339, 448 P.2d 339, 83 N.M. 82 (N.M. 1971).

Opinion

OPINION

STEPHENSON, Justice.

The trial court dismissed these four consolidated actions purporting to act under and impose sanctions pursuant to Rule 37(d) of the Rules of Civil Procedure [§ 21-1-1(37) (d), N.M.S.A., 1953]. Plaintiff-appellant (Doanbuy) appeals. We affirm.

The actions were brought to foreclose operator’s liens under an oil and gas operating agreement or alternatively to foreclose statutory operator’s liens against the defendants-appellees (Melcher Interests) and, so far as we are here concerned, are identical. A number of similar suits between these parties pend in other states.

The issues center upon the conduct of Mr. Jerome B. Rosenthal at the taking of his deposition. There is no question but that he is president of Doanbuy, although the Melcher Interests failed to obtain any such admission from him upon oral depositions. Mr. Rosenthal is a Doctor of Laws, has practiced in Illinois and is in practice in California. His status as an attorney is a factor of considerable weight in our decision.

The Melcher Interests moved the court for an order permitting them to take the depositions of Mr. Rosenthal and another in California. After the usual procedures, Mr. Robert Winslow, attorney for the Melcher Interests, attempted to take the deposition of Mr. Rosenthal in Los Angeles. Various difficulties arose during the course of the California deposition of a nature that caused the trial judge to comment at the July 1, 1970 hearing as we shall see. The deposition was terminated when at the close of the first day Mr. Rosenthal indicated he would not return the next day.

The Melcher Interests moved that Doanbuy’s complaint against them be dismissed pursuant to Rule 37(d) of the Rules of Civil Procedure and on other grounds not here material.

A hearing was had on the motion following which the court ordered, inter alia, “that Plaintiff should be given a further opportunity to remedy the matters upon which said Motions are based,” that the deposition should be promptly taken in New Mexico and that the motion of the Melcher Interests would thereafter “come on further to be heard.” The next day, the Melcher Interests gave notice of the taking of depositions of Doanbuy “by its president,” Mr. Rosenthal, in Roswell, New Mexico. The fact that the deposition was of a party and not a mere witness is another significant factor.

Thereafter, Doanbuy moved, pursuant to Rule 30 of the Rules of Civil Procedure [§ 21-1-1(30), N.M.S.A.,1953] for a protective order quashing the notice of taking of depositions or in the alternative to enter its order limiting the scope of and time allowed for the deposition.

On July 1, 1970, a hearing was had on the motion. At the conclusion of the argument, the court made certain comments regarding the California deposition which we deem noteworthy and which are as follows :

“ * * * [I]t is also very apparent to me in this deposition that Mr. Rosenthal was not going to give any information of any kind to any of the purported facts of the lawsuit, and he would make answers, T don’t know; if I ever knew, I have forgotten’, repeatedly throughout this deposition. I have never seen a deposition of anybody given like this was given, particularly of a lawyer. Maybe they practice law like that in California, I don’t know. But, we certainly don’t here. And, I am still of the opinion that the defendants are entitled to depose this man who signed the pleadings as an officer, and from what I gather and from what little he did say in his deposition, he was president at the time he signed it. And, for him to sit there and say that he just doesn’t know anything about anything; doesn’t know who does know; but the defendant should know, I just can’t feel that he truthfully and fully answered the proper questions. * * * But right from the start, Mr. Rosenthal apparently had a chip on his shoulder and was just not going to answer anything. * * * ”

Judge Nash again ruled that Mr. Rosenthal must come to New Mexico, but that the depositions could last no more than two days. He appeared in Roswell before a reporter for two days. On the second day, Mr. Winslow on behalf of the Melcher Interests terminated the deposition.

Mr. Rosenthal’s conduct at the deposition is somewhat difficult to describe. Certainly the trial judge’s remarks which have been quoted apply in rich full measure, but somehow the Roswell deposition seems worse than the one taken in Los Angeles. The statements of Mr. Rosenthal consisted of evasions, expressions of hostility, insults, admonitions, objections, demands that counsel explain what bearing questions had upon the issues as prerequisites to answering, arguments and other similar responses. Pages are consumed by statements of inability to remember, which strain credulity to the breaking point, and with refusals to answer questions because of a claim that a question is pending that the witness cannot understand and will not permit to be withdrawn. These are merely examples.

In any case, the Melcher defendants renewed their motion to dismiss under Rule 37(d) on the grounds that Mr. Rosenthal had refused to appear and give his deposition, notwithstanding the court order. A hearing was had on the motion, at the conclusion of which the court said, in part:

“ * * * I am convinced this man Rosenthal has refused to give a deposition and it appears he will continue to refuse to give one that will be of any assistance in helping clear up this matter. * * * ”

The case was dismissed as to the Melcher Interests and it is from this order that Doanbuy appeals.

Doanbuy asserts that it was error for the court to have dismissed the case under Rule 37(d) since the witness appeared, was sworn and testified. It says the proper procedure would have been to file a motion under Rule 37(a), procure an order directing the witness to answer and, if upon another attempt to secure the testimony the order were disobeyed, make application for sanctions under Rule 37(b). Doanbuy relies on Independent Productions Corporation v. Loew’s Incorporated, 283 F.2d 730 (2nd Cir. 1960) which does indeed support Doanbuy’s position, as do a number of other cases in like vein.

Certainly, had the Melcher Interests so proceeded, their position would be clear, for such procedures are obviously contemplated by the Rules. We cannot say, however, that it was error for the trial court to proceed as it did under the peculiar facts of this case.

When a plaintiff in a civil action files a lawsuit, his adversaries are entitled to generally understand that he will proceed in a lawful manner and that compliance will be had with the Rules of Civil Procedure, including those relating to discovery.

In cases of this sort, depositions may go on for weeks or even months, involving substantial expense. The progress of cases is hampered and delayed, the court dockets clogged and the beneficent purposes of discovery defeated by contumacious witnesses who refuse to be governed by the rules.

We are willing to assume that Mr.

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Bluebook (online)
488 P.2d 339, 448 P.2d 339, 83 N.M. 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doanbuy-lease-and-co-v-melcher-nm-1971.