Dynamic Corp. v. Shan Enterprises, LLC

927 A.2d 20, 175 Md. App. 211, 2007 Md. App. LEXIS 84
CourtCourt of Special Appeals of Maryland
DecidedJune 29, 2007
DocketNo. 1457
StatusPublished

This text of 927 A.2d 20 (Dynamic Corp. v. Shan Enterprises, LLC) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dynamic Corp. v. Shan Enterprises, LLC, 927 A.2d 20, 175 Md. App. 211, 2007 Md. App. LEXIS 84 (Md. Ct. App. 2007).

Opinion

DEBORAH S. EYLER, Judge.

In the Circuit Court for Montgomery County, Shan Enterprises, LLC (“Shan”), the appellee, sued Dynamic Corporation (“Dynamic”) for breach of contract. Dynamic in turn filed a countereomplaint for breach of the same contract. Before trial, the court issued a discovery sanction order precluding Dynamic from introducing into evidence, either in its defense or in the prosecution of its counterclaim, certain categories of documents. The case was tried to the court for three days. The court returned a verdict in favor of Shan, awarding damages of $48,029. The court ruled against Dynamic on its counterclaim.

After the court denied Dynamic’s timely post-trial motion to alter or amend, Dynamic noted this appeal.

FACTS AND PROCEEDINGS

This case arises out of a dispute between a general contractor and one of the subcontractors on a renovation project for a high school in the District of Columbia (“Project”). Dynamic, the general contractor for the Project, entered into two subcontracts with Shan: one to renovate the school’s “Radio Lab,” for $82,500, and the other to renovate the school’s “IT Lab,” for $205,000.

During the course of the work, Dynamic and Shan agreed to certain “change orders” that altered the scope of the work and the payments due. Disagreements about the scheduling of work and the timing of payments arose. Dynamic complained that Shan had not completed work on the Radio and IT labs according to the specifications and time frames in the subcontracts; Shan responded that it had not been paid. Dynamic sent a “cure letter” to which Shan did not respond.

Ultimately, Dynamic terminated the subcontracts on the ground that Shan had “failed to perform the work ... as per the drawings and specifications.” Dynamic demanded that Shan immediately refund all monies Dynamic had paid it and pay the “[a]dditional expense toward demolition and rework” [214]*214to finish the work. Dynamic refused to pay any of Shan’s outstanding invoices.

On August 30, 2005, about a year after the demise of the parties’ business relationship, in the Circuit Court for Montgomery County, Shan sued Dynamic for breach of contract. That same day, the court issued a scheduling order setting a December 28, 2005 deadline for completion of discovery; a January 12, 2006 deadline for filing dispositive motions; and a March 3, 2006 pretrial conference date. (A trial date was not scheduled at that time.)

Dynamic filed a timely answer and a counterclaim, alleging that Shan had breached both subcontracts by failing to perform and, as a consequence, Dynamic had had to terminate Shan from the Project and had incurred over $60,000 in costs to complete the work.

On November 18, 2005, Shan propounded interrogatories and a request for production of documents (“RPD”). When no responses were received by January 12, 2006, it filed a motion to compel. Dynamic did not file a response to that motion. However, on January 31, 2006, it mailed answers to interrogatories and a written response to the RPD to Shan. There is no dispute that Shan received the discovery responses.

On February 2, 2006, the court, not having an opposition to the motion to compel before it, issued an order directing Dynamic to “provide full and complete responses to [Shan’s] interrogatories and request for production of documents no later than February 17, 2006” (“February 2 Order”). On February 21, 2006, Dynamic filed a certificate stating that, on January 31, 2006, it had provided Shan with answers to interrogatories and a written response to the RPD.

The discovery dispute that became dispositive in this case concerned Shan’s RPD, in which it sought production of 24 categories of documents. To five of the requests, Dynamic responded that it did not have any such documents. To one request, Dynamic objected on the ground that it was “vague, ambiguous, and incoherent.”1 To the remaining 18 requests, Dynamic responded that it would produce the requested doeu[215]*215ments at its office in Hyattsville “at a mutually convenient time.”2

On February 21, 2006, Shan’s lawyer wrote to Dynamic’s lawyer complaining that Dynamic’s response to its RPD was insufficient as it did not give “indication as to what, if any, particular documents are available, or what volume of documents is being referred to by Dynamic in its responses.”3 When counsel for the parties appeared for the pretrial conference on March 3, 2006, however, they agreed that the documents would be produced at Dynamic’s office. After some debate over the date for the production, the parties agreed to March 16, 2006, at 1:00 p.m. They further agreed that Shan would designate the documents to be copied, that Dynamic would promptly copy the designated documents, and that Shan would pay the copying charges.

At the pretrial conference, the case was scheduled for a May 8, 2006 trial date.

As agreed, on March 16, at 1:00 p.m., Shan’s lawyer appeared at Dynamic’s office; he brought Shan’s president with him. Dynamic’s documents were laid out on a table, as they were kept by Dynamic in the usual course of its business. Counsel for Dynamic in the litigation was not present for most of the inspection, but in-house counsel and two of Dynamic’s employees, Jacob Abraham and Tinah Ibironke, were present to assist, and did so. For example, at one point during the document inspection, Shan’s lawyer asked Mr. Abraham to show him “all of the documents you have related to Micon.”4 [216]*216Mr. Abraham then pointed out the relevant notebooks and stacks of documents.

After spending about four hours reviewing documents, Shan’s lawyer made handwritten notations on “yellow sticky” post-it notes. Three notes that read “All” or “Entire Notebook” were attached to particular notebooks or piles of documents. Other notes were left, but were not used as markers. One read:

All documents, without limitation, related to Orbe Integrations, LLC. Including, But Not Limited To: 1) payroll, 2) contracts, 3) payments, 4) correspondence.

Another read, “All invoices.” Finally, another note read, “All Correspondence Between DCPS and Dynamic.”5 Before leaving, Shan’s lawyer told one of Dynamic’s representatives that he would be sending a letter memorializing which documents he wanted copied.

Shan’s lawyer did not send such a letter. Instead, on March 27, 2006, he wrote to Dynamic’s lawyer, asking why Dynamic had not yet copied the documents he had requested and threatening to file a motion for sanctions if copies were not immediately provided. Dynamic’s lawyer responded that her client’s representatives had been waiting to receive the promised letter before making copies.

On March 29, 2006, Shan’s lawyer responded in writing, attaching a list (“March 29 List”) of all the documents he wanted copied and demanding that the copies be delivered to his office in two days, by March 31. Like the post-it notes, the March 29 List referred to some documents specifically (e.g., “entire ‘chronology of events’ notebook dated 4/29/2005”) and to others by category (e.g., “[a]ny and all documents related to Orbe Integrations, LLC....”). The categories of documents in the March 29 List were not the same as the categories of documents in Shan’s RPD, however; nor were [217]

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Bluebook (online)
927 A.2d 20, 175 Md. App. 211, 2007 Md. App. LEXIS 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dynamic-corp-v-shan-enterprises-llc-mdctspecapp-2007.