Evanson v. Union Oil Co. of California

85 F.R.D. 274, 1979 U.S. Dist. LEXIS 7972
District Court, D. Minnesota·Decided December 14, 1979·No. No. 4-75-Civ. 671·Published·Cited by 7 cases

Opinion

MEMORANDUM ORDER

LARSON, Senior District Judge.

A.

This action was initially filed by a group of ear wash owners to recover alleged overcharges on gasoline products sold to them by the defendant Union Oil Company. The United States was later added as a plaintiff. For the last two and one-half years the parties have been conducting extensive discovery. The instant Order is prompted by one of a series of problems which have arisen in the course of discovery.

The current motion was brought by private plaintiffs for sanctions against Union Oil because it allegedly falsified answers to plaintiffs’ interrogatories. The interrogatories at issue are Nos. 35, 41, 42, 43, 44, and 58 in plaintiffs’ second set of interrogatories, with particular emphasis on No. 35. The history of defendant’s responses to plaintiffs’ attempts to obtain a straight answer to this question provides an excellent, education in how to unduly prolong litigation. Plaintiffs’ second set of interrogatories was initially sent to defendant on November 3, 1977. Initial answers to these questions were supplied to plaintiffs on [276] February 27, 1978. Union answered interrogatory No. 35 as follows:

“State in detail the manner in which Union determined its May 15,1973 Weighted Average Price' by terminal for each class of purchaser.”
“ANSWER: Union objects to this Interrogatory on the grounds of irrelevance, vagueness, overbreadth, and going beyond the scope of the class, except insofar as it is limited to the calculation of the May 15, 1973 Weighted Average Price in regard to the class customers involved in this lawsuit.
“At the present time, Union is unable to answer this Interrogatory. It is continuing efforts to obtain the information concerning the subject matter of this Interrogatory.”

Within a week plaintiffs notified defendant that the answers were insufficient. Defendant agreed to supplement the answers. These supplemental answers were given to plaintiffs on March 31, 1978. The supplemental response to No. 35 was:

“SUPPLEMENTAL ANSWER: Union objects to this Interrogatory on the grounds of irrelevance, vagueness, over-breadth, and going beyond the scope of the class, except insofar as it is limited to the calculation of the May 15, 1973 Weight Average Price in regard to Union’s retail class of customers.
“Union’s May 15, 1973 Weighted Average Prices for its retail class of purchasers for each pricing point were based upon the posted dealer tank wagon prices in effect at the respective locations on May 15, 1973. Union believed that the posted prices accurately reflected actual transactions on May 15,1973 and that any deviations from posted prices would be de min-imus.”

These answers were still not satisfactory to plaintiffs and the Court ordered Union, on January 19, 1979, to answer a number of interrogatories, including the ones now claimed to have been falsely answered. On March 1, 1979, Union supplied plaintiffs with the new answers. The completed answer to No. 35 now reads:

“ANSWER:
Union has previously answered that it used the posted dealer tank wagon prices for each pricing point which was in effect on May 15, 1973, as its Weighted Average Prices for its retail class of purchaser. It further explained that it believed that the posted prices accurately reflected actual transactions on May 15, 1973 and that any deviations from posted prices would be de minimus.. Union determined its Weighted Average Prices for its jobber class of purchaser in the same manner using jobber posted prices. It further states, with respect to both its retail and jobber classes of purchasers in its Western Region, Union did prepare a computer run in October of 1973 which set forth actual transactions as reflected on delivery tickets for the various pricing points on May 15, 1973 or the first day prior thereto, if none occurred on May 15,1973. Union’s review of that computer run confirmed its belief that nearly all sales were at posted price.
In the Eastern Region, Union determined its May 15, 1973 Weighted- Average Prices for the commercial class of purchaser at each pricing point by using a weighted average of actual sales as reflected by delivery tickets for May 15, 1973 or the first day prior to May 15, 1973, if no sales occurred on that date. In computing their Weighted Average Prices, the sales at the pricing points were also broken down by quantity. In the Western Region, Union determined its May 15, 1973 Weighted Average Prices for the commercial class of purchaser at each pricing point by using a weighted average of all actual sales as reflected by delivery tickets for the 45 day period from April 1 through and including May 15, 1973. In computing these Weighted Average Prices, the sales at the pricing points were also broken down by quantity as determined by mode of delivery. These May 15, 1973 Weighted Average Prices for commercial customers in the Western Region were again recalculated at the request of the FEA in the summer of 1974 using only the sales [277] on May 15, 1973 or the first day prior to May 15, 1973, if none occurred at the pricing point on that date. Those recomputed May 15, 1973 Weighted Average Prices also took into account quantity distinctions and were used effective October 1, 1974 through December 31, 1974. Union is endeavoring to ascertain precisely how the May 15, 1973 Weighted Average Prices were ascertained for Wholesale Class of Purchaser and will provide the same when it becomes available. Copies of computer reports and other relevant documents will be produced for Plaintiff’s inspection concerning the foregoing.”

Plaintiffs undertook an extensive investigation into the accuracy of these answers. Claiming that they had found the answers to be false, plaintiffs requested an eviden-tiary hearing on the possibility of sanctions. This request was granted and the hearing was held on October 3, 4, and 5, 1979. Plaintiffs then recommended certain sanctions against the defendant.

Union, of course, contends that the answers were not false. This rests largely on the hypertechnical argument that the interrogatory merely asked if Union calculated May 1973 Weighted Average Prices, not whether it used them. The final answer to the interrogatory in one place clearly states that the prices calculated were used. Common sense would inform anyone that the question was directed toward prices used. Furthermore, the definitions in the introduction to the interrogatories define “May 15, 1973 Weighted Average Price” as:

“the May 15 selling price of gasoline to be calculated pursuant to the price rules . .” (Emphasis added).

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Evanson v. Union Oil Co. of California, 85 F.R.D. 274, 1979 U.S. Dist. LEXIS 7972 (mnd 1979).

85 F.R.D. 274 (Evanson v. Union Oil Co. of California) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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