Federal Deposit Insurance v. Renda

126 F.R.D. 70, 13 Fed. R. Serv. 3d 1334, 1989 U.S. Dist. LEXIS 6076, 1989 WL 57721
CourtDistrict Court, D. Kansas
DecidedMay 17, 1989
DocketCiv. A. No. 85-2216-0
StatusPublished
Cited by11 cases

This text of 126 F.R.D. 70 (Federal Deposit Insurance v. Renda) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Deposit Insurance v. Renda, 126 F.R.D. 70, 13 Fed. R. Serv. 3d 1334, 1989 U.S. Dist. LEXIS 6076, 1989 WL 57721 (D. Kan. 1989).

Opinion

MEMORANDUM AND ORDER

EARL E. O’CONNOR, Chief Judge.

This matter is before the court on the motion of the plaintiffs Federal Deposit Insurance Corporation, in its corporate capacity, Federal Deposit Insurance Corporation, as receiver for the Indian Springs State Bank, and Federal Savings and Loan Insurance Corporation for default judgment against the defendants Sammy G. Daily and Sam Daily Realty, Inc., pursuant to Federal Rule of Civil Procedure 37. The plaintiffs contend that the above-named defendants’ actions during the course of discovery warrant the entry of a default judgment.

I. The Facts.

On May 28, 1987, the plaintiffs1 propounded interrogatories and requests for [71]*71production of documents to the defendants. The defendants obtained several extensions to September 1987, but failed to respond in any manner. On February 29, 1988, the plaintiffs filed a motion to compel the defendants to provide discovery. The defendants’ response requested that the court allow them until May 9,1988, to answer the discovery requests. However, as of December 30, 1988, the defendants had failed to respond. On that date, Magistrate Rushfelt entered an order granting the plaintiffs’ motion to compel; the order stated that the defendants were to answer the plaintiffs’ interrogatories without objection and respond to the requests for production of documents within thirty (30) days. The defendants failed to do so.

On February 21, 1989, the plaintiffs filed this motion for a default judgment. On March 6, 1989, the defendants filed a response to the plaintiffs’ motion. On the same date, the defendants served their responses to the plaintiffs’ interrogatories and requests for production. No documents were produced, but the defendants stated that they would make documents available to the plaintiffs in Hawaii, at the defendants’ counsel’s office in Topeka, Kansas, and at the offices of the Kansas City Organized Crime Strike Force in Kansas City, Missouri.

On March 15, 1989, a pretrial conference was held. Magistrate Rushfelt ordered the defendants to produce at the office of plaintiffs’ counsel all documents located in Hawaii, at the defendants’ counsel’s office, and at the Strike Force office. The magistrate further directed the defendants to indicate the request to which the documents were responsive, and to explain to the court in writing any failure to produce. On March 27, 1989, the defendants delivered certain documents to the plaintiffs’ counsel’s office.

A brief explanation of the plaintiffs’ interrogatories and requests for production, and the defendants’ responses and objections is necessary. The plaintiffs propounded eighty-six (86) interrogatories to the defendant Sammy G. Daily. His response to seventy-one (71) of these was: “Defendant respectfully declines to answer based upon his rights under the Fifth Amendment to the Constitution of the United States.” To fourteen (14) of the remaining interrogatories, he responded, in essence, that he lacked sufficient knowledge to answer. To the final interrogatory, which requested identification of all persons who might have knowledge supporting any prospective defense, Daily responded: “Any witnesses listed by plaintiff or any defendant.”

The plaintiffs propounded sixty-nine (69) interrogatories to the defendant Sam Daily Realty, Inc. The defendant corporation stated that it could not respond to eighteen (18) of these because it is not a natural person and thus cannot have discussions or knowledge of terms. The corporate defendant stated that it could not answer all or part of eleven (11) other interrogatories because it lacked sufficient knowledge and access to documents from which knowledge could be obtained.

Following the pretrial order, the defendants responded to the plaintiffs’ request for production of documents. To sixty-nine (69) of the plaintiffs’ seventy-nine (79) requests, the defendants responded: “Documents responsive to this request are not available, except as they may be provided in response to other request/s herein, or are otherwise in the possession, custody or control of plaintiffs.” The defendants delivered to the plaintiffs eight (8) boxes of materials from Hawaii, but they did not produce any documents from the Strike Force office or offer an explanation for this failure.

II. The Law.

Federal Rule of Civil Procedure 37 allows sanctions, including a default judgment, if a party fails to serve answers or objections to interrogatories or to respond to requests for production. See Fed.R.Civ.P. 37(d). The rule also allows the court to enter a default judgment where a party fails to [72]*72obey a court order to provide discovery. See id. 37(b)(2).

Default judgment is a harsh sanction which the court should not lightly impose, see M.E.N. Co. v. Control Fluidics, Inc., 834 F.2d 869, 872 (10th Cir.1987), and it must be based on “some fault on the part of or binding upon the party.” Ocelot Oil Corp. v. Sparrow Industries, 847 F.2d 1458, 1464 (10th Cir.1988). The Tenth Circuit has warned that often, a lawyer and his client should not be treated as a unit for sanctioning purposes. See Smith v. United States, 834 F.2d 166, 171 (10th Cir.1987). Instead, the court should consider where the fault for noncompliance with the court’s orders or discovery lies, and direct the sanction at that party, whether it be the lawyer or the client. Id. However, in certain circumstances, default judgment may be based on the actions of the lawyer. Specifically, the Tenth Circuit has stated:

There comes a point, however, when the conduct of the lawyer and client can no longer be viewed as discrete, rather the lawyer represents his client and the client is bound by that representation. That point has been reached when the lawyer (or the client) makes a tactical decision and his noncompliance with the court’s directive is not a product of inadvertence.

Id. In other words, if counsel engages in deliberate, dilatory tactics for the client’s benefit, a default judgment may be warranted. Ocelot, 847 F.2d 1464 (dealing with dismissal, and indicating that dismissal or default judgment may be based on counsel’s dilatory tactics). To determine whether counsel’s actions are strategic rather than merely inadvertent, we should consider the following factors: (1) the degree of prejudice to the opposing party, (2) the amount of interference with the judicial process, and (3) the culpability of the litigant. Id. at 1464 (citing cases).

III. Application of the Law.

In the instant action, we find that the defendants’ failure to provide discovery was the result of a deliberate, dilatory course of conduct by the defendants’ counsel for the defendants’ benefit. The plaintiffs first requested discovery on May 28, 1987. The defendants’ responded nearly two years later.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Johnson v. Peters
D. Kansas, 2021
Shephard v. O'Quinn (In Re O'Quinn)
401 B.R. 739 (M.D. North Carolina, 2009)
Federal Insurance v. Gilson (In Re Gilson)
250 B.R. 226 (E.D. Virginia, 2000)
Starlight International Inc. v. Herlihy
186 F.R.D. 626 (D. Kansas, 1999)
Land Ocean Logistics, Inc. v. Aqua Gulf Corp.
181 F.R.D. 229 (W.D. New York, 1998)
Ramsay v. G.C. Evans Sales & Manufacturing Co.
196 B.R. 114 (E.D. Arkansas, 1996)
Fort Washington Resources, Inc. v. Tannen
153 F.R.D. 78 (E.D. Pennsylvania, 1994)
Comeau v. Rupp
810 F. Supp. 1127 (D. Kansas, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
126 F.R.D. 70, 13 Fed. R. Serv. 3d 1334, 1989 U.S. Dist. LEXIS 6076, 1989 WL 57721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-deposit-insurance-v-renda-ksd-1989.