Goldman v. Banque De Paris Et Des Pays-Bas

99 F.R.D. 554, 36 Fed. R. Serv. 2d 1245, 1983 U.S. Dist. LEXIS 15263
CourtDistrict Court, S.D. New York
DecidedJuly 22, 1983
DocketNo. 81 Civ. 7778
StatusPublished
Cited by2 cases

This text of 99 F.R.D. 554 (Goldman v. Banque De Paris Et Des Pays-Bas) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldman v. Banque De Paris Et Des Pays-Bas, 99 F.R.D. 554, 36 Fed. R. Serv. 2d 1245, 1983 U.S. Dist. LEXIS 15263 (S.D.N.Y. 1983).

Opinion

OPINION

GRIESA, District Judge.

This is an action alleging breach of an agreement to make a loan of $6,000,000 to [555]*555plaintiff. There are two counts in the complaint. The first count contains the allegations of breach and seeks compensatory damages. The second count seeks punitive damages.

Defendant, Banque de Paris et des PaysBas (“Paribas”), moves, pursuant to Fed.R. Civ.P. 37(b)(2)(C), for an order dismissing the first count because of plaintiff’s (“Goldman”) willful refusal to comply with his discovery obligations. Paribas moves to dismiss the second count for failure to state a claim upon which relief may be granted. The motion is granted in all respects.

The action was commenced on December 15, 1981. Goldman is in the real estate business in New York. Paribas is a French bank doing business in New York. Count one of the complaint alleges that Paribas agreed to make a loan of $6,000,000 to Goldman, and that Goldman paid to Paribas a “$30,000 deposit” to hold the loan. The complaint alleges that Paribas has refused to make the loan and has wrongfully retained the $30,000. Goldman seeks the return of the $30,000, and also seeks damages “believed to be in excess of two million dollars as a consequence of the inability to consummate various transactions in his real estate business and in connection with tax planning for 1981” (par. 10). As already noted, the second count seeks punitive damages and alleges that the activities of Paribas were intentional and malicious.

By Request for Production of Documents dated February 1, 1982, Paribas requested the production of documents relating to Goldman’s claim that he suffered damages in his real estate business and tax planning. See especially Items 9 and 14, requesting production of tax returns and documents relating to tax planning. Goldman’s May 28, 1982 response asserted that he had no documents relating to his real estate claim, and sought to avoid the request for tax planning documents by objecting to such requests “in light of” documents which were produced showing mitigation of damages.

Meanwhile Goldman refused to permit Paribas to take his deposition before taking the deposition of Paribas. At a pre-trial conference held on February 5, 1982, the court ordered that Goldman’s deposition would precede that of Paribas, and that a full document production would precede any depositions.

On May 14, 1982, at another pre-trial conference, the court was advised by counsel for Goldman that discovery had not proceeded in light of certain difficulties with his client. The court ordered that Goldman’s deposition must proceed forthwith or his action would be discontinued. A July 1, 1982 cutoff date for all discovery was imposed.

On August 4, 1982, at another pre-trial conference, the court was advised that Goldman was dropping his tax and real property transaction damage claim. The parties advised that the deposition of Goldman was “to be arranged”, and the discovery cut-off was extended to October 8, 1982.

Problems persisted in arranging Goldman’s deposition, however, and a pre-trial conference was held on September 27, 1982 to discuss the scheduling of that deposition. The court ordered that Goldman’s deposition would be held in the courthouse, so that the court would be available for an immediate ruling as to any problem that might arise. Goldman’s deposition was ordered to be held within two weeks, at the latest.

At a pre-trial conference held on January 14, 1983, counsel informed the court that Goldman’s deposition had not yet taken place, although it was scheduled.

Goldman’s deposition finally commenced on February 15, 1983 in the courthouse. In the course of his deposition, Goldman reversed the position taken at the August 4, 1982 conference respecting his damage claim. He testified that he claims, and intends to prove at trial, that Paribas’ allegedly wrongful denial of a loan in 1981 damaged his real estate business and impaired his ability “to repay real estate taxes and other bills in order to lessen my income tax burden for ’81” (Tr. 6). Goldman refus[556]*556ed, however, to specify the various real estate transactions which he was prevented from consummating (Tr. 10).

Furthermore, contrary to his earlier representations in court documents, Goldman testified that he does, in fact, have documentary evidence to support his damage claims. He steadfastly refused, however, to give either testimony or produce documents in relation to these claims. The following is an excerpt (Tr. 7-11):

Q Do you have any records which would show us which real estate taxes and other bills you prepaid and which ones you were unable to pay?
A No, I couldn’t give you all that. My properties are vast. There are over 500. I just can’t tell you what I did. I’d be here for weeks talking about it.
Q Well, Mr. Goldman, I think we’re entitled to know—
A You’re not entitled to anything. You made a commitment. I want a delivery. That’s all I’m interested in. It’s not your business what I did or didn’t do.
Q Are you claiming damages against the bank—
A You bet your life I’m claiming damages.
Q —for those same payments?
A For any payments. A deal is a deal. The bank took a deposit and never closed.
Q But you refuse to tell me what it is?
A I absolutely refuse to tell you.
* * * sfc * *
Q How much is the amount you claim you were damaged, Mr. Goldman?
A A few million dollars.
Q Do you know the exact amount?
A No, I don’t know the exact amount.
MR. FARRELLY: The complaint speaks for itself.
Q Do you intend to prove that amount at trial?
A I intend to prove it, yes.
Q Do you intend to furnish the defendant—
A When the proper time comes, we’ll furnish you with whatever is necessary.
Q I’m asking you to furnish that information now.
A I don’t want to give it to you now.
Q And you refuse to give it to me now?
A I refuse to give it to you now.
* # # * # *
Q Can you tell me what kind of taxes it was that you were unable to pay at the end of 1981 by reason of the refusal of the bank to make the loan to you.
A Real estate taxes.
Q Will you produce for me your records as to your New York State income taxes and your real estate taxes for the year 1981?
A I don’t think it’s within your scope to see it.
Q Well, I’m asking you if you will produce it, sir.
A No, I don't want to produce it.
* * * * * *

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Bluebook (online)
99 F.R.D. 554, 36 Fed. R. Serv. 2d 1245, 1983 U.S. Dist. LEXIS 15263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldman-v-banque-de-paris-et-des-pays-bas-nysd-1983.