Grooms & Company Construction, Inc. v. United States

United States Court of Federal Claims·Decided December 9, 2015·No. 13-426·Unpublished

Opinion

In the United States Court of Federal Claims No. 13-426 C

(Filed December 9, 2015)

* * * * * * * * * * * * * * * * GROOMS & COMPANY * CONSTRUCTION, INC., * * Dismissal for Failure to Plaintiff, * Prosecute; RCFC 41(b); * Continued Flouting of Court v. * Orders Despite Strong Warnings. * THE UNITED STATES, * * Defendant. * * * * * * * * * * * * * * * * *

ORDER

The court herein sets forth its order directing dismissal of plaintiff’s suit for failure to prosecute pursuant to Rule 41(b) of the Rules of the United States Court of Federal Claims (RCFC). As this court noted in its order of November 10, 2015 (“RCFC 41(b) Order”) which denied defendant’s motion to dismiss for failure to prosecute, there was at that time irrefutable evidence that plaintiff had failed to adequately prosecute its claim before this court. Nonetheless, the court afforded plaintiff “a final opportunity to comply with this court’s orders and to avoid dismissal under this court’s rules.” RCFC 41(b) Order, at 1. That same order warned plaintiff that “in light of the pattern of dilatory conduct on the part of plaintiff described herein, this order serves as plaintiff’s final warning that failure to comply with this court’s orders and/or with plaintiff’s discovery obligations shall constitute sufficient grounds for the court, without further notice to plaintiff, to enter an order dismissing this case pursuant to RCFC 41(b).” Id. Because plaintiff’s counsel has yet again ignored a court-ordered deadline since the issuance of the RCFC 41(b) Order, dismissal at this time is appropriate. The court begins with a recitation of the facts that led to the issuance, on November 10, 2015, of these stern warnings to plaintiff’s counsel.

BACKGROUND1

The complaint in the subject matter was filed on June 27, 2013.2 Defendant’s answer was filed on October 25, 2013. The parties were invited to participate in Alternative Dispute Resolution (ADR) but resolved to do so only after the completion of “at least some discovery.” Order of November 4, 2013. A Joint Preliminary Status Report (JPSR), timely filed on December 16, 2013, set forth a proposed discovery schedule. There was no indication in the JPSR that plaintiff faced any particular challenges in prosecuting this suit or that the proposed schedule was impractical.

On January 2, 2014 the court adopted the parties’ proposed discovery schedule, including the following deadlines:

(1) Initial Disclosures, exchanged on or before January 30, 2014;

(2) Fact Discovery, completed no later than October 28, 2014;

(3) Plaintiff’s Designation of Experts and Service of Expert Reports, by December 16, 2014;

(4) Defendant’s Designation of Experts and Service of Expert Reports, by February 17, 2015;

(5) Service of Plaintiff’s Response Report(s), by April 16, 2015;

(6) Service of Defendant’s Reply Report(s) by May 19, 2015;

1 / The facts recited here are undisputed. 2 / The RCFC 41(b) Order contains more detail concerning the underlying facts of this litigation and a fuller examination of the arguments before the court at that time. The instant order borrows liberally from the RCFC 41(b) Order, including citations to briefs and appendices which were considered by the court in its resolution of defendant’s motion to dismiss for failure to prosecute.

2 (7) Expert Depositions, from May 25, 2015 - June 25, 2015; and

(8) Joint Status Report, no later than July 16, 2015.

Preliminary Scheduling Order of January 2, 2014.

The parties mutually agreed to delay the exchange of initial disclosures until February 11, 2014. Def.’s App. at 3-4. Defendant met that deadline, plaintiff did not. Id. at 6. Further, as noted by defendant in a letter dated February 20, 2014, plaintiff’s initial disclosures did not appear to comply with RCFC 26(a)(1)(A)(iii) regarding the accounting back-up for plaintiff’s computation of damages. Id. at 7-8. Nothing in the record before the court shows that plaintiff has ever complied with RCFC 26(a)(1)(A)(iii) or this court’s Preliminary Scheduling Order of January 2, 2014 which specifically cites this rule. Plaintiff has apparently failed to provide in approximately two years (December 2013 through December 2015) that which plaintiff’s counsel agreed to provide in approximately two months (December 2013 through January 2014).

On February 20, 2014, defendant urged plaintiff to correct the deficiency in plaintiff’s initial disclosures on or before March 24, 2014. Def.’s App. at 8. When no response from plaintiff’s counsel was received, defendant served discovery requests upon plaintiff on March 31, 2014. These formal requests included document production requests and interrogatories. Id. at 27-29, 33-34. Plaintiff did not provide any documents or answers to interrogatories within thirty days, as requested.3

Instead, the parties held a telephone conference on May 15, 2014 to discuss defendant’s outstanding discovery requests. Def.’s Mot. at 2-3. Plaintiff’s counsel promised during this call to provide more accounting data, but weeks went by with no action from plaintiff. Id. at 3. On June 13, 2014, defendant inquired as to when plaintiff would be meeting its discovery obligations. Def.’s App. at 15. On June 24, 2014, plaintiff’s counsel provided additional accounting information which defendant characterized as “woefully inadequate.” Def.’s Mot. at 3. In a

3 / There is no indication in the record that plaintiff has ever substantively responded to this requested discovery, or, for that matter, to supplemental discovery requests served on July 24, 2014.

3 July 2, 2014 email to plaintiff’s counsel, defendant’s counsel provided, in painstaking detail, his analysis of the shortcomings in plaintiff’s accounting data related to its computation of damages. Def.’s App. at 20-21. This letter noted, too, that the court’s discovery schedule was becoming unrealistic due to the delays in obtaining basic information from plaintiff. Id. at 21.

On July 24, 2014, the government served renewed discovery requests upon plaintiff which included new topics triggered by the accounting information provided by plaintiff on June 24, 2014. Def.’s App. at 24-39. There is no evidence that plaintiff ever responded to these document production requests or interrogatories. On October 7, 2014 the parties discussed settlement by telephone. Id. at 44. One day before fact discovery was due to close, the parties requested a stay of proceedings for ninety days so that settlement could be pursued and acknowledged that discovery had “only just begun.” Jt. Mot. to Stay of October 27, 2014. Deadlines were suspended and a joint status report regarding settlement negotiations was required to be filed by January 26, 2015. See Order of October 29, 2014.

Defendant alleges, and plaintiff does not refute, that settlement negotiations were stymied by plaintiff’s failure to present a settlement offer containing the supporting information requested by the government. Defendant’s counsel, Mr. Douglas Hoffman, repeatedly asked for a sufficiently-supported settlement offer from plaintiff but none was forthcoming. Mr. Hoffman’s emails of November 19, 2014, January 22, 2015 and January 23, 2015 eventually produced a request from plaintiff for additional time to prepare a settlement offer. Def.’s App. at 41-44. Based on plaintiff’s proposed schedule for settlement negotiations, which would not even begin until after the status report deadline set by the court, the parties moved for a sixty-day extension of the ninety-day stay on the day the status report was due. See Jt. Mot. of January 26, 2015.

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