Hall v. Parsons Kinghorn Harris

CourtCourt of Appeals for the Tenth Circuit
DecidedSeptember 1, 2022
Docket20-4040
StatusUnpublished

This text of Hall v. Parsons Kinghorn Harris (Hall v. Parsons Kinghorn Harris) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Parsons Kinghorn Harris, (10th Cir. 2022).

Opinion

Appellate Case: 20-4040 Document: 010110732916 Date Filed: 09/01/2022 Page: 1 FILED United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit

FOR THE TENTH CIRCUIT September 1, 2022 _________________________________ Christopher M. Wolpert Clerk of Court ELLIS-HALL CONSULTANTS, LLC, a Utah limited liability company; ANTHONY HALL, an individual,

Plaintiffs,

v.

GEORGE B. HOFMANN, IV, an individual; PARSONS KINGHORN HARRIS n/k/a COHNE KINGHORN, P.C., a Utah professional corporation; MATTHEW M. BOLEY, an individual; Nos. 20-4040, 20-4041, 20-4045 KIMBERLEY L. HANSEN, an individual; (D.C. No. 2:12-CV-00771-DB) GARY E. JUBBER, an individual; and (D.C. No. 2:15-CV-00913-DB) DAVID R. HAGUE, an individual; (D. Utah) FABIAN & CLENDENIN n/k/a FABIAN VANCOTT, P.C., a Utah professional corporation,

Defendants,

consolidated with

In re: RENEWABLE ENERGY DEVELOPMENT CORPORATION,

Debtor. ---------------------------------------

ELIZABETH R. LOVERIDGE, Chapter 7 Trustee,

Plaintiff,

TONY HALL; ELLIS-HALL Appellate Case: 20-4040 Document: 010110732916 Date Filed: 09/01/2022 Page: 2

CONSULTANTS, LLC; SUMMIT WIND POWER, LLC; SSP, A Trust, Scott Rasmussen, Trustee; CLAY R. CHRISTIANSEN, an individual; DIANE E. CHRISTIANSEN, an individual; RICHARD D. FRANCOM, an individual; STEPHEN K. MEYER, an individual; BONNIE G. MEYER, an individual; and DOES I-X,

and

SUMMIT WIND POWER, LLC; and KIMBERLY CERUTI, an individual,

Third-Party Plaintiffs – Appellants/Cross-Appellees,

PARSONS KINGHORN HARRIS, a professional corporation; GEORGE B. HOFMANN, IV, an individual; MATTHEW BOLEY, an individual; KIMBERLEY L. HANSEN, an individual; VICTOR P. COPELAND, an individual; LISA R. PETERSEN, an individual; and MELYSSA DAVIDSON, an individual,

Third-Party Defendants – Appellees/Cross-Appellants. _________________________________

ORDER AND JUDGMENT*

* After examining the briefs and appellate record, this panel has determined unanimously that oral argument would not materially assist in the determination of this appeal. See Fed. R. App. P. 34(a)(2); 10th Cir. R. 34.1(G). The case is therefore ordered submitted without oral argument. This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. But it may be cited for its persuasive value. See Fed. R. App. P. 32.1(a); 10th Cir. R. 32.1(A). 2 Appellate Case: 20-4040 Document: 010110732916 Date Filed: 09/01/2022 Page: 3

_________________________________

Before MORITZ, EBEL, and EID, Circuit Judges. _________________________________

After years of intractable litigation, defendants moved to dismiss this case under

Federal Rules of Civil Procedure 37 and 41 as a sanction for plaintiffs’ conduct during

discovery. The district court granted the motion, and plaintiffs now appeal that dismissal

order (among other rulings). For the reasons that follow, we affirm.

Background

This dispute began over a decade ago—in December 2011—when Renewable

Energy Development Corporation (REDCO), a company that develops solar- and wind-

energy products, filed for Chapter 7 bankruptcy. George Hofmann, an attorney at Parsons

Kinghorn Harris (PKH), was appointed as REDCO’s trustee. In May 2012, Hofmann

filed an adversary proceeding on REDCO’s behalf against Summit Wind Power, LLC

(SWP) and others. Two months later, SWP and its sole owner, Kimberly Ceruti (together,

plaintiffs), brought a third-party complaint asserting various claims against Hofmann,

PKH, and other PKH attorneys (collectively, defendants). Broadly, plaintiffs alleged that

defendants engaged in malpractice in connection with the REDCO bankruptcy

proceedings. Those third-party proceedings—in particular, the discovery process during

those proceedings—are now the subject of this appeal.1

As the third-party proceedings entered discovery, the parties had a difficult time

1 Three days after plaintiffs filed their third-party complaint, Hofmann resigned as REDCO trustee. The adversary proceedings eventually settled in 2014. 3 Appellate Case: 20-4040 Document: 010110732916 Date Filed: 09/01/2022 Page: 4

working cooperatively.2 In April 2017, a newly assigned district-court judge instructed

the parties at a hearing to “[g]et discovery going” and move the case forward. Supp. App.

vol. 6, 1713. To that end, the district court encouraged the parties to confer and agree on

a scheduling order. The district court also encouraged Ceruti, who has sometimes

represented herself in these proceedings, to retain an attorney. After the hearing,

defendants circulated a proposed scheduling order to plaintiffs. A month later, having not

received a response, defendants requested a hearing so that a scheduling order could be

entered. Ceruti twice objected to their request, citing a litany of reasons. Eventually,

about nine months after the district court’s initial instruction to move the case along, a

scheduling order was entered (following a hearing before a magistrate judge).

With the scheduling order in place, defendants served document requests and

interrogatories on plaintiffs. Defendants also attempted to schedule depositions with

Ceruti—SWP’s designated witness under Federal Rule of Civil Procedure Rule 30(b)(6),

which governs depositions directed to an organization. Although defendants offered SWP

several deposition dates over a two-month period, SWP informed defendants that neither

Ceruti (as its designated witness) nor SWP’s counsel was available—without providing

alternative dates. And despite an extension, Ceruti failed to timely respond to defendants’

document requests or the single interrogatory directed at her. Instead, pointing to her

status as a pro se litigant and other pending litigation, Ceruti moved to stay the district-

2 Before discovery, the defendants had unsuccessfully moved to dismiss the case under a doctrine that precludes certain lawsuits against bankruptcy trustees. That motion led to an interlocutory appeal, which was pending from December 2013 until August 2015. 4 Appellate Case: 20-4040 Document: 010110732916 Date Filed: 09/01/2022 Page: 5

court proceedings, a motion the district court denied.

Citing these difficulties with the scheduling order, the Rule 30(b)(6) deposition,

and the document requests and interrogatory, as well as Ceruti’s motion to stay,

defendants moved to dismiss Ceruti’s claims under Rule 41(b) for failing to participate in

discovery in compliance with the Federal Rules of Civil Procedure. Weighing the

relevant factors, the district court denied defendants’ motion but observed that the

circumstances of the case only “narrowly weigh[ed] against dismissal.” Supp. App. vol.

7, 2053. Agreeing with defendants, the district court attributed “significant delays” in the

case to Ceruti. Id. It noted that Ceruti’s “failure to comply with deadlines, refusal or

inability to attend hearings and schedule depositions, failure to respond to discovery

requests, and repeated attempts to stay or delay the litigation” had burdened the judicial

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