Insulation Unlimited, Inc. v. Two J's Properties, Ltd.

705 N.E.2d 754, 95 Ohio Misc. 2d 18, 1997 Ohio Misc. LEXIS 356
CourtMiami County Court of Common Pleas
DecidedNovember 26, 1997
DocketNo. 97-324
StatusPublished
Cited by3 cases

This text of 705 N.E.2d 754 (Insulation Unlimited, Inc. v. Two J's Properties, Ltd.) is published on Counsel Stack Legal Research, covering Miami County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Insulation Unlimited, Inc. v. Two J's Properties, Ltd., 705 N.E.2d 754, 95 Ohio Misc. 2d 18, 1997 Ohio Misc. LEXIS 356 (Ohio Super. Ct. 1997).

Opinion

JEFFREY M. Welbaum, Judge.

This matter came on for the court’s consideration upon the motion of defendants for a protective order filed October 22, 1997. On October 24, plaintiff filed its memorandum in response. Plaintiff filed a supplemental memorandum on November 14, to which defendants responded on November 17.

[21]*21Plaintiff, Insulation Unlimited, Inc., brings an action for money damages premised on various claims stemming from an account for services. It states that it repaired a roof at a building located at 125 Clark Avenue, Piqua, Ohio, from October 29, 1995 until the spring of 1996. In its memorandum and supplemental memorandum, plaintiff outlines and displays by a chart an elaborate series of transactions involving various corporations. According to the information stated in the pleadings and alleged in the memoranda, these transactions allegedly involve entities in which the individually named Scarbrough defendants were, in various respects, controlling shareholders, officers, directors, or members. These transactions, subsequent to the contract and roof repair, are alleged to consist of corporate dissolutions, total asset transfers to new corporations or entities, recorded and unrecorded mergers, spinoffs, name changes, and possible assumptions of liability. Plaintiff first contends that the depositions are necessary to ascertain who has the obligation to pay the underlying obligation in the event that it is proven. Second, plaintiff states that it needs to know whether the responsible parties have taken intentional steps through corporate manipulations to render themselves judgment-proof.

Plaintiff claims that it needs to depose James Scarbrough, John D. Scarbrough, Jr., and John D. Scarbrough, Sr. as individual defendants and in their capacity as corporate officers and directors of several of these corporations to ascertain this information. Plaintiff states that it has offered to enter into a stipulation as to which defendant would be responsible for paying and escrowing the funds for payment of the judgment in the event plaintiff is successful on the merits, but the defendants have refused.

Defendant MVWE, f.k.a. Piqua Waste Equipment, Inc., admits that it entered into the contract with plaintiff and filed a counterclaim alleging breach of contract and defective and negligent workmanship. However, plaintiff has expressed its need to know information regarding whether MVWE is the proper party responsible for the obligation for purposes of collection of the judgment.

The defendants give several bases to support their contention that they should be granted a protective order as to oral depositions. In essence, the defendants claim that since John D. Scarbrough Sr. and James Scarbrough have never had any contact with plaintiff, attempts to gather information from them is frivolous and the lawsuit is frivolous. They state through their foregoing filings and by their answer and counterclaim that the information concerning this transaction is known only by John D. Scarbrough, Jr., who entered into the contract with plaintiff as an officer of defendant MVWE, f.k.a. defendant Piqua Waste Equipment, Inc. Therefore, they contend that plaintiff is interested not so much in discovering information regarding the corporate defendants as in subjecting the [22]*22Scarbrough defendants to annoyance, embarrassment, oppression, and undue burden. Grafted onto this argument is that the information sought is irrelevant.

Defendants John D. Scarbrough Jr. and Sr. give additional grounds in support of their motion. John D. Scarbrough, Jr. states that he resides in Jensen Beach, Florida, and should not be required to appear here to attend his deposition. He informed plaintiff that he would be here for six days in November and agreed to attend his deposition on the condition that the other Scarbrough defendants were not required to do so. He states that this offer was. refused because plaintiffs wanted to depose all three of the Scarbrough defendants. He was not served with a notice to take his deposition concerning the time he was in this county. Presumably, he has left the county and is presently in Mexico on business as he indicated he would be in the defendants’ memoranda. Defendant John D. Scarbrough, Sr. states through the representations of his attorney that he is eighty-five years old and a deposition would be highly upsetting for him.

Plaintiff does not contend that John D. Scarbrough, Sr. and James Scarbrough know about the details of the contract. Plaintiff wants to know about the obligations owed by virtue of the contract by their various entities which possibly owned the property during the repair period or thereafter assumed the liability of the alleged obligation. It is too early to tell whether the discovery sought is frivolous, or whether the entire lawsuit is frivolous. We will not know the answers to these issues until the information is gathered and a prevailing side is determined. In the meantime, the court will attempt to protect the rights of all parties during the discovery process in accordance with legal precedent.

The first issue presented is whether these parties have met their individual burdens to demonstrate good cause justifying issuance of a protective order under Civ.R. 26(C), to prohibit plaintiffs from taking their depositions in Miami County, Ohio, as required by the notice.

Matters are exempt from discovery only if the matter is privileged or is totally irrelevant to the subject matter of the inquiry. The burden is on the objecting party to clearly show that the information sought is privileged or not relevant. Mut. of Omaha Ins. Co. v. Garrigan (1971), 31 Ohio Misc. 1, 60 O.O.2d 29, 285 N.E.2d 395. The relevancy test for purposes of discovery has been given a very liberal construction. Stokes v. Lorain Journal Co. (1970), 26 Ohio Misc. 219, 55 O.O.2d 363, 266 N.E.2d 857. The party opposing a discovery request has the burden to establish that the requested information would not reasonably lead to the discovery of admissible evidence. State ex rel. Fisher v. Rose Chevrolet, Inc. (1992), 82 Ohio App.3d 520, 612 N.E.2d 782. Plaintiff has established relevance of the information sought herein when liberally construed for purposes of discovery.

[23]*23It is the burden of the defendants as the objecting parties to clearly show that the information sought is privileged or not relevant. They have not satisfied this burden. Rather, the defendants have argued that plaintiff may attempt to obtain the same information in a less intrusive way by way of deposition of an organizational representative under Civ.R. 30(B)(5). The language of that rule provides that it “does not preclude taking a deposition by any other procedure authorized by these rules.” The rule gives the proponent of the deposition the choice of whom it will depose. It does not mandate that the organization should be given the choice of designating a representative.

A party may obtain discovery regarding any unprivileged matter that is relevant to the subject matter of the litigation. The rule comports with the policy of affording parties ample opportunity to conduct discovery. See Stegawski v. Cleveland Anesthesia Group, Inc. (1987), 37 Ohio App.3d 78, 85, 523 N.E.2d 902, 910.

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705 N.E.2d 754, 95 Ohio Misc. 2d 18, 1997 Ohio Misc. LEXIS 356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/insulation-unlimited-inc-v-two-js-properties-ltd-ohctcomplmiami-1997.