International Brotherhood of Electrical Workers Local No. 181 v. Casatelli Electric, Inc.

168 F.R.D. 130, 1996 U.S. Dist. LEXIS 11664, 1996 WL 450265
CourtDistrict Court, N.D. New York
DecidedAugust 2, 1996
DocketNo. 94-CV-0008 (RSP/GJD)
StatusPublished

This text of 168 F.R.D. 130 (International Brotherhood of Electrical Workers Local No. 181 v. Casatelli Electric, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Brotherhood of Electrical Workers Local No. 181 v. Casatelli Electric, Inc., 168 F.R.D. 130, 1996 U.S. Dist. LEXIS 11664, 1996 WL 450265 (N.D.N.Y. 1996).

Opinion

ORDER

POOLER, District Judge.

Plaintiffs—a union, various benefit funds, and the Central New York Joint Apprenticeship and Training Committee for the Electrical Industry—sued defendants Casatelli Electric, Inc. (“Casatelli”), William and Alberta Brittelli, D.C. Electric (“D.C.”), and Reliance Insurance Company of New York.1 In addition to other relief, plaintiffs seek to recover fringe benefit contributions, union dues, and vacation monies that Casatelli allegedly owes for September through October 1992 and . October 1992 through March 1993. The plaintiffs allege that the Brittellis were the sole shareholders in Casatelli and dominated its affairs for their own personal ends. Plaintiffs therefore seek to pierce the corporate veil and recover against the Brittellis. Plaintiffs also allege that the Brittellis transferred Casatelli’s assets to D.C. and that D.C. is Casatelli’s alter ego or successor and therefore liable for Casatelli’s debts to the plaintiffs.

On November 11, 1994, plaintiffs served their first set of interrogatories and request for production of documents which contained 102 interrogatories, the majority of which had several subparts. During a telephone conference, Magistrate Judge Gustave J. Di Bianco requested that plaintiffs justify their requests and that defendants cite specific objections. Dkt. No. 23. In response, plaintiffs served an amended request to produce and stated that if defendants produced the requested documents, plaintiffs would withdraw Interrogatories 3 through 18, 20 through 33, 35, 41, 42, 47 through 49, 51, 57, 59 through 73, 76 through 78, 84, 85, 87, 89 through 92, and 98 through 102. Dkt. No. 26, Objections to Magistrate’s Order and Supplemental Order (“Objections”) Ex. C at 1-2. Notwithstanding their offer to withdraw these interrogatories, plaintiffs maintained that all of the information requested in the interrogatories was relevant and nec[132]*132essary and that plaintiffs were entitled to explore the areas covered by the withdrawn interrogatories in depositions. Id. at 1-2. Rather than explaining the relevance of particular interrogatories, plaintiffs insisted generally that all were relevant to either piercing the corporate veil or establishing that D.C. was a successor corporation to Casatelli. Id. at 5.

On March 30, 1995, Magistrate Judge Di Bianco issued an order in which he found that plaintiffs discovery requests although generally relevant were “excessive at this point in the litigation ... [b]ecause it is not yet clear whether any facts support plaintiffs’ allegations that D.C. and the Brittellis should be liable for Casatelli’s debts.” Dkt. No. 24 (“Order”) at 3. Magistrate Judge Di Bianco therefore laid down a set of guidelines for defendants in producing documents and answering interrogatories. Specifically, the magistrate judge ruled that (1) defendants need produce only documents created by or in the possession of D.C. or Casatelli; (2) defendants must answer only those interrogatories directed to D.C. or Casatelli; (3) defendants’ obligation for the production of documents generated on an ongoing basis (e.g. balance sheets and financial statements) was limited to those created on or after the later of January 1, 1990, or the inception of Casatelli’s business; (4) defendants’ obligation to answer interrogatories was limited to events occurring after the later of January 1, 1990 or the inception of Casatelli; and (5) defendants need answer interrogatories or produce documents concerning equipment only if the purchase price exceeded $500 and concerning personal property only if the purchase price exceeded $1,000. Order at 4. In addition, the magistrate judge found certain requests and interrogatories to be cumulative and/or irrelevant, limited others, and required redrafting of one interrogatory. Id. at 4-5. Finally, the magistrate judge gave plaintiffs leave to seek additional discovery based on an appropriate factual showing. Id. at 5.

In a supplemental order filed April 6,1995, the magistrate judge (1) prohibited plaintiffs from inquiring into areas at depositions that he had previously disallowed with respect to interrogatories; (2) found additional document requests to be cumulative, irrelevant, overbroad, or vague; and (3) directed the defendants to respond to document requests not explicitly addressed in his original order consistent with the general limitations described in that order. Dkt. No. 25 (“Supplemental Order”) at 1-2.

Plaintiffs filed objections to the Order and Supplemental Order, see dkt. no. 26, but also sought reconsideration from the magistrate judge. Magistrate Judge Di Bianco denied reconsideration, noting once again that the Order and Supplemental Order “left open the possibility of plaintiffs obtaining further discovery at a later date if necessary.” Dkt. No. 28 (“Order Denying Reconsideration”) at 4. The magistrate judge explained that “[i]n its prior Orders, this court balanced plaintiffs’ need for relevant information with Congress’ desire to reduce unnecessary litigation expenses by allowing plaintiffs enough discovery to make an educated assessment as to the legal viability of their claims.” Id. Plaintiffs then filed renewed objections to the Order Denying Reconsideration, Supplemental Order, and Order. See Dkt. No. 29. Defendants have filed a memorandum in opposition to plaintiffs’ objections and assert a claim to attorney’s fees. See Dkt. No. 30

DISCUSSION

I. Standard

I may modify or set aside a nondispositive order made by the magistrate judge only if it is clearly erroneous or contrary to law. 28 U.S.C. § 636(b)(1)(A); Fed. R.Civ.P. 72(a). Discovery orders ordinarily are non-dispositive. Thomas E. Hoar, Inc. v. Sara Lee Corp., 900 F.2d 522, 525 (2d Cir.), cert. denied, 498 U.S. 846, 111 S.Ct. 132, 112 L.Ed.2d 100 (1990). The magistrate judge’s Order, Supplemental Order, and Order Denying Reconsideration are clearly nondispositive. Therefore, I may alter them only if they are clearly erroneous or contrary to law.

II. The General Guidelines

Plaintiffs seek changes to both the general guidelines set by Magistrate Judge [133]*133Di Bianco and Ms specific ruiings. I first consider plaintiffs’ objections to the general guidelines, see Dkt. No. 26, Objections 1, 2, and 3. The magistrate judge has clearly indicated that plaintiffs are not forever precluded from seeking information outside the scope of the guidelines. Order Denying Reconsideration at 3. Instead, as intended by the framers of the Civil Justice Reform Act of 1990, the magistrate judge has weighed possible relevance against cost and time considerations by limiting the scope of the first phase of discovery while allowing for the possibility of a second phase after plaintiffs have had the opportuMty to make an educated assessment of their ease. Id. at 3 (citing S.REP. NO. 101-416, 101st Cong., 2d Sess. 14 (1990 U.S.Code Cong. & Admin.News 1990, pp. 6802, 6816)). Plaintiffs suggest no basis upon wMch this deferral of potentially relevant discovery could be found clearly erroneous or contrary to law. I therefore reject Objections 1 through 3.

III. Specific Objections

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168 F.R.D. 130, 1996 U.S. Dist. LEXIS 11664, 1996 WL 450265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-brotherhood-of-electrical-workers-local-no-181-v-casatelli-nynd-1996.