Jetson Direct Mail Services, Inc. v. Department of Labor & Industry, State Workmen's Insurance Fund

782 A.2d 631, 2001 Pa. Commw. LEXIS 621
CourtCommonwealth Court of Pennsylvania
DecidedAugust 20, 2001
StatusPublished
Cited by6 cases

This text of 782 A.2d 631 (Jetson Direct Mail Services, Inc. v. Department of Labor & Industry, State Workmen's Insurance Fund) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jetson Direct Mail Services, Inc. v. Department of Labor & Industry, State Workmen's Insurance Fund, 782 A.2d 631, 2001 Pa. Commw. LEXIS 621 (Pa. Ct. App. 2001).

Opinion

DOYLE, President Judge.

Jetson Direct Mail Services, Inc. (Jet-son) appeals from an order of the Board of Claims (Board), which granted the motion of the State Workmen’s Insurance Fund (SWIF) to dismiss Jetson’s complaint for discovery violations in accordance with Pa. R.C.P. No. 4019.

Jetson, as an employer, had been insured by SWIF for workers’ compensation liability coverage. On September 5, 1995, Jetson filed a complaint against SWIF, alleging that SWIF breached its insurance contract by mishandling workers’ compensation claims made against Jetson. Jetson contended that SWIF’s actions caused its insurance premium to skyrocket and harmed its ability to stay in business. Jet-son asked for an award of damages of $2,000,000, plus costs, interest, punitive damages, and attorney’s fees.

On March 23, 1998, the Board directed the parties to proceed to discovery. Approximately one year later, on March 18, 1999, SWIF served discovery requests on Jetson in the form of a request for the production of documents and interrogatories; Jetson’s responses were due on April 17, 1999. Jetson, however, did not respond and SWIF filed a motion to compel Jetson to comply with the discovery requests. Jetson did provide discovery responses on July 19, 1999; however, Jet-son’s answers to the interrogatories were inadequate, as the answers failed to provide the requested facts or identify documents that supported the allegations in Jetson’s complaint, and failed to identify potential witnesses. 1

On August 10, 1999, SWIF filed a motion to compel Jetson to provide more specific answers to the interrogatories. The Board granted the motion on November 12, 1999, and Jetson was given 20 days to supply more specific answers, and the Board warned Jetson that failure to comply with the order would result in the imposition of sanctions.

On December 6, 1999, Jetson submitted supplemental responses to the interrogatories. SWIF, however, concluded that the supplemental responses were again inadequate, stating that the answers provided were simply rewordings of the answers Jetson supplied on July 19, 1999. On January 27, 2000, SWIF filed a motion for sanctions and to compel the answers to the interrogatories.

By an opinion and order dated May 18, 2000, the Board granted SWIF’s motion for sanctions and gave Jetson 90 days to respond to certain of SWIF’s Interrogatories. The order additionally imposed a *633 $250 fíne, payment of which would be suspended if Jetson complied with the order within the designated time limit. Jetson, however, did not take advantage of the 90-day extension, failing to provide any supplemental discovery during that period.

On August 21, 2000, SWIF filed a motion to dismiss Jetson’s complaint as a sanction for its discovery violations. Jet-son did not respond to the motion to dismiss. Jetson, however, did send a letter to SWIF, via fax, dated October 13, 2000, in which Jetson claimed to be sending, by overnight mail, supplemental responses to interrogatories, supporting documentation and a response to the motion for sanctions. Jetson’s fax also included a photocopy of a check for $250 purported to be payment of the fine imposed by the Board on May 18, 2000, and claimed that the original would be part of the overnight package. The promised package never arrived at SWIF. On October 18, 2000, after five days had passed and the letter and documents had not been received, SWIF sent Jetson a letter informing Jetson that the documents had not been received. Jetson never responded to SWIF’s letter.

By December 6, 2000, Jetson had not served the supplemental responses, had not provided the check for $250; nor had it filed a response to SWIF’s August 21, 2000 motion to dismiss. At that time the Board issued an order and opinion granting the motion to dismiss and dismissing Jetson’s complaint with prejudice. This appeal followed.

In its appeal, 2 Jetson argues that the Board abused its discretion by granting SWIF’s motion to dismiss its claim as a sanction for discovery violations. It claims that there were sanctions available to the Board less drastic and would be a more appropriate remedy for Jetson’s discovery violations. Jetson claims that the Board failed to properly strike a balance between the discovery violations and the imposed sanction. We disagree, and find that the sanction imposed was indeed appropriate.

Proceedings before the Board are governed by the Pennsylvania Rules of Civil Procedure. 72 P.S. 4651-8 3 ; Pennsylvania Institutional Health Services, Inc. v. Department of Corrections, 167 Pa.Cmwlth. 226, 647 A.2d 692 (1994). The Rule of Civil Procedure pertaining to the *634 imposition of sanctions, Pa. R.C.P No. 4019, provides in relevant part that: a court “may, on motion, make an appropriate order if .... a party or person otherwise fails to make discovery or to obey an order of court respecting discovery,” Pa. R.C.P. No. 4019(a)(l)(viii). Further, Pa. R.C.P. No. 4019(c)(8), allows for dismissal of a case as a sanction for discovery violations:

(c) The court, when acting under subdivision (a) of this rule, may make
(8) an order striking out pleadings or parts thereof, or staying further proceedings until the order is obeyed, or entering a judgment of non pros or by default against the disobedient party or party advising the disobedience.

(Emphasis added.)

The decision to sanction a party for violating a discovery order and the severity of the sanction are both vested in the sound discretion of the trial court. Croydon Plastics Co., Inc. v. Lower Bucks Cooling & Heating, 698 A.2d 625, 629 (Pa.Super.1997), petition for allowance of appeal denied, 553 Pa. 689, 717 A.2d 1028 (1998). Due to the harshness of dismissal as a sanction, it is paramount that the court in those instances carefully balance the factors in the case to insure a just result. Id. Our Supreme Court has held that an abuse of discretion is found in instances where there is

not merely an error of judgment, but [where] if in reaching a conclusion the law is overridden or misapplied, or the judgment exercised is manifestly unreasonable, or the result of partiality, prejudice, bias or ill-will, as shown by the evidence or the record, discretion is abused.

Paden v. Baker Concrete Construction, Inc., 540 Pa. 409, 412, 658 A.2d 341, 343 (1995)(quoting Mielcuszny v. Rosol, 317 Pa. 91, 93-94, 176 A. 236, 237 (1934)).

An examination of the record reveals no abuse of discretion on the part of the Board. In its opinion, the Board described Jetson’s behavior during the course of the suit and then restated its reasons for dismissing the complaint:

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782 A.2d 631, 2001 Pa. Commw. LEXIS 621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jetson-direct-mail-services-inc-v-department-of-labor-industry-state-pacommwct-2001.