Jorge v. Atlantic Housing Foundation Inc

District Court, N.D. Texas·Decided October 7, 2022·No. 3:20-cv-02782·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

ANITA JORGE, BETHELLINE § SCHAEFER, TRINA BARRY, § individually and on behalf of others § similarly situated, § § Plaintiffs, § § No. 3:20-cv-2782-N V. § § ATLANTIC HOUSING § FOUNDATION, INC. and MICHAEL § NGUYEN, § § Defendants. §

MEMORANDUM OPINION AND ORDER1 Defendants Atlantic Housing Foundation, Inc. (“AHF”) and Michael Nguyen (“Defendants”) filed a Motion to Compel, for Sanctions, and for Attorneys’ Fees [Dkt. No. 172 (the “MTC”)], “seeking an order to: (A) compel Plaintiffs to respond to discovery, (B) compel Plaintiffs to provide disclosures, verifications, and produce documents, (C) sanction Plaintiff Tamara Canzater for failure to appear for her deposition and to compel her to appear at a deposition prior to the discovery deadline, (D) sanction Plaintiffs and/or their counsel for failure to respond to interrogatories, and (E) award fees to Defendants’ counsel for having to bring this Motion.” Dkt. No.

1 Under § 205(a)(5) of the E-Government Act of 2002 and the definition of Awritten opinion@ adopted by the Judicial Conference of the United States, this is a Awritten opinion[] issued by the court@ because it Asets forth a reasoned explanation for [the] court’s decision.@ It has been written, however, primarily for the parties, to decide issues presented in this case, and not for publication in an official reporter, and should be understood accordingly. 172 at 1. The Court granted the MTC and explained that Defendants assert that “Plaintiffs must be required to pay Defendants’ expenses for having to bring this [MTC], including attorneys’ fee if the Motion is granted or any of the discovery sought herein is provided after this Motion is filed” under Federal Rule of Civil Procedure 37(a)(5(A)”; that Defendants’ counsel has been attempting to secure much of the discovery requested in this Motion since at least October 2021, to no avail”; that, “[i]n response, Plaintiffs’ counsel repeatedly stated that the discovery would be provided (often within days) and repeatedly failed to follow through”; that “[i]t is only after attempting to secure the discovery for months that Defendants filed this [MTC] seeking the Court’s assistance”; and that “Defendants respectfully request that the Court award them at least $4,700 for ten hours of attorney time spent between February 11-16, 2022 in reviewing discovery requests and responses from the 16 Plaintiffs, reviewing correspondence with counsel since mid- 2021, conducting research, and drafting the Motion, this brief, the declarations, and assembling the Appendix.” Dkt. No. 173 at 8-9 (cleaned up). Defendants request as relief that the Court order that “Defendants are awarded attorneys’ fees in the minimum amount of $4,700 for having to bring this Motion, to be paid within five (5) days of the Court’s Order granting this Motion.” Id. at 10. Federal Rule of Civil Procedure 37(a)(5)(A) provides that, if a motion to compel is granted, or if the requested discovery is provided after the motion was filed, "the court must, after giving an opportunity to be heard, require the party ... whose conduct necessitated the motion, the party or attorney advising that conduct, or both to pay the movants reasonable expenses incurred in making the motion, including attorney’s fees," except that "the court must not order this payment if: (i) the movant filed the motion before attempting in good faith to obtain the disclosure or discovery without court action; (ii) the opposing party’s nondisclosure, response, or objection was substantially justified; or (iii) other circumstances make an award of expenses unjust." FED. R. CIV. P. 37(a)(5)(A). Federal Rule of Civil Procedure 37(a)(5)(A) requires the Court to order payment of the movant’s reasonable expenses in making a motion to compel, including payment of attorneys’ fees, when a motion to compel is granted. See id. But Rule 37(a)(5)(A) also requires the Court must give Plaintiffs and their counsel an opportunity to be heard as to an award of fees and expenses and provides three exceptions under which the Court must not order payment of the movant’s fees and expenses. See FED. R. CIV. P. 37(a)(5)(A)(i)-(iii). The Court finds that Defendants filed their MTC only after attempting to obtain the discovery without court action. But the Court will grant Plaintiffs and their counsel an opportunity to, by May 8, 2022, file a response explaining why the Court should not award expenses under Rule 37(a)(5)(A) – specifically, requiring Plaintiffs and/or their counsel pay Defendants their reasonable attorneys’ fees incurred in preparing and filing their MTC, appendix (including supporting declarations), and reply in support – and to fully explain whether either of the other two exceptions applies, specifically, whether Plaintiffs’ and their counsel’s failures to respond to discovery and serve their required disclosures and the other failures discussed in this order were “substantially justified” or whether other circumstances make an award of expenses under Rule 37(a)(5)(A) unjust. If Plaintiffs file this response, Defendants may, by May 22, 2022, file a reply in support of an award under Rule 37(a)(5)(A) of their reasonable attorneys’ fees in preparing and filing their MTC, appendix (including supporting declarations), and reply in support.

Dkt. No. 190 at 17-20. After further briefing as directed, the Court entered an Electronic Order explaining that, [a]fter carefully reviewing the parties’ briefing, the Court finds that Plaintiffs’ and their counsel’s failures to respond to discovery and serve their required disclosures and the other failures discussed in the April 11, 2022 Memorandum Opinion and Order [Dkt. No. 190] -- other than those resolved by the Agreed Order [Dkt. No. 192] regarding fees signed by the parties -- were not substantially justified and that other circumstances do not make an award of expenses under Federal Rule of Civil Procedure 37(a)(5)(A) unjust. Plaintiffs do not argue that their failures were substantially justified. And, as Defendants Atlantic Housing Foundation, Inc. and Michael Nguyen persuasively argue in reply [Dkt. No. 200], the Court is not persuaded that imposing an award of fees to be paid, jointly and severally, by Plaintiffs and their counsel would be unjust because, as Plaintiffs argue, "(1) the issues of the insufficiency of the oath of five Plaintiffs were brought up with the first time in the motion, (2) Plaintiff Barry did not fail to verify her interrogatory responses and this was an error by Defendants, (3) [] disclosures were provided by the initial seven Plaintiffs, (4) [] Defendants’ disclosures do not comply with Rule 26(a), (5) [] the issues surrounding Defendants’ requests for relevant documents was general and non-specific to where both defense counsel and Plaintiff’s counsel acknowledged the need to review their own deposition notes on February 4, and (6) the request to comply with the February 8 order came only 8 days after its issuance and Plaintiffs and Defendants never discussed the issue warranting it being part of the Motion to Compel." Dkt. No. 194 at 4. First, Plaintiffs’ failures are not excused by any alleged deficiencies in Defendants’ responses to Plaintiffs’ discovery requests, see Lopez v. Don Herring Ltd., 327 F.R.D. 567, 581 (N.D. Tex. 2018), and neither would any such alleged failures make a Rule 37(a)(5) award unjust under the circumstances.

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Jorge v. Atlantic Housing Foundation Inc, (N.D. Tex. 2022).

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