Kearney v. Foley & Lardner, LLP

582 F.3d 896, 2009 U.S. App. LEXIS 20950, 2009 WL 2973224
Procedural entryThis page is a short order in Kearney v. Foley & Lardner, LLP. Read the opinion of the Court — 590 F.3d 638
Court of Appeals for the Ninth Circuit·Decided September 18, 2009·No. 15-16953·Published

Opinion

ORDER

The Opinion filed on May 12, 2009, is amended as follows: on the slip opinion at page 5653, insert a semicolon following “Marshall.” At page 5658, place a period after “we affirm the district court” and delete the balance of the sentence. On page 5672, delete section “a. Spoliation of Evidence” and replace it with:

a. Spoliation of Evidence

Spoliation of evidence is the “destruction or significant alteration of evidence, or the failure to preserve property for another’s use as evidence, in pending or future litigation.” 5 Hernandez v. Garcetti, 68 Cal.App.4th 675, 680, 80 Cal.Rptr.2d 443 (1998). However, Kearney’s claims do not allege the destruction of or failure to preserve evidence, but instead contend that Appellants delayed in creating a written version of the evidence.

California courts have historically tried to limit the scope of this tort (to the point of nearly eradicating it), looking to policy concerns as well as the existence of other remedies to support those limits. See Cedars-Sinai Med. Ctr. v. Sup.Ct., 18 Cal.4th 1, 74 Cal.Rptr.2d 248, 252, 254-56, 954 P.2d 511. To the extent the tort continues to exist in California to address spoliation a party did not or could not have known about prior to the end of litigation, 6 reading Hernandez’s description of spoliation broadly enough to include this case would be out of step with that limiting principle. Furthermore, other remedies are available. The California Penal Code better describes the kind of conduct here, punishing criminally anyone who knows that a thing is about to be produced in evidence for a trial and then conceals it to keep it from being produced. See CaLPenal Code § 135; see Cedars-Sinai, 74 Cal.Rptr.2d at 254, 954 P.2d 511 (describing § 135 as an effective deterrent against wrongful conduct). The State Bar of California also could impose sanctions on Appellants. See Cedars-Sinai, 74 Cal.Rptr.2d at 255, 954 P.2d 511. Finally, we note that this opinion leaves Kearney with another avenue for relief: her federal RICO claims against Appellants based on roughly the same conduct. Because “[w]e may affirm the dismissal on any ground supported by the record” and Kearney’s complaint was not legally sufficient to sustain a favorable judgment on the claim for spoliation of evidence, see Navellier v. Sletten, 29 Cal.4th 82, 88-89, 124 Cal.Rptr.2d 530, 52 P.3d 703 (2002), we affirm the district court’s decision to strike this claim. 7

On page 5674, paragraph one: attach this sentence to the previous paragraph, place a period after “we affirm the district court,” and delete the remainder of the sentence. With these changes, Appellees’ petition for rehearing is DENIED.

*901 OPINION

EZRA, District Judge:

Joan Kearney (“Kearney”) appeals the district court’s dismissal of the federal and state law claims she filed against a representative of the Ramona Unified School District (“RUSD”) and the law firm that represented RUSD (collectively “Defendants”) in an earlier eminent domain proceeding regarding her property. We have jurisdiction pursuant to 28 U.S.C. § 1291. As to Kearney’s federal law claims, we vacate the district court’s judgment and remand so that those claims may be heard. As to Kearney’s state law claims, we affirm the district court.

I. Background

A. Events Leading Up to the State Valuation Trial

We must begin, not with the case at hand, but with the earlier eminent domain proceedings from which Kearney’s current claims arose.

Kearney is the former owner of a 52.06-acre parcel of property in Ramona, California. In June of 2000, RUSD initiated the condemnation process for that property. Pursuant to that, it hired Construction Testing & Engineering, Inc. (“CTE”) to conduct a septic system assessment, including percolation testing, of Kearney’s land and then issue a report with the results. Those results would reveal the number of residential lots the land could support, and thus determine the land’s value.

CTE entered the property on December 12, 2000. On December 13, Kearney wrote RUSD that it must obtain her approval first. Two days later, Gregory Moser, of Foley & Lardner, LLP, replied on behalf of RUSD, requesting consent to enter to conduct percolation testing in exchange for a copy of the report generated. On December 26, Kearney’s attorney responded, making disclosure of the report a condition of Kearney’s consent. In late January and early February 2001, CTE completed its percolation testing. It did not prepare a formal report of the results.

In response to Kearney’s March 2001 discovery request, RUSD produced no test results. Other documents produced suggested testing had been done. In his October 2001 deposition, Michael McCarty, RUSD’s then-Business Manager, told Kearney’s attorney that he thought testing had been done. Nonetheless, no results were produced.

B. The Valuation Trial and Subsequent Appeals

The trial to determine the property’s value lasted from April 29 to May 9, 2002. Kearney’s expert testified that, based on the percolation tests performed on the property in 1996, the parcel could support up to sixteen residential lots, giving it a total value of $1.4 million. RUSD’s expert appraised the property at $850,000, based on her understanding that it could support six to eight lots. Larry Marshall (“Marshall”), one of RUSD’s attorneys, said in trial that no new percolation testing had been performed. The jury awarded Kearney $953,000 in compensation.

It was only after the trial that Kearney learned from a school expense itemization report that percolation testing had actually been performed. But even then, her May 2002 California Public Records Act (“CPRA”) request for documents obtained no results. RUSD said it did not possess anything that had not been provided during discovery. It also said that, to the extent any documents existed in the offices of professionals it employed, the documents were exempt from CPRA. Kearney moved for a new trial based on the itemization report. The state trial court denied the motion. Kearney appealed.

*902 While that appeal was pending, Kearney made another CPRA request and exchanged letters with Marshall. In one of these, Marshall said RUSD would waive its CPRA exemption. On November 12, 2002, it produced a copy of the testing results, saying the document had never been in RUSD’s possession and was obtained after the trial.

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Kearney v. Foley & Lardner, LLP, 582 F.3d 896, 2009 U.S. App. LEXIS 20950, 2009 WL 2973224 (9th Cir. 2009).

582 F.3d 896 (Kearney v. Foley & Lardner, LLP) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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