Lawson v. Black Diamond Coal Mining Co.

86 P. 1120, 44 Wash. 26
Washington Supreme Court·Decided September 25, 1906·No. No. 6129·Published·Cited by 18 cases

Opinion

Rudkin, J.

The complaint in this action alleges that the plaintiff and his assignors rendered and performed services, at the special instance and request of the defendant, in securing a purchaser for certain coal mines and other properties owned by the defendant in King county; that by and through such services, the Pacific Coast Company, a corporation, was induced to purchase said property for the sum of. $1,100,000; that the defendant' received and accepted the benefit of the services so performed by the plaintiff and his assignors, and sold and delivered said properties to the Pacific Coast Company, receiving the sum of $1,100,000 in payment therefor, and that the reasonable and agreed value of the services so performed is five per cent of the sum for which said properties sold, or $55,000, no part of which has been paid. The answer admits the sale of the properties to the Pacific Coast Company, and the price for which the same were sold, but in substance denies the remaining allegations of the complaint.

The action was commenced and the complaint filed on July 13, 1904. The answer was filed on the 16th day of November, 1904. On November 22, 1904, the plaintiff propounded interrogatories to the defendant to the number of eighteen, for the discovery of facts and documents materia] to the support of the action. On December 12, 1904, a motion was interposed by the defendant to strike each and all of these interrogatories. This motion was denied on January 18, 1905, and the defendant was allowed ten days to further answer. March 20, 1905, answers to the interrogatories were filed, and bn March 25, 1905, the plaintiff [31]*31moved the court to strike certain of the answers and to require the defendant to answer the interrogatories more specifically in certain particulars specified in the motion. This motion was argued and submitted on the 23d day of April, 1905, and on the 18th day of May, 1905, the court announced its ruling, in the absence of the parties, granting the motion, but no time was fixed within which further answers should be made. October 17, 1905, the plaintiff filed a motion to strike the answer of the defendant and for judgment according to the prayer of the complaint, for failure to answer the interrogatories propounded to it. A hearing was had on this motion October 21, 1905, and the motion was granted, the answer stricken, and the default of the defendant declared and entered. On the 3d day of November, 1905, judgment was entered against the defendant according to the prayer of the complaint, without the taking of proof. From this judgment the defendant appeals.

The interrogatories in question were propounded under Bal. Code,'§ 6009 (P- O. § 969), which provides as follows:

“Instead of the examination being had at the trial, as provided by the last section, the plaintiff, at the time of filing his complaint or afterwards, and the defendant, at the time of filing his answer or afterwards, may file in the clerk’s office interrogatories for the discovery of facts and documents material to the support or defense of the action, to be answered on oath .by the adverse party.”

The answer was stricken and judgment taken by default, under Bal. Code, § 6013 (P. C. § 973), which provides as follows:

“If a party refuse to attend and testify at the trial, or to give his' deposition, or to answer any interrogatories filed, his complaint, answer or reply may be stricken out, and judg: ment taken against him, and he may also, in the discretion of the court, be proceeded against as in other cases for a contempt: Provided, That the preceding sections shall not be construed so as to compel any person to answer any question when cuch answer may tend to criminate himself.”

[32]*32The appellant earnestly insists that § 6013, supra, deprives it of its property without due process of law, in violation of § 1 of the Fourteenth Article of Amendments to the constitution of the United States. If the statute be construed as authorizing the striking of the answer and the taking of judgment by default, for failure to answer interrogatories,, solely as a punishment for contempt, and without any regard to the substance of the interrogatories or the nature of the discovery sought, this objection would seem to be well taken. McVeigh v. United States, 11 Wall. 259, 20 L. Ed. 80; Winsor v. McVeigh, 93 U. S. 274, 23 L. Ed. 914; Hovey v. Elliott, 167 U. S. 409, 17 Sup. Ct. 841, 42 L. Ed. 215. If, on the other hand, the refusal of a party to attend and testify at the trial, or to give his deposition, be treated as an implied admission of the facts at issue on his part, the same as a failure to deny the allegations of a pleading, we think the statute is free from constitutional objection. From a party’s refusal to testify it may well be presumed that, if his testimony were given, it would sustain the cause of action or defense of his adversary, and we think that this is a presumption the law and the courts have a right to indulge. On the same principle, the refusal of a party to answer interrogatories may be treated as an implied admission of the facts in relation to which a discovery is sought. But, if there are numerous issues in a case, and a discovery is sought only as to one of these issues, the striking of the answer and the taking of judgment on all the issues, for failure to make discovery as to one, can only be justified on the theory that the judgment is given as a punishment for the failure to make discovery, and it may ivell be doubted whether such a proceeding can be-sustained under the authorities above cited.

Assuming that the statute is valid, however, even if construed contrary to the above views, we are still satisfied that a party invoking its penalty must show that his adversary has failed to make discovery of facts material to the support [33]*33of the action or defense. To illustrate: The fourth, fifth and sixth interrogatories propounded in this case make inquiry as to the number of shares of stock in the appellant corporation, the name, residence and number of shares owned by each stockholder, and the transfers made between the time the alleged contract was entered into between the plaintiff and his assignors and the appellant corporation, and the time of the sale to the Pacific Coast Company. Ordinarily, in a personal action against a corporation for the recovery of a money judgment, such inquiries are wholly irrelevant, and it would surely not be contended that a failure to make a discovery as to such facts would warrant the striking of the answer and the entry of a judgment by default, unless something further were shown. In the light of this rule, let us examine the interrogatories, the answers to which are claimed to be insufficient and to warrant the ruling of the court below.

The 8th, 9th, 10th, 11th, 13th, 14th No. 1, 14th No. 2, and 15th interrogatories inquire as to negotiations between D. O. Mills, or any one on his behalf, or on behalf of the appellant corporation, with James J. Hill, or any one on his behalf, or any officer, stockholder, or person interested in or representing the Pacific Coast Company, looking to a sale of the properties in question to the Pacific Coast Company; as to any offers made by D. O. Mills, or any person on his behalf, or any person having an interest in the appellant corporation, to sell said properties to the Pacific Coast Company; as to any offers made by James J.

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Lawson v. Black Diamond Coal Mining Co., 86 P. 1120, 44 Wash. 26 (Wash. 1906).

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