Litton Business Telephone Systems, Inc. v. Schwartz

430 N.E.2d 862, 13 Mass. App. Ct. 113, 1982 Mass. App. LEXIS 1178
CourtMassachusetts Appeals Court
DecidedJanuary 28, 1982
StatusPublished
Cited by6 cases

This text of 430 N.E.2d 862 (Litton Business Telephone Systems, Inc. v. Schwartz) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Litton Business Telephone Systems, Inc. v. Schwartz, 430 N.E.2d 862, 13 Mass. App. Ct. 113, 1982 Mass. App. LEXIS 1178 (Mass. Ct. App. 1982).

Opinion

Dreben, J.

In dismissing the defendants’ previous appeal on the grounds that the requirements of Mass.R.Civ.P. 54(b), 365 Mass. 821 (1974), had not been met, this court, citing Henshaw v. Travelers Ins. Co., 377 Mass. 910 (1979), ruled that no final judgment is to be entered “unless the judge who entered the orders of December 9, 1977, and October 23, 1978, shall first file with the papers an explanation of his reasons for striking the aforementioned counterclaim and defaulting both defendants rather than imposing one or more of the other sanctions available under Mass.R.Civ.P. 37(b)(2), 365 Mass. 798-799 (1974).” Litton Business Tel. [114]*114Syss., Inc. v. Schwartz, 9 Mass. App. Ct. 847 (1980). The motion judge has filed his explanation and has reaffirmed his previous orders. The defendants appeal from the default judgments entered against Arthur C. Schwartz in the amount of $28,523.81 and against National Telephone Systems, Inc., in the amount of $15,140.02.

The judge, while recognizing that the severe sanction he imposed should be “reserved to the special and extreme case,” concluded that the other sanctions provided in rule 37(b)(2), 365 Mass. 798 (1974), were inappropriate. Upon reexamination of the record at the time of the entry of his original orders, he considered that the sanctions of subparagraphs (A) and (B) of rule 37(b) (2) would, because of the “all pervasive nature of the avoided discovery . . . logically lead to the relief granted under subsection (C)” (emphasis original). Other sanctions (contempt and expenses) “would leave the plaintiff as limited in his evidentiary preparation as before and would not forward a centimeter the underlying purpose of discovery.” The judge also “exercised [his] discretion . . . conscious of the prophylactic effect of such a dismissal.”

This court has reviewed the record, giving primary emphasis, as did the judge, to the record as it existed at the time of his original orders to determine whether the judge abused his discretion. We conclude that he did not and affirm the judgments. '

Because of the seriousness of the sanctions imposed, we set forth the facts in some detail. This action was brought against Arthur C. Schwartz individually doing business “under the name Telephone Sales Company” and also against National Telephone Systems, Inc., seeking, as to each defendant, payments for telephone equipment sold and delivered to the defendants in 1975. The defendants’ answer denied that Schwartz had engaged in business as an individual, claimed that the plaintiff had been paid, and counterclaimed for abuse of process for suing the defendant individually. Shortly after the answer was filed, the plaintiff filed a notice to produce documents pursuant to Buie 34 [115]*115of the Rules of Civil Procedure, 365 Mass. 792 (1974), which sought production of correspondence, invoices and other material relating to the business transactions between the defendants and the plaintiff and other records of both defendants, including tax returns for the years 1974, 1975 and 1976. As the judge imposing the sanctions found, the plaintiff had sought material relevant both to liability and to damages.

Despite the requirements of rule 34(b), the defendants filed no response to the plaintiff’s notice to produce. Only after a motion to compel production was filed by the plaintiff did the defendants even file a brief in opposition. An order was entered by a judge on December 7, 1976,2 listing in paragraph form the documents to be produced. The defendants filed a motion for rehearing, and the plaintiff subsequently moved for entry of judgment for failure to comply with the discovery order. The judge denied the motion for rehearing on February 24, 1977. At the time of the denial, the judge, as he related in his memorandum of December 9, 1977, “indicated to counsel that judgment in favor of the plaintiff would not enter, if before March 4, 1977, the defendant complied with the earlier” order of discovery. A substantial quantity of materials (sixteen cartons) was delivered to the plaintiff, and the defendants filed a one-sentence affidavit on March 3, 1977, in which they stated, “[T]he aforesaid order has . . . been complied with in full.”

The plaintiff, however, claimed that the materials produced were not responsive to the discovery orders, and on September 23, 1977, filed a second motion for entry of judgment accompanied by three affidavits. These, particularly the affidavit of a paralegal in the office of counsel for the plaintiff, stated that examination of the documents showed that: (1) although individual account payable cards were produced, apparently one for each vendor, there was no card for Litton; (2) a four page list labeled “accounts pay[116]*116able as of 3-31-76” had no listing of Litton; (3) eighty-four pages of ledger sheets apparently listing purchases by the defendants, covering the period November, 1974, to December, 1975, included no listing for Litton; (4) the L folder was empty in a file drawer containing what appeared to be all outstanding invoices submitted by vendors, filed alphabetically, one folder for each letter of the alphabet. Most of the other folders contained numerous invoices.

The affidavit also stated that Schwartz had admitted in his deposition — not reproduced in the record appendix — that the defendants did business with the plaintiff and owed it approximately $5,000 on one of the transactions. Checks mentioned by Schwartz in his deposition were also not produced. No Federal or State tax returns for the defendant National Telephone Systems, Inc., for any of the years requested were produced, nor did the material contain a Federal tax return for Schwartz for 1976 or State tax returns for any of the years in question.

The defendants filed no counter affidavit. The only affidavit of record on behalf of the defendants was the one-sentence, conclusory affidavit of compliance filed on March 3, 1977, which had not been filed in connection with the plaintiff’s second motion for judgment.3

On December 9, 1977, the judge found that “[t]he defendants have at all times subsequent [to the December 7, 1976, and February 24, 1977, orders] failed to comply with the earlier Order of the Court and by March 4 and up to the present time had neither seriously nor reasonably responded to the Order of December 7, 1976.” He ruled that judgments by default were appropriate and should enter forthwith and that the individual defendant’s counterclaim should be dismissed. The plaintiff subsequently moved to have judgment enter for a sum certain and filed a supporting affidavit. The defendants filed numerous papers, in-[117]*117eluding a motion to vacate the “entry of default” and an affidavit by the individual defendant dated April 14, 1978. For the most part, this latter document contained assertions that Schwartz never did business individually with the plaintiff. A portion of the affidavit stated that all available and existing documents except those previously supplied at the defendant’s deposition had been produced. There was, however, no explanation as to why the material described in the plaintiff’s affidavits was missing, nor was any statement made that all such missing materials had previously been supplied at the deposition. No mention was made of income tax returns.

The judge, on October 23, 1978, denied the motion to vacate entry of the default.

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430 N.E.2d 862, 13 Mass. App. Ct. 113, 1982 Mass. App. LEXIS 1178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/litton-business-telephone-systems-inc-v-schwartz-massappct-1982.