Lyell Theatre Corp. v. Loews Corp.

91 F.R.D. 97, 32 Fed. R. Serv. 2d 341, 1981 U.S. Dist. LEXIS 13743
CourtDistrict Court, W.D. New York
DecidedAugust 4, 1981
DocketNo. CIV-71-571
StatusPublished
Cited by7 cases

This text of 91 F.R.D. 97 (Lyell Theatre Corp. v. Loews Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyell Theatre Corp. v. Loews Corp., 91 F.R.D. 97, 32 Fed. R. Serv. 2d 341, 1981 U.S. Dist. LEXIS 13743 (W.D.N.Y. 1981).

Opinion

CURTIN, Chief Judge.

This case is among the oldest on my docket. It was commenced almost a decade ago on December 16, 1971. The complaint alleges numerous antitrust violations in the sale and bidding for first and second-run movies in the Rochester, New York, area. Plaintiffs seek damages in excess of $12 million.

On March 20, 1980, defendants moved to dismiss or, in the alternative, to compel discovery. At oral argument on March 27, 1980 I referred the motion to Magistrate Edmund F. Maxwell to hear and report. The case had been before him for supervision of discovery intermittently since October 5,1977. The Magistrate filed his report on April 9, 1980. He recommends that the motion to dismiss or compel be denied but that each of the attorneys for defendants be awarded a nominal sum for their expenses in making these motions and that the discovery cutoff date as it relates to plaintiffs not be extended. The parties were given opportunity to file their objec[99]*99tions and comments. Currently before the court are defendants’ objections to the report as well as their original motion to dismiss based on Federal Rules of Civil Procedure, Rule 37. The court has also considered this as a motion to dismiss for failure to prosecute under Rule 41(b) of the Federal Rules of Civil Procedure. For the reasons which follow, the complaint will be dismissed.

LAW

The purpose of discovery has been succinctly stated as 1) to narrow the issues; 2) to obtain evidence for use at trial; and 3) to secure information about the existence of evidence. Wright and Miller, Federal Practice and Procedure, Civil § 2001. The basic philosophy of the present federal discovery procedure is that prior to trial, every party to a civil action is entitled to the disclosure of all relevant information in the possession of any person, unless the information is privileged. Id. See also, 4 Moore’s Federal Practice § 26.02[2]. Consequently, the discovery process can be seen as a supplement to the ancient pleading process. It was designed to prove an expedient alternative to what had often been prolonged pleading abuse. Nonetheless, discovery practice .has not always been as quick and efficient as its authors intended. See generally, W. D. Brazil, Civil Discovery: Lawyers’ Views of its Effectiveness, [1980] Amer.Bar Found. Res.Jrnl. 787.

Under Rule 37, the courts have an arsenal to assure discovery against the obfuscating or reluctant party. See, e. g., National Hockey League v. Metropolitan Hockey Club, 427 U.S. 639, 96 S.Ct. 2778, 49 L.Ed.2d 747 (1974); Cine Forty-Second Street Theatre Corporation v. Allied Artists Pictures Corporation, 602 F.2d 1062 (2d Cir. 1979). Severe sanctions may issue for failure to obey an order to permit discovery. Rule 37(b)(2). The rules are flexible in this respect. Under Rule 37(b) the court shall make such orders “as are just.” The Advisory Committee’s notes explain that Rule 37 provides generally for sanctions against parties or persons “unjustifiably resisting discovery.” Federal Rules of Civil Procedure, 48 F.R.D. 487, 538 (1970).

Under Rule 41(b) the courts have another weapon against the unwilling litigant, beyond sanctions which can be employed only to resolve discovery problems. Societe Internationale v. Rogers, 357 U.S. 197, 207, 78 S.Ct. 1087, 1093, 2 L.Ed.2d 1255 (1958). Failure to comply with a court order is a separate basis for dismissal. Dismissal is particularly appropriate under Rule 41(b) where there has been a willful failure to prosecute on the part of the litigant himself. Chira v. Lockheed, 634 F.2d 664 (2d Cir. 1980). For example, where there has been complete intransigence in the face of a clear-cut order, Chira, supra at 666, or where there has been a total failure to prosecute and to complete discovery as directed, Ali v. A & G Company, Inc., 542 F.2d 595 (2d Cir. 1976), the sanction of dismissal has been permitted. See also Taub v. Hale, 355 F.2d 201 (2d Cir.), cert. denied, 384 U.S. 1007, 86 S.Ct. 1924, 16 L.Ed.2d 1020 (1966). Gross professional negligence — that is, where counsel clearly should have understood his duty to the court — may also constitute an adequate basis for ordering the ultimate sanction. Cine, supra at 1068.

The court should look to the overall conduct of the litigation before imposing any sanction, particularly one so harsh as dismissal. Ali, supra, (court referred to three separate “delinquencies.”) However, if the lesser remedies are inadequate in a given case, or if the client was an active participant in or an instigator of his attorney’s misconduct, the court has the “open authority to dismiss the case.” Ali, supra.

In short, while the sanction of dismissal cannot be imposed lightly, it is available to the court to ensure the smooth and fair operation of discovery. “Without adequate sanctions, the procedure for discovery would be ineffectual.” Wright and Miller, Federal Practice and Procedure, Civil § 2281. If the overall conduct of the litigation reflects willfulness, bad faith, gross negligence, or any other fault of the party rather than inability to comply, then the [100]*100sanction of dismissal is warranted. See generally, Wright and Miller, Federal Practice and Procedure, Civil §§ 2284, et seq.

BACKGROUND

The events leading up to the instant motion to dismiss can only be understood in light of the long history of abuse in this case.

The case was initially filed in 1971 and assigned to the Honorable Harold P. Burke in Rochester. The parties engaged in a variety of discovery activities until roughly 1972. Beginning in 1973, however, very little took place. For example, in 1974, the sole entry on the docket sheet was the first of what were to be several withdrawals of appearance of the attorneys for the plaintiffs and replacements by others. With the entry of the new attorneys in 1975, additional discovery took place. However, in July of 1975, the progress of this case came to a sudden and absolute halt.

At about this time, the plaintiffs’ then counsel advised the Magistrate:

I am unable at this time to estimate when the Rochester action might be ready for trial because of the large volume of pre-trial discovery work that remains to be done. I assure you, however, that I will progress it with reasonable diligence.

Despite this assurance, plaintiffs took virtually no action in this case for the next two years. See letter from Frederick M. Lavin, dated June 11, 1975 to the Magistrate.

According to the docket, nothing took place in 1976 at all. In fact, there was no activity until July of 1977.

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91 F.R.D. 97, 32 Fed. R. Serv. 2d 341, 1981 U.S. Dist. LEXIS 13743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyell-theatre-corp-v-loews-corp-nywd-1981.