Martin v. Bimbo Foods Bakeries Distribution, LLC

313 F.R.D. 1, 93 Fed. R. Serv. 3d 1623, 2016 U.S. Dist. LEXIS 19590, 2016 WL 676377
CourtDistrict Court, E.D. North Carolina
DecidedFebruary 18, 2016
Docket5:14-CV-17-BR
StatusPublished
Cited by19 cases

This text of 313 F.R.D. 1 (Martin v. Bimbo Foods Bakeries Distribution, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin v. Bimbo Foods Bakeries Distribution, LLC, 313 F.R.D. 1, 93 Fed. R. Serv. 3d 1623, 2016 U.S. Dist. LEXIS 19590, 2016 WL 676377 (E.D.N.C. 2016).

Opinion

ORDER

James E. Gates, United States Magistrate Judge

This consolidated case comes before the court on two discovery motions: (1) a motion to compel (D.E. 71) responses to interrogatories and requests for production of documents by plaintiff John T. Martin (“plaintiff’) and (2) a motion for a protective order (D.E. 73) by defendant Bimbo Foods Bakeries Distribution, LLC (“defendant”). The motions have been fully briefed and referred to the undersigned for disposition pursuant to 28 U.S.C. § 636(b)(1)(A). (See Public D.E. 63). For the reasons set forth below, the motion to compel will be allowed and motion for protective order will be denied.

BACKGROUND

I. PROCEDURAL OVERVIEW

Plaintiff commenced the initial lawsuit (“the first lawsuit”) comprising this action in Harnett County (North Carolina) Superior Court on 8 January 2014 alleging claims arising from a distribution agreement with defendant (“the agreement”). (See Compl. (D.E. 1-1 at 1-17)). Defendant removed the case to this court on 9 January 2014. (See Removal Not. (D.E. 1)). It was assigned the number in the caption above.

On 5 February 2015, plaintiff commenced a second lawsuit (“the second lawsuit”) against defendant, again, in Harnett County Superior Court, arising from the same agreement at issue in the first lawsuit. (See 5:15-CV-96-BR (“Case 96”)1 Compl. (D.E. 1-1 at 3-16)). Defendant removed the second lawsuit to this court on 11 March 2015. (See Removal Not. (Case 96 D.E. 1)). It was assigned case no. 5:15-CV-96-BR. On 24 April 2015, the court entered an order that, among other things, consolidated the second lawsuit into the fust lawsuit and terminated the second lawsuit as a separate proceeding. (See 24 Apr. 2015 Consol. Order (D.E. 56 and Case 96 D.E. 18) 4-5,14).

II. PLAINTIFF’S ALLEGATIONS AND CLAIMS

A. First Lawsuit

Plaintiff and defendant entered into the agreement on 11 September 2006. (See Compl. ¶ 5; Distrib. Agr. (D.E. 1-1 at 18-37)). Pursuant to the agreement, plaintiff, as an independent operator, purchased bakery products from defendant and sold them to grocery store chains and independent grocers. (Compl. ¶ 6). Defendant acted as plaintiffs agent in negotiating and entering into contracts with the grocery stores for the sale of the bakery items. (Id. ¶ 7). Plaintiff paid defendant $108,000.00 for his distribution route and was paid on a percentage of sales or a margin on the sale of product. (Id. ¶ 8).

In June of 2013, plaintiff was advised that an additional brand was being added to the product line and the margin paid was going to be reduced. (Id. ¶ 10). Plaintiff and other independent operators in the Raleigh, North Carolina area conferred and opposed defendant’s plan to unilaterally reduce margins. (Id. ¶ 12). The reduction in margins caused plaintiff to have reduced earnings and damaged the value of his distribution route. (Id. ¶ 23). On 21 December 2013, defendant notified plaintiff that it was terminating the agreement. (Id. ¶ 24). The reasons stated by defendant for terminating the agreement are untrue or immaterial. (Id. ¶¶ 26-27). After termination of the agreement, defendant took over plaintiffs route and hired an individual to operate the route in plaintiffs name and charged plaintiff for all expenses allegedly incurred in the operation of the route. (Id. ¶¶ 33-34).

[4]*4In his complaint, plaintiff asserts claims for a preliminary injunction (id. ¶¶ 41-48), breach of contract (id. ¶¶ 49-53), fraud (id. ¶¶ 54-56), and violation of the North Carolina Unfair and Deceptive Trade Practices Act, N.C. Gen. Stat. §§ 75-1.1 et seq. (id. ¶¶ 57-60).2 The court denied plaintiffs request for a preliminary injunction on 30 May 2014. (See D.E. 40). On 11 July 2014, the court allowed in part defendant’s motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(6), dismissing plaintiffs fraud claim. (See 11 July Order (D.E. 41)). On 23 April 2015, the court denied defendant’s motion for summary judgment on the two remaining claims — breach of contract and violation of UDTPA. (See 23 April 2015 Order (D.E. 53)).

B. Second Lawsuit

The complaint in the second lawsuit alleges that following the termination of the agreement and pursuant to the agreement’s terms, defendant operated plaintiffs route for a period of eight months. (Case 96 Compl. ¶¶ 12, 15). During that time, defendant collected margins and charged plaintiff excessive expenses, causing plaintiff harm. (Id. ¶ 16). Defendant then sold plaintiffs business and the area encompassed in the agreement without approval from plaintiff. (Id. ¶¶ 19-20). Plaintiff asserted claims for breach of contract (id. ¶¶ 35-37), negligence (id. ¶¶ 38-42), fraud (id. ¶¶ 43-45), breach of fiduciary duty (id. ¶¶ 46-49), and UDTPA violations (id. ¶¶ 50-52).

Defendant moved to dismiss the second lawsuit on grounds that it was duplicative of the first or, in the alternative, to stay or consolidate it with the first lawsuit. (Case 96 Mot. to Dismiss. (D.E. 11)). In its 24 April 2015 order, the court found that dismissal of the second lawsuit on grounds that it duplicated the first was unwarranted, but dismissed plaintiffs claims for negligence, breach of fiduciary duty, and fraud, and consolidated the second lawsuit with the first lawsuit. (See 24 Apr. 2015 Consol. Order 4-5, 9-10,14).

III. DISCOVERY-RELATED PROCEEDINGS

The court entered an initial scheduling order on 15 April 2014. (See Sched. Order (D.E. 37)). On 3 June 2014, plaintiff took the deposition of defendant’s employee Brant Vickers. (See D.E. 76-2 (deposition excerpts)). On 25 July 2014, plaintiff served on defendant a set of requests for production of documents (D.E. 76-1). Pre-consolidation discovery closed on 30 January 2015. (See Sched. Order ¶ 1). The pre-consolidation discovery proceedings are not the subject of the instant motions.

On 28 April 2015, after consolidation, the court set a trial date (see D.E. 54) and two days later plaintiff filed a motion (see D.E. 61) to continue the trial on grounds that discovery in the second lawsuit was still in its early stages. Defendant argued that no additional discovery was necessary because the discovery conducted in the first case overlapped with discovery needed in the second. (See Def.’s Opp. to Mot. to Continue (D.E. 63) 2-3). On 5 May 2015, the court allowed the motion to continue the trial and found that additional time for discovery regarding the claims asserted in the second lawsuit was justified. (5 May 15 Order (D.E. 64)).

The parties filed a proposed discovery plan (D.E. 67) on 21 May 2015, in which they identified disputes between them regarding the proper scope of discovery after consolidation. On 27 May 2015, plaintiff served on defendant his first set of discovery requests after consolidation, consisting of a set of interrogatories (“first set of interrogatories”) and a set of requests for production of documents (“first set of production requests”). (See

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313 F.R.D. 1, 93 Fed. R. Serv. 3d 1623, 2016 U.S. Dist. LEXIS 19590, 2016 WL 676377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-v-bimbo-foods-bakeries-distribution-llc-nced-2016.