Matthew Channon v. Liberation Distribution, LLC; Insperity, Inc., d/b/a Administaff Companies, Inc. GP Ltd.

CourtDistrict Court, D. New Mexico
DecidedJanuary 30, 2026
Docket1:24-cv-01124
StatusUnknown

This text of Matthew Channon v. Liberation Distribution, LLC; Insperity, Inc., d/b/a Administaff Companies, Inc. GP Ltd. (Matthew Channon v. Liberation Distribution, LLC; Insperity, Inc., d/b/a Administaff Companies, Inc. GP Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matthew Channon v. Liberation Distribution, LLC; Insperity, Inc., d/b/a Administaff Companies, Inc. GP Ltd., (D.N.M. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

MATTHEW CHANNON,

Plaintiff,

vs. Civ. No. 24-1124 WJ/SCY

LIBERATION DISTRIBUTION, LLC; and INSPERITY, INC., d/b/a ADMINISTAFF COMPANIES, INC. GP LTD,

Defendants.

ORDER DEFERRING RULE ON MOTION FOR SANCTIONS AND DISMISSAL WARNING

This matter comes before the Court on Defendants’ Motion For Sanctions Against Plaintiff Matthew Channon. Doc. 99. Plaintiff did not file a response to the motion, and his time to do so has expired. Doc. 100. The Court will defer ruling on the motion, but warns Plaintiff that Defendants’ request to dismiss the case will be granted if Plaintiff does not comply with the Court order to provide medical releases within 30 days. BACKGROUND Local Rule 26.3(d) requires a party whose physical or mental medical condition is at issue to provide authorizations for release of medical records in the format set forth in Appendix A to the rules. Plaintiff put his physical and medical condition at issue in this case by alleging that Defendants failed to provide reasonable accommodation for Plaintiff’s disabilities, failed to provide Plaintiff with required sick leave, and caused Plaintiff emotional distress and anxiety. However, to date, Plaintiff has not provided the required medical authorizations. Defendants first requested that the Court resolve this issue informally in a status conference held July 24, 2025. Doc. 62. The Court advised Plaintiff of the requirements of the local rule, but did not issue any orders at that time. Id. Plaintiff agreed to provide medical releases, but disagreed with Defendants on the scope of the releases. Doc. 70. The parties could not reach an agreement on the scope, and so on October 9, 2025, Defendants filed a formal motion to compel Plaintiff to provide signed authorizations from every healthcare provider which has treated Plaintiff within the last five years preceding the date of occurrence set forth in

the proceedings (that is, starting from July 2017) and continuing through the current date. Doc. 75. Plaintiff opposed that motion. Doc. 77. In response, Plaintiff did not dispute that his physical and mental medical conditions are at issue. He did not oppose providing a list of medical providers whose records he “may use” to support his claims. Doc. 77 at 3. But Plaintiff requested that the signed authorization for release of medical records from these providers be restricted to the dates from January 1, 2021 through December 31, 2023, be limited in scope to certain subject matters, and require the providers to make redactions for certain information pertaining to medical conditions Plaintiff contended are not relevant to this case. Doc. 77 at 4.

On December 16, 2025, the Court granted Defendants’ motion in part. The Court noted that Local Rule 26.3(d) is “challenging to interpret.” Doc. 96 at 3. On its face, the Local Rule mirrors the requirement of the Federal Rules’ initial disclosure requirement to produce information “only if the party intends to use it to support their claims or defenses.” Id. But for practical purposes, a party cannot limit medical authorizations to only those records which it intends to use to support a claim or defense. Id. at 5-7. Therefore, the Court adopted “an interpretation of Local Rule 26.3 that recognizes the intent to achieve consistency with the Federal Rules of Civil Procedure and that does not shift the burden of sorting through medical records from litigants to the uninterested staff of medical providers who are not parties to the lawsuit.” Id. at 7-8. Specifically, the Court held that: A party is required under Local Rule 26.3(d) to disclose a list of providers who treated the party in the five years preceding the date of the occurrence to the present, if that party “may use” information from that provider in support of his claims or defenses. For each provider listed, the party must execute a general authorization for release of medical records in the format provided in Appendix A, with no restrictions or modifications to this template. Id. at 8. Therefore, the Court ordered: Within 7 days of the date of this Order, Plaintiff shall produce:  a list of the name, address and phone number of any healthcare provider, including without limitation, any physicians, dentists, chiropractors, mental health counselors, clinics and hospitals, which have treated Plaintiff from July 2017 and continuing through the current date, if Plaintiff may use information from that provider in support of his claims; and  for each healthcare provider listed, a signed authorization to release medical and mental health records form as set forth in Appendix “A,” with no modifications or restrictions not already contained in the form. Id. at 10. The Court additionally warned: Failure to follow this order may result in sanctions, to include dismissal of Plaintiff’s lawsuit. Id. at 11. Seven days after the issuance of that order fell on December 23, 2025. Plaintiff did not file objections to the order or move to stay the obligation to provide releases.1 On January 14, 2026, however, Defendants advised that Plaintiff had not complied with this order. Doc. 99. Defendants therefore requested “the most extreme sanctions” available under the Federal Rules, as well as attorney’s fees for bringing the Motion to Compel to obtain the authorization, and

1 Plaintiff filed objections to a different order issued on the same day. Docs. 95 & 97. These objections do not discuss or object to the order to provide medical authorizations. attorney’s fees for bringing this motion. Id. at 4. Plaintiff did not file a response within the time permitted under the Local Rules. Doc. 100. DISCUSSION Rule 41(b) allows the court to dismiss an action if the Plaintiff fails to comply with a court order. Fed. R. Civ. P. 41(b); see also Gripe v. City of Enid, Okla., 312 F.3d 1184, 1188

(10th Cir. 2002) (“The Federal Rules of Civil Procedure authorize sanctions, including dismissal, for failing to . . . comply with court rules or any order of the court.”). Rule 37(b) likewise authorizes a Court to dismiss an action “[i]f a party . . . fails to obey an order to provide or permit discovery.” Fed. R. Civ. P. 37(b)(2)(A)(v). Plaintiff’s continued noncompliance with the order to provide medical releases justifies dismissal with prejudice under Ehrenhaus v. Reynolds, 965 F.2d 916 (10th Cir. 1992). When deciding whether dismissal of a case is an appropriate sanction under Ehrenhaus, district courts should consider: “(1) the degree of actual prejudice to the defendant; (2) the amount of interference with the judicial process; (3) the culpability of the litigant; (4) whether the court warned the party in advance that dismissal of the action would be a likely sanction for

noncompliance; and (5) the efficacy of lesser sanctions.” Nasious v. Two Unknown B.I.C.E. Agents, at Arapahoe Cty. Just. Ctr., 492 F.3d 1158, 1162 (10th Cir. 2007) (internal citations omitted). In this case, the first two factors are related. That is, Plaintiff’s failure to provide Court- ordered medical authorizations impairs Defendants’ ability to defend against Plaintiff’s claims and resolve this case.

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Gripe v. City of Enid
312 F.3d 1184 (Tenth Circuit, 2002)
Nasious v. Two Unknown B.I.C.E. Agents
492 F.3d 1158 (Tenth Circuit, 2007)
Ehrenhaus v. Reynolds
965 F.2d 916 (Tenth Circuit, 1992)

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Bluebook (online)
Matthew Channon v. Liberation Distribution, LLC; Insperity, Inc., d/b/a Administaff Companies, Inc. GP Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/matthew-channon-v-liberation-distribution-llc-insperity-inc-dba-nmd-2026.