McAteer v. Sunflower Bank, N.A.

CourtDistrict Court, D. Nevada
DecidedMarch 11, 2024
Docket2:20-cv-02285
StatusUnknown

This text of McAteer v. Sunflower Bank, N.A. (McAteer v. Sunflower Bank, N.A.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McAteer v. Sunflower Bank, N.A., (D. Nev. 2024).

Opinion

1 UNITED STATES DISTRICT COURT

2 DISTRICT OF NEVADA

3 * * *

4 EUGENE MCATEER, Case No. 2:20-cv-02285-APG-EJY

5 Plaintiff,

6 vs. ORDER

7 SUNFLOWER BANK, N.A. and DOES 1-10 and ROES 1-10, inclusively, 8 Defendants. 9 10 Pending before the Court are Plaintiff’s Motions for Sanctions and for Leave to File a 11 Supplemental Memorandum in Support of Plaintiff’s Motion for Sanctions. ECF Nos. 68, 75. The 12 Court reviewed the Motions, Oppositions, and Replies. 13 I. Background 14 A. The Motion to Supplement is Granted. 15 Under the Court’s local rule, “[a] party may not file supplemental pleadings, briefs, 16 authorities, or evidence without leave of court granted for good cause.” LR 7-2(g). The good cause 17 standard is met if the moving party is reasonably diligent in seeking leave to supplement and the 18 proposed briefing will make a substantive difference to what is pending before the court. Chemeon 19 Surface Tech., LLC v. Metalast Int’l, Inc., Case No. 3:15-CV-00294-MMD-CBC, 2019 WL 938384, 20 at *8 (D. Nev. Feb. 26, 2019), vacated sub nom. Chemeon Surface Tech. v. Metalast Int’l, Inc., Case 21 No. 3:15-CV-00294-CLB, 2022 WL 22353746 (D. Nev. June 24, 2022) (citing De Luna v. Sunrise 22 Hosp. & Med. Ctr., LLC, Case No. 2:17-cv-01052-JAD-VCF, 2018 WL 4053323, at *5 (D. Nev. 23 Aug. 24, 2018); Morrison v. Quest Diagnostics Inc., Case No. 2:14-cv-01207-RFB-PAL, 2016 WL 24 6246306, at *3 (D. Nev. Oct. 24, 2016), aff’d, 698 Fed.Appx. 350 (9th Cir. 2017)). 25 In December 2023, one month after Plaintiff filed his Motion for Sanctions, Plaintiff filed 26 his Motion for Leave to Supplement. ECF No. 75. The Motion demonstrates Defendant’s Federal 27 Rule of Civil Procedure 30(b)(6) witness was unprepared to testify in the capacity required by the 1 November 2023. Compare ECF No. 75-2 at 16-19 and 75-2 at 32. The timing and content of the 2 Motion to Supplement was sought diligently and relates directly to Plaintiff’s Motion for Sanctions. 3 Plaintiff meets the good cause standard required, and the Court grants the Motion to Supplement. 4 The Motion to Supplement and Motion for Sanctions are treated as one Motion. 5 B. The Parties’ Arguments. 6 Plaintiff asks the Court to sanction Defendant under Federal Rule of Civil Procedure 37 7 because Defendant (1) substantially delayed disclosure of documents responsive to Plaintiff’s first 8 Request for Production of Document (“RFP”),1 and (2) failure to produce a properly prepared Rule 9 30(b)(6) witness despite substantial time available to do so. 10 Plaintiff argues the delayed document production evidences Defendant did not intend to 11 employ Plaintiff, but instead wanted Plaintiff’s substantial book of business. ECF No. 68 at 7. 12 Plaintiff says Defendant strung him along with misleading representations, and demanded he sign a 13 non-disclosure and non-solicitation agreement (the “Agreement”), only to terminate him on the first 14 day of his job with Defendant. ECF No. 68 at 3-4, 7, 17-19. Plaintiff seeks case terminating 15 sanctions (as well as attorney’s fees and costs) based on the gross delayed production. Id. at 19-22. 16 Plaintiff also presents evidence showing Defendant’s Rule 30(b)(6) corporate representative was 17 grossly unprepared to testify to topics first provided to Defendant over a year prior to the deposition. 18 ECF Nos. 75 at 2-4; 75-2. 19 Defendant responds arguing there is nothing in the additionally produced documents 20 demonstrating it offered Plaintiff employment under false pretenses just to take his substantial book 21 of business. ECF No. 74 at 5. Defendant says it offered Plaintiff employment starting on September 22 1, 2020, and excuses Plaintiff’s termination on that same date, by asserting it was “contractually 23 obligated” to make the employment offer pursuant to the agreement it reached when Defendant 24 bought CIT Group’s (“CIT”) brokerage and wealth management business where Plaintiff worked. 25 26

1 The Court’s review of documents produced by Defendant on September 5, 2023 shows they were responsive 27 to Plaintiff’s first set of RFPs propounded on February 11, 2022. Compare ECF No. 68 at 5 and ECF No. 69-18 at 3. 1 Id.2 Despite this argument, Defendant provides little that explains why it failed to provide responsive 2 documents until November 2023—well more than a year after Plaintiff’s first RFPs were 3 propounded. Defendant claims it initially produced all the documents it considered responsive, 4 which did not include the documents with which Plaintiff now takes issue. ECF No. 74 at 8. 5 Defendant submits case terminating sanctions are improper because neither Defendant nor 6 Defendant’s counsel acted knowingly in violation of their discovery obligations. Id. at 7-8, 10. 7 In its opposition to Plaintiff’s Motion to Supplement, Defendant reveals no response to the 8 failure to produce a properly prepared corporate representative under Rule 30(b)(6). Instead, 9 Defendant argues Plaintiff is upset because he did not get the answers he wanted. ECF No. 77 at 2. 10 Defendant also asks the Court to deny sanctions relying on Plaintiff’s failure to raise the issue during 11 the deposition or meet and confer with Defendant prior to filing the Supplemental Brief. Id. 12 Plaintiff argues in reply that he was prejudiced by Defendant’s conduct because it threatens 13 the disposition of this case. ECF No. 76 at 5. Plaintiff says he has been forced to expend more 14 resources, time, and effort in order to address the issues Defendant’s conduct caused. Id. at 9-10. 15 II. Discussion 16 A. Defendant Failed to Timely Disclose Relevant Documents. 17 Defendant does not deny that it produced documents more than one year after they were first 18 requested by Plaintiff and that this production occurred only after (1) Plaintiff filed a Motion to 19 Compel, (2) the Court granted Plaintiff the opportunity to use search terms to locate responsive 20 documents, (3) Defendant sent approximately 15,000 pages of documents to defense counsel to cull 21 through for purposes of determining what to produce, (4) defense counsel produced 113 pages from 22 the 15,000 he received, (5) Plaintiff’s counsel reviewed the same 15,000 pages, and (6) Plaintiff’s 23 counsel discovered numerous additional documents that he characterizes as evidence of Defendant’s 24 wrongdoing. ECF No. 68 at 9-15. Instead, Defendant says most of the documents gathered as a 25 26

2 Defendant’s argument seems to bolster Plaintiff’s position that the offer of employment by Defendant was 27 always a ruse. In fact, it is undisputed that Defendant not only terminated Plaintiff on his first day of employment, but 1 result of the computer search and identified by Plaintiff as “smoking guns” do not support Plaintiff’s 2 claims. ECF No. 74 at 5-7. 3 Under Federal Rule of Civil Procedure 26(b)(1), litigants may “obtain discovery regarding 4 any nonprivileged matter that is relevant to any party’s claim or defense.” Further, “the Federal 5 Rules ‘obligate a party to …’ take reasonable and appropriate steps to search its records and produce 6 all responsive documents or things.” In re Facebook, Inc. Consumer Privacy User Profile Litigation, 7 Case No. 3:18-MD-02843-VC-JSC, 2022 WL 18863581, at *1 (N.D. Cal. Feb. 10, 2022) citing and 8 quoting, inter alia, Banas v. Volcano Corp., Case No. No. 12-cv-01535-WHO, 2013 WL 5513246 9 (N.D. Cal. October 4, 2013) (additional citations and quote marks omitted). As stated in MGA 10 Entertainment, Inc. v. National Products Ltd., “Rule 34 is generally designed to facilitate discovery 11 of relevant information by preventing attempts to hide a needle in a haystack by mingling responsive 12 documents with large numbers of nonresponsive documents.

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