MCI Worldcom Communications, Inc. v. Gamma Communications Group, Inc.

204 F.R.D. 259, 51 Fed. R. Serv. 3d 1015, 2001 U.S. Dist. LEXIS 19752, 2001 WL 1524491
CourtDistrict Court, S.D. New York
DecidedNovember 29, 2001
DocketNo. 01 Civ. 1196(CBM)
StatusPublished
Cited by1 cases

This text of 204 F.R.D. 259 (MCI Worldcom Communications, Inc. v. Gamma Communications Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MCI Worldcom Communications, Inc. v. Gamma Communications Group, Inc., 204 F.R.D. 259, 51 Fed. R. Serv. 3d 1015, 2001 U.S. Dist. LEXIS 19752, 2001 WL 1524491 (S.D.N.Y. 2001).

Opinion

MEMORANDUM OPINION & ORDER

MOTLEY, District Judge.

I. INTRODUCTION

Plaintiffs, MCI WorldCom Communications, Inc., and MFS Telecom, Inc., are wholly-owned subsidiaries of WorldCom, Inc. (collectively “WorldCom”) and bring this action against defendants Gamma Communications Group, Inc., d/b/a/ Gamma Communications Corp., Gamma Telecom International, Inc., and Gamma International, Inc. (collectively “Gamma”). Plaintiffs bring this breach of contract action pursuant to the Communications Act of 1934, 48 Stat. 1064 (codified as amended at 47 U.S.C. § 151 et seq). Subject matter jurisdiction is conferred upon this court by 28 U.S.C. §§ 1331, 1332, and 1337.

Plaintiffs filed this action in February 2001. The complaint alleges that defendants have failed to pay plaintiffs for telecommunications services provided to defendants pursuant to terms of various agreements and published F.C.C. Tariffs. Plaintiffs seek “approximately” $519,441.18, plus interest and costs and attorneys’ fees. Defendants answered in April 2001, denying all the substantive allegations contained in the complaint.

Plaintiffs now move pursuant to Rule 37(b) of the Federal Rules of Civil Procedure for sanctions against defendants for failure to comply with the discovery plan that had been ordered by the court. Plaintiffs ask that the court strike defendants’ answer and enter default judgment against defendants for $519,441.18 plus $31,166.47 in accumulated interest and $13,385.39 in attorneys’ fees. Defendants have failed to oppose this motion. For the reasons stated in this opinion, plaintiffs’ motion is GRANTED in part and DENIED without prejudice in part.

II. FACTUAL BACKGROUND

Throughout the course of this action, defendants have proved to be altogether uncooperative adversaries. This case was originally assigned to Judge Wood, and on May 21, 2001, she signed a scheduling order requiring completion of all discovery by July 16, 2001. On June 11, 2001, the case was transferred to the undersigned. On July 12, 2001, plaintiffs’ attorney wrote the court to request a sixty day extension of the July 16 deadline. Plaintiffs made the request because defendants had failed to produce any responses to plaintiffs discovery requests and had not provided their initial disclosures. See Fed.R.Civ.P. 26(a)(1). Plaintiffs made their initial disclosures on July 13, 2001.

Since defendants had failed to make their initial disclosures, plaintiffs were unable to proceed with deposition discovery. The court therefore granted plaintiffs unopposed request for an extension. This court entered an Order dated July 19, 2001, which provided [261]*261that “except for good cause shown, all discovery shall be completed by September 14, 2001.”

On August 13, 2001, plaintiffs’ attorney wrote the court again, requesting that the court “hold a pre-motion conference in connection with Defendant’s failure to comply with the Court’s Discovery Plan and Plaintiffs’ discovery requests.” In their letter, plaintiffs stated that defendants still had not made their initial disclosures. They also stated that defendants had failed to respond to plaintiffs’ properly served First Request for Production of Documents and First Set of Interrogatories (with return dates of June 19, 2001). Defendants also had failed to produce any witnesses for deposition, despite plaintiffs having noticed the depositions of nine witnesses.1 Plaintiffs also represented that they had spoken twice with defendants’ counsel and that defendants’ counsel had indicated that his clients had not been cooperating with him with respect to their discovery obligations. On August 28, 2001, the court entered an Order which scheduled a conference for September 11, 2001, at which time the court would hear “plaintiffs’ request for leave to move for sanctions.” Due the tragic events of September 11, 2001, the conference did not take place. On September 26, 2001, the court entered another Order which reset the September 11 conference for October 10, 2001.

At the October 10 conference, plaintiffs’ counsel formally asked for leave to move for sanctions. At the conference, counsel for defendants did not dispute that plaintiffs had made several good faith attempts to engage in discovery and that defendants had failed to comply with repeated discovery requests, formal and informal. Defendants’ counsel also stated that he had not responded to plaintiffs requests because his clients had not been forthcoming to him with their discovery obligations. He also stated that his clients are no longer in business and intimated that he doubted he would be paid for his legal services.

The court issued an Order at the end of the conference which gave plaintiffs until October 31, 2001, to file a motion for sanctions. Plaintiffs filed and served that motion on October 30. Defendants have neither responded in any way to the motion for sanctions nor have they informed the court that they have complied with their discovery obligations.

III. DISCUSSION

A. Motion for Sanctions

Rule 37(c)(1) of the Federal Rules of Civil Procedure provides that if a party “without substantial justification fails to disclose information required by Rule 26(a),” the court may impose sanctions, “includ[ing] any of the actions authorized under Rule 37(b)(2)(A), (B), and (C).”

Rule 37(d)(2) provides that “[i]f a party ... fails to serve answers or objections to interrogatories submitted under Rule 33, after proper service of the interrogatories, or ... to serve a written response to a request for inspection submitted under Rule 34, after proper service of the request,” the court may impose the sanctions listed in Rule 37(b)(2)(A), (B), and (C).

Rule 37(b)(2) provides that “[i]f a party ... fails to obey an order to provide or permit discovery,” the court may impose the sanctions listed in subsections (A), (B), and (C) of that section.

As the factual background set forth in Part II, supra, indicates, defendants have engaged in conduct which is sanctionable under all three of these provisions of Rule 37.

Possible sanctions include “[a]n order striking out pleadings or parts thereof ... or rendering a judgment by default against the disobedient party.” Fed.R.Civ.P. 37(b)(2)(C). “Although entry of a default judgment is an extreme measure, discovery orders are meant to be followed. ‘A party who flouts such orders does so at his peril.’” Bambu Sales, Inc. v. Ozak Trading Inc., 58 F.3d 849, 853 (2d Cir.1995) (quoting Update Art, Inc. v.

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204 F.R.D. 259, 51 Fed. R. Serv. 3d 1015, 2001 U.S. Dist. LEXIS 19752, 2001 WL 1524491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mci-worldcom-communications-inc-v-gamma-communications-group-inc-nysd-2001.