Operaciones Tecnicas Marinas S.A.S. v. Diversified Marine Services, LLC

127 F. Supp. 3d 669, 2015 U.S. Dist. LEXIS 115527, 2015 WL 5098631
CourtDistrict Court, E.D. Louisiana
DecidedAugust 31, 2015
DocketCivil Action No. 12-1979
StatusPublished
Cited by2 cases

This text of 127 F. Supp. 3d 669 (Operaciones Tecnicas Marinas S.A.S. v. Diversified Marine Services, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Operaciones Tecnicas Marinas S.A.S. v. Diversified Marine Services, LLC, 127 F. Supp. 3d 669, 2015 U.S. Dist. LEXIS 115527, 2015 WL 5098631 (E.D. La. 2015).

Opinion

ORDER AND REASONS

MARTIN L.C. FELDMAN, District Judge.

Before the Court are four motions: (1) Diversified’s motion to dismiss as sanctions for witness tampering, for which the Court granted oral argument; (2) Diversified’s motion for summary judgment; (3) Diversified’s motion for partial summary judgment to dismiss gross negligence, recklessness, and punitive damages claims; and (4) OTM’s motion to amend its witness and exhibit list. For the reasons that follow, the motion to dismiss is DENIED; the motion for summary judgment is GRANTED; the motions for partial summary judgment and to amend the witness and exhibit list are DENIED AS MOOT.

Background

The facts of this case, which arises from a failed maritime voyage, have been recounted in detail in previous Orders and Reasons.1 Operaciones Técnicas Marinas, a Colombian company, hired a Louisiana company, Diversified Marine Services, LLC, to make some repairs on two old sister vessels, M/V MARY TIDE and M/V THOMAS TIDE, that OTM had bought and planned to transport to Colombia. Diversified worked on the vessels for several months under the supervision of OTM personnel. OTM’s principal, Gonzalo Mar-tínez, who is an experienced Master Phot himself, inspected the vessels on the day they were ready and made final payment to Diversified. Martinez took possession of the vessels, loaded them up, and began the voyage to Colombia. But the vessels did not make it to Colombia by their own power.

. The parties agree that the vessels were not completely overhauled, but they disagree as to the extent of the repairs performed. OTM brought suit against Diversified alleging breach of contract, negligent and intentional misrepresentation, negligence, gross negligence, recklessness, breach of warranty of workmanlike performance, and fraud. The fraud claim was subsequently dismissed. Order and Reasons, dated 2/20/13. OTM asserts two alternative theories of liability: either Diversified did not make repairs to the vessels, or the repairs that they made were substandard.

As this case approached trial two years ago, the Court was made aware of allegations of witness tampering by OTM personnel in Colombia. Diversified contended that the owner of OTM had made inappropriate contact with Diversified’s expert witness, Captain Francisco Espitia, and had paid him 6,000,000 pesos in an attempt to get him to change his deposition testimony. This Court referred the matter to the United States Attorney’s Office, for investigation and administratively closed the case. Recently, the case was reopened after an investigation concluded that there [672]*672was insufficient evidence of witness tampering, and the matter is once again set for trial.

Diversified seeks to dismiss the plaintiffs claim as sanctions for the alleged witness tampering. The Court heard argument on this motion. Diversified also moves for summary judgment and partial summary judgment as to the gross negligence, recklessness, and punitive damages claims.

As well as opposing Diversified’s motions, OTM moves for leave to amend its witness and exhibit list because of its discovery of a lawsuit against Diversified’s sister company for allegedly misrepresenting the condition of vessels and engines marketed and sold to their customers, allegations similar to those of OTM here.

1. Motion to Dismiss as Sanctions for Witness Tampering

A.

It is within the power of a district court to dismiss a suit when a litigant’s conduct abuses the judicial process. Pope v. Fed. Exp. Corp., 974 F.2d 982, 984 (8th Cir.1992); Chambers v. NASCO, Inc., 501 U.S. 32, 43, 111 S.Ct. 2123, 115 L.Ed.2d 27 (1991). But before the Court imposes a dismissal sanction, the party seeking dismissal must prove by clear and convincing evidence that the conduct was committed in bad faith and that no lesser sanction would adequately punish and deter the violation. See, e.g., Quiroz v. Superior Bldg. Maint., Inc., No. 06-21594, 2008 WL 3540599 (S.D.Fl. Aug. 12, 2008).

B.

If the allegations against OTM personnel regarding Espitia’s deposition were proven true, dismissal would likely be merited. On this record, however, the Court does not find clear and convincing evidence that the conduct of OTM personnel was committed in bad faith.

Diversified contends that the following facts are clear: (1) OTM, through its general manager Gonzalo Martínez, reached out to Espitia on its own initiative and agreed to pay him to testify; (2) various high-ranking employees of OTM made at least seven telephone calls to Espitia in the days immediately prior to his deposition; (3) OTM paid Espitia six million pesos in connection with his deposition (about $3,000 at the time); (4) Espitia accepted the money; (5) Espitia believed, based on his conversations with OTM, that OTM expected that he would change his testimony in exchange for the money; and (6) counsel for Diversified was not contemporaneously advised on these communications, invoicing, and payment.2

Espitia, a witness located in Colombia and an expert hired by Diversified, was to have his perpetuation deposition testimony taken. When Diversified managed to get in touch with Espitia through an interpreter to inform him of the date and time of the deposition, they learned that he already had that information. Then, at the deposition, counsel for OTM questioned Espitia about a payment he had received from OTM personnel. Espitia testified that he was paid 6,000,000 pesos by OTM personnel because they thought that he could “help” them, and Espitia took the money out of necessity. Nonetheless, Espitia did not alter his testimony from what was contained in his report. Espitia has also indicated that OTM personnel told him to arrive early at the deposition because the [673]*673lawyers wanted to speak with him beforehand.

These facts, however, do not amount to clear and convincing evidence of witness tampering. First, because Diversified is based in the United States and had lawyers also from the States, coordination with Colombian witnesses was accomplished via OTM. Emails show that Diversified’s counsel was aware of this practice. It is thus unremarkable that Espitia already knew about his deposition from OTM before he spoke with an agent of Diversified’s counsel. Second, as to the payment Espitia received, although he had already been paid his deposition fee and expenses by Diversified, emails make clear that Espitia demanded money from OTM and threatened not to attend the deposition unless he was paid. OTM requested an invoice from Espitia to the company and then wired the money to him; the payment was not transferred clandestine; ly. Espitia has stated that he thought that this payment was made because OTM personnel wanted “help” from him, but this statement has never been clarified and is unsupported by objective evidence. Finally, as to the request that he arrive early, when Espitia arrived, OTM’s counsel did nothing more than greet him. OTM personnel had been instructed that in general witnesses should arrive early to meet with counsel, and it seems likely that the instruction in this instance was nothing more than a miscommunication.

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127 F. Supp. 3d 669, 2015 U.S. Dist. LEXIS 115527, 2015 WL 5098631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/operaciones-tecnicas-marinas-sas-v-diversified-marine-services-llc-laed-2015.