Ouachita Mining & Exploration, Inc. v. Wigley

778 S.W.2d 526, 318 Ark. 750, 1994 Ark. LEXIS 635
CourtSupreme Court of Arkansas
DecidedNovember 21, 1994
Docket94-374
StatusPublished
Cited by4 cases

This text of 778 S.W.2d 526 (Ouachita Mining & Exploration, Inc. v. Wigley) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ouachita Mining & Exploration, Inc. v. Wigley, 778 S.W.2d 526, 318 Ark. 750, 1994 Ark. LEXIS 635 (Ark. 1994).

Opinion

Robert L. Brown, Justice.

This appeal concerns the issue of whether a party defendant (appellee Jack Wigley) is permitted to use parts of his deposition in his case in chief after the plaintiff (appellant Ouachita Mining and Exploration, Inc.) has first presented parts of the same deposition to the jury. Ouachita Mining contends that the trial court abused its discretion in allowing Wigley to use parts of his own deposition in his defense. We disagree, under these circumstances, and we affirm the judgment.

In 1986, appellees Jack Wigley and Fred Kopp were principal owners of appellee Mountain Resources, Inc., an Arkansas corporation, which owned several mining claims for gold in an area near the town of Cherry Hill. Appellee Russell Oinonen investigated those claims on behalf of certain people in the State of Ohio who would eventually form Ouachita Mining. Oinonen returned to Ohio with sample rocks and assays, suggesting a value for gold ore at the Cherry Hill site of $1,100 per ton. Ouachita Mining was then organized, and on August 14, 1986, Mountain Resources entered into an agreement with Ouachita Mining for the assignment of the Cherry Hill claims. Ouachita Mining did not conduct independent geological or exploratory work on the Cherry Hill claims before entering into the contract. In September 1986, Ouachita Mining also invested in an existing mill, Jackpot Mill, in which Jack Wigley was a one-third owner. A joint venture agreement between Wigley and Ouachita Mining was struck, and the plan was to use Jackpot Mill to perform the separation process for the gold ore.

After purchasing the claims, Ouachita Mining conducted exploratory searches at the Cherry Hill site, and its geologist, Wallace Mitchell, concluded in a report to the corporation submitted on October 27, 1986, that there was no gold in the area. Ouachita Mining next sought to sell off some of the claims, but its potential buyer, Sunshine Mining Company, also concluded, after conducting assays, that the claims would yield no gold. In January 1987, Ouachita Mining ceased making payments on its contract to Mountain Resources, and on May 16, 1991, it sued Mountain Resources, Jack Wigley, and others for damages for (1) various violations of the Arkansas Securities Act; (2) common law fraud; (3) breach of contract; and (4) breach of fiduciary duty. Compensatory damages as well as punitive damages in the amount of $1 million were sought.

At the ensuing jury trial, Ouachita Mining called Jack Wigley as a witness as part of its case. Wigley appeared to be very hard of hearing and was having difficulty answering questions. The trial court called the attorneys to the bench to discuss Wigley’s problem, and defense counsel recommended that counsel for both sides reduce their questions to writing. The trial court suggested a recess so that counsel for Ouachita Mining could have time to write out their questions and defense counsel could review the proffered documents to determine whether they could stipulate to their admissibility.

After the recess, the following colloquy occurred among counsel and the trial court:

Mr. Moore [Ouachita Mining’s counsel]: Thank you, Your Honor. Your Honor, with the Court’s permission, we plan to read portions of Mr. Wigley’s deposition in lieu of his testimony as if he was a declarant and unavailable. If you would determine that he was a declarant and a part (sic) opponent, Your Honor. We would offer his deposition, portions of his deposition against him as party opponent.
Mr. Keeter [Defense counsel]: No objection to that, Your Honor, on the condition that I also can read parts of the deposition given by Mr. Wigley.
By the court: If part of it is offered, any other part of it can be offered.
By Mr. Moore: Subject to the rules of evidence as to relevance.
By the court: Of course.
Mrs. Robbens [Ouachita Mining’s counsel]: Your Honor, I believe that we’re entitled to — regardless of an unavailability or availability to read a party opponents. I don’t believe that holds true for Mr. Keeter.
By the court: Well, if you read part of it, then he can read part of it. It’s real simple. Go ahead.
Mr. Moore [Ouachita Mining’s counsel]: Is Mr. Keeter limited in any way? Can he read any part of the deposition? I’m not offering the entire deposition into evidence, Your Honor. I’m curious, are we making an agreement here or —
By the court: Well, apparently you’re not, but I’m going to let — in view of the witness’s remarks earlier and his apparent inability to hear, I’m going to allow the use of the deposition. If I let you use part of it, then I should let them use part of it. It seems only fair to me. Now, as far as any evidentiary problems, you’ll have to bring those to my attention somehow so I can rule on it, keeping in mind I don’t have a copy of it.

Ouachita Mining’s counsel then used Wigley’s deposition to introduce several documents. Counsel also read several excerpts from that deposition to the jury.

Following the use of Wigley’s deposition by Ouachita Mining, defense counsel tried to use it in cross-examination. The trial court stopped defense counsel’s use of the deposition when Ouachita Mining’s counsel objected on grounds of hearsay. Discussion among the trial court and counsel for the parties was had over which theory had been employed to allow Ouachita Mining to read the deposition. Ouachita Mining’s counsel contended that they had offered parts of the Wigley deposition on the basis that Wigley was a party opponent witness. Defense counsel countered that one ground argued by Ouachita Mining was unavailability of Wigley due to deficient hearing. Ouachita Mining’s counsel offered to withdraw the “unavailability” ground as a reason for usage and stated that they only invoked use of the deposition as a statement by a party opponent. Defense counsel stated that he had not objected to use of Wigley’s deposition because he had understood that he could also introduce parts of the deposition. The trial court ended the discussion by saying that it would rule on defense counsel’s use of the deposition after defense counsel called Wigley as a witness in his own case.

After Ouachita Mining rested, its counsel objected to Wigley’s use of the deposition in his case in chief because defense counsel had not demonstrated that Wigley was unavailable. The trial court overruled the objection. Defense counsel called Wigley as a witness and began to read parts of his deposition. At one point, Ouachita Mining objected to Wigley’s deposition testimony on the basis that Wigley was interpreting a contract in violation of the parol evidence rule. The trial court made the following ruling and finding:

By the court: Since we’re allowing this testimony over the objection of the Plaintiff to be presented in the form of this deposition, due to [the] severe apparent hearing problem of this witness, Mr. Wigley, the Court is finding he is unavailable and I’m going to sustain the objection based on the parole (sic) evidence rule.

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Bluebook (online)
778 S.W.2d 526, 318 Ark. 750, 1994 Ark. LEXIS 635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ouachita-mining-exploration-inc-v-wigley-ark-1994.