Pesaplastic, C.A. v. Cincinnati Milacron Co.

799 F.2d 1510
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 24, 1986
DocketNos. 85-5281, 85-5317
StatusPublished
Cited by43 cases

This text of 799 F.2d 1510 (Pesaplastic, C.A. v. Cincinnati Milacron Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pesaplastic, C.A. v. Cincinnati Milacron Co., 799 F.2d 1510 (11th Cir. 1986).

Opinion

PER CURIAM:

This is an appeal by the law firm of Carton, Nary, Witt and Arvanitis (the “Law Firm”), and their client Tedruth Plastics Corporation (“Tedruth”), from a post-judgment discovery order and the resulting cost judgments awarding costs and attorneys’ fees in favor of Pesaplastic, C.A. (“Pesaplastic”) and Cincinnati Milacron Company (“Milacron”). We affirm.

I.

Pesaplastic instituted this action in the United States District Court for the Southern District of Florida on October 4, 1979, against Tedruth and Milacron alleging fraud, breach of contract and warranties, negligence, and breach of fiduciary responsibility in connection with the sale of a mold used to manufacture plastic pallets.1 A jury trial commenced on May 24, 1982 before the Honorable Jose A. Gonzalez, Jr. After a three week trial, the jury found Tedruth and co-defendant Milacron jointly and severally liable for compensatory damages in the amount of $1,500,000, and assessed punitive damages of $1,250,000 against Tedruth. Pesaplastic and Milacron thereafter entered into a settlement agreement whereby Milacron paid Pesaplastic $1,215,817.31 in complete satisfaction of the compensatory damages judgment. Mi-lacron then obtained a contribution judgment against Tedruth in the amount of $889,370.36, whereupon Pesaplastic and Mi-lacron (hereinafter collectively referred to as the “judgment creditors”) aligned themselves in an effort to execute on their respective judgments.

Efforts to satisfy these judgments were frustrated by virtue of the fact that Cities Service Corporation (“Cities Service”) had purchased the assets of Tedruth, and that Tedruth had been liquidated on October 28, [1512]*15121981. Pesaplastic was not advised of this, however, until sometime during the course of the trial, by letter dated May 24, 1982, from Tedruth’s accountant, Harold Roth-man.2 This letter also stated that Tedruth had had no income or expenses since that date and further, that Tedruth had no assets or liabilities. Accordingly, in an effort to determine where the money from the sale of Tedruth had gone, the judgment creditors applied to the court for discovery in aid of execution of the judgments.

On September 22, 1982, Judge Gonzalez issued an order providing for the deposition of Tedruth, pursuant to the provisions of Fed.R.Civ.P. 30(b)(6).3 The order further provided that application for additional discovery could be made to the court. On March 11, 1983, the judgment creditors jointly noticed the deposition of Tedruth under Rule 30(b)(6) for the week of April 18, 1983. The notice specified the information that any witness designated pursuant to 30(b)(6) should be prepared to address. This information was to include an itemization of any payments or disbursements received by Ruth Box, the sole shareholder of Tedruth, or by any other members of the Box family, some of whom were officers and/or directors of Tedruth, and the locations and/or dispositions of any such monies or things of value received by the Boxes on behalf of Tedruth.

On April 13, 1983, more than one month after the notice of deposition had been filed, and only three working days before the scheduled week of depositions, counsel for the judgment creditors were advised by the Law Firm that Tedruth would be unable to produce a representative for the depositions because David Box, the “former” president of Tedruth and the person designated pursuant to Rule 30(b)(6), was in Europe on business. With respect to the judgment creditors request for production of specific information, the Law Firm took the position that they intended to limit the subject of the depositions to Tedruth’s assets.

On April 20,1983, the judgment creditors filed a motion to compel Tedruth’s compliance with their discovery requests. In support of their motion, the judgment creditors argued that Tedruth waited until the last minute before refusing to comply with the deposition notice which had been pending for more than one month. The judgment creditors also noted that Tedruth could have produced any number of persons to give responsive testimony pursuant to the notice of deposition, including, Theodor4 and Ruth Box; Tedruth’s present and former accountants; and, Jay Herman, a partner of the Law Firm, and the attorney who represented Tedruth in connection with the sale of assets to Cities Service. Instead, it appears that the only person contacted for [1513]*1513these depositions was David Box. Moreover, it is clear that even if David Box had been produced, his testimony would have had to have been supplemented with that of other witnesses, because, by his own admission, he was not involved with the sale of assets to Cities Service and was not familiar with the details of the transaction.5

A hearing was held before Judge Gonzalez on April 29, 1983. At this hearing, counsel for the judgment creditors6 asked the court to order the deposition testimony of specific witnesses because they were concerned that the Law Firm would attempt to produce more inappropriate witnesses, or no witness at all. Although Judge Gonzalez declined to order the depositions of specific individuals pursuant to Rule 30(b)(6), he recognized that these depositions could be taken pursuant to any other procedure authorized by the Federal Rules of Civil Procedure.7 Henry Lloyd thereupon indicated that the judgment creditors intended to notice certain individuals for deposition. With respect to the specific information sought, Douglas Calhoun, a partner of the Law Firm, took the position that the judgment creditors were not entitled to know what Ruth Box did with money received in connection with the sale of Tedruth to Cities Service.8 In response, Judge Gonzalez stated, “If Tedruth knows what she did with the money, they are obligated to say, just as anybody else would be obligated to say if asked that question.”

After the hearing, Judge Gonzalez issued an order requiring Tedruth and the Law Firm to (1) produce a knowledgeable witness pursuant to Rule 30(b)(6) and the deposition notice of March 11, 1983; and (2) provide responsive post-judgment discovery in the form of document production and interrogatory answers, including, a “written response” identifying the documents being produced in response to the itemized document request. The order also expressly subjected both Tedruth and the Law Firm to the full range of available sanctions for failure to comply with the court’s order, or with any legitimate discovery requests made by the judgment creditors.

On May 5, 1983, the judgment creditors issued notices of deposition of Tedruth and of the Law Firm, naming specific members [1514]*1514of the Box family and specific members of the Law Firm,9 to begin the week of May 31, 1983. In addition, subpoenas were served on the four members of the Law Firm, Jay Herman, Douglas Calhoun, Robert Witt, and George Arvanitis, who were named in the notice of deposition issued to the Law Firm. Thereafter, the Law Firm applied to the United States District Court for the District of New Jersey, for an order suppressing the depositions of the four attorneys.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hafiz Muhammad Khan v. United States
928 F.3d 1264 (Eleventh Circuit, 2019)
Roca Labs, Inc. v. Consumer Opinion Corp.
140 F. Supp. 3d 1311 (M.D. Florida, 2015)
Domanus v. Lewicki
288 F.R.D. 416 (N.D. Illinois, 2013)
In Re John T.
695 S.E.2d 868 (West Virginia Supreme Court, 2010)
Bruce Donald MacNeal v. Equinamics, Corp.
308 F. App'x 311 (Eleventh Circuit, 2009)
OFS FITEL, LLC v. Epstein, Becker and Green, PC
549 F.3d 1344 (Eleventh Circuit, 2008)
Action Marine, Inc. v. Continental Carbon, Inc.
243 F.R.D. 670 (M.D. Alabama, 2007)
In re: Nicole Energy v.
Sixth Circuit, 2007
Serra Chevrolet, Inc. v. General Motors Corp.
446 F.3d 1137 (Eleventh Circuit, 2006)
Budrow v. Montedonico
35 F. App'x 213 (Sixth Circuit, 2002)
Stephan Jay Lawrence v. Alan L. Goldberg
279 F.3d 1294 (Eleventh Circuit, 2002)
Securities & Exchange Commission v. Bilzerian
112 F. Supp. 2d 12 (District of Columbia, 2000)
Lawrence v. Chapter 7 Trustee (In Re Lawrence)
251 B.R. 630 (S.D. Florida, 2000)
American Insurance v. Coker (In Re Coker)
251 B.R. 902 (M.D. Florida, 2000)
In Re Lawrence
238 B.R. 498 (S.D. Florida, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
799 F.2d 1510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pesaplastic-ca-v-cincinnati-milacron-co-ca11-1986.