Resolution Trust Corp. v. Williams

165 F.R.D. 639, 1996 WL 164409
CourtDistrict Court, D. Kansas
DecidedMarch 28, 1996
DocketNo. 93-2018-GTV
StatusPublished
Cited by5 cases

This text of 165 F.R.D. 639 (Resolution Trust Corp. v. Williams) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Resolution Trust Corp. v. Williams, 165 F.R.D. 639, 1996 WL 164409 (D. Kan. 1996).

Opinion

MEMORANDUM AND ORDER

NEWMAN, United States Magistrate Judge.

This matter is before the court on the Motion for Reconsideration (doc. 347)' filed by Charles A. Getto and the law firm of McAnany, Van Cleave & Phillips, P.A. (“movants”). Movants request that the court reconsider its July 11, 1995, Memorandum and Order imposing sanctions against them. Defendants have filed a response. Movants have filed a reply. All issues in the ease have now been resolved other than this motion.

This is an action against certain officers and directors of Colonial Savings and Loan Association of America, a federally chartered savings and loan. The complaint alleges breach of fiduciary duty, negligence and violation of federal law. The Resolution Trust Corporation (RTC), as receiver of the failed institution, claimed damages in excess of $14 million. During the relevant time period, RTC was represented by various attorneys in the law firm of McAnany, Van Cleave & Phillips, P.A. (McAnany law firm), and RTC staff attorneys. Charles A. Getto (Getto), a member of the McAnany law firm, was lead trial counsel. The issues which give rise to the instant motion were originally presented to the court by a motion for sanctions filed on behalf of the defendants Wilson M. Williams and David D. Padgett, Sr. requesting an order striking Plaintiffs Second Amended Complaint due to plaintiffs failure to timely produce relevant documents under the court’s Scheduling Order. On July 11, 1995, the court issued a Memorandum and Order finding that the RTC had failed to comply with the court’s Scheduling Order dated May 14,1993, by not producing certain documents which it was required to produce under the terms of the order. The court found that sanctions should not only be entered against the RTC but also against its counsel, Getto and the McAnany law firm. While the court declined to issue the sanctions requested, the court ordered a public reprimand of all parties. Getto and McAnany, Van Cleave & Phillips, P.A. request reconsideration of the July 11, 1995, Memorandum and Order as to them. The RTC has not joined in the motion.

The Federal Rules of Civil Procedure do not provide for motions to reconsider, rather, they arise under D.Kan.Rule 206(f), now D.Kan.Rule 7.3. Whether to grant or deny a motion for reconsideration is committed to the court’s discretion. Hancock v. City of Oklahoma City, 857 F.2d 1394, 1395 (10th Cir.1988). A motion to reconsider gives the court the opportunity to correct manifest errors , of law or fact and to review newly discovered evidence. Committee for the First Amendment v. Campbell 962 F.2d 1517, 1523 (10th Cir.1992). A motion to reconsider is appropriate if the court has obviously misapprehended a party’s position, the facts, or applicable law, or if the party produces new evidence that could not have been obtained through the exercise of due diligence. Voelkel v. General Motors Corporation, 846 F.Supp. 1482 (D.Kan.1994); Major v. Benton, 647 F.2d 110, 112 (10th Cir.1981). An additional factor considered by some courts is the need to prevent manifest injustice. Zimmerman v. Sloss Equipment Inc., 835 F.Supp. 1283 (D.Kan.1993). “A motion to reconsider is not a second chance for the losing party to make its strongest case or to dress up arguments that previously failed.” Voelkel 846 F.Supp. 1482 (citing OTR Driver at Topeka Frito-Lay, Inc.’s Distribution Center v. Frito-Lay, Inc., [642]*6421993 WL 302203, 1993 U.S.Dist. LEXIS 10918 (D.Kan. July 19, 1993)). An improper use of the motion to reconsider “can waste judicial resources and obstruct the efficient administration of justice.” United States ex rel. Houck v. Folding Carton Administration Committee, 121 F.R.D. 69, 71 (N.D.Ill.1988).

Movants argue that reconsideration is required as they did not have the opportunity to address the sanctions issue as it was characterized by the court in its July 11, 1995, Memorandum and Order. After finding that the RTC had undisputedly not produced the documents required by the Scheduling Order, the court stated that the remaining consideration was “whether RTC’s noncompliance was inadvertent or excusable or whether there are other circumstances which make imposition of sanctions unjust.” Movants contend that they understood the thrust of defendants’ motion to be that “RTC and its outside counsel had purposefully withheld relevant documents.” They contend that since the issue was thus framed by the defendants, they focused their arguments to establish that the documents had not been intentionally withheld. Movants also suggest that they understood the allegations in the motion for sanctions to be directed at Getto alone since he was the only attorney identified by name in the motion and supporting memoranda and it appeared that it was his conduct addressed by defendants. They suggest that they did not have the opportunity to address matters raised by the defendants’ reply brief. The balance of the movants’ arguments are reargument on the imposition of sanctions by the court. The movants neither acknowledge, recite, address or argue the legal principles related to motions for reconsideration or to motions for imposition of sanctions against counsel representing parties in eases before the court.

The court rejects movants’ argument that reconsideration is required on the grounds that they did not have an opportunity to address the issues as stated by the court in its Memorandum and Order. The issues presented to the court for determination by the motion for sanctions were whether there had been compliance with the Scheduling Order, whether sanctions should be imposed for any noncompliance and the extent of any sanctions to be imposed. The RTC’s failure to comply with the terms of the Scheduling Order was not seriously disputed. It is not now contested. While RTC originally argued it had not intentionally withheld the documents in issue, it acknowledged that they had not been produced in accordance with the deadline established by the court in the Scheduling Order. Consequently, the only contested issues to be determined by the court were whether sanctions should be imposed, the parties or attorneys against whom they would be imposed and the extent of any sanctions imposed. The defendants urged the court to impose sanctions under Fed.R.Civ.P. 37(b). The court subsequently determined that Fed.R.Civ.P. 16(f) was the appropriate rule under which the requested sanctions should be considered. However, the legal principles under the two rules are identical. Neither Fed.R.Civ.P. 37(b) nor Fed.R.Civ.P. 16(f) provide that the court shall only impose sanctions in the event it finds that the violation of the court’s order was “purposeful.” Both rules provide that when a party fails to obey a court order, the court may make such orders as are just and among other sanctions enter the orders set out in Fed.R.Civ.P.

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165 F.R.D. 639, 1996 WL 164409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/resolution-trust-corp-v-williams-ksd-1996.