Rio Grande Gas Company v. Gilbert

491 P.2d 162, 83 N.M. 274
CourtNew Mexico Supreme Court
DecidedNovember 29, 1971
Docket9296
StatusPublished
Cited by14 cases

This text of 491 P.2d 162 (Rio Grande Gas Company v. Gilbert) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rio Grande Gas Company v. Gilbert, 491 P.2d 162, 83 N.M. 274 (N.M. 1971).

Opinion

OPINION

McMANUS, Justice.

This suit was brought in the District Court of Dona Ana County in 1967. The complaint alleged that defendant-appellant Gilbert was indebted to plaintiff-appellee Rio Grande Gas Company in the sum of $6,678.69. The indebtedness arose during the years the appellant served as president of Rio Grande Gas Company.

Appellant answered appellee’s allegations by way of general denial and counterclaimed as against the appellee. The counterclaim alleged that the appellant had expended, during the years he served as president, the sum of $9,653.76 for the benefit of the appellee. The counterclaim further alleged that after allowance for all offsets and credits, appellee was indebted to the appellant in the sum of $1,353.76 and that appellee also owed appellant severance and relocation expense in the amount of $2,856.36. The total amount thus counterclaimed was $4,210.12. The appellee’s reply to the counterclaim amounted to a general denial of all allegations.

Appellee submitted interrogatories to appellant pursuant to Rule 33, New Mexico Rules of Civil Procedure, and moved for production of documents pursuant to Rule 34, New Mexico Rules of Civil Procedure. After several delays and extensions, the court, upon motion of the appellee, granted a default judgment against appellant under Rule .37(b) (2), New Mexico Rules of Civil Procedure, for refusal to obey the order to produce. Motion to vacate the default was denied and final judgment was entered in the amount of $6,678.69.

Appellant filed a motion to vacate and set aside the final judgment. Since the motion was not acted on within 30 days, and since he felt there was a possibility the motion might be denied by operation of law; appellant appealed. The cause, No. 8903 on the Supreme Court docket, was subsequently dismissed as premature.

The case was returned to the district court and thereafter appellant’s motion to set aside the court’s prior entry of default and judgment was denied. It is from this order, entered December 16, 1970, that the appellant appeals.

Appellant’s contention is that he did in good faith attempt to comply with the court’s order to produce documents and was prevented from doing so by the appellee. Further, appellant contends if the court knew he had attempted in good faith to obey the order, but refused to investigate the facts, then the failure by the court to vacate the default was error and an abuse of discretion.

In order to determine if, indeed, there was error, we must look to the facts as established by the existing record.

On April 15, 1968, appellee submitted interrogatories to appellant pursuant to Rule 33, supra. On April 23, 1968, appellee filed a motion for production of documents by the appellant, pursuant to Rule 34, supra. On July 3, 1968, appellee filed a motion for an order to compel the appellant to answer the interrogatories. On August 14, 1968, the court ordered appellant to produce documents within 20 days of the date of the order and to answer interrogatories not later than 20 days of the date of the order. On September 6, 1968, appellee moved the court to dismiss appellant’s counterclaim and render judgment by default on the basis that appellant had failed to comply with the court’s orders of August 14, 1968.

Hearing on the above motion was set for September 13, 1968. One day prior to the hearing, answers to the interrogatories were filed. The appellant also agreed to comply with the order to produce documents providing he could be present at the time of examination by the accountants of the appellee. Following this agreement, for a period of some two months, the accountants and the appellant could never seem to come together; thus the appellee never examined the appellant’s documents.

On November 12, 1968, the appellee filed an amended motion alleging the above facts and further alleging that the appellant, by his delaying tactics, was refusing to comply with the court’s order to produce documents, and as a result of this ostensible refusal appellee was entitled to a default judgment.

Hearing on the motion was set for December 11, 1968, and the appellant was, through his attorney of record, duly notified. On the day of the hearing, neither the appellant nor his attorney put in an appearance. Following the hearing, the court ordered the default judgment be taken against appellant. The motion on the part of the appellant to vacate the order was subsequently denied.

Prior to the hearing on the motion to vacate the default judgment, the appellant changed attorneys. The court held that the change in attorneys and the entry of appearance were contrary to §§ 18-1-13 and 21-1-1(89) of the laws and procedures of New Mexico. The court noted that all those pleadings filed by Mr. Tittmann, the proposed new attorney, would be stricken from the file. The court also found that the requested extension of time requested by the attorney was scandalous and contained unverified, unethical accusations and would not be allowed by the court. Subsequent proceedings, discussed later in the opinion, resulted in appellant’s motion to vacate the default judgment being denied on December 16, 1970.

Appellant claims the court erred in failing and refusing to vacate and set aside the default order of December 20, 1968, and the final judgment entered March 19, 1969.

New-Mexico has no cases that establish the criteria necessary to invoke Rule 37(b) (2), supra, for failure to produce documents. This court has stated, however, that failure to appear for deposition must be wilful; there must be a showing of a conscious or intentional failure to appear. Such a showing will result in a finding of wilful failure to appear and the sanctions of Rule 37, supra, will be imposed. See Kalosha v. Novick, 77 N.M. 627, 426 P.2d 598 (1967). Other jurisdictions have applied the same criteria as noted above to cases where the party has failed to produce documents puráuant to court order. In Oaks v. Rojcewicz, 409 P.2d 839, 840 (Alaska 1966), the court stated:

“In our view the record must establish a willful refusal on the part of a party ordered to make discovery before the court is authorized to dismiss the party’s claim under Civ.R. 37(b) (2) [c].”

In a California case, Filipoff v. Superior Court of Los Angeles County, 56 Cal.2d 443, 15 Cal.Rptr. 139, at 143, 364 P.2d 315 at 319 (1961), the court stated:

“Since the subpoena called for the production of those documents, the mere bringing of them to the deposition was not, in any real sense, ‘production.’ The refusal [of the attorney] to let the documents out of his possession, was tantamount to a refusal to produce * *

In a Utah case, the defendant, who had counterclaimed, was ordered to produce documents which he failed to produce. Several months later, at the pretrial conference, he was again ordered to produce documents and again he failed to so comply. The plaintiff filed a motion for default judgment.

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Bluebook (online)
491 P.2d 162, 83 N.M. 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rio-grande-gas-company-v-gilbert-nm-1971.