Rlbb Acquisition, LLC v. Baer

765 S.E.2d 662, 329 Ga. App. 483
CourtCourt of Appeals of Georgia
DecidedNovember 19, 2014
DocketA14A1126
StatusPublished
Cited by2 cases

This text of 765 S.E.2d 662 (Rlbb Acquisition, LLC v. Baer) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rlbb Acquisition, LLC v. Baer, 765 S.E.2d 662, 329 Ga. App. 483 (Ga. Ct. App. 2014).

Opinion

Branch, Judge.

After a trial court granted defendant William Baer’s motion to compel plaintiff RLBB Acquisition, LLC (“RLBB”) to comply with Baer’s discovery requests, Baer moved for sanctions for RLBB’s failure to comply with the trial court’s order, including the dismissal of RLBB’s complaint. The trial court granted Baer’s motion for sanctions and dismissed RLBB’s complaint with prejudice. On appeal, RLBB argues that the trial court abused its discretion when it imposed the extreme sanction of dismissal because the evidence did not show that RLBB blatantly or willfully failed to comply with the court’s orders. We find no error and affirm.

“Trial courts have broad discretion to control discovery, including the imposition of sanctions. Absent the showing of a clear abuse of discretion, a court’s exercise of that broad discretion will not be reversed.” Freeman v. Foss, 298 Ga. App. 498, 499 (2) (680 SE2d 557) (2009) (citation omitted).

Construed in favor of the trial court’s judgment, the record shows that as successor-in-interest to the original promisee of Baer’s promissory note, RLBB filed an action against him to recover the balance due under the note. In his answer, Baer admitted that he had executed the note, but asserted a number of affirmative defenses, *484 including estoppel, fraud, and breach of contract. After an attempt at mediation failed in November 2012, the trial court ordered that discovery, including the filing of any motions, be concluded by February 20, 2013, and that any “dispositive motions” be filed by March 21, 2013.

On November 26, 2012, Baer served requests for admissions and for production of documents on RLBB. On .November 29, 2012, Baer filed a notice of RLBB’s OCGA § 9-11-30 (b) (6) deposition, to be held on January 16, 2013. On December 26, new counsel appeared on RLBB’s behalf. On December 28, RLBB served its objections and responses to Baer’s request for admissions. On December 31, RLBB served its objections and responses to Baer’s request for documents, and produced some documents on January 7, 2013. On January 14, new counsel for RLBB advised Baer that RLBB would produce information and witnesses only as to the loan and promissory note at issue, but not as to the remaining loans in the same portfolio, which RLBB contended were irrelevant and contained confidential information and trade secrets. The OCGA § 9-11-30 (b) (6) deposition was taken as scheduled on January 16. Baer filed motions to compel further discovery on February 20 and 28, 2013. RLBB filed no response to either of these motions, and did not file any other motion before March 21, 2013, the latest of the deadlines set by the trial court.

On April 29, 2013, RLBB moved for leave to file a summary judgment motion. The trial court set a hearing on RLBB’s motion for July 10, 2013. At the July 10 hearing, which was not transcribed, the trial court (1) denied RLBB’s motion for leave to file a summary judgment motion; (2) noted that RLBB had not responded to either of Baer’s motions to compel and that the court was empowered to rule on unopposed discovery motions without hearing oral argument; (3) heard oral argument from both sides nonetheless; (4) granted Baer’s motions to compel; and (5) instructed RLBB that it was bound to produce the documents requested within 14 days of the entry of its order. The trial court then instructed Baer to provide a draft order, including the 14-day deadline, to RLBB for agreement as to form, and to submit the order for entry into the record. On July 22, 2013, after RLBB had approved the draft order as to form, the trial court entered the order denying RLBB leave to move for summary judgment and granting Baer’s motions to compel. The order specified that RLBB was bound to produce the documents “not later than fourteen (14) days from entry” of the same order.

Through Monday, August 5, 2013, 14 days after the entry of the trial court’s order granting the motion to compel, RLBB had not produced any additional documents, explained its failure to do so, or *485 asked for an extension of time. On Wednesday, August 7, Baer filed the instant motion for contempt and/or sanctions. Four minutes after receiving Baer’s motion via e-mail, counsel for RLBB called counsel for Baer and told him that RLBB “would” gather the documents in dispute and deliver them by the following Monday. On Thursday, August 8, the day after this exchange, RLBB e-mailed copies of some of the documents, including the purchase and sale agreement at issue, and filed a motion for an extension of time to produce the remaining ones. RLBB did not file any response to Baer’s motion for contempt and/or sanctions, however. On September 20, RLBB sent a box of documents to Baer without any correspondence or explanation; on October 4, RLBB sent nine e-mails with documents attached. On October 9, RLBB sent an additional 25 e-mails with attachments it described as “the documents in order.”

RLBB sent counsel with no previous connection with the case to the hearing on Baer’s motion for contempt and/or sanctions, which was held on October 11, 2013. After apologizing to the court and admitting that RLBB was “tardy in producing the documents required” by the court’s order, counsel argued that RLBB had attempted to comply with Baer’s discovery request, which he characterized as “broad” in that it concerned more than 57 loans, many of which were handled by different employees of RLBB, whereas there was “only one loan at issue in this action.” When the trial court asked why no effort had been made to collect the documents before the August 5 deadline imposed by the court’s order, counsel replied, “I don’t have a good excuse for that.” After hearing evidence as to Baer’s fees and further argument from both sides, the trial court entered an order finding that RLBB had been put on notice at the July 10,2013 hearing of its obligation to produce the documents by the August 5 deadline; had failed to provide any documents before the deadline or any other remaining documents after August 8 but within the ten days requested in its motion for extension; and had “continuously failed to provide any excuse or reason” for these failures. The trial court then concluded that RLBB had “repeatedly and blatantly disregarded all orders from the Court, as well as ignored its obligations” under the Civil Practice Act; found RLBB to be in wilful contempt of the Court; awarded attorney fees of $5,045; and dismissed RLBB’s case with prejudice. This appeal followed.

RLBB argues that because any delay in its compliance with the trial court’s order was accidental or involuntary, the trial court abused its discretion when it dismissed RLBB’s complaint with prejudice. We disagree.

*486 OCGA § 9-11-37 (b) provides in relevant part:

(2)... If a party . . . fails to obey an order to provide or permit discovery,... the court in which the action is pending may make such orders in regard to the failure as are just and, among others, the following:

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Bluebook (online)
765 S.E.2d 662, 329 Ga. App. 483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rlbb-acquisition-llc-v-baer-gactapp-2014.