Roadbuilders Machinery Supply Co., Inc. v. Sandvik Mining and Construction USA, LLC

District Court, D. Kansas·Decided February 23, 2024·No. 2:22-cv-02331·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

ROADBUILDERS MACHINERY AND SUPPLY CO., INC.,

Plaintiff, Case No. 2:22-cv-2331-HLT-TJJ v.

SANDVIK MINING AND CONSTRUCTION USA, LLC,

Defendant.

MEMORANDUM AND ORDER This matter is before the Court on Plaintiff’s Motion to Reconsider and for Fees and Costs (ECF No. 139) and Supplemental Exhibit (ECF No. 140). Plaintiff requests the Court reconsider its January 5, 2024 Memorandum and Order (ECF No. 138) denying Plaintiff’s request for the specific discovery sanction of deeming a fact admitted under Fed. R. Civ. P. 37(b)(2)(A)(i). Plaintiff alternatively requests the Court award it $40,825 (46 hours @ $887.50 per hour) in attorney’s fees and $265 in subpoena service costs as reasonable expenses allowed in the same Memorandum and Order. As explained below, Plaintiff’s request for reconsideration is denied, and Plaintiff’s request for fees and costs is granted in part and denied in part. In accordance with the Court’s Memorandum and Order, Plaintiff is awarded its reasonable expenses, in the total amount of $29,015, which is comprised of $28,750 (46 hours @ $625 per hour) for attorney’s fees plus $265 for subpoena service costs. I. Request for Reconsideration Plaintiff requests the Court reconsider, pursuant to D. Kan. Rule 7.3, its decision denying Plaintiff’s request to deem certain facts admitted so that manifest injustice is avoided. Plaintiff argues Defendant’s discovery violation was more than the belated production of the Winslow and Siegrist emails. Additionally, Plaintiff claims Defendant was not truthful about whether it had produced all responsive documents, and this concealment destroyed Plaintiff’s ability to obtain evidence that could have been obtained and used at trial. Plaintiff also requests a “more meaningful sanction” so the purposes of Rule 37 are better fulfilled, and suggests the Court could

deem a different set of facts admitted than Plaintiff proposed and the Court denied in its Memorandum and Order. Defendant opposes Plaintiff’s motion for reconsideration, arguing the facts and law have not changed since the Court’s ruling and therefore reconsideration is not appropriate. District of Kansas Rule 7.3 requires a motion to reconsider be based on “(1) an intervening change in controlling law; (2) the availability of new evidence; or (3) the need to correct clear error or prevent manifest injustice.”1 District of Kansas Rule 7.4 further provides the Local Rule setting forth the bases for a motion to reconsider applies to “all motions in civil cases, including motions and objections relating to discovery.” 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.2 Such motions are not appropriate if the movant only wants the court to revisit issues already addressed or to hear new arguments or supporting facts that could have been presented originally.3 Whether to grant or deny reconsideration lies within the court’s sound

1 The Tenth Circuit has adopted the same standard. See, e.g., Servants of Paraclete v. Does, 204 F.3d 1005, 1012 (10th Cir. 2000); Brumark Corp. v. Samson Res. Corp., 57 F.3d 941, 944 (10th Cir. 1995). 2 Comeau v. Rupp, 810 F. Supp. 1172, 1174–75 (D. Kan. 1992). 3 Van Skiver v. United States, 952 F.2d 1241, 1243 (10th Cir. 1991). discretion.4 The movant has the burden to show an adequate reason to reconsider the prior order of the court.5 The Court finds Plaintiff has not demonstrated that reconsideration of the Court’s ruling denying Plaintiff’s requested sanction of deeming a fact admitted under Fed. R. Civ. P. 37(b)(2)(A)(i) is necessary to correct clear error or prevent manifest injustice. Plaintiff’s

argument that Defendant was not truthful about whether it had produced all responsive documents, and that its actions destroyed Plaintiff’s ability to obtain evidence, is a rehashing of arguments it made in its original motion. The Court finds Plaintiff is essentially asking it to revisit arguments and issues already addressed at length in the Court’s Memorandum and Order, which is not a proper basis for reconsideration. Plaintiff also requests the Court reconsider imposing a more “meaningful” sanction, by modifying the fact Defendant is deemed to have admitted as follows: Defendant knew “several states” or the states mentioned in the emails (South Dakota and Wisconsin) had dealer protection laws prohibiting the termination of dealers without good cause. In the Memorandum and Order,

the Court found the specific sanction Plaintiff requested in its motion for sanctions—deeming as admitted that Defendant knew Kansas had dealer protection laws prohibiting the termination of dealers without good cause—would not be a just sanction, noting the two exemplar emails Defendant failed to produce addressed dealer protection laws in states other than Kansas. Plaintiff’s arguments and suggested alternative sanction could have been presented originally when Plaintiff filed its motion for sanctions and reply, but Plaintiff failed to do so. Because

4 Rand v. Wolf Creek Nuclear Operating Corp., No. 11-4136-KHV, 2012 WL 1154509, at *2 (D. Kan. Apr. 5, 2012). 5 Id. Plaintiff could have presented its arguments and alternative sanction in its initial motion, they are not appropriate grounds for granting reconsideration of the Court’s Memorandum and Order. Plaintiff makes no argument the Court has obviously misapprehended a party’s position, the facts, or applicable law, which would provide a basis for reconsideration. The Court finds its prior sanctions ruling was not clear error, and Plaintiff has not shown that reconsideration is

necessary to prevent manifest injustice. Accordingly, the Court denies Plaintiff’s request for reconsideration. II. Plaintiff’s Request for its Rule 37(a)(5) Attorney’s Fees and Costs Plaintiff alternatively requests the Court award its attorney’s fees and subpoena service costs as reasonable expenses. The Court’s Memorandum and Order permitted Plaintiff to file a motion for its Rule 37(a)(5) expenses with an affidavit itemizing its reasonable expenses. The motion and request was limited to “Plaintiff’s fees and expenses, including attorney’s fees,

incurred in briefing this Motion for Rule 37 Sanctions, subpoenaing Diesel Machinery, Inc. and American State Equipment, and preparing for and attending the September 1, 2023 discovery conference.”6 The Court must independently analyze the reasonableness of requested attorneys’ fees.7 Reasonable attorneys' fees under Rule 37(a)(5) are typically calculated using the lodestar methodology, which requires the court to multiply the hours counsel for the party seeking

6 ECF No. 138 at 18. 7 See King v. Fleming, 899 F.3d 1140, 1155 (10th Cir. 2018) (reviewing an award of fees as a Rule 11 sanction); see also Orchestrate HR, Inc. v. Blue Cross & Blue Shield of Kan., Inc., No. 19-4007-DDC, 2023 WL 6216307, at *6 (D. Kan. Sept. 25, 2023) (granting motion for award of attorney’s fees under Rule 37(a)(5)(B)).

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Roadbuilders Machinery Supply Co., Inc. v. Sandvik Mining and Construction USA, LLC, (D. Kan. 2024).

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