Rosenberger v. Shubert

182 F. 411, 1910 U.S. App. LEXIS 5657
CourtU.S. Circuit Court for the District of Western Missouri
DecidedNovember 3, 1910
DocketNo. 3,525
StatusPublished
Cited by1 cases

This text of 182 F. 411 (Rosenberger v. Shubert) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Western Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rosenberger v. Shubert, 182 F. 411, 1910 U.S. App. LEXIS 5657 (circtwdmo 1910).

Opinion

VAN VALKENBURGH, District Judge.

This is an application by plaintiff, under section 724, Rev. St. (U. S, Comp. St. 1901, p. 583), for a rule upon the defendants to produce, before trial, for the inspection of plaintiff, certain books and papers, and for permission to take copies of entries therein; the case now being at issue. It is alleged [412]*412that the books and writings sought contain evidence pertinent to the issue; that they are necessary to the plaintiff in the preparation of his case for trial1. The books and papers desired are a certain book or books, commonly known as a “weekly statement book,” kept during the period from September 4, 1908, down to the filing of the motion, to wit, September 30, 1910; the same being alleged to be a complete original record of all of the income and expenses of said theater for said period; also a certain pass book or pass books with the New England National Bank of Kansas City, Mo., showing deposits made from time to time and day to day by the defendants of the income from the Shubert Theater — the allegation being that no moneys were deposited for said defendants in such bank, except such monej^s as were derived from the operation of said theater. Also these books are said to be in the possession and under the control of one Earl Steward, as general agent of said defendants.

The plaintiff was attorney for the defendants in a certain cause begun in this court wherein one O. D. Woodward and others were complainants and the Shuberts were defendants, which was subsequently appealed to the Circuit Court of Appeals for this Circuit, resulting in a decree causing the complainants to deliver to the defendants herein the possession, control, and management of the Shubert Theater in Kansas City, Mo., and practically -abrogating the contract theretofore existing between the complainants in that case and these defendants. This is a suit upon quantum meruit for the recovery of a balance of attorney’s fees claimed to be due from defendants to plaintiff. Plaintiff desires the information sought to be obtained through the instrumentality of this motion for the purpose of showing the amount in controversy in the former action and the financial ability of the defendants to pay the fees sued for. This motion is resisted by the defendants upon two grounds: (a) That section 724 does not authorize inspection of the books of the opposing party before trial; and (b) that plaintiff is not honestly making this motion for any reason which could be within the purview of the statute, that this is an attempted invasion of the business secrets of defendants by one who is inimical to their every interest, and that no such showing is made as would entitle plaintiff to the relief sought.

Section 724, upon which this motion is founded, is as follows:

“Sec. 724. In the trial of actions at law, the courts of the United States may, on motion and due notice thereof, require the parties to produce books or writings in their possession or power, which contain evidence pertinent to the issue, in cases and under circumstances where they might be compelled to produce the same by ordinary rules of proceeding in chancery. If a plaintiff fails to comply with such order, the court may on motion, give the like judgment for the defendant as in cases of nonsuit; and if a defendant fails to comply with such order .the court may, on motion, give judgment against him by default.”

There has been much conflict of opinion on the question whether this section authorizes an order for the production before trial of books or writings. It must be conceded that the weight of authority -is to the effect that the federal courts in civil actions at law may, in proper cases, order production of books and writings containing pertinent evidence, [413]*413not only at the trial, but after the joining of issue and before trial, for inspection, in order to prepare for trial. Practically all decided cases up to that time are collected and discussed by Judge Bradford, of the district of Delaware, in the case of Bloede Co. v. Joseph Bancroft & Sons Co. (C. C.) 98 Fed. 175. The court in that case arrived at the conclusion that under proper circumstances the party is entitled to inspection before trial, and may take copies and make abstracts under the order and direction of the court. This case was followed by Lacombe, Circuit Judge, in Gray v. Schneider (arising in the Southern district of New York) 119 Fed. 474. And again in Carpenter et al. v. Winn, 165 Fed. 636, 91 C. C. A. 301, the Circuit Court of Appeals for the Second Circuit took occasion to approve the doctrine announced in Bloede v. Bancroft, supra. The opinion per curiam says:

“The decisions rendered in different districts are not harmonious. A very full review of these decisions will be found in Bloede v. Bancroft (0. 0.) 98 Fed. 175, where it was held that production of the books in advance of trial could be required. Since that decision, however, the Circuit Court of Appeals in the Third Circuit has held the other way. Cassatt v. Mitchell Coal & Coke Co., 150 Fed. 32, 81 O. C. A. 80, 10 L. R. A. (N. S.) 99. A majority of us are in accord with the reasoning aDd conclusion in Bloede v. Bancroft, and since the practice there approved has been the practice in this circuit for several years, and is in harmony with the provisions of the state Code of Procedure, we are unwilling to adopt the conclusions of the Circuit Court of Appeals of the Third Circuit. Moreover, the weight of decisions in the different circuits seems to be in accord with Bloede v. Bancroft. It is unfortunate, perhaps, that there should be diversity in the practice in different circuits; but the remedy for that would be an application for certiorari to the Supreme Court.”

This court is advised that this case is now in the Supreme Court upon such writ.

In Cassatt et al. v. Mitchell Coal & Coke Co., 150 Fed. 32, 81 C. C. A. 80, 10 L. R. A. (N. S.) 99, the Circuit Court of Appeals for the Third Circuit held that section 724 does not confer the power to require a party to produce books before trial. If a party to an action, at law desires inspection of books in his adversary’s possession before trial of action, he is left to his chancery remedy by filing his bill for discovery. This conclusion is based largely upon the following considerations: First, from the wording of the section, which authorizes federal courts to make orders for the production of books or writings, not “in actions at law,” not “in proceedings in actions at law,” but “in the trial of actions at law,” from which it is argued that to require such production before the trial would be placing a strained interpretation upon the meaning of the language used. Attention is therein called to the fact that a court of chancery had the power to require a party to produce books or writings in a case in which that court was called on to administer relief as well as to compel discovery, either before or at the final hearing, and that, therefore, the language of the section under review seems to restrict the remedy in this case to proceedings at the hearing. Second, it is urged in that case that:

“If the order be to produce at the trial, and the party against whom it is made fails to comply therewith, or, producing the books, insists that they are not admissible, the ruling of the court awarding judgment against the defaulting party for nonproduction, or its ruling on the question of the admis[414]

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Cite This Page — Counsel Stack

Bluebook (online)
182 F. 411, 1910 U.S. App. LEXIS 5657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosenberger-v-shubert-circtwdmo-1910.