Shelton v. American Motors Corp.

106 F.R.D. 490, 2 Fed. R. Serv. 3d 254, 1985 U.S. Dist. LEXIS 18643
CourtDistrict Court, W.D. Arkansas
DecidedJune 21, 1985
DocketCiv. No. 83-2311
StatusPublished

This text of 106 F.R.D. 490 (Shelton v. American Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shelton v. American Motors Corp., 106 F.R.D. 490, 2 Fed. R. Serv. 3d 254, 1985 U.S. Dist. LEXIS 18643 (W.D. Ark. 1985).

Opinion

MEMORANDUM OPINION

H. FRANKLIN WATERS, Chief Judge.

The instant case is a products liability action wherein plaintiffs assert various theories of liability arising from an “on-road” Jeep rollover accident in which Coletta K. Shelton, aged 16 years, plaintiffs’ decedent, was killed.

From the outset this case has been plagued with a multitude of discovery disputes. These disputes, although “refereed” by this court and the United States Magistrate, have now reached a critical stage.

A detailed recital of the procedural history of the various pleadings, documents and correspondence is unnecessary for purposes of this decision.

At issue is the propriety of this court’s imposition of sanctions, including default judgment, arising from the continuing refusal of Rita Burns, “in-house” counsel for American Motors Corporation, American Motors Sales Corporation (hereafter “American Motors”), and Jeep Corporation, to answer certain questions propounded to her in depositions by plaintiffs’ attorney.

The salient facts are summarized below.

Plaintiffs served notices to take depositions of numerous individuals pursuant to Rule 30(a), Fed.R.Civ.P. Plaintiffs designated ten categories of specific areas to be covered in the depositions under Rule 30(b)(6). Defendants objected to the number of named individuals and various categories listed under Rule 30(b). By order, this court restricted the number of specific individuals and directed the defendants to designate a deponent in each of the ten categories.

During the depositions taken under Rule 30(b)(6), several deponents refused to answer on the basis of privilege or the “work product” doctrine.

After plaintiffs filed a motion for default judgment based upon defendants’ violation of the above-mentioned order, this court assigned the discovery proceedings to the United States Magistrate.

[492]*492The magistrate denied plaintiffs’ motion for default judgment, but directed the defendants to allow plaintiffs to depose additional persons, including two “in-house” counsel for American Motors, including Rita Burns.

During the deposition of Rita Burns, taken on October 24, 1984, she purportedly invoked the “work-product” doctrine and the attorney-client privilege persistently throughout, particularly with regard to the existence of various documents. One such document, the existence of which plaintiffs inquired, is a possible list of lawsuits in which there is listed all cases nationwide involving Jeep CJ overturns (First Burns Deposition, Oct. 24, 1984, pp. 38-39).

Another question concerned whether anyone in defendants’ legal department reviews television advertisements, operators’ manuals or salesman's guides (First Burns Dep., p. 52).

Rita Burns similarly refused to disclose the existence or non-existence of any documents, films, prints or memoranda wherein directives are issued for these items not to be disclosed in a Jeep overturn case (First Burns Dep., p. 55).

Ms. Burns also refused to disclose whether the defendants maintain any documents reflecting tests or demonstrations concerning Jeep CJ vehicles with reference to their rollover propensity, other than the “Penrod test,” the “Milliken-Riee test,” the “1982 Sneva-Haberstat test,” the “Heitzman Pocabella test,” and what is referred to as “C1109,” “C1096” and the “C1216 series,” which were disclosed in answers to interrogatories (First Burns Dep., pp. 55-56).

Plaintiffs also inquired of any tests performed by SEA in Columbus, Ohio, or TriDyne, or anyone else. Ms. Burns persisted in her refusal to answer (First Burns Dep., p. 57).

Plaintiffs inquired of the existence of documents or video cassettes concerning the Jeep Celebrity Challenge Races (First Burns Dep., p. 61).

Ms. Burns was also asked about the existence of documents concerning any computer modeling of the Jeep CJ vehicle (First Burns Dep., pp. 63-64). She refused to answer these questions as well.

Ms. Burns refused to reveal the existence or non-existence of documents reflecting Jeep rollovers and injuries to persons wearing seat belts (First Burns Dep., p. 64), the existence or intentional destruction of a 16-millimeter film of the “McCord test” (First Burns Dep., p. 65), the existence of any contract between defendants and Dynamic Science (First Burns Dep., pp. 65-66), the existence of any design drawing of the entire Jeep CJ vehicle (First Burns Dep., p. 68), and the existence of documents concerning statistical tabulations of utility vehicles in rollover accidents (First Burns Dep., p. 70). Ms. Burns answered none of these questions, in addition to numerous others.

Following this deposition, plaintiffs moved for a default judgment on the basis of an asserted non-compliance with the court’s prior order. The magistrate denied this motion, but ordered Ms. Burns to appear in Fort Smith, Arkansas, to give her deposition so that the magistrate could consider each question and answer and determine the applicability of any asserted privileges.

Ms. Burns did appear for that purpose on January 28, 1985. During this deposition Ms. Burns again refused to divulge the existence of any documents, other than the “Renifer documents,” in which there are computations, diagrams, or charts which reflect an analysis of the rollover tendency of the Jeep CJ vehicle (Second Burns Deposition, Jan. 28, 1985, p. 15). She persisted in her refusal despite the order of the magistrate to respond (Second Burns Dep., p. 28). Ms. Burns exercised a similar refusal with regard to the existence of any documents pertaining to any intentional destruction of the 16-millimeter “McCord” film (Second Burns Dep., p. 81), as well as any knowledge of the current location of 35,000 documents which recently “surfaced” with reference to the “Foreman” [493]*493case (Second Burns Dep., p. 91), despite the orders of the magistrate to respond.

She stated that her refusals to respond were based upon the direct instruction of American Motors.

Subsequent to the deposition, the magistrate, by letter to this court dated January 29, 1985, recommended a “show cause” hearing, directing the defendants to show cause why Ms. Burns should not be held in contempt of this court and, further, why a default judgment should not be entered on the issue of liability in favor of plaintiffs. The magistrate recommended that defendants be given one last opportunity to purge themselves of contempt.

This court entered an order on March 5, 1985, directing Ms. Burns to fully respond to the questions concerning the “existence” of documents in defendants’ possession on or before March 15, 1985, or to appear on that date to show cause why Ms. Burns should not be held in contempt and why sanctions, including default judgment, should not be entered. Prior to March 15, 1985, defendants and Ms. Burns advised the court that they would not comply, but rather, would “stand” on their position as stated in the depositions.

On March 22, 1985, plaintiffs moved this court to enter a default judgment against the defendants on the issue of liability. Defendants have responded and the issues are ripe for resolution.

With regard to the asserted attorney-client privilege and work product doctrine, the magistrate advised Ms. Burns and the defendants that he felt the matter was controlled by Diversified Industries, Inc. v. Meredith,

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106 F.R.D. 490, 2 Fed. R. Serv. 3d 254, 1985 U.S. Dist. LEXIS 18643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shelton-v-american-motors-corp-arwd-1985.