Stasch v. '69 Investment, Inc.

934 P.2d 630, 147 Or. App. 46, 1997 Ore. App. LEXIS 270
CourtCourt of Appeals of Oregon
DecidedMarch 12, 1997
Docket93C11665; CA A88675
StatusPublished
Cited by3 cases

This text of 934 P.2d 630 (Stasch v. '69 Investment, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stasch v. '69 Investment, Inc., 934 P.2d 630, 147 Or. App. 46, 1997 Ore. App. LEXIS 270 (Or. Ct. App. 1997).

Opinion

LANDAU, J.

This is an action for common-law fraud and statutory violations arising out of plaintiffs’ purchase of a parcel of real property. The trial court dismissed the action as a sanction for plaintiffs’ failure to appear for depositions. Defendants then moved for an award of attorney fees on the basis of a fee provision in the real estate sales agreement executed by the parties, but the trial court denied the motion on the ground that this is a tort action, and thus, the contractual fee provision is inapplicable. On appeal, plaintiffs contend that the trial court failed to make findings that are required before imposing the sanction of dismissal. On cross-appeal, defendants assign error to the trial court’s denial of their motion for attorney fees. We agree with plaintiffs on the appeal and reverse and remand for further proceedings. Because of our reversal on the appeal, we do not reach the trial court’s decision as to attorney fees.

The facts are much in dispute, but those relevant to the disposition of the appeal are uncomplicated. On June 9, 1993, plaintiffs filed their complaint in this action alleging that defendants made numerous misrepresentations in connection with the sale of certain real property. Defendants, who are the owners of the real property and the real estate brokers who represented the owners in the sale, answered the complaint.1 Little discovery ensued. The trial court initially set the trial to begin on November 7, 1994, but, at defendants’ request, postponed the trial to January 17, 1995. In October 1994, defendants sent plaintiffs a request for production of documents within two weeks and a notice of depositions for plaintiffs to appear on November 14, 1994. According to defendants, plaintiffs did not respond to either. They contend that counsel for plaintiffs merely sent a letter saying that he was very busy and would respond at a later date. Plaintiffs contend that their counsel was seriously ill at the time and busy with other matters and that he did respond to the request for production in substantial part. As for the depositions, plaintiffs contend that their counsel sent a letter to defendants on October 25, 1994, explaining that plaintiffs [49]*49could not appear for depositions on November 14, 1994, because they were scheduled to give depositions in another case on the same date. Defendants acknowledge receipt of the letter, but contend that plaintiffs’ counsel promised to reschedule the depositions and failed to do so.

On November 23, 1994, defendants moved to dismiss the action as a sanction for plaintiffs’ failure to attend their scheduled depositions. At the hearing on the motion, the trial court commented:

“I do find the delay at this point to be attributable to plaintiffs. * * * I’m going to have to think about what kind of a position this puts the defense in. That’s the only thing that could prevent, at this point, my taking it. The only thing that could prevent this motion from being granted is an assurance that these [depositions] will be accomplished by December 12.”

Apparently, plaintiffs agreed to a deposition schedule.2 Nevertheless, the folio-wing day, the trial court issued a letter, in which it made the following findings and conclusions:

“I have reviewed the affidavits submitted, the proposed expedited partial deposition schedule and ORCP 46 and conclude that the defendants are unreasonably prejudiced in their trial preparation and that dismissal is warranted under ORCP 46 D and ORCP 46 B(2)(c).”

The trial court later entered an order that contained the same findings and conclusions.

Plaintiffs contend that the trial court erred in dismissing their claims without first making certain required findings. Specifically, plaintiffs contend that, under the Supreme Court’s decision in Pamplin v. Victoria, 319 Or 429, 877 P2d 1196 (1994), the sanction of dismissal may not be imposed for discovery violations without finding willfulness, bad faith or fault of a similar degree on the part of plaintiffs and without explaining why a less onerous sanction would not suffice under the circumstances. Defendants acknowledge that Pamplin requires certain findings but contend that [50]*50the trial court’s findings in this case were sufficient. Specifically, they contend that the trial court’s findings that the delay in discovery was “attributable” to plaintiffs and that the delay “unreasonably prejudiced” defendants were sufficient. Defendants do not explain how those findings satisfy the requirement that the court explain why a lesser sanction than dismissal is not appropriate. They do, however, urge us to affirm the dismissal on the independent ground that the trial court could as well have dismissed the case on the ground that plaintiffs failed to prosecute their case diligently.

The trial court cited as the basis for its decision ORCP 46 B(2)(c) and ORCP 46 D. The former rule provides, in relevant part:

“B(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, including among others, the following:
* * * *
“B(2)(c) An order * * * dismissing the action or any part thereof, or rendering a judgment by default against the disobedient party[.]”

ORCP 46 B(2)(c). The latter rule provides, in relevant part:

“If a party * * * fails (1) to appear before the officer who is to take the deposition of that party or person, after being served with a proper notice, or (2) to comply with or serve objections to a request for production and inspection * * * the court in which the action is pending on motion may make such orders in regard to the failure as are just, including among others it may take any action authorized under subsection B(2) * * * (c) of this rule.”

ORCP 46 D.

In Pamplin, the Supreme Court addressed the extent to which certain findings are required as a prerequisite to the dismissal of an action as a sanction imposed under ORCP 46 B(2)(c). The court noted that the language of the rule does not explicitly require any particular findings, only that a court’s order imposing sanctions be “just.” The court [51]*51nevertheless held that, because the rule was based on a similarly worded federal rule, which had been interpreted by federal courts to require particular findings, and because the Oregon legislature is presumed to have adopted the preexisting federal court construction when it enacted the rule itself, the rule must be taken to require similar findings.

In that light, the court first considered whether a disobedient party must have acted with some measure of fault as a condition of dismissal. The court noted that federal courts previously had construed the federal rule counterpart of ORCP 46 B(2)(c) requiring that dismissal not be ordered in the absence of willfulness, bad faith or similar degree of fault on the part of the party against whom the sanctions were ordered. On the basis of that case law, the court concluded:

“[W]e hold that, under ORCP 46 B(2)(c), a finding of willfulness, bad faith, or fault of a similar degree on the part of the disobedient party is required.”

Pamplin, 319 Or at 434.

The court next addressed whether prejudice to the party seeking dismissal is required.

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Bluebook (online)
934 P.2d 630, 147 Or. App. 46, 1997 Ore. App. LEXIS 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stasch-v-69-investment-inc-orctapp-1997.