State ex rel. Newman v. O'Malley

54 S.W.3d 695, 2001 Mo. App. LEXIS 1509, 2001 WL 1001092
CourtMissouri Court of Appeals
DecidedSeptember 4, 2001
DocketNo. WD 59133
StatusPublished
Cited by2 cases

This text of 54 S.W.3d 695 (State ex rel. Newman v. O'Malley) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Newman v. O'Malley, 54 S.W.3d 695, 2001 Mo. App. LEXIS 1509, 2001 WL 1001092 (Mo. Ct. App. 2001).

Opinion

HOLLIGER, Judge.

Permanent Order in Prohibition

Relator Marla Newman (“Marla”) filed an action in the Circuit Court of Jackson County, Missouri against Defendant Malcolm Newman (“Malcolm”), claiming that he defamed her by mailing a letter to Marla’s mother stating that Marla had undergone treatment on two occasions for sexually transmitted diseases. Marla’s suit included a claim for damages, including a claim for punitive damages. In furtherance of her punitive damages claim, Marla propounded discovery to Malcolm seeking copies of certain financial records. She requested copies of all federal tax returns from 1994 through 1998, together with copies of any financial statements prepared in the last 5 years. Malcolm objected to the discovery, claiming that the requested information was irrelevant and that the request was propounded to harass him.

Marla filed a motion for enforcement of discovery seeking an order requiring Malcolm to produce the financial records. Marla indicated that she would be amenable to the imposition of a protective order restricting dissemination of those records. After receiving a series of responses and counter-responses from the parties, the trial judge sustained in part Marla’s motion. The court ordered Malcolm to deliver the financial records to the court, where they would be kept under seal until Marla [697]*697made a submissible case showing that she was entitled to punitive damages. Once a submissible case for punitive damages was made, the order provided that Marla would receive the records. After unsuccessfully seeking reconsideration by the trial judge, Marla sought relief from this court in the form of a writ of prohibition.

Writs of prohibition are the appropriate procedural vehicle to remedy a denial of proper discovery that could cause a party to suffer considerable hardship that could not be remedied on appeal. Ferrellgas, L.P. v. Williamson, 24 S.W.Bd 171, 175 (Mo.App.2000). The question before this court is whether the Respondent has improperly denied Marla’s discovery of Malcolm’s financial information until she has made a submissible case for punitive damages. Generally, a trial court is vested with broad discretion regarding discovery matters. See State ex rel. LaBarge v. Clifford, 979 S.W.2d 206, 208 (Mo.App.1998). If a trial court exceeds its jurisdiction or abuses that discretion, however, an aggrieved party may properly seek the remedy of a writ of prohibition. Id.

Marla contends that the trial judge abused his discretion by entering an order refusing her immediate discovery of Malcolm’s financial information. She asks that we make our preliminary writ absolute, requiring the trial court to permit full discovery of the requested financial information. We are unaided in our consideration of Marla’s request for relief because of the lack of any response filed on behalf of the Respondent.

It is well settled that when a plaintiff seeks punitive damages against a defendant, evidence of the defendant’s financial status is both relevant and admissible. See State ex rel. Kubatzky v. Holt, 483 S.W.2d 799, 804 (Mo.App.1972). Discovery of past financial information is often helpful in determining a party’s present financial status. See State ex rel. Ford v. Adolf, 724 S.W.2d 612, 615 (Mo.App.1986). A plaintiff seeking discovery of financial information in support of a punitive damage claim should be afforded an adequate opportunity to examine those materials prior to trial. See Kubatzky, 483 S.W.2d at 805.

Marla argues that the trial judge’s refusal to permit her to review the financial information filed under seal by Malcolm is in conflict with the holding of State ex rel. Kubatzky v. Holt, supra. In Kubatzky, as here, the court directed the party defending against a punitive damage claim to file its financial records under seal, to be unsealed and provided to the other party once a submissible case had been made regarding the punitive damage claim. See id. at 802. The plaintiff sought a writ of prohibition barring the trial judge from keeping the financial information under seal.

The Kubatzky court held that the “protective order” entered by the trial court was overbroad. See id. at 806. In support of its holding, the appellate court stated:

We believe that a court can hedge the examination of a document with such reasonable restrictions in order to protect the privacy of a party but we cannot construe this language to apply to a situation which deprives counsel of the opportunity prior to trial to examine answers to interrogatories which are relevant and material to an issue of damages. The right to non-disclosure of private affairs relating to the net worth of the defendants must be subservient to the discovery process as to the party and counsel if the discovery process is to be meaningful and substantial justice is to be done and practical trial problems avoided.

[698]*698Id. at 805 (italics added). The court also stated that the dissemination of the financial information to individuals other than the requesting party and his counsel could be properly limited by means of a protective order. Id. at 806.

We concur with the reasoning of Kubatzky that a party claiming punitive damages is entitled to reasonable discovery of the opposing party’s financial status. We also agree that that discovery cannot be forestalled until the requesting party has made a submissible case at trial. To adopt a contrary approach would deprive the requesting party a meaningful attempt to review that information and investigate its veracity.

In Williams Carver Co. v. Poos Brothers, Inc., 778 S.W.2d 684 (Mo.App.1989), a counterclaiming defendant sought compensatory and punitive damages alleging fraudulent misrepresentation. During the discovery process it sought financial information about the other party’s net worth and financial status. The trial court entered an order similar to the one entered by Respondent here. The jury failed to return a verdict in defendant’s favor on its counterclaim, thus rendering the claim for punitive damages moot. Nevertheless, the defendant on appeal claimed that the trial court erred in conditioning its review of Williams Carver’s financial information upon the making of a submissible case of punitive damages. This court held that because no actual damages were awarded those punitive damages could not be assessed and there was thus no prejudice from the preclusion of discovery about Williams Carver Co.’s financial status. Id. at 687. Although unnecessary to its resolution, the court went on to cite the general principles of the trial court’s authority to limit and control discovery and to exercise its discretion in determining the propriety of discovery.

Id. We cannot determine from Williams Carver Co. whether the appellant claimed that the trial court lacked the authority to so limit the discovery or whether it claimed the trial court abused its discretion. This court did state, however, “[T]he trial court acted within the scope of its authority

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Bluebook (online)
54 S.W.3d 695, 2001 Mo. App. LEXIS 1509, 2001 WL 1001092, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-newman-v-omalley-moctapp-2001.