Treadway v. Otero

District Court, S.D. Texas·Decided October 6, 2020·No. 2:19-cv-00244·Unknown

Opinion

UNITED STATES DISTRICT COURT October 06, 2020 SOUTHERN DISTRICT OF TEXAS David J. Bradley, Clerk CORPUS CHRISTI DIVISION

SOPHY TREADWAY, § § Plaintiff, § VS. § CIVIL ACTION NO. 2:19-CV-244 § SOPHEAK OTERO, et al, § § Defendants. §

ORDER AFFIRMING MAGISTRATE JUDGE ORDERS Pursuant to 28 U.S.C. § 636(b)(1)(A), the Court referred this case to Magistrate Judge Jason B. Libby to hear and determine any pretrial matter pending before the court. Dissatisfied with the Magistrate Judge’s discovery ruling (D.E. 52) and sanctions order (D.E. 136), Plaintiff1 has invoked this Court’s power of review. With respect to the discovery ruling, the Court considers Plaintiff’s objection (D.E. 59), Defendants’ response (D.E. 65), Plaintiff’s reply (D.E. 66), and Defendants’ sur-reply (D.E. 69). With respect to the sanctions order,2 the Court considers Plaintiff’s objection (D.E. 143), Defendants’ response (D.E. 145), and Plaintiff’s reply (D.E. 149). STANDARD OF REVIEW Both Orders (D.E. 52 and 136) are non-dispositive matters. Castillo v. Frank, 70 F.3d 382, 385 (5th Cir. 1995) (discovery orders are non-dispositive); Brown v. Bridges,

1 The sanctions order required Plaintiff’s counsel to pay the award. However, the objections are filed on behalf of Plaintiff rather than her counsel. For ease of reference, the Court adopts this party reference in adjudicating the objections. 2 The Court previously affirmed the Magistrate Judge’s issuance of sanctions and remanded only for a reconsideration of the amount after requiring that attorney’s fee evidence be submitted in admissible form and subject to Plaintiff’s objection. D.E. 124. No. 12-CV-4947-P, 2015 WL 410062, at *2 (N.D. Tex. Jan. 30, 2015) (a sanctions order is non-dispositive unless it eliminates a claim or defense). Therefore, they are governed by the same standard of review: “A judge of the [district] court may reconsider any

pretrial matter under this subparagraph (A) where it has been shown that the magistrate judge’s order is clearly erroneous or contrary to law.” 28 U.S.C. § 636(b)(1)(A); Fed. R. Civ. P. 72(a). The “clearly erroneous” standard requires that the court affirm the decision of the magistrate judge unless “on the entire evidence [the court] is left with a definite and firm conviction that a mistake has been committed.” United States v. U.S. Gypsum

Co., 333 U.S. 364, 395 (1948). A. The Discovery Order Is Not Infirm In his discovery order, Magistrate Judge Libby denied Plaintiff’s motion to compel because the discovery requests—which sought a full range of detailed financial information regarding Defendant Mr. Otero and all of his businesses over a nine-year

time span—were overbroad, unduly burdensome, and disproportionate to the case. D.E. 52. Plaintiff has briefed her objections as if this Court’s review is entirely de novo. She complains that the requested discovery is relevant, within the broad scope of discovery, and that the important nature of the case eliminates all concerns regarding disproportionality. She suggests that if the Court does not find the order reversible in its

entirety, then the Court should substitute its judgment and modify the order, allowing discovery of a smaller universe of documents. As Defendants point out, nothing in the objections acknowledges the standard of review, much less demonstrates that the Magistrate Judge’s findings of fact are clearly erroneous or that his conclusions of law are in error. D.E. 65, pp. 1-2, 4-8. In reply, Plaintiff argues that the discovery order is the result of an error of law because Judge Libby misapplied the burden of proof by not requiring Defendants to submit evidence to

support their claims of overbreadth, undue burden, and disproportionality. See Chevron Oronite Co., L.L.C. v. Jacobs Field Servs. N. Am., Inc., 951 F.3d 219, 232 (5th Cir. 2020) (allocation of burden of proof is a question of law); McLeod, Alexander, Powel & Apffel, P.C. v. Quarles, 894 F.2d 1482, 1485 (5th Cir. 1990) (conclusory objections were appropriately overruled).

Discovery requests that are overbroad, burdensome, and disproportionate on their face need not be supported by evidence. See generally, Balakrishnan v. Bd. of Supervisors of La. State Univ. & Agric. & Mech. Coll., CV 08-4315, 2010 WL 11538662, at *5 (E.D. La. July 26, 2010) (citing Gen. Elec. Capital Corp. v. Lear Corp., 215 F.R.D. 637, 640 (D. Kan. 2003); Fabian v. Dunn, SA-08-CV-269-XR, 2010 WL 11597913, at

*5 (W.D. Tex. Feb. 11, 2010). Thus there was no misallocation of the burden of proof. Moreover, with respect to Plaintiff’s requests, the Magistrate Judge duly considered—on their face—the exhaustive scope of the requests, the minutely detailed nature of the response demanded, the long time span for which information was requested, the issues of the case, and Plaintiff’s repeated refusals to cabin the discovery in any measure. The

Magistrate Judge also considered the information Defendants had already produced in satisfaction of Plaintiff’s need for discovery on the issues. The Court rejects Plaintiff’s argument that the Magistrate Judge erred in assessing the burden of proof. On the whole of the record, the Court finds no clear error. The Court further declines Plaintiff’s invitation to modify her discovery requests, as that matter was not presented to the Magistrate Judge in the first instance and was refused when the Magistrate Judge requested that Plaintiff do so. Plaintiff chose to stand on her

discovery requests as propounded. The request to modify discovery comes too late when made for the first time in this Court. The Court AFFIRMS the Order Denying Motion to Compel (D.E. 52). B. The Sanctions Order Is Not Infirm The Court has previously affirmed the sanctions order to the extent that the

Magistrate Judge appropriately found Plaintiff’s counsel to have engaged in sanctionable conduct. D.E. 124. The Court remanded the matter of the amount of sanctions, only. And the basis for remand was only to ensure that the evidence was in admissible form and that Plaintiff had an opportunity to object. Id. The Court did not previously consider whether the amount initially ordered was warranted. Now before the Court is Plaintiff’s

appeal of the new order, again awarding $14,234.70 in discovery-related attorney’s fees as a sanction. D.E. 136. The Court’s task is limited to a review of the propriety of the sanctions amount, a scope of review Plaintiff concedes. See D.E. 143, p. 4. 1. Rubric for Decision The Supreme Court has established the following approach to the evaluation of fee

awards: We emphasize, as we have before, that the determination of fees “should not result in a second major litigation.” The fee applicant (whether a plaintiff or a defendant) must, of course, submit appropriate documentation to meet “the burden of establishing entitlement to an award.” But trial courts need not, and indeed should not, become green- eyeshade accountants. The essential goal in shifting fees (to either party) is to do rough justice, not to achieve auditing perfection.

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