Unicure, Inc. v. Thurman

97 F.R.D. 7, 35 Fed. R. Serv. 2d 434, 1982 U.S. Dist. LEXIS 10025
District Court, W.D. New York·Decided September 29, 1982·No. No. CIV-77-642·Published·Cited by 2 cases

Opinion

[8]*8MEMORANDUM and ORDER

ELFVIN, District Judge.

This action was commenced by Unicure, Inc. (“Unicure”) against Jeremy D. Nelson and Trafalgar Industries of Canada, Ltd. (collectively “Nelson”) based on their alleged conversion or theft of Unicure’s secret formula(e) and process(es) for the manufacture of hair and skin conditioner. Pursuant to Fed.R.Civ.P. rules 37 and 41, Nelson has moved for an order dismissing the Amended Complaint or for the imposition of other sanctions due to Unicure’s failure to provide certain discovery as directed by an Order entered by me on consent of the parties February 22, 1982.

Nelson filed and served his first set of Interrogatories on Unicure and Richard H. [9]*9Tucker (who is President of Unicure and an additional defendant on Nelson’s counterclaims) September 25, 1981 and his first request for production of documents October 26, 1981.1 At that time, trial of this action was scheduled to begin in December, 1981. Unicure served but did not file answers to Nelson’s first set of Interrogatories November 6, 1981. That same day, Nelson’s attorney orally advised Unicure’s local counsel that he believed Unicure’s answers to the first set of Interrogatories were inadequate. In his affidavit in support of the current motion, Nelson’s attorney states that Unicure’s local counsel agreed to correct the deficiencies in the answers but this is denied in an affidavit by Unicure’s local counsel. Also on November 6th, Nelson filed and served on Unicure and Tucker a second set of Interrogatories (relating to the fifth, sixth, seventh, eighth and tenth causes of action) and request for production of documents.

Nelson’s attorney sent a letter dated November 17, 1981 both to Unicure’s local counsel and to its in-house counsel advising them that he believed that Unicure’s answers to Nelson’s first set of Interrogatories were deficient and that he would supply a list of objections and comments shortly. He sent an eight-page letter dated December 3, 1981 in which he detailed his objections to Unicure’s answers. After receiving no response from Unicure’s attorneys, Nelson’s counsel sent a third letter to Unicure’s local and in-house counsel December 11th. By that time, Unicure’s answers to Nelson’s second set of Interrogatories and its responses to Nelson’s first and second requests’ for documents were also overdue.2 Therefore, Nelson’s attorney indicated that, unless such discovery matters were resolved within ten days, he would move for the imposition of sanctions under Fed.R.Civ.P. rule 37.

These efforts by Nelson’s attorney led to the entry of an Order on consent of the parties in lieu of a formal motion to compel. The Order (which was consented to by the parties February 5th and entered February 22nd) required Unicure to file its answers to Nelson’s first set of Interrogatories on or before February 10th, to file and serve answers to Nelson’s second set of Interrogatories on or before February 15th, to file and serve responses to Nelson’s first and second requests for production of documents on or before March 1st and to produce documents pursuant to the requests by April 1st. Additionally, the Order required Unicure to “serve and file further answers to [Nelson’s] First Set of Interrogatories, based on the matters set forth in the December 11, 1981 letter from [Nelson’s] counsel to [Uni-cure’s] counsel on or before March 1,1982.” (Emphasis added.)

As required by the consent Order, Uni-cure filed its answers to Nelson’s first set of Interrogatories February 10th. Its answers to Nelson’s second set of Interrogatories were served and filed February 16, 1982, one day later than required by the Order.3 [10]*10Rather than filing supplementary answers to Nelson’s first set of Interrogatories as it was required to do on or before March 1st, Unicure “clarified” its previous answers in a letter dated March 12th from its local counsel to Nelson’s attorney. When Nelson’s attorney objected that these supplementary answers were required to be sworn to and filed, Unicure filed formal answers April 2nd. Further supplementary or clarifying responses were provided by Unicure May 10th. Unicure filed responses to Nelson’s first and second requests for production of documents March 8th, one week later than was required.

Nelson filed the current motion April 23rd based on Unicure’s failure to provide discovery in accordance with the Order entered February 22nd. Primarily, he argues that Unicure has failed or refused to adequately answer Interrogatories relating to the nature and amount of its damages and its alleged trade secrets for the manufacture of hair and skin conditioner. After oral argument on the present motion, I filed a Memorandum and Order June 25th which granted a previous motion by Nelson to dismiss the fifth, sixth, seventh and eighth causes of action asserted in the Amended Complaint on the grounds that such claims are barred by applicable statutes of limitations.4 To the extent that Nelson’s current motion is based on Uni-cure’s failure to provide discovery relating to the fifth, sixth, seventh and eighth causes of action, I regard such failure as having been mooted by said Order. Also, sanctions may not be imposed with respect to discovery items which have been provided by Unicure, albeit tardily, inasmuch as Nelson has not shown any actual prejudice resulting from any such delay.

Under Fed.R.Civ.P. rule 37(b)(2), a court may impose a variety of sanctions, including dismissal of the action, for failure to comply with an order compelling dis-covery. The sanctions are intended to secure compliance with discovery orders in a specific sense by penalizing those who fail to comply and in a general sense by deterring others who might be so inclined. Roadway Express, Inc. v. Piper, 447 U.S. 752, 763-64, 100 S.Ct. 2455, 2462-63, 65 L.Ed.2d 488 (1980); Cine Forty-Second St. Theatre v. Allied Artists, 602 F.2d 1062, 1066 (2d Cir.1979). Additionally, rule 37(b) seeks to assure that a party will not be able to benefit from his failure to provide discovery. Cine Forty-Second St. Theatre v. Allied Artists, supra, at 1066. The imposition of a particular sanction or sanctions is a matter committed to the discretion of the trial court. Ins. Corp. of Ireland v. Compagnie Des Bauxites, 456 U.S. 694, 707, 102 S.Ct. 2099, 2107, 72 L.Ed.2d 492 (1982); National Hockey League v. Met. Hockey Club, 427. U.S. 639, 642, 96 S.Ct. 2778, 2780, 49 L.Ed.2d 747 (1976). However, the rule recognizes due process limitations on the court’s discretion by requiring that the sanctions imposed be “just.” Ins. Corp. of Ireland v. Compagnie Des Bauxite, supra, 456 U.S. at 707, 102 S.Ct. at 2107.

Fed.R.Civ.P. rule 4l(b) similarly provides that the court may dismiss an action “for failure of the plaintiff to prosecute or to comply with these rules or any order of [the] court * *

The United States Court of Appeals for the Second Circuit has recognized that the imposition of sanctions for failure to provide discovery is “essential to the sound administration of justice.” Penthouse Intern., Ltd. v. Playboy Enterprises, 663 F.2d 371, 392 (2d Cir.1981). See, also, Lyell Theatre Corporation v. Loews Corporation,

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Unicure, Inc. v. Thurman, 97 F.R.D. 7, 35 Fed. R. Serv. 2d 434, 1982 U.S. Dist. LEXIS 10025 (W.D.N.Y. 1982).

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