United States Steel Corp. v. United States

43 F.R.D. 447, 11 Fed. R. Serv. 2d 807, 21 A.F.T.R.2d (RIA) 1164, 1968 U.S. Dist. LEXIS 11593
CourtDistrict Court, S.D. New York
DecidedJanuary 26, 1968
DocketNo. 65 Civil 3043
StatusPublished
Cited by6 cases

This text of 43 F.R.D. 447 (United States Steel Corp. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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United States Steel Corp. v. United States, 43 F.R.D. 447, 11 Fed. R. Serv. 2d 807, 21 A.F.T.R.2d (RIA) 1164, 1968 U.S. Dist. LEXIS 11593 (S.D.N.Y. 1968).

Opinion

OPINION

LEVET, District Judge.

Defendant here moves for two-fold relief in this action for recovery of income taxes: (1) Deferral of plaintiff’s deposition of its witness, one Stephen M. Jenks, until plaintiff has answered certain interrogatories addressed to it by defendant; (2) Preclusion of plaintiff’s use of a video tape recorder system at the deposition of Jenks.

[448]*448I.

THE DEPOSITION QUESTION

Plaintiff noticed a deposition of its own witness, one Stephen M. Jenks, for January 15, 1968. Prior thereto and on October 24, 1967, defendant had served certain somewhat extensive interrogatories upon plaintiff’s attorneys. The plaintiff has served two sets of partial answers to these interrogatories; the first on or about January 4, 1968 (filed January 5, 1968) and the second on January 8, 1968 (filed January 9, 1968); the first purported to answer question 27 and the second, questions 16, 18, 23, 27 and 29. A large and substantial number of questions remain unanswered. No objections to the interrogatories were interposed except that the time in which plaintiff may object to the defendant’s preliminary interrogatories on the limited ground that the burden imposed upon it in furnishing the answers to the interrogatories may be excessively onerous, was extended to February 15, 1968.

Defendant points out that the instant action is a claim, among other things, for return of payments by plaintiff of Korean War Excess Profits Tax and that, although there is only one taxable year in issue, to wit 1950, the plaintiff’s claim rests upon a showing that the years 1947, 1948 and 1949 (the base period years) were unusual years in its history.

Further, defendant contends that to defend its position its counsel must become familiar with all phases of plaintiff’s operation for a period of approximately fifteen years and that this information is almost exclusively within the possession of the plaintiff. Defendant insists that the answers to its interrogatories are essential to permit its counsel to intelligently cross-examine Jenks.

Defendant intimates that plaintiff, in the event that Jenks (now 68 years of age) dies or becomes ill before cross-examination, will still offer Jenks’ direct testimony and that perhaps it might be admissible and thus prejudice defendant.

At the request of the court, counsel for plaintiff submitted a statement of the items on which it would depose Jenks (see “Notice of Subject Matter of Deposition of Stephen M. Jenks,” dated January 15, 1968). This statement includes the following matters:

(1) Operation of blast furnaces, etc. by plaintiff in the period from 1940 to 1953;

(2) Steel-making facilities of plaintiff in the period from 1941-1953;

(3) Description of plaintiff’s record as to blast furnace intake and outgo;

(4) Discussion of production associated with capacity and quality of materials entering blast furnaces in the period 1941-1953;

(5) Chemical analysis of coke, iron ore and sinter produced by plaintiff in the period 1949-1953 and certain other allied subjects.

I have examined the defendant’s interrogatories above mentioned and I find that many of these items relate to the items on which Jenks would be examined upon his deposition. Consequently, defendant’s arguments for deferral have merit in spite of the fact that plaintiff claims defendant already has “virtually all the statistical information upon which Mr. Jenks’ testimony will be based” (see p. 5 of plaintiff’s memorandum of January 11, 1968). Obviously, if this be so, it may be that plaintiff’s deposition of Jenks would be largely a matter of expert opinion. Apparently, the principal and perhaps the sole purpose of the deposition is to preserve the testimony in the event that the witness should not be available at the time of trial. No proof of any unusual reason is submitted; nor does it appear that Jenks is plaintiff’s only witness familiar with the items on which deposition is sought. Little reason for speed at this time seems present except, at most, for the ostensible factor [449]*449of uncertainty of Mr. Jenks’ life, however with no proof that he is an indispensable witness.

Although, no doubt, it is premature at this time to determine the admissibility of a truncated deposition, since (a) the contents of the deposition remain uncertain, and (b) the circumstances of any elimination of cross-examination are not known, it may well be questioned if direct testimony, absent cross-examination, would be fairly admissible.

It may be that under special circumstances in limited situations federal courts have admitted such partial depositions. See Inland Bonding Co. v. Mainland Bank of Pleasantville, 3 F.R.D. 438 (D.N.J.1944); Derewecki v. Pennsylvania Railroad Company, 36 F.R.D. 195 (W.D.Pa.1964), aff’d, 353 F.2d 436 (3rd Cir. 1965).

However, in Inland, supra, counsel stipulated that “the deposition 'may be used for all purposes by any of the parties, as set forth in the Federal Rules of Civil Procedure, notwithstanding failure on the part of any of the parties to fully comply with the formalities prescribed by said rules in the taking of such deposition’ ” and counsel both agreed to adjourn the deposition to a subsequent date because of the witness’ “present ill health” (p. 438 of 3 F.R.D.).

Likewise, in Dereweeki, supra, which was a F.E.L.A. case, counsel, at the employee’s deposition, entered their stipulation “to the effect that the first deposition, which was adjourned to a future date, ‘be and is hereby considered to be the final deposition of plaintiff and that defendant is satisfied that no further deposition is required of the plaintiff and same is to be treated as complete’ * * (36 F.R.D. p. 197) There, the entire action seems to have depended on the employee’s testimony and it appears that defendant in effect consented to termination of the deposition. Headnote 1 in the Appellate decision distinctly indicates waiver.

In my judgment, the expression in Inland, supra, stating, “Strictly speaking, testimony such as this might be considered objectionable, but it cannot harm the defendants if it is admitted for what it is worth and the jury instructed accordingly, whereas to deny its admissibility might endanger the plaintiff’s position in a case of this nature” (p. 439 of 3 F.R.D.), is actually obiter dictum rather than the decisional basis to be followed.

In New York State the rule would seem to be probably adverse to the admission of such incomplete deposition testimony. People v. Cole, 43 N.Y. 508 (1871), which appears to have overruled Forrest v. Kissam, 25 Wend. 651, 652 (1844). See also Matter of Mezger, 154 Misc. 633, 278 N.Y.S. 669 (Sur.Ct., Monroe County, 1935) and cases cited therein.

Wigmore comments as follows:

“ * * * where the death or illness prevents cross-examination under such circumstances that no responsibility of any sort can be attributed to either the witness or his party, it seems harsh measure to strike out all that has been obtained on the direct examination. Principle requires in strictness nothing less.

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43 F.R.D. 447, 11 Fed. R. Serv. 2d 807, 21 A.F.T.R.2d (RIA) 1164, 1968 U.S. Dist. LEXIS 11593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-steel-corp-v-united-states-nysd-1968.