United States v. Kattar

191 F.R.D. 33, 44 Fed. R. Serv. 3d 987, 84 A.F.T.R.2d (RIA) 6063, 1999 U.S. Dist. LEXIS 13883, 1999 WL 1334987
District Court, D. New Hampshire·Decided August 19, 1999·No. Civ. No. 95-221-JD·Published·Cited by 1 cases

Opinion

ORDER

DiCLERICO, District Judge.

The United States of America (“government”), brought this action against George T. Kattar, Phyllis Kattar, Personally and as Trustee, Mary Abdoo, Trustee, George P. Kattar, Trustee, Kevin Kattar, Trustee, the Seven Children Trust, and the Town of Meredith, seeking to reduce to judgment certain assessments of tax liabilities made by the Internal Revenue Service. Before the court is the government’s motion for default judgment (document no. 88). The factual background of this case is set forth in an order issued this date on the government’s motion for summary judgment.

Discussion

The government seeks to invoke the inherent power of the court to manage judicial proceedings, and argues that default judgment is warranted against the defendants because they have allegedly engaged in wrongful, dishonest, and dilatory discovery practices.1 Specifically, the government argues that the defendants have breached their responsibilities under Federal Rules of Civil Procedure 26(g)(1), 33(b) and 34, which govern certification of disclosures, answers to interrogatories, and document production. The government further asserts that the defendants proffered false evidence and theories, and have falsely designated an expert witness. Finally, the government premises its motion upon allegedly inappropriate conduct at depositions.

[35]*35A district court has inherent power to dismiss an action or impose lesser sanctions where there have been egregious violations of the legal process. See Aoude v. Mobil Oil Corp., 892 F.2d 1115, 1118 (1st Cir.1989). However, “there are limits to a court’s inherent powers, particularly in instances where the Civil Rules are on all fours.” United States v. One 1987 BMW 325, 985 F.2d 655, 661 (1st Cir.1993). Where the Federal Rules of Civil Procedure provide a mechanism or procedure for addressing discovery violations, those procedures must be followed. See id. at 660-61. Similarly, if “the Civil Rules limit the nature of the sanction that can be imposed, a court may not use its inherent powers to circumvent the Rules’ specific provisions.” Id. at 661. Because of the necessity of reviewing each type of alleged discovery transgression in the context of the applicable Federal Rule of Civil Procedure, the court will give separate consideration to each of the allegations set forth in the government’s motion.

Interrogatories

The government first premises its motion upon the defendants’ alleged failure to respond fully and non-evasively to interrogatories, citing Federal Rule of Civil Procedure 33(b). Rule 33(b) governs answers to interrogatories and delineates procedures by which an answering party may object to interrogatories. Where the party serving the interrogatory is dissatisfied by the answers received, the “party submitting the interrogatories may move for an order under Rule 37(a) with respect to any objection to or other failure to answer an interrogatory.” Fed.R.Civ.P. at 33(b) (West 1999).2

Rule 37(a) provides that a “party, upon reasonable notice to other parties and all persons affected thereby, may apply for an order compelling disclosure or discovery....” Fed.R.Civ.P. 37(a) (West 1999). Sanctions are available under Rule 37(a)(4), titled “Expenses and Sanctions,” although they only provide for the imposition of costs and reasonable attorney’s fees. See Fed. R.Civ.P. 37(a)(4) (West 1999). However, “Rule 37 is progressive.” R.W. Int’l Corp. v. Welch Foods, Inc., 937 F.2d 11, 15 (1st Cir. 1991). “If an order to answer is issued under Rule 37(a), and then disobeyed, Rule 37(b)(2) comes into play, authorizing the trial court to impose further sanctions, including the ultimate sanction of dismissal.” Id.

The First Circuit has stated that the “rule’s language clearly requires two things as conditions precedent to engaging the gears of the rule’s sanction machinery: a court order must be in effect, and then must be violated, before the enumerated sanctions [of Rule 37(b)] can be imposed.” Id., 937 F.2d at 15. “Once the [discovering party] eschew[s] the essential interim step exemplified by Rule 37(a), the gateway to utilizing Rule 37(b)(2) ... [i]s blocked.” Id. at 16 (where party refused to answer deposition questions). In such circumstances a “district court [lacks] legal authority to dismiss the case under the latter rule based on [a party’s] recalcitrance.” Id.

In the case at hand, the government never moved for an order compelling the discovery requested. The interim step provided for by Rule 37(a) was never taken. Therefore, the court lacks the authority to enter a default judgment as a sanction allowed by Rule 37(b)(2)(C). See Fed.R.Civ.P. 37(b)(2) (West 1999).

Document Production

The government similarly argues that default judgment is warranted because the defendants have violated their duty to produce documents under Rule 34. Rule 34 governs the production of documents and pursuant to Rule 34(b), captioned “Procedure,” a party aggrieved by another’s failure to comply with the requirements of Rule 34 may “move for an order under Rule 37(a) with respect to any objection to or other failure to respond to the request or any part thereof, or any failure to permit inspection as requested.” Fed.R.Civ.P. 34 (West 1999). The First Circuit has stated that Rule 34’s reference to Rule 37 “of course, necessarily [36]*36incorporates the preconditions already described as a prelude to Rule 37(b)(2) sanctions.” R.W. Int'l, 937 F.2d 11 at 18. Again, the government never filed a motion to compel the desired discovery and the court lacks authority to issue a default judgment.

Fabricated Evidence, False Theories and False Witnesses

The government further asserts that the defendants fabricated evidence by providing an estimate of the Kattars’ net worth which included the value of a painting the Kattars did not in fact own on the dates in question. Moreover, the government avers that the defendants and their counsel offered false theories and falsely designated witnesses.

The court cannot conclude on this record that the defendants intended to fabricate evidence regarding Phyllis Kattars’ solvency by providing the government with the 1987 insurance appraisal of the contents of Clovelly, a New Hampshire residence.

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United States v. Kattar, 191 F.R.D. 33, 44 Fed. R. Serv. 3d 987, 84 A.F.T.R.2d (RIA) 6063, 1999 U.S. Dist. LEXIS 13883, 1999 WL 1334987 (D.N.H. 1999).

191 F.R.D. 33 (United States v. Kattar) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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