United States v. Massachusetts Industrial Finance Agency

162 F.R.D. 410, 1995 U.S. Dist. LEXIS 18549, 1995 WL 447565
CourtDistrict Court, D. Massachusetts
DecidedJuly 7, 1995
DocketCiv. A. No. 94-30017 MAP
StatusPublished
Cited by15 cases

This text of 162 F.R.D. 410 (United States v. Massachusetts Industrial Finance Agency) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Massachusetts Industrial Finance Agency, 162 F.R.D. 410, 1995 U.S. Dist. LEXIS 18549, 1995 WL 447565 (D. Mass. 1995).

Opinion

ORDER OF COURT ON PLAINTIFF UNITED STATES’ MOTION TO BAR MIFA FROM PRESENTING EVIDENCE RELATING TO UNANSWERED RULE 30(b)(6) QUESTIONS OR, IN THE ALTERNATIVE, TO COMPEL MIFA TO DESIGNATE A KNOWLEDGEABLE RULE 30(b)(6) WITNESS (Docket No. 48), AND UNITED STATES’MOTION TO COMPEL ANSWERS TO INTERROGATORIES AND REQUESTS FOR PRODUCTION OF DOCUMENTS (Docket No. 50)

NEIMAN, United States Magistrate Judge.

Counsel for Plaintiff United States of America, Plaintiff-Intervenor New England Adolescent Research Institute, Inc. (“NEARI”), and Defendant Massachusetts Industrial Finance Agency (“MIFA”) appeared before the Court on June 80, 1995, with regard to the above-captioned motions, both of which concern aspects of discovery.

In September of 1989, NEARI applied to MIFA for conduit bond financing with the hope of obtaining sufficient capital to develop a residential school for emotionally-disturbed boys. Once MIFA’s Board of Directors granted NEARI preliminary approval, NEARI began to search for an investor. However, NEARI never found an investor and MIFA never submitted NEARI’s application to its Board of Directors for final approval. The United States and NEARI claim that MIFA discriminated against NEARI because MIFA did not grant final approval for NEARI’s project.

I. UNITED STATES’ MOTION TO BAR MIFA FROM PRESENTING EVIDENCE RELATING TO UNANSWERED RULE 30(b)(6) QUESTIONS, OR, IN THE ALTERNATIVE, TO COMPEL MIFA TO DESIGNATE A KNOWLEDGEABLE RULE 30(b)(6) WITNESS (Docket No. 48)

On February 7, 1995, in accord with Rule 30(b)(6) of the Federal Rules of Civil Procedure, the United States served notice that it intended to take the deposition of a representative of MIFA regarding eight topics. The deposition took place on March 15, 1995. David Slattery, MIFA’s general counsel, appeared at the deposition as MIFA’s representative, but was not able to provide complete information with respect to five of the eight topics. As a consequence, the United States claims that MIFA failed to make a complete designation and to produce a knowledgeable witness as required by Rule 30(b)(6). Specifically, the United States argues that MIFA failed to make a good faith effort to provide a witness who can provide complete and knqwledgeable answers binding on the agency. See Marker v. Union Fidelity Life Insurance Co., 125 F.R.D. 121, 126 (M.D.N.C.1989); Mitsui & Co. v. Puerto Rico Water Resources Authority, 93 F.R.D. 62 (D.P.R.1981); Protective Nat’l Ins. Co. v. Commonwealth Ins. Co., 137 F.R.D. 267 (D.Neb.1989); and Federal Deposit Insurance Corp. v. Butcher, 116 F.R.D. 196, 201 (E.D.Tenn.1986), aff'd, 116 F.R.D. 203 (E.D.Tenn.1987).

In opposition, MIFA asserts that the United States is already in possession of all facts known to MIFA relating to its actions with respect to NEARI and its application for conduit bond financing. More importantly, MIFA asserts that the pending action is unique because there is no one currently at MIFA who has knowledge of the disputed [412]*412events. Rule 30(b)(6), MIFA argues, requires only that the organization designate a person to testify “as to matters known or reasonably available to the organization,” and that it must simply make a “good faith effort” to designate a person with knowledge of the deposition topics. Marker, supra, 125 F.R.D. at 126. MIFA argues that the purpose of Rule 30(b)(6) will not be advanced by requiring testimony from a current MIFA representative concerning actions taken five years ago by persons no longer there. MIFA further asserts that the United States was aware, even before it noticed the Rule 30(b)(6) deposition, that no current MIFA employee had any personal knowledge of the events relating to this litigation.

The United States has already deposed the five individuals who were with MIFA at the time of the disputed events. However, the parties disagree on the extent of contradiction in the deposition testimony of these five individuals. The United States asserts that the deposition testimony was so contradictory that the Court should now require MIFA to provide a consistent interpretation of the facts at issue. MIFA disagrees and claims that the testimony was not particularly contradictory, considering it was based on five personal recollections. MIFA asserts that the trial will sort out the facts derived from the direct testimony of the five individuals and, further, that MIFA’s position is constrained by that testimony and the testimony of Mr. Slattery, MIFA’s Rule 30(b)(6) representative. MIFA further indicates that the best it can do is provide Mr. Slattery for the deposition; therefore, the alternative remedy that the United States is seeking, i.e., to designate a new, knowledgeable Rule 30(b)(6) witness, would be futile.

It is evident to the Court that MIFA could have done a better job in preparing Mr. Slattery for the deposition. Such preparation, despite MIFA’s arguments to the contrary, is required for a Rule 30(b)(6) deposition. See Marker, supra, 125 F.R.D. at 126. See also Protective National Ins. Co., supra. However, the Court disagrees that Mr. Slattery’s inability to fully testify on all the topics set forth in the notice was tantamount to a complete failure of the agency to appear. Compare Resolution Trust Corp. v. Southern Union Co., Inc., 985 F.2d 196, 197 (5th Cir. 1993). The Court does not believe, given the facts before it, that MIFA acted wilfully or in bad faith to obstruct discovery. See In re Anthracite Coal Antitrust Litigation, 82 F.R.D. 364, 368 (M.D.Pa.1979). As a result, the most the Court will do, as indicated to the parties at hearing, is to require MIFA to produce more documents and clarify its position in response to a number of interrogatories. See discussion below. However, the Court will not order MIFA to produce another Rule 30(b)(6) deposition witness. Nor will the Court bar MIFA from presenting its position through witnesses who have already been deposed by the United States. Accordingly, the motion of the United States is DENIED.

II. UNITED STATES’ MOTION TO COMPEL ANSWERS TO INTERROGATORIES AND REQUESTS FOR PRODUCTION OF DOCUMENTS (Docket No. 50)

The United States’ motion has three distinct parts: first, to compel satisfactory answers from MIFA to a number of questions set forth in its First Set of Interrogatories; second, to compel satisfactory answers to a number of questions in its Second Set of Interrogatories; and, third, to compel the production of certain documents. The Court will address these parts seriatim.

A First Set of Interrogatories.

The United States asserts that MIFA failed to narrow or clarify issues through its interrogatory answers, as required by Rule 33 of the Federal Rules of Civil Procedure. See Hickman v. Taylor, 329 U.S. 495, 500, 67 S.Ct. 385, 388, 91 L.Ed. 451 (1947); and U.S. v. Procter & Gamble Co., 356 U.S. 677, 682-83, 78 S.Ct. 983, 986-87, 2 L.Ed.2d 1077 (1958).

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162 F.R.D. 410, 1995 U.S. Dist. LEXIS 18549, 1995 WL 447565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-massachusetts-industrial-finance-agency-mad-1995.