United States v. Quebe

321 F.R.D. 303, 2017 WL 2118779
CourtDistrict Court, S.D. Ohio
DecidedMay 16, 2017
DocketCase No. 3:15-cv-294
StatusPublished
Cited by2 cases

This text of 321 F.R.D. 303 (United States v. Quebe) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Quebe, 321 F.R.D. 303, 2017 WL 2118779 (S.D. Ohio 2017).

Opinion

DECISION AND ENTRY

Sharon L. Ovington, United States Magistrate Judge

I. INTRODUCTION

Believing that Defendants failed to adequately respond to its interrogatories, Plaintiff first moved to compel their responses in June 2016. (Doc. #s 22-23). The parties subsequently agreed to narrow the scope of discovery, and the Court denied Plaintiffs motion without prejudice to renewal. (Doc. # SO). Regrettably, this temporary truce between the parties quickly deteriorated, hope for cooperative discovery dissolved, and Plaintiff renewed its Motion to Compel. (Doc. #42).

In January 2017, the Court partially granted and partially denied Plaintiffs Motion to Compel. (Doc. #59). Doing so, the Court ordered (in part) Defendants to provide additional responses to Plaintiffs Interrogatories 2 and 11. Defendants’ additional responses to these Interrogatories are presently at issue by way of Plaintiffs Motion for Sanctions under Rule 37(b) (Doc. #61), Defendants’ Memorandum in Opposition (Doc. # 62), Plaintiffs Reply (Doc. #64), Defendants’ Sur-Reply (Doc. #65), and Plaintiffs Brief in Response (Doc. # 66). The Court also [306]*306views the parties’ arguments in light of the record as a whole.

This Decision and Entry incorporates by reference the background and substantive law surrounding the research tax credit set forth in the previously filed Decision and Entry. (Doe. #59).

II. DISCUSSION

Plaintiff contends that sanctions are warranted against Defendants due to them failure to sufficiently answer Interrogatories 2 and 11 and due to their failure to comply with the Court’s Order. Plaintiffs requested sanctions include either default judgment against Defendants or an order barring Defendants from presenting evidence or contentions absent from their answers to these Interrogatories.

Defendants assert that they have, to the best of their ability, answered Plaintiffs discovery requests and complied with the Court’s Order. Additionally, they argue, “Plaintiffs requested sanctions are extreme and unwarranted.” (Doe. # 62, PagelD # 1837).

Before addressing sanctions, the Court must first determine whether Defendants complied with the Order docketed on January 23, 2017. (Doc. # 59).

A. Plaintiffs Interrogatory 2

Plaintiff seeks details about the foundation of Defendants’ assertion that they are entitled to the research tax credit. This is seen in Interrogatory 2’s request for, among other information, “a detailed description of the specific work [the identified employees] performed ... for which QHI reported or claimed [research tax] credits....” (Doe. # 61-2, PagelD # 1750).

The Court’s Order examined Defendants’ answer to Interrogatory 2 and determined that they did not need to provide certain information (birthdates, Social Security numbers, etc.) to Plaintiff. The Order then required Defendants to “identify which project each employee worked on and what their jobs entailed.” (Doc. # 59, PagelD # 1710).

Plaintiff contends that Defendants failed to adequately respond to Interrogatory 2 and failed to comply with the Court’s Order by simply reformatting material they previously had provided. Plaintiff is correct.

Defendants responded to the Court’s Order by adding information and providing a table in their answer to Plaintiffs Interrogatory 2. (Doc. # 61-2, PagelD # s 1750-55). However, the Defendants’ answer falls far short of providing the information the Court’s Order required and fails to constitute a good-faith effort to either comply with the Court’s Order or respond to Plaintiffs Interrogatory 2. Defendants’ table contains employees’ names and job titles, general descriptions of their work, and their 2009 and 2010 allocation wages. Id. at 1751-55. Representative samples show the following:

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* * *
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Id. at 1751, 1754.

The bare-bone, generalized information Defendants provided in their answer and table does not specifically describe the alleged research that was performed by each identified employee. Instead, Defendants have, as Plaintiff accurately describes, “recycled generic title descriptions from the [a]lli-antgroup study — descriptions that the Court has already ruled insufficient.” (Doc. # 61, PageID # 1724). Defendants’ generic descriptions, moreover, read more like advertisements for job openings. The descriptions alert the reader to work performed — Project Managers, for instance, “utilized their construction expertise to develop constructability analyses and value engineering solutions. ...” id. at 1754 — but shed no light on the specific work the employee did “for which QHI reported or claimed [research tax] credits under 26 U.S.C. [§ ] 641.” Id. at 1750.

Defendants contend that “interrogatories are an inappropriate vehicle to explain hundreds of thousands of pages of information, describe weeks and months worth of work, and dissect complicated designs.” (Doc. # 62, PageID # 1837). They maintain that they “have complied with the discovery requests and with the discovery order to the best of their ability.” Id. In addition to providing a table, they allege that they have produced contemporaneous business records that substantiate their interrogatory responses. Id. at 1848. Specifically, “All the project documents produced (QHI 001-QHI 345417) directly tie to employee activities.” (Doc. # 62-38, PageID #4060). Note well that this refers to Defendants’ production of over 340,000 pages of documents.

Defendants advanced this same line of argument in response to Plaintiffs Motion to Compel. It lacked merit then and does so now. Defendants have repeatedly relied on their production of over 340,000 pages to Plaintiff in this case. See Doc. # 62, PageID # 1837; Doc. # 62-1, PageID # 1856; Doc. #62-38, PageID #4060. Perhaps Defendants have been seduced by the magnitude of their own document production. Perhaps they are attempting to camouflage behind their document dump a barren evidentiary landscape — one bereft of pertinent, responsive evidence. Whatever their reasons for insisting their production of over 340,000 pages is sufficient, their document dump does not help them today anymore than it did yesterday. See Scott Hutchison Enter., Inc. v. Cranberry Pipeline Corp., 318 F.R.D. 44, 54 (S.D.W. Va. 2016) (“The term ‘document dump’ is often used to refer to the production of voluminous and mostly unresponsive documents without identification of specific pages or portions of documents which are responsive to the discovery requests.”) (citation omitted); cf. Stooksbury v. Boss, 528 Fed.Appx. 547, 550 (6th Cir. 2013) (“near 40,000-page discovery submission ... [308]*308was merely a document dump of mostly unresponsive information...

Accordingly, Plaintiffs contentions regarding Defendants’ failure to comply with the Court’s Order and failure to sufficiently answer Interrogatory 2 are well taken.

B. Plaintiffs Interrogatory 11

Plaintiffs Interrogatory 11 asks that, for each of the twelve sample projects, Defendants, “identify the business component(s) ...

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Cite This Page — Counsel Stack

Bluebook (online)
321 F.R.D. 303, 2017 WL 2118779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-quebe-ohsd-2017.