Waikiki Hobron Associates v. Investment Mortgage Inc. (In re Waikiki Hobron Associates)

1 B.R. 668, 1979 Bankr. LEXIS 639
CourtUnited States Bankruptcy Court, D. Hawaii
DecidedDecember 17, 1979
DocketBankruptcy No. 79-0206(1)
StatusPublished

This text of 1 B.R. 668 (Waikiki Hobron Associates v. Investment Mortgage Inc. (In re Waikiki Hobron Associates)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waikiki Hobron Associates v. Investment Mortgage Inc. (In re Waikiki Hobron Associates), 1 B.R. 668, 1979 Bankr. LEXIS 639 (Haw. 1979).

Opinion

ORDER

JOHN J. CHINEN, Bankruptcy Judge.

This Order deals with two motions: the Motion for Further Rulings Respecting Sanctions filed by Waikiki Hobron Associates, hereafter “WHA”, and the Motion for [669]*669Reconsideration of Ruling re Motion for Sanctions and Motion to Compel filed by Investment Mortgage Incorporated, hereafter “IMI”. A hearing was held on both Motions on November 29,1979. Based upon arguments of counsel and the records and memoranda filed herein, the Court makes the following Findings of Facts and Conclusions of Law:

FINDINGS OF FACT

On August 16, 1979, counsel for WHA served Interrogatories and Request for Production of Documents upon counsel of record for IMI. Pursuant to Rule 33 of the Federal Rules of Civil Procedure, the answers to the Interrogatories were due on September 15, 1979. No answers to said Interrogatories were served upon WHA as of November 26,1979. There was no objection to said Interrogatories lodged by IMI.

On August 16, 1979, counsel for WHA also served notice to take depositions upon oral examination of Messrs. J. William Oldenburg and Vernon Watters of IMI. The notice stated that the depositions were scheduled to take place on September 24 and 25, 1979, at Honolulu, Hawaii. However, counsel for IMI informed counsel for WHA that Messrs. Oldenburg and Watters would refuse to appear for the depositions in Honolulu, Hawaii, on September 24 and 25, 1979.

Thereafter, counsel for WHA noticed said depositions for a period of time specifically stipulated to be acceptable to Messrs. Oldenburg and Watters in San Francisco, California on September 18 and 19, 1979. WHA and IMI agreed that the stipulation had the effect of a subpoena. At the same time, WHA made arrangements for depositions of additional witnesses for the afternoon of September 19, 1979 in San Francisco, California.

Certain documents were produced by IMI at 10:00 a. m. on Monday, September 17. However, the following documents were missing and were not produced as of November 26, 1979: cancelled checks, credit card billings, telephone bills, desk calendars, diaries and any other documents demonstrating and reflecting travel to or communication with Hawaii during the relevant time period.

Both Messrs. Oldenburg and Watters failed to appear at their scheduled depositions. No protective order had been sought on behalf of either Mr. Watters or Mr. Oldenburg.

Because of the previously established schedule, counsel for WHA was forced to remain in San Francisco to take the depositions of Mr. Boswell and Mr. Rossetti late on Wednesday afternoon.

The only reasons given for the failure of Messrs. Oldenburg and Watters to appear at their deposition was that they had a business commitment in Chicago, which they thought was more important than the deposition. Later, counsel for WHA was assured that Messrs. Oldenburg and Wat-ters would appear in Honolulu, Hawaii, at their own expense on September 24, 1979.

Based on the assurance from counsel for IMI, WHA had a court reporter standing by to take the depositions of Messrs. Watters and Oldenburg on September 24, 1979, at Honolulu, Hawaii. However, neither Mr. Oldenburg nor Mr. Watters appeared as promised.

Mr. Watters appeared for his deposition in Honolulu on September 25, 1979 at 3:00 p. m., which deposition was continued through to September 26, 1979. Mr. Oldenburg did not appear at all for his deposition.

Another assurance was given by counsel for IMI that Mr. Oldenburg would appear for deposition on October 10 and 11, 1979. However, Mr. Oldenburg failed to appear on said dates. As a result thereof, WHA filed on October 30, 1979, a Motion for Sanctions.

A hearing was held on November 8, 1979 on WHA’s motion, at which time the Court rendered a partial decision, assessing certain costs against IMI and reserving ruling on the balance of the Motion, pending completion of Mr. Oldenburg’s deposition scheduled the following week in Honolulu, Hawaii, and also the filing of IMI’s answers to the Interrogatories. At the hearing on No[670]*670vember 8, 1979, the Court directed counsel for IMI to inform Mr. Oldenburg that he was to appear in Honolulu on November 15 for his deposition, and that the answers to the Interrogatories were to be served upon counsel for WHA by November 15, 1979.

Following the oral ruling of this Court on November 9, 1979, Mr. Oldenburg appeared in Honolulu for deposition on November 15, 1979. At that time, in response to the questions posed by counsel for WHA, Mr. Oldenburg explained his failure to appear at the previous depositions.

Mr. Oldenburg stated that he did not appear at the deposition in San Francisco because of an important business meeting in Chicago on the same day as the scheduled deposition. He also stated that, upon his return to San Francisco from Chicago on September 20, he tried to contact his attorney to arrange for his deposition, but learned that all the attorneys had left for Honolulu.

As for the deposition scheduled in Honolulu on September 24 and 25, Mr. Oldenburg stated that he had failed to appear because of poor airplane connection. He stated that he had tried to arrange for his deposition after September 25, but that counsel for WHA had a trip to Washington, D. C., previously scheduled. Thus, no further arrangement was made for a deposition during the month of September, though he was willing to appear at a deposition.

Thereafter, on November 26, 1979, WHA filed its Motion for Further Rulings Respecting Sanctions. WHA contended that the failure to appear at the various scheduled depositions was a willful and intentional disregard of the discovery rules. In addition, WHA contended that all of the documents requested for productions were not produced. WHA requested that the answers of IMI be stricken and that a Default Judgment be entered in favor of WHA.

IMI admits that Messrs. Watters and Oldenburg failed to appear at several depositions, but contends that their failure to appear at their depositions as scheduled was not willful and intentional, but that it was because of unforseen circumstances which necessitated their attending to other pressing matters. As for the deposition scheduled in San Francisco, prior to the departure from Honolulu to San Francisco by counsel for WHA, IMI contends counsel for WHA had been notified that Messrs. Wat-ters and Oldenburg would probably not be able to attend those depositions. However, the facts show that counsel for WHA informed counsel for IMI that the depositions had been scheduled and that, because of the stipulation, she did expect Messrs. Watters and Oldenburg to appear at their depositions.

IMI also contends that the failure of Mr. Oldenburg to appear at Honolulu on September 25, 1979, was the result of poor plane connection, and not because of a deliberate attempt by Mr. Oldenburg to avoid the deposition. IMI contends that Mr. Oldenburg was ready to fly to Hawaii after September 26, but that because counsel for WHA was preparing to leave for Washington, D. C., another deposition during the week of September 26 was not scheduled.

IMI contends that' Mr. Oldenburg failed to attend the deposition scheduled for October because of a death in the family.

IMI also contends that Messrs.

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