Weinstein v. Ehrenhaus

119 F.R.D. 355, 1988 U.S. Dist. LEXIS 2003, 1988 WL 21400
CourtDistrict Court, S.D. New York
DecidedMarch 14, 1988
DocketNo. 84 Civ. 5641
StatusPublished
Cited by4 cases

This text of 119 F.R.D. 355 (Weinstein v. Ehrenhaus) 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.

Bluebook
Weinstein v. Ehrenhaus, 119 F.R.D. 355, 1988 U.S. Dist. LEXIS 2003, 1988 WL 21400 (S.D.N.Y. 1988).

Opinion

LEVAL, District Judge.

Defendants move for an Order pursuant to Rules 37(b) and 37(d) F.R.Civ.P. dismissing the complaint for plaintiff’s failure to comply with discovery orders and failure to appear at his own deposition. The motion is granted.

BACKGROUND

The complaint alleges that the defendants Jack Ehrenhaus and Stanley Mesnick admitted plaintiff Barry Weinstein into membership in a real estate partnership doing business under the name Ehrenhaus Associates, that as a partner he was entitled to a participation in the profits of the partnership, that during the four months in which he was a partner the partnership acquired 18 East 41st Street and that he is entitled to an accounting for the profits of the partnership during those four months, including profits resulting from the acquisition of that property.

Defendants deny that Weinstein was ever admitted to membership in the partnership. They assert that plaintiff was employed under an agency agreement entitling him to fifteen percent of the profits of any transaction he brought to the firm.

The action was commenced on August 8, 1984. From the beginning, plaintiff conducted this litigation in bad faith. His prosecution of the action has been marked by his refusal to appear for deposition, failure to turn over properly demanded dis[356]*356closure in spite of court order, evasiveness in complying with defendants’ legitimate discovery requests, and the fraudulent filing of a lis pendens. Twice, I have considered imposing sanctions on plaintiff for his contumacious conduct. Plaintiff has repeatedly changed lawyers and is now represented by his fifth attorney.

On November 30, 1984, the Court issued its first scheduling order, setting June 21, 1985 as the date for close of discovery. Defendants initiated discovery by serving requests for production of documents and a notice to take plaintiff’s deposition on March 12,1985. Walsh Aff. ¶ 12. Plaintiff did not produce the requested documents and failed to appear for his deposition. The purported reason for plaintiff’s failure to comply with discovery was the withdrawal of plaintiff’s second counsel of record after plaintiff had failed to make payment for the representation. Mukasey Aff. ¶ 3.1

Following substitution of counsel, discovery commenced anew and plaintiff’s deposition was scheduled for April 30, May 7 and May 9, 1985. Plaintiff appeared at first; however, on May 9, 1985, Weinstein announced through counsel that he was “unwilling to proceed further” with the deposition.

With the consent of both parties, the original date for close of discovery was extended first to September 20, 1985 and then to October 25, 1985. Counsel then agreed that Weinstein’s deposition would continue on October 17 and 18, 1985, just prior to the date the court ordered for the close of discovery. Walsh Aff. 1117. On October 4, 1985, however, Weinstein through counsel informed the defendants that he would not appear for the scheduled deposition. The purported reason was again plaintiff’s counsel’s request to withdraw as counsel in part for plaintiff’s failure to pay bills for legal fees. Walsh Aff. 1119.

Aggrieved by plaintiff’s continued failure to appear for deposition, defendants thereupon filed a motion for sanctions under Rule 37, F.R.Civ.P. By Order of February 6, 1986, I denied defendants’ motion for sanctions, directed the plaintiff to submit to completion of his deposition within 30 days, and set the date for completion of discovery for April 15,1986. Order of Feb. 6, 1986.

The litigation then moved on to another front. Much of plaintiff’s claim centers on the property at 18 East 41st Street owned by Ehrenhaus Associates through the limited partnership of Manhattan Fifth Avenue Associates. In the fall of 1986, defendant entered into an agreement to sell the property with the closing to be accomplished by December 29, 1986 for tax reasons. When Weinstein learned of the proposed sale, he filed a lis pendens in state court against the property without knowledge of his counsel. In the lis pendens plaintiff falsely stated that the action in this Court was for specific performance and was against Manhattan Fifth Avenue Associates. By these untruthful representations, plaintiff met the state law requirements for a lis pendens.2

Subsequently on November 25, 1986, Weinstein’s counsel, unaware of the lis pen-dens Weinstein had secured, filed a motion to restrain the sale of the property, or, in the alternative, to deposit the proceeds of the sale and all closing documents evidencing the sale with the Court.

Meanwhile, at the closing of the property in December 1986, a title search revealed the existence of the lis pendens. The lis pendens would have prevented the closing and deprived the parties of the tax benefits that depended on concluding the transaction before December 31. An urgent telephone conference was held with this Court. Plaintiff initially refused to lift the lis pen-dens. Only after I threatened sanctions did plaintiff agree to vacate the lis pen-dens.

[357]*357In his November 25, 1986 motion, Weinstein had also sought leave to amend his complaint to assert a fraud count and an order compelling the defendants to furnish more specific answers to interrogatories. At a conference on November 6, 1986, Weinstein’s attorney stated that Weinstein had taped conversations which supported the fraud count. Cooper Affirmation of March 12, 1987 1125.

Defendants cross-moved for Rule 11 sanctions based on the filing of the lis pendens and leave to amend their answers to assert counterclaims for abuse of process and malicious prosecution, and, based upon plaintiff’s counsel’s representation regarding the tapes, sought discovery of plaintiff’s tape recordings of any parties or potential witnesses.

By Order of June 4, 1987, I denied the motions of both sides to assert new claims, but granted defendants’ motion for additional discovery. I also denied the motion for sanctions with leave to renew. Order of June 4, 1987.

The present motion, set against the backdrop of plaintiff’s repeated failure to appear for deposition and plaintiff’s filing of the fraudulent lis pendens, is based on plaintiff’s noncompliance with my June 4, 1987 Order and a subsequent Order entered July 22, 1987.

The June 4, 1987 Order granted defendants’ request for discovery of plaintiff’s tape recordings. Weinstein did not produce the tape recordings but advanced a claim he had not earlier asserted—that the tapes were protected by privilege. I then ordered that the tapes be produced for inspection at the deposition of plaintiff scheduled for July 23, 1987, and ruled against plaintiff on his claim of privilege on all tapes made prior to April 3, 1987. Order of July 22, 1987.

At the deposition, Weinstein produced only four tapes, refused to let defendant’s counsel hear any of them, and stated for the first time that other tapes (as many as four) may have been lost or erased. Weinstein stated that the four tapes were as many as he was “able to find at this point.”

At the conclusion of the deposition, the parties set August 10 and 11, 1987 for the continuation of plaintiff’s deposition, which they agreed to change to August 27, 1987. Cooper Aff. ¶ 27. On August 26, the eve of the deposition, plaintiff through counsel informed the defendants that he would not appear the next day for the deposition.

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Bluebook (online)
119 F.R.D. 355, 1988 U.S. Dist. LEXIS 2003, 1988 WL 21400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weinstein-v-ehrenhaus-nysd-1988.