YWCA of Oklahoma City v. Melson

1997 OK 81, 944 P.2d 304, 68 O.B.A.J. 2224, 1997 Okla. LEXIS 78, 1997 WL 366099
CourtSupreme Court of Oklahoma
DecidedJune 24, 1997
Docket88316, 88339
StatusPublished
Cited by25 cases

This text of 1997 OK 81 (YWCA of Oklahoma City v. Melson) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
YWCA of Oklahoma City v. Melson, 1997 OK 81, 944 P.2d 304, 68 O.B.A.J. 2224, 1997 Okla. LEXIS 78, 1997 WL 366099 (Okla. 1997).

Opinion

OP ALA, Justice.

¶ 1 The issues we are asked to decide in this original proceeding are whether in the pretrial discovery stage (1) a tort defendant may be compelled to produce financial rec *306 ords in advance of the judge’s in-trial decision that would submit to the jury the plaintiffs plea for punitive damages and (2) if the materials sought by the plaintiff be discoverable at that stage, should the court hold a hearing to consider a requested protective order by whose terms the discovered material would remain under seal until the punitive-damages phase of the trial? We answer both questions in the affirmative.

¶ 2 Dale Clayton Thompson, Sr. and his wife Shirley (Thompson) sued certain members of a self-insurance association organized by a group of employers (employers’ group or group) to provide workers’ compensation benefits to their employees. Dale had been injured in the course of his employment. He secured in the Workers’ Compensation Court an award of benefits, but was unsuccessful in obtaining payments that were due. When the employers’ group declared itself unable to pay, Dale commenced a district court action. He then received a payment upon his award. At that point he amended the claim by including a punitive-damages plea for the group’s alleged “bad faith” in failing to satisfy the award. 1 In the pretrial stage of the action the respondent judge ordered that the group’s financial statements and tax returns stand subject to discovery, rejecting the group’s request for a protective order. The hearing transcript (but not the order’s text) reveals the judge’s view that, under the provisions of Oklahoma’s Discovery Code, financial records are indeed discoverable in advance of trial. In his opinion, the Code supplanted all earlier jurisprudence. The latter proscribes pretrial discovery of a tort defendant’s financial condition. 2

¶ 3 We hold that although the documents in contest here may indeed be the subject of pretrial discovery, their fitness, qua sensitive financial records, for protection from premature public disclosure as well as from pretrial delivery should be reconsidered upon their in camera inspection.

I.

THE ANATOMY OF LITIGATION

¶ 4 Claimant Dale Clayton Thompson, Sr., sustained in 1987 an on-the-job injury while working for Bullard’s Oilfield Service. Found temporarily totally disabled, he was granted benefits by the Workers’ Compensation Court. The award was not appealed. After Thompson failed to receive the payments when due, he brought a district court action against his employer and numerous members of the employers’ unincorporated self-insurance group.

¶ 5 Although, after the suit’s commencement, the group made a payment upon the compensation award, the record is unclear whether the entire obligation has been satisfied. Thompson’s district court petition was later amended by the addition of an exemplary-damages plea for “bad faith refusal to pay the benefits.”

¶ 6 To support his exemplary-damages plea Thompson demanded the group’s pretrial production of certain documents with financial information. His quest included tax returns, financial statements, confidential business deeds, transfers of property, stock certificates, certificates of deposit, and bank statements. The group requested a protective order. The respondent judge limited the scope of compelled discovery to “complete financial statements and complete federal and state income tax returns for the years 1991 to the present,” but his ruling declined otherwise to protect the compelled material. Respondent’s order would allow for the “expansion” of discovery if the tax returns and financial statements did not prove “sufficient *307 to disclose ... financial information about the Defendants’ financial worth.”

¶ 7 The group, which assails in this proceeding the discovery order’s enforceability, seeks prohibition. Reliance is placed on extant jurisprudence that proscribes pretrial discovery of a defendant’s financial worth based on no more than allegations of bad faith. 3 Thompson reminds us that the provisions of 12 O.S.1971 § 548 (now repealed), 4 which at one time required “good cause” for the production of documents, stand superseded by the Oklahoma Discovery Code, 12 O.S. 1991 § 3226 et seq. (Discovery Code or Code). It is argued that the new statute’s provisions, 12 O.S.1991 § 3226(B)(1), 5 do not contain the “good cause” requirement and would hence allow the pretrial discovery sought by him here.

¶ 8 We take original cognizance of these causes to re-examine pertinent jurisprudence of yore in light of massive statutory revisions that were enacted since this court’s last opportunity in Cox v. Theus (Cox) 6 to place a gloss upon the provisions of the now-repealed § 548.

¶ 9 II.

OKLAHOMA’S STATUTORY SCHEME OF YORE, AS WELL AS HER INTERPRETATIVE JURISPRUDENCE, DISALLOW PRETRIAL DISCLOSURE OF A DEFENDANT’S FINANCIAL RECORDS.

¶ 10 The statute that governed discovery of documents at the time of our decision in Cox was enacted in 1965 as 12 O.S. § 548. 7 That statute provided that any party in the case could request by motion the production of documents for inspection and. copying (and for other purposes pertinent to that kind of evidence). 8 “Good cause” was required to be shown. 9 The trial judge was vested with “equitable power” to protect parties and witnesses from disclosures which could cause “annoyance, embarrassment, or oppression.” 10

¶ 11 In Cox v. Theus this court was called upon to examine the provisions of 12 O.S. 1971 § 548 with a view to determining if “good cause” could be shown to support the plaintiff’s quest — made at the pretrial *308 stage — for production of financial records to be used in support of the petition’s plea for punitive damages. 11 Punitive (exemplary) damages were then governed by the provisions of 23 O.S. 1971 § 9, originally enacted in 1910. 12 That one-sentence section authorized “damages for the sake of example” when a tort defendant “was found guilty” of “oppression, fraud, or malice.” 13 The 1910 antecedent of 23 O.S.1971 § 9 neither set a stage for special proceedings nor

Free access — add to your briefcase to read the full text and ask questions with AI

Related

MEEKS v. GUARANTEE INSURANCE COMPANY
2017 OK 17 (Supreme Court of Oklahoma, 2017)
CREST INFINITI, II, LP v. Swinton
2007 OK 77 (Supreme Court of Oklahoma, 2007)
Harvell v. Goodyear Tire and Rubber Co.
2006 OK 24 (Supreme Court of Oklahoma, 2007)
Sizemore v. Continental Cas. Co.
2006 OK 36 (Supreme Court of Oklahoma, 2006)
Scott v. Peterson
2005 OK 84 (Supreme Court of Oklahoma, 2005)
Chandler (U.S.A.), Inc. v. Tyree
2004 OK 16 (Supreme Court of Oklahoma, 2004)
Farmers Ins. Co., Inc. v. Peterson
2003 OK 99 (Supreme Court of Oklahoma, 2003)
Kuykendall v. Gulfstream Aerospace Technologies
2002 OK 96 (Supreme Court of Oklahoma, 2002)
Cardtoons, L.C. v. Major League Baseball Players Ass'n
199 F.R.D. 677 (N.D. Oklahoma, 2001)
Nealis v. Baird
1999 OK 98 (Supreme Court of Oklahoma, 1999)
Martin v. Johnson
1998 OK 127 (Supreme Court of Oklahoma, 1998)
Brock v. Thompson
1997 OK 127 (Supreme Court of Oklahoma, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
1997 OK 81, 944 P.2d 304, 68 O.B.A.J. 2224, 1997 Okla. LEXIS 78, 1997 WL 366099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ywca-of-oklahoma-city-v-melson-okla-1997.