DocketNumber: S18G0756
Judges: Nahmias
Filed Date: 3/4/2019
Status: Precedential
Modified Date: 10/18/2024
This case comes to our Court at an early stage of a lawsuit stemming from the contentious relationship of two former business partners. The trial court struck 15 paragraphs of the plaintiff's complaint pursuant to OCGA § 9-11-12 (f), but the Court of Appeals reversed most of that order in Ortho Sport & Spine Physicians Savannah, LLC v. Chappuis,
1. On August 3, 2015, Ortho Sport & Spine Physicians Savannah, LLC (Ortho Sport) filed a verified complaint in Fulton County Superior Court against defendants James Chappuis, M.D.; Chappuis Properties, LLC; Orthopaedic & Spine Surgery of Atlanta, LLC (OSSA); and Jordan Strudthoff.
On August 20, 2015, the defendants filed their answer along with a motion to strike Paragraphs 7, 17-28, and 31-32 of the complaint on the ground that those allegations are "redundant, immaterial, impertinent, or scandalous," citing OCGA § 9-11-12 (f). Paragraphs 7 and 31 allege that Dr. Chappuis has a history of drug and alcohol abuse, including performing a surgery while using cocaine, and a history of violence, including threatening to kill Dr. Oskouei and his staff when they worked together in Atlanta. Paragraph 17 alleges that the defendants' actions in Savannah are reminiscent of Dr. Chappuis's harassing behavior in Atlanta. Paragraphs 18-20 allege that Dr. Chappuis is a known racist and left racist and sexual messages on Dr. Oskouei's vehicle and elsewhere, and that Dr. Chappuis systematically fired all African Americans from his medical operations. Paragraphs 21-24 allege that the defendants are responsible for suspicious individuals disturbing Ortho Sport's employees by hanging around its lobby, soliciting its patients, telling patients not to use Ortho Sport, and inquiring about confidential business information. Paragraphs 25 and 26 allege that as Dr. Chappuis did in Atlanta, he has again hired people, this time including someone who impersonated a police officer, to stalk Dr. Oskouei in order to psychologically impair him and force him to abandon his business and to vacate his house and move to an undisclosed location. Paragraph 27 alleges that Dr. Chappuis has boasted "about having illicit 'connections' [and] engaging in illegal behaviors (such as hiring prostitutes), and would even bring fully automatic weapons to showcase within their medical practice." That paragraph further alleges that "[w]hen threatening Dr. Oskouei's life, Dr. Chappuis, who is of Italian decent, furiously asserted that 'you need to fear for your life, because you're going to meet the real Sicilian.' " Paragraphs 28 and 32 say that Ortho Sport takes Dr. Chappuis's threats seriously because of his past statements and history. Ortho Sport filed a response to the § 9-11-12 (f) motion, arguing that each of these allegations is relevant to its claims against the defendants.
Without a hearing and in a one-sentence order prepared by the defendants' counsel and containing no reasoning, the trial court struck in full all 15 of the disputed paragraphs. The trial court then granted Ortho Sport's request for a certificate of immediate review, and the Court of Appeals granted Ortho Sport's application for an interlocutory appeal.
In deciding the appeal, the Court of Appeals applied the following single standard to the entire motion to strike:
"Generally, such motions to strike are not favored and should not be granted unless it is clear that the matter sought to be stricken can have no possible bearing upon the subject matter of the litigation." (Citation and punctuation omitted.) Dept. of Transp. v. Taunton,217 Ga. App. 232 , 233,457 S.E.2d 570 (1995). "[I]f there is any doubt as to whether under any contingency the matter may raise an issue, the motion should be denied." Northwestern Mut. Life Ins. Co. v. McGivern,132 Ga. App. 297 , 302 (3),208 S.E.2d 258 (1974).
Ortho Sport,
2. OCGA § 9-11-12 (f) says:
Upon motion made by a party within 30 days after the service of the pleading upon him, or upon the court's own initiative at any time, the court may order stricken from any pleading any insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.
This Court has never addressed how trial courts should evaluate motions made under § 9-11-12 (f) to strike portions of pleadings as redundant, immaterial, impertinent, or scandalous.
In granting the petition for certiorari, this Court asked specifically about the "scandalous" category of OCGA § 9-11-12 (f). A significant number of federal cases have focused on the "scandalous" component of Rule 12 (f) ; drawing on those decisions, leading federal practice treatises define scandalous matter as "that which improperly casts a derogatory light on someone," 5C Arthur R. Miller et al., Federal Practice and Procedure-Civil § 1382 (3d ed. 2018) (hereinafter, Wright & Miller), and "any allegation that unnecessarily reflects on the moral character of an individual or states anything in repulsive language that detracts from the dignity of the court," 2 Milton I. Shadur, Moore's Federal Practice-Civil § 12.37 [3] (3d ed. 2018) (hereinafter, Moore's Federal Practice). The Court of Appeals did not look to the federal decisions or treatises, however; in fact, the court did not conduct any distinct analysis as to whether any of Ortho Sport's allegations were scandalous, instead relying on two of that court's prior opinions that did *212not focus on whether the matter in question was scandalous. And the trial court order contained no analysis at all, much less specific analysis of the scandalous question. As explained below, we conclude that when a § 9-11-12 (f) motion specifically seeks the striking of scandalous matter from a pleading, the trial court must consider not only the "possible bearing"-potential relevance-of the allegation, but also the prejudice the allegation will cause.
(a) We begin by acknowledging that having one test as the starting point for reviewing § 9-11-12 (f) motions to strike is appropriate. Although the rule uses four different adjectives-redundant, immaterial, impertinent, and scandalous-it is well-accepted that "[t]hese four terms used were not intended to be mutually exclusive; there is a certain amount of overlapping between them, particularly the first three." McGivern,
A key point of overlap is the disfavored nature of these motions, whichever term is invoked. See McGivern,
An important part of guarding against the improper use of motions to strike is ensuring that matter that is relevant to the litigation is not readily struck. The preservation of relevant allegations is generally required no matter which § 9-11-12 (f) term the movant invokes. As the treatises explain, this is why many federal courts have held that an allegation is "scandalous" under Rule 12 (f) only when it is not relevant to the case. See, e.g., 5C Wright & Miller § 1382 ("It is not enough that the matter offends the sensibilities of the objecting party if the challenged allegations describe acts or events that are relevant to the action."); 2 Moore's Federal Practice § 12.37 [3] ("[C]ourts will usually strike so-called scandalous material only if it is irrelevant and immaterial to the issues in controversy."). See also Black's Law Dictionary (10th ed. 2014) (defining "scandalous matter" as "[i]nformation that is improper in a court paper because it is both grossly disgraceful (or defamatory) and irrelevant to an action or defense").
Moreover, motions to strike under OCGA § 9-11-12 (f) are usually filed at an early stage of civil litigation, and the nascent nature of the proceeding may make it difficult for the trial court to determine what matters are truly relevant (meaning that the court would find them to be relevant under the rules of evidence in a trial of the case). "Usually the questions of relevancy and admissibility in general require the context of an ongoing and unfolding trial in which to be properly decided."
*213Lipsky v. Commonwealth United Corp.,
McGivern adopted this test from the second edition of Moore's Federal Practice, and it has been echoed in many federal opinions. See, e.g., Buchholtz v. Renard,
(b) "[A] motion to strike frequently has been denied when no prejudice could result from the challenged allegations, even though the matter literally is within the categories set forth in Rule 12 (f)." All-Georgia Dev., Inc. v. Kadis,
The prejudicial effect of an allegation does not eliminate the guidepost that relevant matter normally should not be struck, which (as explained above) is common to all § 9-11-12 (f) motions, whichever of its four terms are invoked. See, e.g., Sirois v. E. W. Partners, Inc.,
Whether to strike becomes a more difficult judgment, however, when a prejudicial allegation hovers near the sometimes thin line separating what is (or may turn out to be) relevant from what is not. Unlike when ruling on a motion to strike based on the other three components of OCGA § 9-11-12 (f), in this situation the trial court cannot rely as comfortably on the principle that it should err on the side of not striking, because a scandalous allegation left in place may cause significant harm. Accordingly, when matter in a pleading is targeted as "scandalous," the trial court must consider not only its relevance but also its prejudice. Here we return to the descriptions of scandalous matter set forth in Wright & Miller and Moore's Federal Practice, and we establish some parameters for Georgia courts to use in discerning whether an allegation "improperly casts a derogatory light on someone" or "unnecessarily reflects on the moral character of an individual."
To begin with, an allegation that has only a remote connection to a claim or defense but is highly prejudicial to the opposing party may be improperly and unnecessarily derogatory and therefore a good candidate for striking as scandalous. See, e.g., Anderson v. Davis Polk & Wardwell LLP,
In this regard, the court may ask a party to provide more information to clarify why a challenged allegation may be relevant to the lawsuit in a way that is not apparent from the pleadings. The court should also consider how prejudicial the allegation is and how serious the danger of harm is. For example, "if the complaint will not be submitted to the jury, or if the case will be *215tried to the court, or if the pleadings will be subject to continuing 'judicial supervision,' there is less need to strike scandalous allegations." 5C Wright & Miller § 1382 (footnotes omitted). See also Lynch v. Southampton Animal Shelter Found., Inc.,
In addition, the court should consider each disputed allegation in the context of the entire pleading and the entire lawsuit, taking into account the parties' general conduct and tone during the litigation as well as any other filings made. See, e.g., Anderson,
The court may be surgical in its strikes, deleting certain words or phrases if part of an allegation that otherwise might be relevant is expressed "in repulsive language that detracts from the dignity of the court." 2 Moore's Federal Practice § 12.37 [3]. See, e.g., Alvarado-Morales v. Digital Equipment Corp.,
Finally, the court may strike matters that do not prejudice a specific party but nonetheless impugn the dignity of the judicial process. See, e.g., Conklin v. Anthou, Case No. 1:10-CV-02501,
(c) Of course, the trial court is in the best position to evaluate all of these considerations. That is why decisions about § 9-11-12 (f) motions are entrusted to the broad discretion of the trial court. See Kadis,
3. Turning back to the circumstances of this case, because the trial court's order *216granting the defendants' § 9-11-12 (f) motion in its entirety was a one-sentence summary ruling issued without a hearing, it is unclear precisely what legal analysis the court employed. But it seems clear that the court did not fully consider the issues raised by a motion to strike scandalous matter. The trial court had no Georgia appellate precedent to follow, and neither the defendants nor Ortho Sport argued that the "scandalous" component of OCGA § 9-11-12 (f) required consideration different than that given the other components of the rule. Instead, relying on the Court of Appeals' opinion in McGivern, Ortho Sport argued to the trial court that it should deny the motion unless it was clear that the allegations in dispute had no possible bearing on the case. As explained above, to the extent the trial court was considering the defendants' motion to strike only in terms of redundant, immaterial, or impertinent matter, that would be the correct test. But the extensive matter the court struck indicates that this was not the basis of the court's ruling. For example, the allegations in Paragraphs 21-24 of the complaint-that the defendants are responsible for suspicious individuals disturbing Ortho Sport's employees by hanging around its lobby, soliciting its patients, telling patients not to use Ortho Sport, and inquiring about confidential business information-go to the heart of some of the plaintiff's claims, such as breach of warranty of quiet enjoyment and tortious interference with business relations.
The defendants, on the other hand, argued that "[w]here the materiality of the alleged matter is highly unlikely, or where its effect would be prejudicial, the Court may order it stricken," citing Ashe-Smith v. Hoskins, Case No. 1:11-CV-03390-JEC,
What the trial court should have done-and what it is directed to do on remand-is address the defendants' motion to strike first by evaluating whether each challenged allegation is truly relevant to the case. Any allegation that is truly relevant generally should not be struck even if it causes prejudice, unless it is needlessly expressed in truly repulsive language (and even then the court should try to prune the allegation to *217leave as much of it as is proper). If an allegation's relevance is not apparent at this very early stage in the proceeding, the court should apply the more liberal "no possible bearing" test. See McGivern,
Because the trial court has considerable discretion in deciding a § 9-11-12 (f) motion but did not apply the correct legal standards when exercising its discretion, we should give that court the opportunity to rule on the defendants' motion again using the legal standards set forth in this opinion. See Darling v. McLaughlin,
Accordingly, we vacate Division 2 of the Court of Appeals' opinion and remand the case to that court with instructions for it to vacate the trial court's order on the defendants' motion to strike and to remand the case to the trial court with direction to reconsider the motion consistent with the law set forth in this opinion.
Judgment vacated in part, and case remanded with direction.
All the Justices concur.
Strudthoff is apparently an employee of OSSA. In the trial court, he filed a motion to dismiss the complaint as to him, which the trial court granted. Ortho Sport also appealed that dismissal order to the Court of Appeals, which in Division 1 of its opinion affirmed the dismissal of some claims but reversed the dismissal of others. See Ortho Sport,
Although in its complaint Ortho Sport alleges only that the prior lawsuit was "amicably settled" after Dr. Chappuis admitted to engaging in the conduct alleged, both parties assert more specifics in their other filings. According to Ortho Sport, OSSA's chief financial officer "admitted to conspiring with Dr. Chappuis to get rid of Dr. Oskouei," Dr. Oskouei paid $10,000 to leave OSSA, and OSSA paid $150,000 to one of Dr. Oskouei's employees who was improperly terminated for racial reasons. The defendants agree that the settlement required Dr. Oskouei to pay $10,000 to OSSA and further assert that Dr. Oskouei was required to refrain from making certain unspecified statements about Dr. Chappuis.
This case involves a motion to strike matter only on those grounds; we do not address the part of OCGA § 9-11-12 (f) that deals with striking insufficient defenses. We also do not address other civil practice rules and inherent judicial powers that may give the trial court discretion to strike matter from pleadings on other grounds, including, for example, evidentiary allegations that blatantly violate Rule 8's preference for "simple and plain" pleading. Fed. R. Civ. P. 8 ; OCGA § 9-11-8. See, e.g., Mitchell v. Hart,
When Georgia's Civil Practice Act was enacted in 1966, the federal rule said: "The Court may, upon motion made by a party before responding to a pleading or, if no responsive pleading is permitted by the rules, within 20 days after the service of the pleading upon him, or of its own initiative, at any time, order stricken from any pleading any insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." Since then, the federal rule has been restyled and "20 days" has been changed to "21 days." The only material difference between the state and federal rules is the deadline for a party to file the motion, which is not at issue in this case.
Federal cases interpreting Rule 12 (f) before 1966 carry the most weight in our analysis of OCGA § 9-11-12 (f), because they informed the understanding of the rule's language at the time our statute was enacted. Federal cases decided after 1966 may still be persuasive, however, particularly if they apply the holdings of pre-1966 precedents, as do all of the post-1966 federal decisions cited as persuasive authority in this opinion. It is worth noting, however, that most of the reported Rule 12 (f) decisions are from district courts rather than the federal courts of appeal. That is because a ruling on a motion to strike matter from a pleading is interlocutory and not immediately appealable unless the trial court allows immediate review (as the trial court did in this case) or when the ruling can be raised in an interlocutory appeal of some other ruling; moreover, an order granting or denying a motion to strike rarely if ever has a demonstrable harmful effect on the ultimate judgment in the case, so Rule 12 (f) issues are not often seen in appeals from final judgments. Accordingly, we are seeking guidance mainly from cases showing how trial courts have exercised their discretion under Rule 12 (f) ; there are not many cases in which appellate courts have delineated the outer bounds of that discretion by reversing rulings on Rule 12 (f) motions.
Similarly, a "redundant" claim is not relevant because "it essentially repeats another claim in the same complaint." 2 Moore's Federal Practice § 12.37 [3]. And "[a]n allegation is 'impertinent' or 'immaterial' when it is neither responsive nor relevant to the issues involved in the action."
OCGA § 24-4-401 says: "[T]he term 'relevant evidence' means evidence having any tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence."
If a § 9-11-12 (f) motion to strike is granted, the losing party may amend its pleading (or, if necessary, the trial court may grant leave to amend the pleading) in a form that complies with the court's ruling, particularly if the deletion of the matter struck leaves the pleading unintelligible or obviously altered. See OCGA § 9-11-15 (a) ("A party may amend his pleading as a matter of course and without leave of court at any time before the entry of a pretrial order. Thereafter the party may amend his pleading only by leave of court or by written consent of the adverse party. Leave shall be freely given when justice so requires."). See also Delta Sigma Theta Sorority, Inc. v. Bivins, Case No. 2:14-CV-147-FTM-38CM,
We also note that, despite their use of an "or" instead of an "and," indicating that prejudice alone might justify striking matter from a pleading, courts citing the Ashe-Smith formulation have not actually struck matter merely for being prejudicial. In fact, in Ashe-Smith, the moving party did not even assert that the matter it sought to strike was scandalous. See