DocketNumber: 97-106
Judges: Gray, Leaphart, Nelson, Regnier, Hunt
Filed Date: 12/2/1997
Status: Precedential
Modified Date: 11/11/2024
delivered the Opinion of the Court.
James R. McKenzie (McKenzie) appeals from the judgment entered by the Fourth Judicial District Court, Missoula County, on its order dismissing his complaint with prejudice and from the District Court’s subsequent order denying his motion to alter or amend the order of dismissal. We affirm.
We restate the issue on appeal as whether the District Court erred in dismissing McKenzie’s complaint with prejudice for failing to comply with discovery procedures and scheduling orders.
BACKGROUND
On December 8, 1994, McKenzie, a Canadian citizen, filed a complaint against Valentine M. Scheeler (Scheeler) for damages allegedly resulting from a vehicle accident which occurred north of St. Ignatius, Montana, on December 9, 1992. The complaint alleged that McKenzie had suffered property damages, personal injuries, pain and suffering, emotional stress, medical expenses and loss of wages as a result of the accident. After Scheeler answered the complaint, the District Court issued an order directing McKenzie to consult with Scheeler regarding the scheduling of pretrial matters and submit a proposed scheduling order by June 23, 1995. When McKenzie failed to submit a proposed order, Scheeler filed his own proposed scheduling order and the court adopted it. The scheduling order set deadlines for amending pleadings, providing expert witness disclosure statements, exchanging lay witness and exhibit lists, completing discovery and filing pretrial motions. The order also designated dates by which a settlement conference would be held and a pretrial order would be filed.
Scheeler served McKenzie with interrogatories and requests for production of documents on April 17, 1995, which included requests for medical records regarding any injury or medical condition McKenzie suffered from prior to the December 9, 1992, accident; records of
The District Court’s scheduling order required the parties to conduct a settlement conference by March 25, 1996. The settlement conference was not held and, when the court noted that a settlement master report had not been filed, it ordered the parties to file a status report. McKenzie’s status report stated that the case was behind schedule, in part, because of his inability to provide the complete information Scheeler had requested. McKenzie requested the court to modify the scheduling order to reopen discovery, which originally was to have been completed by February 1, 1996.
Scheeler’s status report outlined McKenzie’s failure to respond adequately to the requests for production of medical and financial documents. Scheeler also pointed out that McKenzie had failed to meet the deadlines contained in the court’s scheduling order for serving Scheeler with expert witness disclosure statements, lay witness lists and exhibit lists. Additionally, Scheeler reported that McKenzie had not arranged for a settlement conference or even proposed a settlement master; nor had he submitted a proposed pretrial order to Scheeler. Scheeler advised the District Court that he was reluctant to agree to any extensions of the time frames set out in the scheduling order and requested that, in the event the court extended those time frames, specific deadlines be set which would result in dismissal of the complaint if not met by McKenzie.
In light of the status reports, the District Court set a hearing for June 26, 1996, regarding the parties’ scheduling and discovery disagreements. At the hearing, McKenzie’s counsel admitted that McKenzie’s discovery responses had been both late and inadequate,
McKenzie delivered some of the requested documents to Scheeler by the August 15, 1996, deadline. Thereafter, Scheeler filed a timely “Notice of Insufficiency and Objection to Plaintiff’s Tender of Discovery” stating that McKenzie still had not produced the complete medical records and income tax returns requested. The notice also summarized McKenzie’s continued failure to provide full expert witness disclosure statements, a lay witness list, an exhibit list, a proposed pretrial order and a suggested settlement master, as required by the original scheduling order. Scheeler pointed out that McKenzie had not offered any explanation for failing to comply with either the discovery requests or the court’s orders, and requested that the court dismiss the complaint.
Neither McKenzie nor his counsel appeared at the September 4, 1996, hearing as ordered by the District Court. Scheeler’s counsel appeared and reiterated his objections to McKenzie’s failure to comply with the original scheduling order and the court’s June 26, 1996, order. The District Court entered a Note of Ruling in which it dismissed McKenzie’s complaint, but specifically allowed 10 days within which McKenzie could move to set aside the dismissal order on a showing of good cause for his failure to respond or appear; alternatively, the court scheduled a hearing for September 13, 1996, at which, if he appeared with all the requested discovery documents, McKenzie could move to set aside the dismissal.
McKenzie’s counsel appeared at the hearing on September 13, 1996, and apologized for his absence from the prior hearing, stating
DISCUSSION
Did the District Court err in dismissing McKenzie’s complaint with prejudice for failing to comply with discovery procedures and scheduling orders?
It has long been the law in Montana that a party’s abuse of discovery procedures which results in needless delay of a case should not be dealt with leniently; transgressors should be punished rather than patiently encouraged to cooperate in the discovery process. Smith v. Butte-Silver Bow County (1996), 276 Mont. 329, 332, 916 P.2d 91, 92-93 (citing Owen v. F.A. Buttrey, Co. (1981), 192 Mont. 274, 277-78, 627 P.2d 1233, 1235). Concerns related to crowded dockets and the responsibility to maintain fair and efficient judicial administration have shifted the traditional reluctance to impose discovery-related sanctions to a judicial intolerance of discovery abuses. Smith, 916 P.2d at 92. Thus, the imposition of sanctions for failure to comply with discovery procedures is regarded with favor. Huffine v. Boylan (1989), 239 Mont. 515, 517, 782 P.2d 77, 78 (citations omitted).
This Court generally defers to the decision of a trial court regarding sanctions for failure to comply with discovery procedures because the trial court is in the best position to know whether parties are disregarding the rights of opposing parties in the course of litigation and which sanctions for such conduct are most appropriate. Smith, 916 P.2d at 93 (citing Dassori v. Roy Stanley Chevrolet Co. (1986), 224 Mont. 178, 180, 728 P.2d 430, 431). As a result, we review a district court’s imposition of sanctions for failure to comply with discovery procedures to determine whether the court abused its discretion. Smith, 916 P.2d at 93.
Here, the District Court determined that McKenzie failed to comply with both discovery procedures and its scheduling orders. On that basis, it dismissed McKenzie’s complaint with prejudice. We review the court’s determination of McKenzie’s noncompliance and the propriety of its dismissal sanction in turn.
NONCOMPLIANCE
As stated above, the District Court determined that McKenzie had failed to comply with both discovery procedures and the court’s scheduling orders. We first address McKenzie’s arguments regarding the court’s determination that he had not complied with discovery procedures, then address his arguments regarding his noncompliance with the scheduling orders.
a. Noncompliance with discovery procedures
With regard to the District Court’s determination that McKenzie’s noncompliance was an abuse of discovery procedures, McKenzie first asserts that any failure on his part to respond adequately to discovery requests was not an intentional trial strategy. On that basis, he contends that his noncompliance did not rise to the level of abuse of discovery procedures sufficient under our case law to warrant imposition of sanctions.
It is true that in First Bank (N.A.)—Billings v. Heidema (1986), 219 Mont. 373, 711 P.2d 1384, for example, we stated that “ ‘[w]hen litigants use willful delay, evasive responses, and disregard of court
In this case, McKenzie’s initial responses to Scheeler’s discovery requests were untimely under Rules 33(a) and 34(b), M.R.Civ.P., and, in addition, were either incomplete or erroneous. Despite assurances to Scheeler that the requested information existed and would be forthcoming, McKenzie failed to deliver complete medical and financial records. The District Court eventually granted McKenzie’s request for an extension of time in which to respond to the discovery requests, but warned that sanctions — including dismissal — could result if noncompliance continued. McKenzie did not comply. Moreover, both McKenzie and his counsel failed to appear at the hearing set for September 4, 1996.
When McKenzie’s counsel did appear on September 13, 1996, he still did not produce the requested discovery. Instead, he attempted to justify the noncompliance by raising new arguments that the information requested by Scheeler was unavailable and that the requests were unreasonable. These assertions were directly contrary to McKenzie’s previous assurances that the information existed and would be produced. Moreover, McKenzie’s counsel did not support his arguments with any testimony, affidavits or other evidence establishing that the requested documents were unavailable. Unsupported arguments of counsel are not evidence and do not establish the existence of the matters that are argued. See, e.g., Montana Metal Buildings, Inc. v. Shapiro (1997), [283 Mont. 471], 942 P.2d 694, 698.
McKenzie repeatedly failed to respond adequately to Scheeler’s discovery requests. In addition, he did not comply with the District Court’s order that he respond in full to those discovery requests and offered no reasonable justification for his noncompliance. The record clearly reflects an ongoing attitude of unresponsiveness to discovery
McKenzie also argues that, pursuant to Rule 26(e), M.R.Civ.P., he was allowed to supplement or amend his previous discovery responses at any time prior to trial and that the District Court’s determination that he failed to comply with discovery procedures by not providing complete responses to Scheeler’s discovery requests effectively nullified that Rule. McKenzie’s argument is without merit.
First, Rules 33(a) and 34(b), M.R.Civ.P., require a party to respond to interrogatories and requests for production in full, unless objected to, within 30 days of being served with the interrogatories or requests. Accepting McKenzie’s interpretation of Rule 26(e) would effectively nullify that duty by allowing a party to drag out the discovery process indefinitely through continuous “supplementing” of previous responses in a piecemeal fashion, without ever fully responding to the interrogatory or request for production.
Second, McKenzie misapprehends the nature of Rule 26(e). Rule 26(e), M.R.Civ.P., addresses the limited circumstances under which a party who has responded to a discovery request “with a response that was complete when made ...” must supplement that complete response. In the present case, it is undisputed that McKenzie’s initial responses to Scheeler’s discovery requests were not complete. Thus, Rule 26(e), M.R.Civ.P., is inapplicable here.
We conclude that McKenzie repeatedly failed to fully and timely comply with discovery requests propounded by Scheeler and that the District Court did not err in determining that McKenzie’s noncompliance was an abuse of discovery procedures.
b. Noncompliance with scheduling orders
McKenzie also contends that the District Court erred in determining that he failed to comply with its scheduling orders. In this case, the scheduling orders at issue consist of the original June 30, 1995, scheduling order and the June 26, 1996, order extending the deadline by which McKenzie was to respond fully to the discovery requests. While the June 26, 1996, order is a discovery-related order in that it ordered McKenzie to respond fully to Scheeler’s long-pending discovery requests, it also constitutes a scheduling order in that the District Court made a limited modification of the discovery deadline contained in the original scheduling order. See Rule 16(b), M.R.Civ.P.
McKenzie asserts, however, that, because the court amended the time frames in the scheduling order, it was impossible for him to comply with the original schedule deadlines. We disagree. At the June 26,1996, hearing, the District Court extended the deadline by which McKenzie was required to fully respond to Scheeler’s earlier discovery request until August 15,1996. The court did not extend any of the other deadlines contained in the original scheduling order. Absent such an extension of the other original deadlines, McKenzie’s failure to provide Scheeler with witness and exhibit lists and expert witness disclosure statements constituted a continuing violation of the court’s original scheduling order.
Moreover, at the time the District Court granted McKenzie’s request for an extension of the discovery deadline, the other deadlines set in the original scheduling order had passed. Thus, McKenzie already had failed to comply with those deadlines. The court’s extension of the time in which McKenzie was to respond to the discovery requests had no bearing on the fact that McKenzie had already failed to provide Scheeler with a witness list, an exhibit list and expert witness disclosure statements by the originally set deadlines, and apparently made no effort to comply even after the June 26, 1996, order extending one — and only one — deadline.
Additionally, the District Court’s June 26, 1996, order extending the time in which McKenzie was to respond to Scheeler’s discovery requests and requiring McKenzie to appear on September 4, 1996, was, in essence, a revised scheduling order with which McKenzie also failed to comply. He neither fully responded to the discovery requests by the August 15, 1996, deadline nor appeared at the subsequent hearing. We conclude that the District Court did not abuse its discretion in determining that McKenzie failed to comply with its scheduling orders.
After determining that McKenzie had committed discovery and scheduling abuses, the District Court dismissed McKenzie’s complaint with prejudice. We review the court’s dismissal sanction to determine whether the court abused its discretion. Smith, 916 P.2d at 95.
McKenzie does not contend that the District Court lacked authority to impose the sanction of dismissal. Indeed, Rules 16 and 37, M.R.Civ.P., provide the District Court with the authority to impose the dismissal sanction. Rule 16(f), M.R.Civ.P., provides that, if a party fails to obey a scheduling order, the court may make such orders as are just, including the dismissal sanction authorized by Rule 37(b)(2)(C), M.R.Civ.P. Additionally, Rule 37(b)(2), M.R.Civ.P., provides that if a party fails to obey an order to provide discovery, the court may make such orders as are just, including “(C) [a]n order ... dismissing the action....”
McKenzie argues, however, that any noncompliance on his part did not warrant the imposition of sanctions at all and that, if sanctions were warranted, the court’s dismissal of his complaint with prejudice was too extreme under these circumstances.
a. Imposition of sanctions
McKenzie asserts that he should not have been sanctioned for not complying with the original scheduling order because the District Court’s June 26, 1996, order directing him to comply with Scheeler’s discovery requests did not also require him to comply with the original scheduling order and the court did not warn him that sanctions would be imposed if he did not comply with the scheduling order. We disagree.
The June 30,1995, scheduling order was an order of the court which, by its terms, required McKenzie to comply with all of the deadlines set forth therein, at all times thereafter, unless modified by the court upon a showing of good cause. Rule 16(b), M.R.Civ.P. McKenzie had a continuing obligation to comply with the scheduling order and that obligation did not evaporate merely because the deadlines set out in the order had passed without being met.
Moreover, even though Rule 16(f), M.R.Civ.P., which provides that a district court may impose sanctions for failure to obey a scheduling order, does not require that a party be given notice of failure to comply or that sanctions could be imposed, it is clear that McKenzie did have
McKenzie also asserts that Scheeler was required to file a motion requesting the imposition of sanctions for his failure to comply with the discovery requests and the scheduling orders before the District Court could impose any sanction, and that Scheeler failed to file such a motion in this case. McKenzie’s foundational premise is flawed. Rule 16(f), M.R.Civ.P., provides that, if a party fails to comply with a Rule 16(b) scheduling order, the court may impose such sanctions as are just on its own initiative. It contains no requirement that a party move for imposition of such sanctions.
As to McKenzie’s failure to comply with discovery procedures, sanctions for such conduct are governed by Rule 37, M.R.Civ.P. As discussed above, Rule 37(b)(2), M.R.Civ.P., provides that “[i]f a party ... fails to obey an order to provide or permit discovery,... the court in which the action is pending may make such orders in regard to the failure as are just... .” It contains no requirement that an opposing party move for sanctions. Here, the District Court entered a specific order on June 26, 1996, requiring McKenzie to provide discovery responses to Scheeler by August 15, 1996. The June 26, 1996, order was, therefore, “an order to provide ... discovery” under Rule 37(b)(2), M.R.Civ.R McKenzie did not comply with that order. Thus, Rule 37(b)(2), M.R.Civ.P., authorized the court to sanction McKenzie for that noncompliance.
b. Dismissal sanction
First, McKenzie argues that the District Court erred in relying on Dassori as support for dismissal of the complaint in the present case. He contends that Dassori is clearly distinguishable because “[t]here was no pattern in this case of either the type or extent of dilatory ‘tactics’ referred to in Dassori.” We disagree.
In Dassori, the plaintiff requested and received an additional month in which to answer interrogatories served on him the previous month. The plaintiff failed to respond within the extended time. Dassori, 728 P.2d at 431. Seven months later, the defendants filed a motion to dismiss the complaint based on the plaintiff’s failure to respond; a hearing was held on the motion to dismiss approximately five months thereafter. Dassori, 728 P.2d at 431. Although the plaintiff appeared at the hearing and presented the court with the required discovery responses, the district court dismissed the complaint. Dassori, 728 P.2d at 431. We affirmed the dismissal sanction, reiterating our deference to a district court’s decision regarding the imposition of sanctions on parties who fail to comply with discovery procedures. Dassori, 728 P.2d at 431.
In the present case, Scheeler served his discovery requests on McKenzie on April 17, 1995. McKenzie did not object or request an extension of the time in which to respond, and did not respond at all until November 13,1995. Moreover, his tardy responses were incomplete. Two months later, during his deposition, McKenzie stated that he would produce additional financial and medical records for Scheeler, but he produced nothing until June of 1996, and his production of documents at that time also was incomplete. Eventually, the District Court set a hearing to discuss the parties’ discovery and scheduling disagreements, at which the court granted McKenzie additional time to respond to the discovery requests. McKenzie still failed to comply, despite assurances to both Scheeler and the District Court that the requested documents existed and were available. Finally, seventeen months after Scheeler served the initial discovery requests on McKenzie, the court dismissed McKenzie’s complaint for failure to comply with discovery procedures and scheduling orders.
The present case reveals a pattern of conduct by McKenzie throughout the proceedings at least comparable to, if not more
Moreover, in addition to his discovery abuses, McKenzie also failed to comply with the deadlines set out in the court’s original scheduling order and he and his attorney both failed to appear at a hearing the court specifically ordered them to attend. He also failed to comply with the court’s order requiring him to fully respond to the discovery requests and provided no reasonable justification for his failure to comply. McKenzie’s disregard of the District Court’s orders provides significant additional support for the court’s determination that the sanction of dismissal was appropriate.
As discussed above, this Court generally defers to the decision of a district court regarding sanctions for abuses of controlling procedural rules because that court is in the best position to know which sanction is most appropriate under the circumstances of the case. See Smith, 916 P.2d at 93. While dismissal is an extreme sanction, the record before us indicates a pattern of discovery abuses and disregard of court orders by McKenzie throughout the course of this litigation which effectively halted the discovery process and delayed any progress toward resolving the action.
Notwithstanding this abysmal record, McKenzie contends that the District Court abused its discretion in dismissing the complaint. First, he argues that, because he did produce at least some of the requested documents and made a good faith effort to substantially comply with the requested discovery, the court should have imposed a sanction less extreme than dismissal. Scheeler’s requests for production included requests for medical records regarding any injury or medical condition from which McKenzie suffered prior to the December 9, 1992, accident; medical records relating to any injuries McKenzie claimed to have suffered as a result of the accident; records of medical expenses incurred by McKenzie as a result of the accident; copies of prescriptions and receipts for any medications McKenzie purchased or used during the year prior to the accident; and copies of his income tax returns for a ten-year period.
While the record before us is not altogether clear regarding what documents were produced by McKenzie or the extent to which he
Considering the limited documents of record and the absence of any testimony, affidavits or other evidence detailing the efforts McKenzie may have made to procure additional documents or the reasons for any inability to procure such documents, we are reluctant to determine whether McKenzie’s efforts were, indeed, in good faith and substantial. When this Court cannot make a ready, confident and accurate determination of a party’s good faith compliance with the discovery process, we will presume the correctness of a district court’s action in imposing sanctions. Landauer, 732 P.2d at 840 (citations omitted); Dassori, 728 P.2d at 431(citations omitted). On the record before us, we will not disturb the District Court’s determination that dismissal of the complaint was the appropriate sanction for McKenzie’s failure to comply with the discovery requests.
Finally, McKenzie asserts that, contrary to the requirements set forth in Smith, dismissal of his complaint was inappropriate because there was no indication that his failure to comply with discovery procedures or the scheduling order resulted in any prejudice to Scheeler. In this regard, we stated in Smith that “[t]he extent of the ‘consequences’ imposed by a district court ... should relate to the extent and nature of the actual discovery abuse and the extent of the prejudice to the opposing party which results therefrom.” Smith, 916 P.2d at 97.
The accident at issue in this case occurred in December of 1992 and McKenzie filed his complaint against Scheeler in December of 1994. Scheeler subsequently served interrogatories and requests for production on April 17,1995. Over the course of the following seventeen months, McKenzie continuously failed to provide complete responses to the discovery requests and offered no justification for his
Such a refusal to provide discovery essentially prevents the case from progressing and is the precise reason for the availability of sanctions pursuant to Rule 37, M.R.Civ.P. See In re Marriage of Massey (1987), 225 Mont. 394, 398, 732 P.2d 1341, 1344. When a party’s failure to comply with discovery procedures effectively halts the discovery process, it results in impermissible prejudice to the opposing party. See First Bank, 711 P.2d at 1386 (citation omitted). Thus, McKenzie’s failure to comply with discovery procedures was, in itself, prejudicial to Scheeler.
Moreover, while the District Court made no finding regarding the extent to which Scheeler had been prejudiced by McKenzie’s failure to comply with discovery procedures and scheduling orders, it clearly found McKenzie’s noncompliance, which it characterized as “flagrant, repeated and continuous,” to be so extensive as to warrant a dismissal in its own right. We agree. McKenzie repeatedly ignored the rules governing discovery and disregarded court orders. Although the extent of the discovery abuse and prejudice to an opposing party are both factors to be considered in determining an appropriate sanction, a party’s disregard of the court’s orders and authority is an additional consideration. In this case, McKenzie’s continuous discovery abuses, his unresponsive attitude toward the judicial process and his disregard of the District Court’s authority, combined with the inherent prejudice to Scheeler, clearly warranted the sanction of dismissal. We conclude that the District Court did not abuse its discretion in dismissing McKenzie’s complaint with prejudice as a sanction for his failure to comply with discovery requests and scheduling orders.
Finally, we address the District Court’s denial of McKenzie’s motion to alter or amend its order dismissing his complaint which was based, in part, on McKenzie’s failure to present the court with any reason justifying his continued failure to comply with the court’s
In light of our conclusion that the District Court did not abuse its discretion in dismissing the complaint, we further conclude that the court did not abuse its discretion in denying McKenzie’s motion to alter or amend the order of dismissal. We hold that the District Court did not err in dismissing McKenzie’s complaint with prejudice based on his failure to comply with discovery procedures and scheduling orders.
Affirmed.