SUSAN RUSS WALKER, Chief Magistrate Judge.
This action is presently before the court on the motion of defendants to dismiss plaintiff's complaint pursuant to Rules 37 and 41 of the Federal Rules of Civil Procedure (Doc. # 89) due to plaintiff's failure to prosecute this action and its failure to comply with the court's order directing plaintiff to make its corporate representative available for deposition. Upon consideration of the motion, the court's record, and plaintiff's response, the court concludes that the motion is due to be granted.
Plaintiff Eon Reality, a California corporation, commenced this action in the Superior Court of Orange County, California. Defendants removed it to the United States District Court for the Central District of California on June 22, 2010. That court granted defendants' motion to dismiss plaintiff's first amended complaint, and granted in part and denied in part defendants' motion to dismiss plaintiff's second amended complaint. After defendants answered plaintiff's third amended complaint, the court entered a scheduling order, setting the discovery deadline for August 29, 2011. Thereafter, the case was transferred to this court on defendants' motion. (Docs. ## 1, 11, 15, 19, 24, 26, 32, 38, 39, 40-44). On November 28, 2011, after obtaining the consent of all parties to Magistrate Judge jurisdiction, this court entered a scheduling order setting the dispositive motion deadline for June 6, 2012 and the discovery deadline for August 28, 2012. (Docs. ## 66-68, 75).
On October 17, 2011, O'Brien noticed plaintiff's Rule 30(b)(6) deposition for December 20, 2011. (Doc. # 89-1, pp. 2-5). On December 9, 2011, Navigator's counsel
Navigator's counsel represents that he received no response from plaintiff regarding rescheduling the plaintiff's 30(b)(6) deposition. (Doc. # 89, ¶ 3). Accordingly, on January 23, 2012, Navigator noticed plaintiff's 30(b)(6) deposition for February 23, 2012. On January 30, 2012, O'Brien's counsel cross-noticed plaintiff's 30(b)(6) deposition for the same date and time. (Doc. # 89-1, pp. 6-13). On February 10, 2012, counsel for Navigator notified counsel for the other parties by e-mail that he had a conflict and had to reschedule the Rule 30(b)(6) deposition; he proposed March 2 or the week of March 5th. (Doc. # 89-2, p. 3). On February 14, 2012, plaintiff's counsel responded that he would contact Navigator's counsel the following day regarding dates. (
Thereafter, according to Navigator's counsel, plaintiff's counsel called him to ask about scheduling the depositions of all of the parties consecutively, suggesting that they be scheduled in late March or early April. (Doc. # 89, ¶ 5). Navigator's counsel advised plaintiff's counsel of his availability in April by e-mail on February 23, 2012 and asked plaintiff's counsel to let him know the dates he had in mind. (Doc. # 89-2, p. 6). According to Navigator's counsel, plaintiff's attorney did not respond to the e-mail. (Doc. # 89, ¶ 5). On March 7, 2012, Navigator's counsel again wrote to plaintiff's attorney, asking for dates in April. (Doc. # 89-2, p. 7). Plaintiff's counsel did not respond, according to defense counsel, so Navigator's counsel sent plaintiff's counsel another e-mail the following day asking the dates plaintiff's counsel had in mind for scheduling the depositions. (
By letter e-mailed on March 26, 2012, Navigator's counsel asked plaintiff's counsel to respond by March 30th regarding when he would like to schedule the depositions. He stated, "I have multiple unreturned emails to you on scheduling, and I may be forced to notice your client's deposition unilaterally." (Doc. # 89-2, p. 11). Navigator's counsel represents that plaintiff's counsel failed to respond to the letter. (Doc. # 89, ¶ 6). On April 2, 2012, Navigator's counsel noticed Plaintiff's 30(b)(6) deposition for April 19, 2012, and on April 3, 2012, O'Brien's counsel cross-noticed the deposition for the same date and time. (Doc. # 89-1, pp. 14-20). According to Navigator's counsel, plaintiff did not object to either notice or contact defendants' counsel regarding the deposition. (Doc. # 89, ¶ 6).
On April 12, 2012 — a week before the noticed deposition — Navigator's counsel wrote to plaintiff's counsel to confirm that Plaintiff's corporate representative would be attending its 30(b)(6) deposition. (Doc. # 89-2, p. 13). The following day, plaintiff's counsel responded by e-mail as follows:
(
(Doc. # 89-2, p. 15).
On April 19, 2012, all defendants filed an unopposed motion to extend the discovery and dispositive motion deadlines. (Doc. # 82;
(Doc. # 82, pp. 3-4). On April 23, 2012, the court granted the unopposed motion, and directed that "Plaintiff's corporate representative is to provide testimony after coordination with defendants' counsel, but in any event no later than June 22, 2012. (Doc. # 83)(emphasis added). Because the 60-day extensions to which the parties had agreed would have set the conclusion of discovery six days after commencement of trial and would have brought any dispositive motion filed on the deadline under submission only four days before the scheduled pretrial conference (
On May 15, 2012, counsel for Navigator sent a letter to plaintiff's counsel regarding plaintiff's discovery requests. He concluded with the following request:
(Doc. # 89-2, p. 24). According to Navigator's counsel, plaintiff did not respond as requested, and, on May 22, 2012, Navigator noticed plaintiff's 30(b)(6) deposition for June 7, 2012. The following day, counsel for O'Brien cross-noticed plaintiff's deposition for the same date and time. (Doc. # 89-1, pp. 23-31). According to defense counsel, plaintiff did not object to either notice or otherwise contact defendants' counsel regarding the scheduled deposition. (Doc. # 89, ¶ 10). On June 4, 2012 — three days before the noticed deposition — Navigator's counsel wrote to plaintiff's counsel:
(Doc. # 89-2, p. 25). Plaintiff's counsel responded that same day, stating:
(Doc. # 89-2, p. 26).
On Friday, June 8, 2012 — two weeks before the deadline set by the court's order for plaintiff's Rule 30(b)(6) deposition — defendants filed their first motion to dismiss this action pursuant to Rules 37 and 41 of the Federal Rules of Civil Procedure for plaintiff's failure to comply with the court's order and its failure to prosecute this action. (Doc. # 85). The motion described the history set forth above and included exhibits in support of the motion. (
That afternoon, defendants served plaintiff's counsel with Rule 30(b)(6) deposition notices, setting the deposition at 10:00 a.m. on June 20, 2012, in the offices of Navigator's counsel. (Docs. ## 87, 88). According to defense counsel, plaintiff's counsel telephoned them on June 19, 2012, and told them that neither he nor plaintiff's corporate representatives would attend the deposition scheduled for the next day. At 4:17 p.m. that afternoon-eighteen hours before the time set for the deposition — plaintiff's attorney e-mailed a letter to defense counsel.
(Doc. # 89-3, p. 3). Plaintiff did not petition the court for relief from the June 22, 2012, deadline established by the order entered on April 23, 2012, and reaffirmed in the order entered on June 11, 2012. (
On June 22, 2012, defendants filed the present motion to dismiss. (Doc. # 89). They seek dismissal of plaintiff's claims in this action and an award of fees and costs. (
To the extent that Eon relies on the fact that the April deposition date was "picked by the defendant" as a mitigating circumstance (
Eon's remaining argument in opposition to the motion is that both of its corporate representatives have been — as a matter of business necessity — unavailable for deposition due to their extensive business travel. Plaintiff's response does indicate that both representatives have had demanding travel schedules in 2012. However, it is fair to ask Eon's representatives, with reasonable notice, to adjust their travel schedules to accommodate the litigation that Eon itself commenced. Further, the travel schedule provided by Eon reveals that there were periods of time when both representatives were not in fact traveling abroad.
First, both Lejerskar and Johansson were in California for the two week period between April 5 and April 19, 2012. As to Lejerskar, Eon indicates that he returned to Los Angeles on April 5th from the UAE; his next flight out was not until April 25th, when he flew from Los Angeles to Washington, D.C. (Doc. # 91, p. 3;
Navigator's counsel advised plaintiff's counsel by e-mail on February 23rd of his availability during this period, except for the dates of April 6, 18, and 19, and asked plaintiff's counsel to propose dates in April. Navigator's counsel again requested deposition dates in April by e-mail correspondence he sent to Eon's counsel on March 7th, March 8th, and March 13th (Doc. # 89-2, pp. 6-9); on March 26th, he e-mailed a letter to Eon's counsel reiterating defendants' availability for depositions in April and requesting dates (
Second, between June 10 and June 13, Johansson and Lejerskarand were again both in California, according to Eon's response and exhibits, during a week proposed for Eon's deposition by Navigator's counsel in his April 13, 2012, e-mail to Eon's attorney. (
Upon receiving the May 22 and May 23 deposition notices from defense counsel, Eon's counsel did not contact them and seek to postpone the deposition for a few days until Johansson's return from Peru or to move it forward to the week of May 28th, when Lejerskar and Johansson were also both in southern California. (
(Doc. # 89-2, p. 26)(emphasis added). According to Eon's own representations and exhibits in opposition to the present motion, the information that Eon's counsel provided to Navigator's attorney was false. On June 4th, when Eon's counsel e-mailed the letter to defense counsel, Dan Lejerskar was not "abroad" — he was, in fact, in New York. He was scheduled to return to Orange County the very next day, on June 5, not "on the 23rd" as Eon's counsel represented. (Doc. # 91, p. 4; Doc. # 91-1, p. 24). The representation that "Mats returns the week before [June 23rd]" was also technically, although marginally, inaccurate — June 9 does not fall within the week before June 23. In any event, both corporate representatives were back in southern California between June 9 and June 14 and could, therefore, have made themselves available for deposition sometime between Monday, June 11 and Wednesday, June 13 — before the June 22 deadline ordered by the court — without rescheduling any of their "business-survival" travel.
Subsequently, in denying the defendants' June 8th motion to dismiss, the court did limit the deposition period to June 17 through June 22, which inadvertently precluded the June 11 through 13 option. However, this was done to allow Eon's corporate representatives sufficient time to return from "abroad." Eon's counsel, upon receiving the court's order of June 11, did not seek relief from the court's order, and did not notify the court that both of his corporate representatives were then, in fact, in California.
Finally, as set forth above, Eon did not attend the Rule 30(b)(6) deposition noticed for June 20, 2012.
Rule 37 allows the court to impose sanctions against a party for its failure to obey the court's order to provide or permit discovery; such sanctions may include an order "dismissing the action or proceeding in whole or in part[.]" Fed. R. Civ. P. 37(b)(2)(A)(v).
As noted above, this court's original scheduling order set a dispositive motion deadline of June 6, 2012, and a discovery deadline of August 28, 2012. (Doc. # 75).
After defendants noticed Eon's Rule 30(b)(6) deposition for April 19th, they agreed to reschedule the deposition to accommodate plaintiff's desire to "coincide" plaintiff's deposition with those of Navigator, if plaintiff would agree to a 60-day continuance of the dispositive motion and discovery deadlines. Granting the defendants' unopposed motion required this court to reschedule both the pretrial conference and the trial of this matter. Thereafter, Eon's attorney failed to respond to Navigator's May 15 request for available deposition dates in June, despite Eon's agreement to entry of the order requiring its corporate representatives to be deposed no later than June 22, 2012, and even though Eon's identified corporate representatives were both in California during one of the weeks proposed by defense counsel for the deposition. Plaintiff's counsel also failed to contact defense counsel about rescheduling when he received the May 22 and May 23 notices setting Eon's deposition for June 7; only after defense counsel's e-mail on June 4 regarding the deposition did plaintiff's counsel advise the defendants that his corporate representatives were not available for deposition on June 7. Then — displaying flagrant disregard for the June 22 deadline set by the court — Eon's counsel suggested scheduling the deposition at some point after Lejerskar's June 23 return from abroad. As discussed above, Eon's counsel's representation concerning Lejerskar's whereabouts was false — he was neither abroad at the time nor remaining there until June 23; he had, in fact, returned from abroad a week previously.
Thereafter, despite the court's reiteration of the June 22 deadline and its express warning that Eon's failure to comply with the order may result in dismissal, Eon failed to appear for the Rule 30(b)(6) deposition noticed for June 20th. Eon's counsel represented that Lejerskar and Johansson, the two people who could provide 30(b)(6) testimony, were "both unable to come, because of their business out of state." (Doc. # 89-3, p. 3). He further stated, "Despite trying to get them to Alabama, I am told that their business is crucial." (
Given these facts, the court readily concludes that Eon's failure to provide the deposition testimony of its corporate representatives — particularly since Eon agreed to entry of the order setting the June 22 deadline, could have proposed any number of deposition dates within the nine weeks available before that deadline, and failed to petition this court for relief from either the April 23 or June 11 orders — demonstrates both a clear pattern of delay and Eon's willful disregard of the orders of this court. Eon's misrepresentation, through its counsel, about Lejerskar's whereabouts in June and Eon's purported need to schedule the deposition after Lejerskar's return from abroad on June 23 further establishes contumacious conduct. While Eon's counsel's false statement was not made directly to the court, he should reasonably have recognized that defense counsel might present it to the court, particularly since the falsehood was employed in an effort to reschedule the Rule 30(b)(6) deposition on a date after the deadline established by the court. The court framed the terms of its June 11 order in reliance on the false representation. Whether or not Eon's corporate representatives provided false information to its counsel, they themselves decided not to comply with the court's order in favor of what they considered more crucial business. Eon's crucial business travel provides no justification for its failure to provide defense counsel with a deposition date that would accommodate Eon's representatives' travel schedule and the court's deadline; the record demonstrates that it could have done so. Neither does Eon's crucial business travel justify Eon's decision to ignore the court's order rather than to petition the court for relief. Thus, the record demonstrates a clear pattern of delay and contumacious conduct.
The court concludes that sanctions lesser than dismissal would not suffice to remedy Eon's demonstrated unwillingness to cooperate in providing its own deposition and to comply with the orders of this court. Defendants argue that Eon's failure to appear for its own deposition has hampered its ability to prepare their defense. This is undisputably so. The dispositive motion deadline is set for August 6, 2012 (
(
The court has considered sanctions lesser than dismissal, including those identified in Rule 37(b)(2), and finds that none would be effective to cure the problems generated by Eon's noncompliance. One of the potential sanctions identified in Rule 37(b)(2) is "staying further proceedings until the order is obeyed[.]" Fed. R. Civ. P. 37(b)(2)(A)(iv). In the circumstances of this case, a stay is particularly inappropriate; it would reward Eon's conduct by permitting Eon — not the court — to determine when it should provide the deposition testimony of its corporate representatives. While a stay would relieve defendants of the immediate need to pursue further discovery or prepare a dispositive motion, it would also require the court to amend its schedule, once again, to accommodate the schedules of Eon's corporate representatives. A stay would not, accordingly, further this court's interest in "provid[ing] for the efficient disposition of litigation."
Other alternative sanctions, such as prohibiting Eon from providing the testimony of its corporate representatives in support of its claims or striking Eon's pleadings (
Eon Reality represents that it "will promptly remedy the problem if given the opportunity." (Doc. # 91, p. 5). Eon's assurance does not ring true — it had plenty of opportunities to avoid the problem in the first place and chose not to do so. The record reveals that the problem did not result entirely, as Eon suggests, from putting its crucial business travel ahead of complying with the court's order that it submit to deposition; Eon also chose not to propose dates for its Rule 30(b)(6) deposition during times when both corporate representatives were at Eon's office in California. Additionally, Eon Reality failed to appear for its June 20 deposition despite the court's clear warning that its failure to do so could result in dismissal, and despite the defendants' earlier motion to dismiss upon receiving notice from Eon's counsel that Eon would not attend the June 7 deposition. Eon's failure to petition the court for relief to allow Johansson to tend to the Bombardier bidding competition in Montreal evidences Eon's disdain for this court's authority to control the discovery process in this case. The court has no confidence, given Eon's past conduct, that Eon will in the future give litigation of this matter priority over any of its other, more crucial business.
For the foregoing reasons, it is
ORDERED that defendants' motion to dismiss (Doc. # 89) is GRANTED pursuant to Fed. R. Civ. P. 37 and 41 and this court's inherent authority to enforce its orders and to provide for the efficient disposition of litigation pending before it. The claims that plaintiff asserts in this action will be dismissed with prejudice by separate judgment entered after the court determines the amount of each defendant's expense award. It is further
ORDERED that:
(1) defendants' motion, to the extent it seeks an award of reasonable expenses, including attorney fees, caused by Eon's failure to comply with the court's order compelling it to make its corporate representatives available for deposition testimony no later than June 22, 2012, is GRANTED pursuant to Fed. R. Civ. P. 37(b)(2)(C), as the record does not demonstrate substantial justification for Eon's failure or other circumstances that would make an award of expenses unjust;
(2) defendants may file an itemized statement of such reasonable expenses, accompanied by competent supporting evidence, on or before August 17, 2012;
(3) plaintiff may file specific objections to expenses sought by defendants, on or before August 31, 2012.