Filed: Jul. 19, 2017
Latest Update: Jul. 19, 2017
Summary: REPORT AND RECOMMENDATION THOMAS M. PARKER , Magistrate Judge . Plaintiff Real Good Technologies, LLC, brought this case to enforce a settlement agreement between it and Defendant Victory Solutions, LLC. ECF Doc. No. 1. After Victory Solutions failed to participate in the litigation, Real Good Technologies obtained default judgment and an order of garnishment. ECF Doc. No. 16; May 16, 2017 Court Order. Shortly thereafter, Real Good Technologies filed a notice to take the deposition of Shan
Summary: REPORT AND RECOMMENDATION THOMAS M. PARKER , Magistrate Judge . Plaintiff Real Good Technologies, LLC, brought this case to enforce a settlement agreement between it and Defendant Victory Solutions, LLC. ECF Doc. No. 1. After Victory Solutions failed to participate in the litigation, Real Good Technologies obtained default judgment and an order of garnishment. ECF Doc. No. 16; May 16, 2017 Court Order. Shortly thereafter, Real Good Technologies filed a notice to take the deposition of Shann..
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REPORT AND RECOMMENDATION
THOMAS M. PARKER, Magistrate Judge.
Plaintiff Real Good Technologies, LLC, brought this case to enforce a settlement agreement between it and Defendant Victory Solutions, LLC. ECF Doc. No. 1. After Victory Solutions failed to participate in the litigation, Real Good Technologies obtained default judgment and an order of garnishment. ECF Doc. No. 16; May 16, 2017 Court Order. Shortly thereafter, Real Good Technologies filed a notice to take the deposition of Shannon Burns, president of Victory Solutions. ECF Doc. No. 22. However, neither Burns nor any representative of Victory Solutions attended the June 1, 2017, deposition. ECF Doc. No. 32-1.
Subsequently, Real Good Technologies filed a motion for costs associated with Shannon Burns' failure to appear at the June 1, 2017, deposition and a request for the court to convene a deposition in the presence of the Magistrate Judge. ECF Doc. No. 32. Real Good Technologies argues that Burns' testimony is necessary to the garnishment proceedings so that they can understand "the scope and nature of Victory Solutions' assets before he is able to transfer, dissipate, or otherwise diminish Victory Solutions' assets." Id. at Page ID#301
Real Good Technologies noticed Burns' deposition pursuant to Federal Rules of Civil Procedures 30 and 69(a)(2).1 Neither Burns, nor any Victory Solutions representative, responded to the notice of deposition and Burns failed to appear. EFC Doc. 32-1. As a result of Burns' failure to appear, Real Good Technologies seeks costs associated with the deposition pursuant to Fed. R. Civ. P. 37(d). FRCP 37(d)(1)(A)(i) provides that a court may order sanctions if "a party or a party's officer, director, or managing agent . . . fails, after being served with proper notice, to appear for that person's deposition." As its president, Burns qualifies as an "officer, director, or managing agent" of Victory Solutions whose deposition may be taken by notice. See Libbey Glass, Inc. v. Oneida, Ltd., 197 F.R.D. 342, 349 (N.D. Ohio 1999) ("The deposition of a corporation may be taken by noticing the deposition of the corporation by a particular officer, director, or managing agent pursuant to Fed. R. Civ. P. 30(b)(1).") See also Philadelphia Indem. Ins. Co. v. Fed. Ins. Co., 215 F.R.D. 492, 493-94 (E.D. Pa. 2003) (finding that the corporations Assistant Vice President and Vice President were "corporate officers that may be deposed without a subpoena."); § 2107 Compelling Attendance of Witnesses, 8A Fed. Prac. & Proc. Civ. § 2107 (3d ed.). Accordingly, this court may order sanctions for his failure to appear for deposition.
Here, the undersigned determines that sanctions are appropriate and sanctions are RECOMMENDED2 against Victory Solutions for the reasonable costs associated with the June 1, 2017, deposition. Real Good Technologies shall submit an itemized invoice of the costs of that deposition within 10 days of this order.
Next, Real Good Technologies requests that this court order Mr. Burns to appear on behalf of Victory Solutions for deposition in the presence of the Magistrate Judge. ECF Doc. No. 32. The court determines this request is necessary to the garnishment proceedings and the request is GRANTED IN PART. Burns is ORDERED to appear at a deposition on July 27, 2017, at 10:00 a.m., in Room 11B, United States Courthouse, 801 West Superior Avenue, Cleveland, Ohio. Although the deposition will take place in chambers, it will be conducted by Real Good Technologies in accordance with its May 25, 2017, notice but will not be directly supervised by this court. However, should Burns and/or Victory Solutions fail to appear he/it would be ordered to show cause why he/it should not be held in contempt of court.