Defendants and petitioners Toyota Motor Corporation, Toyota Motor North America, Inc., and Toyota Motor Sales, U.S.A., Inc. (collectively, Toyota), seek a writ of mandate directing the trial court to vacate its order granting a motion to compel Toyota to produce five of its employees, who are Japanese residents, for deposition in California and to enter a new and different order denying that motion.
Code of Civil Procedure section 1989
In February 2009, plaintiffs and real parties in interest Michael Stewart and Shawna Stewart, individually and as personal representatives and successors-in-interest to the estate of Michael Levi Stewart, and Logan Ivie, Tucker Hathaway and Luckus Sisiam (collectively, plaintiffs) filed this products liability action against Toyota. The action arose out of the 2007 single vehicle crash of plaintiffs' Toyota pickup truck in Idaho. In summary, plaintiffs alleged that (1) the steering rod in their vehicle contained a defect that caused it to crack and break; (2) the failed steering rod prevented steering, resulting in the crash; (3) decedent Michael Levi Stewart, as well as plaintiffs Ivie, Hathaway and Sisiam, all were injured in the crash; (4) decedent subsequently died of his injuries; and (5) after learning of the alleged defect, Toyota waited too long to recall affected vehicles, and instituted a recall in Japan before it did so in the United States.
In March 2010, plaintiffs noticed the depositions of five individual Toyota employees as individual witnesses, not corporate representatives. All five individuals are Japanese residents. They are: Hiroyuki Yokoyama, a Japanese executive and former head of Toyota's customer quality engineering division in Japan; Mitsatiru Kato, who works at Toyota in Japan; Tag Taguchi, who had been assigned to Toyota's North American operation but had returned to
After plaintiffs sought deposition dates for these witnesses, Toyota declined to produce them for deposition in California and responded that the individual employees must be deposed in Japan. In April 2010, plaintiffs moved to compel Toyota to produce the five Japanese residents for depositions in Gardena, California. Plaintiffs conceded that section 1989 precluded the court from ordering Japanese witnesses to travel to California for trial, but asserted the court had authority under section 2025.260
In opposition to the motion to compel, Toyota argued section 1989 precludes the court from compelling a foreign national to submit to deposition in California. Instead, a party seeking to depose a resident of a foreign country may depose the witness in his or her homeland pursuant to section 2027.010. In the alternative, Toyota argued that even assuming section 2025.260 authorized the court to compel a foreign resident to
On June 15, 2010, the trial court granted plaintiffs' motion to compel the five named foreign resident executives of Toyota to attend deposition in California, subject to the following terms and conditions: "(a) plaintiff shall pay reasonable airfare (economy class, round-trip) and reasonably priced lodging for the deponents in California; and (b) the deposition of each deponent shall be one day in duration, from 10 a.m. to 5 p.m. (with a 10 minute break each hour and a one hour lunch break), at Toyota's counsel's Gardena, California offices." The trial court noted the dearth of case law directly on point
On June 28, 2010, Toyota filed the instant petition for writ of mandate. We issued an order to show cause and set the matter for hearing.
The essential issue presented in this case is: does section 1989 prohibit the trial court from compelling a witness residing outside of California to travel to California for deposition or, as plaintiffs argue, does section 2025.260 vest the trial court with the discretionary authority (after applying the balancing factors set out in § 2025.260, subd. (b)), to compel a nonresident witness to travel to California for deposition?
The issues raised in this case must be resolved by the interpretation and application of the relevant provisions of the Code of Civil Procedure. These are issues of law which we review de novo. (Suman v. BMW of North America,
We will first discuss the plain language of the statutes, which leads us to the conclusion that section 1989 prohibits the trial court from compelling a foreign resident to attend a deposition in California. Second, we will consider the legislative history of the relevant statutes, which confirms our conclusion. Finally, we will consider a case which reached a contrary conclusion (Glass v. Superior Court (1988) 204 Cal.App.3d 1048 [251 Cal.Rptr. 690] (Glass)) and reject its analysis.
Additionally, we note that the Civil Discovery Act (§ 2016.010 et seq.) provides a means for taking depositions of non-California residents in the state or country of their residence. Section 2026.010, provides for depositions in other states, and section 2027.010 provides for depositions in foreign nations.
While we see no conflict in the plain language of sections 1989 and 2025.260, a review of the legislative history of both sections, taken together, confirms our interpretation.
The legislative history of both sections together begins with the legislative history of section 1989 standing alone. The statute was originally enacted in 1872, and provided, "A witness is not obliged to attend as a witness before any [c]ourt, [j]udge, [j]ustice, or any other officer, out of the county in which he resides, unless the distance be less than 30 miles from his place of residence to the place of trial." It was subsequently amended four times to successively increase the mileage limitation to 50 miles (Stats. 1915, ch. 162, § 1, p. 330), 100 miles (Stats. 1935, ch. 257, § 1, p. 942), 150 miles (Stats. 1957, ch. 1560, § 1, p. 2918), and 500 miles (Stats. 1980, ch. 591, § 1, p. 1603).
Even though former section 1989 used language defining the mileage limitation as the distance between the witness's "residence" and the "place of trial," section 1989 applied to depositions as well as trials. (See Pollak v. Superior Court (1925) 197 Cal. 389, 393 [240 P. 1006] [requiring witnesses to attend depositions within 50 miles of their residences, noting that there is no language "circumscribing the territorial limits within which ... depositions shall be taken, except those set forth in ... section 1989 ...."].) Indeed, at the time section 1989 was initially adopted, section 1878, which defines "witness" to include a witness "whose declaration ... is ... made ... by deposition," was simultaneously enacted.
As section 1989 was not amended, other than to increase the permitted mileage, from its enactment until 1981, we turn to the statutes governing depositions. We join this area of statutory development in 1957, when the taking of depositions was governed by former section 2019. As originally enacted (see Stats. 1957, ch. 1904, § 3, p. 3322), former section 2019 did not contain any mileage limit. Former section 2019, subdivision (a)(1) merely provided that notice of taking depositions "`must be at least 10 days adding
In 1959, former section 2019 was amended to include a distance limitation. A new subdivision (a)(4) was added to former section 2019, which limited the place of depositions to no more than 150 miles from the residence of a party-affiliated witness,
As enacted in 1959, former section 2019, subdivision (b)(2) provided, "Notwithstanding Section 1989, the court may, upon motion on 10 days' written notice and for good cause shown, make an order requiring a deponent who is a party to the record of any civil action or proceeding or is a person for whose immediate benefit said action is prosecuted or defended or is at the time of the taking of the deposition an officer, director or managing agent of any such party or person to attend a deposition at a place more than 150 miles from the residence of such deponent. In granting or refusing such order, the court shall consider whether the moving party selected the forum, whether the deponent will be present at the trial, the convenience of the deponent, the suitability of discovery through a deposition by written interrogatories or other discovery methods, the number of depositions sought under this section, the expense to the parties of requiring the deposition to be taken within 150 miles of the residence of the deponent, the whereabouts of the deponent at the time the deposition is scheduled to be taken, and all other factors tending to show whether or not the interests of justice and the convenience of the parties and witnesses will be served by requiring the deponent to appear for his deposition at a place more than 150 miles from his residence. Such order may provide that the party desiring to take such deposition shall pay the reasonable expenses incurred by the deponent in attending such deposition and that he furnish an undertaking approved by the court to secure such payment
Significant for our purposes is that this balancing provision began with the language, "[n]otwithstanding Section 1989." The language was both an acknowledgement that, until that point, section 1989's mileage limitation governed the taking of depositions (Twin Lock, supra, 52 Cal.2d at p. 761) and an amendment of the law to allow a court to exercise its discretion to order a deposition outside the mileage limitations of section 1989, when the balancing factors justified it (Twin Lock, supra, 52 Cal.2d at pp. 761-762).
The California Supreme Court had the opportunity to address the effect of this amendment in 1959, in Twin Lock. In that case, the defendant sought to obtain the Los Angeles depositions of certain officers and directors of the plaintiff Twin Lock corporation, which individuals were residents of New York. Although the 1959 amendment to former section 2019 had been enacted by the Legislature by the time of the Supreme Court's opinion, the defendant had noticed the depositions under the prior version of the law, which contained neither a balancing provision nor the "[n]otwithstanding Section 1989" language. Twin Lock unsuccessfully moved to vacate the notice, or to move the depositions to New York, on the basis of section 1989. The trial court indicated that sanctions would be imposed if Twin Lock did not comply with the deposition notices in California, and Twin Lock sought a writ of prohibition.
The Supreme Court agreed with plaintiff Twin Lock that its officers and directors residing in New York could not be compelled to appear for deposition in California. The high court explained, "Since section 1989 is by its terms applicable to the New York residents involved here, defendants' position may be sustained only upon the theory that the enactment in 1957 of sections 2019 and 2034 [sanctions] amounted to a partial implied repeal of section 1989, which, as we have seen, has been a part of our statutes since 1872. We find nothing in the discovery and deposition provisions adopted in 1957 which discloses that the Legislature intended such a substantial departure from the long-established practice of limiting the territorial scope of the powers of a court to compel the attendance of witnesses." (Twin Lock, supra, 52 Cal.2d at p. 759, italics added.)
The Twin Lock court observed that although the 1957 enactment of former section 2019 did not alter the territorial limitations of section 1989, the 1959 amendment to former section 2019 did authorize the trial court to compel the depositions in California of New York residents. It was the 1959 amendment to former section 2019, subdivision (b)(2) that added the override proviso, "Notwithstanding Section 1989." Therefore, on remand, the defendants were
In 1968, former section 2019 was amended to fully exempt depositions from the limitations of section 1989. (Stats. 1968, ch. 918, § 1, p. 1729.) Former section 2019, subdivision (a)(2) was modified to read: "Notwithstanding Section 1989 and the distance provisions specified in paragraph (4) of this subdivision, the deposition, whether of a party or any other person, shall be taken only in the county of residence of the deponent or at a place not more than 75 miles from the residence of the deponent or, if the deponent is a party, in the county of place of trial when the place of deposition is less than 150 miles from the residence of the deponent, unless the court, pursuant to paragraph (1) or (2) of subdivision (b) of this section, otherwise orders." (Italics added.) Under the express language of the 1968 amendment, section 1989 no longer had application with respect to the location of a deposition in California. Both the mileage limit (former § 2019, subd. (a)(2)) and the balancing provision (former § 2019, subd. (b)(2)) specified that they applied "[n]otwithstanding Section 1989."
Subsequent amendments of former section 2019 followed, but none of them would impact the "[n]otwithstanding Section 1989" language until 1986. The next legislative development of significance, however, was an amendment to section 1989.
As originally introduced, the bill which amended section 1989 was intended to repeal it. (Assem. Bill No. 1884 (1981-1982 Reg. Sess.) § 3, as introduced Mar. 30, 1981.)
The bill's author received objections with respect to the impact of such repeal,
In 1986, the Civil Discovery Act was enacted as a comprehensive revision of California's discovery laws. Language governing the location of a deposition, which had previously been in former section 2019, was moved to former section 2025, subdivision (e). We compare the language ultimately enacted as former section 2025, subdivision (e) with the immediately preceding statutory language governing depositions in former section 2019. Former section 2025, subdivision (e)(1) provided as follows: "The deposition of a natural person, whether or not a party to the action, shall be taken at a place that is, at the option of the party giving notice of the deposition, either within 75 miles of the deponent's residence, or within the county where the action is pending and within 150 miles of the deponent's residence, unless the court orders otherwise pursuant to paragraph (3)." (Stats. 1986, ch. 1334, § 2, pp. 4700, 4709.) Former section 2025, subdivision (e)(2) provided similar mileage limitations for organizations as deponents. (Stats. 1986, ch. 1334, § 2, pp. 4700, 4709-4710.) While these mileage limitations are similar, but not identical, to those of former section 2019, subdivision (a)(2),
Subdivision (e)(3) of former section 2025 provided a balancing provision to override the mileage limitations for a party or party-affiliated witness. It is similar to the balancing provision in former section 2019, subdivision (b)(2). Indeed, the two statutes identify the same list of factors in largely the same
It is significant to our analysis to determine how this language came to be enacted. That is, we must review the legislative history of the Civil Discovery Act to determine how former section 2025, subdivision (e) came to nearly restate the provisions of former section 2019, including the balancing provision which allows the mileage limitations to be bypassed, but without the "[n]otwithstanding Section 1989" language.
The bill as originally introduced
The Los Angeles County Bar Association performed a lengthy analysis of the bill, agreeing with many of its provisions and disagreeing with others. (See Los Angeles County Bar Association, letter to Assemblyman Harris, Mar. 28, 1986, and attachment.) Specifically, the Los Angeles County Bar opposed "the deletion of ... court authority" to "order a party deposition
Likely in response to concerns such as this, the Senate amended the bill to reinstate the balancing provision of former section 2019, subdivision (b)(2), but did not reinstate the "[n]otwithstanding Section 1989" language. (Assem. Bill No. 169 (1985-1986 Reg. Sess.) § 2, as amended June 25, 1986, pp. 19-20.) There is no doubt that former section 2025, subdivision (e)(3) was modeled on former section 2019, subdivision (b)(2). The same balancing factors were utilized in virtually the same order as former section 2019, subdivision (b)(2); omission of the phrase "[n]otwithstanding Section 1989" was the only substantive change made. While further amendments would subsequently be made prior to enactment of the Civil Discovery Act of 1986 (former § 2016 et seq.), this key reinstatement of the balancing provision without the "[n]otwithstanding Section 1989" language remained in the statute as ultimately enacted, and has been carried into section 2025.260, one of the statutes governing the location of depositions today.
Moreover, there is nothing in the legislative history to indicate that the "[n]otwithstanding Section 1989" language was omitted because it was determined that such language was no longer necessary. We again note the history of this amendment. Originally, the State Bar-Judicial Council Joint Commission on Discovery proposed eliminating trial court discretion to order a deposition beyond the mileage limitations entirely, and the Assembly Bill followed that proposition. After criticism arguing that the trial courts should retain such discretion, the Senate amended the bill to restore such discretion, but without the language permitting the discretion to be exercised in derogation of the limits imposed by section 1989. That the Legislature chose a middle course between the prior law of unlimited discretion and the State Bar-Judicial Council Joint Commission on Discovery's proposal of no discretion is not only reasonable, but likely.
Thus, the legislative history supports our conclusion based on the plain language of the statutes. The intentional omission of the "[n]otwithstanding Section 1989" language from the balancing test once again renders a trial court's orders regarding the location of depositions subject to the restrictions of section 1989.
Plaintiffs disagree with our conclusion and rely on Glass, supra, 204 Cal.App.3d 1048. Their reliance takes two forms. First, plaintiffs argue that the Glass decision itself controls the result in this case. Second, plaintiffs argue that the Legislature's renumbering of the discovery statutes following the Glass opinion constituted an implied adoption of this authority. We disagree with both contentions.
Plaintiffs rely on Glass, supra, 204 Cal.App.3d 1048, an appellate court opinion decided 29 years after the Supreme Court decided Twin Lock, and two years after the Civil Discovery Act of 1986 had removed the "[n]otwithstanding Section 1989" language from the balancing provision. The issue in
In Glass, the petitioners sought to depose three senior members of Ameriana's management team in California pursuant to former section 2025, subdivision (e)(3). Ameriana opposed the motion on the ground that the deponents were Indiana residents and could only be deposed within 75 miles of their residences. Glass held the petitioners were entitled to an order compelling the depositions in California.
Glass reasoned that, because former section 2025, subdivision (e)(3) was "virtually identical" to the 1959 version of section 2019, subdivision (b)(2), which the Supreme Court held in Twin Lock was sufficient to overcome the restrictions of section 1989, the same result should apply. (Glass, supra, 204 Cal.App.3d at p. 1052.) Ameriana argued that the statutes were not "virtually identical," because the 1959 version of section 2019, subdivision (b)(2) included the "[n]otwithstanding Section 1989" language, but former section 2025, subdivision (e)(3) did not. The Glass court rejected that argument in a footnote, stating "[Ameriana] offer[s] no legislative history or other compelling support for [this] argument. Furthermore, it is more reasonable to assume the Legislature determined the phrase was superfluous in light of the 30-year-old Twin Lock decision, its revised discovery scheme and its stated goal of eliminating unnecessary cross-references to other discovery statutes." (Glass, supra, 204 Cal.App.3d at p. 1053, fn. 3.)
We find Glass unpersuasive for several reasons. First, we believe the Glass court misconstrued the Supreme Court's language in Twin Lock. The Supreme Court had found the presence of the "[n]otwithstanding Section 1989" language in the 1959 version of section 2019, subdivision (b)(2) to be "[o]f particular significance." (Twin Lock, supra, 52 Cal.2d at p. 761.) Given that, we cannot accept the Glass court's conclusion that former section 2025, subdivision (e)(3), which lacks such language, is "virtually identical" to the 1959 version of section 2019, subdivision (b)(2).
Glass has been on the books for 22 years and has not been cited in any published decision.
As already noted,
Given this legislative history, we reject plaintiffs' argument that this nonsubstantive renumbering had the effect of placing the Legislature's imprimatur on the Glass case. The renumbering had no such effect.
The plain language of the statutory scheme and the legislative history of that language fully support the conclusion that a trial court cannot order a nonresident to appear at a California deposition.
Toyota's petition for writ of mandate is granted. Upon remand, the trial court is directed to vacate its order of June 15, 2010, which granted plaintiffs' motion to compel and to enter a new and different order denying such motion. Toyota shall recover its costs in this appellate proceeding.
Klein, P. J., and Kitching, J., concurred.
I concur in the lead opinion and its holding that irrespective of Code of Civil Procedure section 2025.260,
Section 1989 was originally enacted in 1872. It has now become an archaic limitation on discovery. Further, because section 1989 provides a nonresident of California is not obliged to attend as a witness in this state, it applies not only to residents of foreign countries, but also to residents of other states in these United States. The Legislature should address this subject at the earliest opportunity in order to update the law and to bring California in line with other jurisdictions.
It should be noted that section 410.10, commonly known as California's "long-arm statute" (Integral Development Corp. v. Weissenbach (2002) 99 Cal.App.4th 576, 583 [122 Cal.Rptr.2d 24]), provides a court of this state
Given the Legislature's authorization in section 410.10 of the broadest possible exercise of jurisdiction over nonresidents, it is difficult to understand section 1989's stringent residency requirement for the attendance of witnesses in this state.
Federal courts routinely order the depositions of foreign corporate executives on American soil, pursuant to Federal Rules of Civil Procedure, rule 30(b)(6) (28 U.S.C.).
Various state courts likewise have ordered foreign nationals to attend depositions in this country. (See, e.g., State ex rel. Bunker Resource Recycling & Reclamation, Inc. v. Howald (Mo.Ct.App. 1989) 767 S.W.2d 76 [Canadian resident, who was corporation's managing agent, could be required to give deposition in Mo.]; D'Agostino v. Johnson & Johnson (1990) 242 N.J.Super. 267 [576 A.2d 893] [Swiss executive required to appear in N.J.]; In re Turner (Tex.Ct.App. 2008) 243 S.W.3d 843, 848 [trial court had discretion to order Hong Kong resident's deposition to take place in Tex.].)
Ex Parte Toyokuni & Co., Ltd. (Ala. 1998) 715 So.2d 786 (Toyokuni), a wrongful death action against a Japanese corporation, is instructive. There, the Alabama Supreme Court upheld an order requiring Japanese corporate representatives to travel to Alabama for deposition. Toyokuni stated depositions of nonresident corporate defendants ordinarily should be taken at the corporation's principal place of business, but "`[t]here may be circumstances that would justify the taking of a deposition somewhere other than the corporation's principal place of business.'" (Id., at p. 788.)
In upholding the lower court's discovery order, Toyokuni reasoned: "The trial court is in a better position than an appellate court to weigh the circumstances in a particular case and to determine whether the deposition should be taken somewhere other than the corporation's principal place of business.... [¶] The circuit judge was faced with a difficult situation in this case and, under the circumstances, we conclude that he did not abuse his discretion." (Toyokuni, supra, 715 So.2d at p. 789, citation omitted.)
The Toyokuni court explained, "The action is pending in the Circuit Court of Mobile County, and Toyokuni's counsel and the administrator's counsel
Toyokuni reasoned, "Moreover, Japan's system of discovery is very different from our `open discovery' system. Under Japanese law, judicial officers conduct all pretrial questioning of witnesses and discovery is basically limited to voluntary depositions. See In re Honda American Motor Co., Inc. Dealership Relations Litigation, [supra, 168 F.R.D. at p. 538]. It could be unfair to make the administrator conduct the deposition under Japan's strict discovery procedures, especially since, at the same time, Toyokuni would have access to our more open discovery methods. An attempt to compel discovery pursuant to our rules on Japanese soil could infringe foreign judicial sovereignty. [Citation.] Therefore, the circuit judge did not abuse his discretion in declining to order that the deposition take place in Japan." (Toyokuni, supra, 715 So.2d at p. 789, italics added.)
Toyokuni further recognized that holding the deposition in Japan could "thwart the circuit court's control of this case. Conducting the deposition in the forum would allow the circuit court to have greater control over the discovery process if disagreements arose. [Citation.] ... If a dispute arises over the right to discover certain information, or if the defendant refuses to cooperate, by failing to answer certain questions or to produce certain documents, then, with the deposition taking place in Mobile, the circuit court will be in a much better position to resolve any conflict. Having the deposition take place in Mobile and thus allowing the circuit court to exercise its control will serve the clear interest that the United States in general and Alabama in particular have in maintaining the integrity of our judicial system and in exercising the jurisdiction of this state and this nation over persons whose products are distributed in the United States and in Alabama. See In re Honda American Motor Co., 168 F.R.D. at 539." (Toyokuni, supra, 715 So.2d at pp. 789-790, italics added.)
This case does not implicate the sovereignty of foreign countries. The policy question which the Legislature should review is whether California courts should have the discretionary authority to require a corporate defendant's foreign officers, directors, managing agents or employees to appear for deposition in California.
The policy reasons articulated in Toyokuni pinpoint the need for the Legislature to reexamine section 1989. We are now living in a global economy. Permitting the deposition in California of nonresident employees of foreign corporations doing business here would help maintain the integrity of our judicial system by enabling the superior court to exercise control over discovery in the event litigation should arise. It would also enable California to exercise its jurisdiction over foreign corporations whose products are distributed here.
Another factor militating in favor of conducting depositions in California, rather than overseas, is that the procedures for conducting depositions abroad may thwart discovery. As stated in Toyokuni, "Japan's system of discovery is very different from our `open discovery' system. Under Japanese law, judicial officers conduct all pretrial questioning of witnesses and discovery is basically limited to voluntary depositions. See In re Honda American Motor Co. Inc. Dealership Relations Litigation, [supra,] 168 F.R.D. [at p.] 538.... It could be unfair to make the [plaintiff] conduct the deposition under Japan's strict discovery procedures, especially since, at the same time, [defendant] would have access to our more open discovery methods." (Toyokuni, supra, 715 So.2d at p. 789.)
Additionally, if the depositions are conducted in this forum, in the event of disputes arising during the depositions, such as if the witnesses refuse to cooperate, the superior court would be in a much better position to resolve any conflict.
Further, it may well be more economical for plaintiffs to bring individual deponents from abroad, rather than for a team consisting of plaintiffs, their attorneys, a stenographer, a videographer and a translator, to travel abroad for depositions.
Moreover, the current state of affairs, in which Toyota's foreign executives cannot be required to appear for deposition in California, creates an uneven playing field for American business. As discussed in Toyokuni, deposition procedures in Japan are far more restrictive. (Toyokuni, supra, 715 So.2d at
For all these reasons, the Legislature should revisit the relationship of section 1989 to section 2025.260 at the earliest opportunity.
Implied repeal is disfavored. "`"`[A]ll presumptions are against a repeal by implication....'"'" (Schatz, supra, 45 Cal.4th at p. 573.) "`"Absent an express declaration of legislative intent, we will find an implied repeal `only when there is no rational basis for harmonizing the two potentially conflicting statutes [citation], and the statutes are "irreconcilable, clearly repugnant, and so inconsistent that the two cannot have concurrent operation."'"'" (Id. at p. 573.)
As we have already noted, sections 1989 and 2025.260 are not at all inconsistent and can easily have concurrent operation. They yield a clear, coherent scheme that furthers the Legislature's intent to spare deponents from traveling long distances. Under it, a trial court can override the limitations set out in section 2025.250 but cannot override section 1989.