K. GARY SEBELIUS, Magistrate Judge.
This matter comes before the court upon Plaintiff Sweet Craft Limited's Motion for Sanctions (ECF No. 18). Defendants Operational Solutions, Inc. and Kent Goss oppose the motion. For the reasons stated below, the magistrate judge respectfully recommends the district judge render default judgment against these defendants in an amount to be determined by the district judge.
Plaintiff brings claims against defendants for breach of fiduciary duty, negligent misrepresentation, unjust enrichment/quantum meruit, breach of contract, fraud, and conversion.
On January 7, 2015, plaintiff filed an unopposed motion to compel discovery, for sanctions, and for extensions of scheduling order deadlines.
Additionally, the court also granted in part and denied in part plaintiff's request for sanctions. Like the present motion before the court, plaintiff's prior request for sanctions included the sanctions listed in Fed. R. Civ. P. 37(b)(2)(A), which amounted to a sanction precluding defendants from defending this suit. Applying the factors set out by the Tenth Circuit in Ehrenhaus v. Reynolds,
According to plaintiff's motion, the parties conferred on January 22, 2015, and on January 28, 2015. During those discussions, plaintiff claims that defense counsel stated his intent to comply with the court orders regarding discovery. However, plaintiff states that a short time later, defense counsel informed plaintiff that he would not respond to any discovery. Plaintiff's motion indicates that to date, defendants have failed to respond as ordered to any of plaintiff's discovery requests and have failed to provide dates for Operational Solutions' deposition. In response, defendants admit they have not responded to any of plaintiff's discovery requests or provided any dates for Operational Solution's deposition.
When a party fails to attend its own deposition, serve answers to interrogatories, or respond to a request for inspection, the court may impose sanctions listed in Fed. R. Civ. P. 37(b)(2)(A)(i)-(vi).
Plaintiff asks that the court: order the matters embraced in the unanswered discovery be taken as established for purposes of this action; prohibit defendants from supporting their defenses and from opposing plaintiff's claims; prohibit defendants from introducing evidence in support of their defenses or in opposition to plaintiff's claims; order that defendants' pleadings be stricken in whole; and enter default judgment against defendants.
Plaintiff does not specify why it seeks these particular sanctions, many of which appear unnecessary if default judgment is rendered against defendants. The court retains broad discretion to impose the proper sanction to insure litigants and their counsel "fulfill their high duty to insure the expeditious and sound management of the preparation of cases for trial."
In Ehrenhaus v. Reynolds, the Tenth Circuit set out factors to consider when evaluating the appropriateness of dismissal as a sanction.
In this case, all of the Ehrenhaus factors weigh in favor of recommending default judgment be rendered against defendants. With regard to the first factor, defendants' actions have prejudiced plaintiff by causing delay and increased attorney fees.
Defendants' actions have interfered with the judicial process. The court has now addressed two motions involving defendants' failure to participate in discovery and has had to extend scheduling order deadlines because of defendants' conduct.
With regard to the third and fourth factors, defendants' culpability is substantial, and the court previously warned defendants that any further failure to participate in discovery may result in default judgment. Defendants have engaged in a practice of willfully ignoring requests for discovery, as detailed above. They have, without explanation, violated the court's January 2015 order requiring them to respond to discovery requests and requiring Operational Solutions to produce a corporate representative for deposition. In response to the motion for sanctions, they offer no explanation for their actions and no promise to participate in discovery in the future. These factors weigh in favor of rending default judgment against defendants.
Finally, in light of defendants' conduct in this case, lesser sanctions would be insufficient. In the January 2015 order, the court imposed monetary sanctions and required defendants to provide the discovery sought. Despite this, defendants failed to comply. For the reasons outlined above, the magistrate judge respectfully recommends that the district judge render default judgment against defendants in an amount to be determined by the district judge.
Pursuant to 28 U.S.C.§636(b)(1), Fed. R. Civ. P. 72, and D. Kan. Rule 72.1.4, the parties shall have fourteen (14) days after service of a copy of this Report and Recommendations to file any written objections. A party must file any objections within the fourteen-day period if that party wants to have appellate review of the proposed findings of fact, conclusions of law, or recommended disposition. If no objections are timely filed, no appellate review will be allowed by any court.
Accordingly,