Opinion by Justice LANG-MIERS.
Relator Staff Care, Inc. purchased a physician staffing business from one of the real parties in interest. Real parties in interest, defendants in the trial court, started a competing business called Consilium Staffing, Inc. Staff Care sued Consilium and four individuals for breach of contract, theft of trade secrets, tortious interference, and other claims. Later, Staff Care amended its petition to add eight new individual defendants.
Staff Care filed this petition for writ of mandamus after the trial court signed an order denying certain motions to compel discovery and denying Staff Care's appeal of a ruling by an associate judge.
Mandamus is an extraordinary remedy that is available only in limited circumstances. CSR Ltd. v. Link, 925 S.W.2d 591, 596 (Tex.1996) (orig. proceeding) (citing Walker v. Packer, 827 S.W.2d 833, 840 (Tex.1992) (orig. proceeding)). Mandamus is appropriate "only to correct a clear abuse of discretion or the violation of a duty imposed by law when there is no other adequate remedy by law." Id. In order to obtain mandamus relief, a relator must show both that the trial court has clearly abused its discretion and that relator has no adequate appellate remedy. In re Prudential Ins. Co., 148 S.W.3d 124, 135-36 (Tex.2004); Walker, 827 S.W.2d at 839-40. Staff Care has met this burden in part. We therefore conditionally grant the writ of mandamus in part and deny it in part.
In its second issue, Staff Care complains of the trial court's denial of its motion to compel the depositions of the eight additional defendants (real parties in interest Brent Burrows, Sheri Ossorio, Tisha Schwartz, Jessica Ferguson, Jill Kennedy, Matt Kennedy, Melissa Palmer, and Joseph Hawkins) and four "key employees" of Consilium who are not individual defendants (Monique Degraauw, Lauren Etter, Christina Stephens, and Landon Webb). The eight named defendants were added to the lawsuit in September, 2012. The four key employees were designated as persons with knowledge of relevant facts by Consilium and other defendants.
Defendants argue that the requests to depose these individuals were untimely. Formal deposition notices for these witnesses were sent on May 8, 2013. The depositions were noticed to take place on May 29 (Ossorio), May 30, (Jill Kennedy and Matt Kennedy), May 31 (Degraauw and Etter), June 3 (Stephens), June 4 (Burrows), June 5 (Schwartz), June 6 (Ferguson), June 7 (Palmer), June 10 (Webb), and June 11 (Hawkins). Both the notices and the noticed dates preceded the close of the discovery period on June 14 under the agreed scheduling order. Defendants moved to quash these notices, and Staff Care filed its motion to compel on May 23, 2013. This motion was not heard until September 4, 2013, after our original mandamus order, and was denied in the trial court's September 11, 2013 order.
Defendants do not argue that the discovery sought was not relevant or not permitted under the rules of civil procedure. Instead, they cite State v. Wood Oil Distributing, 751 S.W.2d 863, 865 (Tex.1988), in support of their argument that Staff Care's requests were untimely because Staff Care failed to diligently pursue discovery. In that case, however, the issue was the trial court's denial of a continuance where the defendant had not taken any discovery in the two years during which the case had been pending. See id. at 864. The defendant moved for a continuance
Here, in contrast, Staff Care's motion to compel attached correspondence between counsel for the parties indicating that Staff Care initially requested the depositions of Degraauw, Webb, Etter, Jill Kennedy, and Matt Kennedy by letter dated June 27, 2012, and of Burrows, Ossorio, Schwartz, Ferguson, Palmer, Hawkins, and Stephens by letter dated November 12, 2012. Several e-mails between counsel were also attached to the motion to compel showing additional efforts to schedule depositions of these witnesses. In addition, the record reflects that Staff Care sought other discovery and took other depositions during the interim between this correspondence and the service of formal notices in May 2013. Unlike the defendant in Wood Oil Distributing, Staff Care did not wait until the morning of trial to make its requests or to compel the discovery. See id. at 864. Its deposition notices and the scheduled depositions were within the time for discovery under the agreed scheduling order. The motion to compel was also timely, filed prior to the June 21 deadline for motions to compel.
At the hearing on the motion to compel, defendants argued that they agreed to produce these witnesses for deposition, but Staff Care refused unless defendants also agreed to extend other deadlines and allow other additional discovery. Defendants were not required, however, to agree to additional conditions or extensions of time. And under Rule 199.4, Texas Rules of Civil Procedure, defendants could (and did) object to the time and place of the deposition by filing a motion to quash Staff Care's deposition notices. But defendants cite no authority for the proposition that Staff Care was not permitted to depose the witnesses at another time and place when Staff Care made a timely request. See TEX.R. CIV. P. 199.1(a) ("A party may take the testimony of any person or entity by deposition on oral examination...."). And they cite no authority for the proposition that the trial court had discretion to deny Staff Care's motion to compel under these circumstances. Staff Care has been denied the opportunity to depose parties and key witnesses to the lawsuit. Mandamus may issue where a party "is effectively denied the ability to develop the merits of the case." See In re Colonial Pipeline Co., 968 S.W.2d 938, 941-42 (Tex.1998). We sustain Staff Care's second issue.
In its third issue, Staff Care complains of the trial court's denial of its appeal of a ruling by an associate judge "striking all of [Staff Care's] damages evidence." The ruling in question granted defendants' motion to strike Staff Care's amended and supplemental responses to requests for disclosure under Rule 194, Texas Rules of Civil Procedure. Staff Care served the amended disclosure responses on June 11, 2013, and the supplemental disclosure responses on June 13, 2013,
The standard for determining whether Staff Cares amended and supplemental disclosures were timely is whether they were made "reasonably promptly after the party discovers the necessity for such a response." TEX.R. CIV. P. 193.5(b) (regarding time of amended or supplemental discovery responses). Rule 194.3 required Staff Care to initially respond to the request for disclosures within thirty days and Staff Care had no reason to delay providing in its response economic damages because Staff Care could not be impeached if it later amended its economic damages disclosures as the case progressed. See TEX.R. CIV. P. 194.6. Staff Care argues that its amended and supplemental disclosures were timely because they were made within the discovery period and more than thirty days prior to the date for trial. But there is no presumption that an amended disclosure made more than thirty days prior to trial is timely. See Snider v. Stanley, 44 S.W.3d 713, 715 (Tex.App.-Beaumont 2001, pet. denied) (although rule includes presumption that supplement made less than thirty days before trial is untimely, there is no opposite presumption that supplement made more than thirty days before trial is timely). And here, it is undisputed that Staff Care made no disclosures at all regarding any of its damages at any time before June 11, 2013. The record reflects that defendants request for that information had been pending for approximately two years, and that defendants had questioned Staff Cares president on the subject in his deposition, but the information was never provided.
The motion filed by defendants to strike Staff Cares amended and supplemental disclosures was based on Rules 193.5 and 193.6, Texas Rules of Civil Procedure, regarding exclusion of evidence that is not timely disclosed. The burden was on Staff Care to prove good cause for the untimely response, or lack of unfair surprise or unfair prejudice. TEX.R. CIV. P. 193.6(b). Staff Care cites Frazin v. Hanley, 130 S.W.3d 373 (Tex.App.-Dallas 2004, no pet.), in which we held that it was error to strike the plaintiff's expert witness designations, even though the designations were not made by the applicable deadline. In Frazin, however, the experts were designated in response to a new counterclaim not pleaded by the defendants until fifty days after the expert designation deadline had passed. Id. at 378. The designation was made within eight days after the counterclaim was filed, and thirty-one days before the trial date. Id. We concluded that the designation was "reasonably timely under Rule" 193.5(b), Texas Rules of Civil Procedure. See id. at 377-78.
Staff Care argues that as in Frazin, it was "forced to develop a new damages model" in response to various actions by the trial court in late May. Staff Care contends that the trial court's denial of a continuance of the trial date, denial of Staff Care's motion to reconsider a partial summary judgment order, and resetting of a hearing on its third motion to compel for a date after the close of discovery were triggering events forcing Staff Care to "abandon its primary damage model." We do not agree that these three events are similar to the appellee's pleading of a new counterclaim in Frazin. First, Staff Care does not raise the denial of its motion for continuance as a ground for mandamus, and provides no argument or authority
Staff Care also argues that the striking of its amended disclosure responses constituted a "death penalty" discovery sanction, and that therefore, the trial court was required to consider lesser sanctions before granting defendants' motion to strike. We disagree. In discussing Rule 193.6, we have explained, "The rule is mandatory, and the penalty — exclusion of evidence — is automatic, absent a showing of: (1) good cause or (2) lack of unfair surprise or (3) unfair prejudice." Oscar Luis Lopez v. La Madeleine of Texas. Inc., 200 S.W.3d 854, 860 (Tex.App.-Dallas 2006, no pet.). We continued, "The sanction of automatic exclusion of undisclosed evidence, subject to the exceptions set forth in the rule, is well established. The party offering the undisclosed evidence has the burden to establish good cause or lack of surprise, which must be supported by the record." Id. (citations omitted). The trial court applied the proper standard under Rule 193.6. See id.
Defendants argued that Staff Care's failure to disclose its damages theory until a few days before the close of discovery prevented it from conducting any discovery on Staff Care's damages calculations. Part of this problem, however, was of the parties' own making.
Staff Care also argues that its disclosure of some 230 persons with knowledge of relevant facts in its amended and supplemental disclosures was timely and did not constitute unfair surprise. Staff Care argues, and defendants do not dispute, that "only a handful" of names were actually new.
In its first issue, Staff Care contends that the trial court abused its discretion in denying its motions to compel documents that are essential to establishing its claims and damages. The two motions at issue are Staff Care's third motion to compel documents, as supplemented, and its fourth motion to compel documents.
We first conclude that the trial court did not abuse its discretion in its rulings on the third motion to compel, which was granted in part and denied in part in the trial court's September 11, 2013 order. The third motion to compel was filed in September 2012, and a hearing was held on the motion in November 2012. The trial court did not rule on the motion during or after the hearing, and the motion was one of the subjects of the previous
The third motion to compel, however, did not seek to compel production of documents relating to Staff Cares damages until May 28, 2013, when Staff Care filed a "supplement" to the motion.
The record reveals instead that the focus of the third motion to compel was furtherance of the "matching" process, by which Staff Care sought to require production of a list of Consilium's clients which could then be "matched" against a list of Staff Care's clients to determine any overlap. The record also reveals that the matching process was vigorously contested at three prior hearings on Staff Care's first and second motions to compel. From the outset, the trial court made clear that Staff Care could not obtain Consilium's "entire client base." But the record is also clear that the trial court required defendants to undertake a narrower matching process, and this process resulted in the identification of some ninety clients. At the hearing on the third motion to compel, the trial court ordered that defendants' corporate representative appear for deposition and testify regarding information in Consilium's client database. Although the court deferred ruling on Staff Care's request for sanctions and other issues raised in the third motion to compel (such as the production of a laptop computer used by one of the defendants), the court urged the parties to obtain a hearing on defendants' motion for partial summary judgment on the scope of the noncompetition agreements at issue after taking the discovery Staff Care desired in order to respond.
We also conclude that the trial court did not clearly abuse its discretion in denying Staff Care's fourth motion to compel. The fourth motion to compel was timely, filed on June 21, 2013, the last day for filing motions to compel under the scheduling order. It is the first motion to compel responses from the additional defendants, because written discovery requests were not served on these parties until the latter part of the discovery period. The motion was heard for the first time on September 4, 2013, and was denied in the September 11 order.
The motion attaches copies of defendants' responses to the discovery requests at issue; these are dated June 14, 2013 (Consilium's response to fourth request for production); June 13, 2013 (responses of Burrows, Ossorio, Schwartz, Ferguson, J. Kennedy, M. Kennedy, and Palmer to first discovery requests); January 10, 2013 (Consilium's second supplemental answers to second set of interrogatories); October 29, 2012 (Etter, Crowdis, and Baade second supplemental answers to second set of interrogatories); October 27, 2011 (Etter, Crowdis, Baade, and Consilium responses to second request for production); August 22, 2011 (Consilium's supplemental answers to first set of interrogatories); August 19, 2011 (Moberly, Etter, Gentile, and Baade supplemental answers to first set of interrogatories); May 27, 2011 (Moberly, Etter, Gentile, Baade, and Consilium responses to first request for production). All but the June, 2013 responses were the subjects of prior motions to compel that were denied by the trial court.
The fourth motion to compel summarizes the relief requested:
The trial court determined more than once that requests for "complete client and provider lists," and documents revealing "every placement" ever made by any of the defendants were overbroad. In this fourth motion, however, Staff Care moved to compel responses to the same requests without revision. We conclude that the trial court did not clearly abuse its discretion in declining to grant motions to compel responses to the same discovery requests it had considered and rejected previously.
As to the additional defendants, the record reflects that each answered numerous requests for admission, interrogatories, and requests for production served on them before the end of the discovery period. The responses indicate that some documents were to be produced, but the record does not include them. The September 4, 2013, hearing transcript indicates that Staff Care also requested that these defendants undertake a "matching" process with a list provided by Staff Care, but the record does not include either the request or the list. On this record, and in light of our ruling that Staff Care should be permitted to depose these parties, we cannot say that the trial court clearly abused its discretion by denying the portion
Accordingly, we conditionally grant Staff Care's petition for writ of mandamus in part. A writ will issue only in the event the trial court fails to vacate the following portions of its September 11, 2013 order: paragraph (5)
The numbered requests for production in paragraph 6 seek items such as documents reflecting the defendants' e-mail addresses and cell phone numbers; the agreements between defendants and their counsel; communications between Consilium and Staff Care; and Consilium documents such as "documents that were created from Staff Care documents."