Madsen v. Harris
Filing
95
OPINION AND ORDER: Plaintiff's oral motion for a default sanction is GRANTED and the Clerk is directed to enter a default order in this case. As discussed at the status conference on November 15, 2021, Plaintiff is directed to submit an affidavit in support of a default judgment. Signed on 11/23/2021 by Judge Ann L. Aiken. (Deposited in outgoing mail to pro se parties on 11/23/2021.) (ck)
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF OREGON
MEDFORD DIVISION
JEFF MADSEN,
Civ. No. 1:16-cv-02170-AA
Plaintiff,
OPINION & ORDER
v.
JOHN HARRIS,
Defendant.
_______________________________________
AIKEN, District Judge.
This case comes before the Court on Plaintiff’s oral motion for a terminating or
default sanction. Defendant’s failure to participate or seriously engage with litigation
and discovery has been a recurring problem in this case. The history of this issue is
set forth in detail in Judge Kasubhai’s Opinion and Order on Plaintiff’s Motion for
Sanctions (“O&O”).
ECF No. 71.
In that Order, Judge Kasubhai found that
Defendant’s conduct was willful and in bad faith and that sanctions were appropriate
but declined to impose a default sanction only because Defendant had not yet been
formally sanctioned by the Court.
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O&O at 13 (“Had Defendant already been
sanctioned, his behavior would result in a default order being entered against him.”).
Judge Kasubhai then imposed a raft of lesser sanctions on Defendant.
In the months following the imposition of sanctions, Defendant engaged with
the litigation to some degree.
But in December 2020, Plaintiff reported that
Defendant had failed to provide required financial disclosures and was not responsive
to Plaintiff’s calls or emails. ECF No. 89. Defendant subsequently failed to appear
at two successive status conferences set by the Court and was unresponsive to the
Court’s attempts to communicate with him. ECF Nos. 91, 93. At the second of these
status conferences, held on November 15, 2021, ECF No. 93, Plaintiff made an oral
motion for default sanctions against Defendant and the Court concludes that
Defendant’s conduct merits revisiting that issue.
Federal Rule of Civil Procedure 37(b) “authorizes the district court, in its
discretion, to impose a wide range of sanctions when a party fails to comply with the
rules of discovery or with court orders enforcing those rules.” Wyle v. R. J. Reynolds
Indus., Inc., 709 F.2d 585, 589 (9th Cir. 1985). Among the permissible range of
sanctions under Rule 37 is “rendering a default judgment against the disobedient
party.” Fed. R. Civ. P. 37(b)(2)(A)(vi).
Case dispositive sanctions “must be available to the district court in
appropriate cases, not merely to penalize those whose conduct may be deemed to
warrant such a sanction, but to determine those who might be tempted to such
conduct in the absence of such a deterrent.” Nat’l Hockey League v. Metro Hockey
Club, Inc., 427 U.S. 639, 643 (1976). While a terminating sanction such as a default
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judgment is severe and requires willfulness, bad faith, and fault to justify, it may be
appropriate to reject lesser sanctions where it is anticipated there will be continued
willful conduct that otherwise taints the entire pretrial process. Conn. Gen. Life Ins.
Co. v. New Images of Beverly Hills, 482 F.3d 1091, 1096 (9th Cir. 2007); TeleVideo
Sys., Inc. v. Heidenthal, 826 F.2d 915, 916-17 (9th Cir. 1987). Before imposing a
terminating sanction, courts are required to first consider the effect of such a
sanction, and whether less drastic sanctions could cure the disobedience at issue.
United States v. Nat’l Med. Enters., Inc., 792 F.2d 906, 912 (9th Cir. 1986).
In evaluating whether to impose a case-dispositive sanction under Rule 37, the
Court must consider the following five factors: (1) the public’s interest in efficient
resolution of litigation; (2) the court’s need to manage its dockets; (3) the risk of
prejudice to the party seeking sanctions; (4) the public policy favoring disposition on
the merits; and (5) the availability of less drastic sanctions. Conn. Gen. Life Ins. Co.,
482 F.3d at 1096.
With respect to the first two factors, the Ninth Circuit has held that the public
has an overriding interest in judicial efficiency and that “expeditious resolution of
disputes is of great importance to the rule of law . . . delay in reaching the merits,
whether by way of settlement or adjudication, is costly in money, memory,
manageability, and confidence in the process.” In re Phenylpropanolamine Prods.
Liability Litig., 460 F.3d 1219, 1227 (9th Cir. 2006). In achieving the goal of judicial
efficiency, the court has a need to manage its own dockets. Id. The court must not
be subject to “endless non-compliance with case management orders” such that the
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case disposition is unnecessarily protracted. Id. (internal quotation marks and
citation omitted). In January 2019, Judge Kasubhai found that the first two factors
“weigh[ed] heavily in favor of severe sanctions,” O&O at 12, and this Court concurs
with that conclusion, especially in light of Defendant’s continued failure to comply
with his obligations or appear at scheduled hearings.
With respect to the third factor, a party’s failure to produce documents as
ordered is considered sufficient prejudice to support sanctions. Leon v. IDX Sys.
Corp., 464 F.3d 951, 959 (9th Cir. 2006). Judge Kasubhai found that Defendant’s
failure to comply with his discovery obligations “weighs heavily on the side of
significant sanctions.” O&O at 12. Plaintiff reports that Defendant’s recalcitrance
in complying with his discovery obligations continued after the imposition of lesser
sanctions and Defendant has failed to appear at hearings to explain his conduct. The
Court concludes that this factor likewise weighs in favor of a terminating sanction.
Under the fourth factor, public policy dictates that, if possible, cases should be
decided on their merits. In re Phenylpropanolamine Prods. Litig., 460 F.3d at 1228.
“At the same time, a case that is stalled or unreasonably delayed by a party’s failure
to comply with deadlines and discovery obligations cannot move forward toward
resolution on the merits,” and this factor “lends little support to a party whose
responsibility it is to move a case toward disposition on the merits but whose conduct
impedes progress in that direction.” Id. (internal quotation marks and citation
omitted). The Court concludes that this factor does not weigh against a terminating
sanction.
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The final factor involves the consideration of less drastic sanctions. Courts
should discuss the availability and propriety of lesser sanctions, including whether
lesser sanctions had already been imposed and whether the offending party had been
warned about the possibility of a case-dispositive sanction. Computer Task Grp., Inc.
v. Brotby, 364 F.3d 1112, 1116 (9th Cir. 2004). While a court should impose lesser
sanctions whenever possible, it is appropriate to reject lesser sanctions when it is
anticipated there will be continued misconduct. United States for Use and Benefit of
Wiltec Guam, Inc. v. Kahaluu Const. Co., Inc., 857 F.2d 600, 604 (9th Cir. 1988);
Adriana Int’l Corp., 913 F.2d at 1412-13. Repeated failures to comply with discovery
requests and court-imposed discovery orders shows the requisite fault fully justifying
case-dispositive sanctions. Sigliano v. Mendoza, 642 F.2d 309, 310 (9th Cir. 1981).
In this case, the Court fully concurs with Judge Kasubhai’s finding of
willfulness and bad faith.
O&O at 13.
The Court notes that Judge Kasubhai
explicitly warned Defendant of the possibility of terminating sanctions before
imposing a raft of lesser sanctions in an attempt to bring Defendant into compliance
with his obligations. The fact that Defendant’s misconduct has continued despite
Judge Kasubhai’s imposition of lesser sanctions leads the Court to conclude that a
default sanction is now the appropriate, and perhaps only, solution to the problem of
Defendant’s failure to engage with this case.
Accordingly, Plaintiff’s oral motion for a default sanction is GRANTED and the
Clerk is directed to enter a default order in this case. As discussed at the status
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conference on November 15, 2021, Plaintiff is directed to submit an affidavit in
support of a default judgment.
It is so ORDERED and DATED this
23rd
day of November 2021.
/s/Ann Aiken
ANN AIKEN
United States District Judge
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