Gonzalez v. Central Electric Cooperative Inc.

Filing 415

ORDER: Granting Northwest Utility Services' Motion for Attorney Fees (403) in case 6:08-cv-06236-HO and (399) in case 6:08-cv-06240-HO. Signed on 9/16/11 by U.S. District Judge Michael R. Hogan. Associated Cases: 6:08-cv-06236-HO, 6:08-cv-06240-HO (sln)

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

ALBERT GONZALEZ,

Civ. No. 08-6236-HO
(Lead)
intiff,
Civ. NO. 08-6240-HO
(Consolidated)

v.

ORDER
CENTRAL ELECTRIC COOPERATIVE,
INC., et al.,
Defendants.
After bifurcation, the parties tried to the court plaintiff's
claims to recover benefits under the Employee Retirement Income
Security

Act

(ERISA) ,

inter

rence

with

ERISA

rights

and

retaliation for seeking benefits.

With respect to retiree medical

benefi ts,

plaintiff

the

court

found

retirement medical benefit

that

and that

is

entitled

to

the

defendant Central Electric

Cooperative (CEC) shall reimburse plaintiff for all premiums that
has refused to pay from May 2, 2008 to date and shall reimburse
1 - ORDER

pI

ntiff for any out-of-pocket medical expenses that would have

been

covered

had

the

medical

benefits

not

been

terminated.

However, the court also noted that the benefit was not vested.

The

state

and

law

claims

defamation)
remained.

(breach

contract,

and the ERISA claims
CEC's counterclaims

unpaid

compensation

intertwined with those

claims

(breach of fiduciary duty,

fraud,

breach of contract and accounting) also remained.
On June 22, 2011, the parties settled

case and executed a

mutual release of all

aims.

Nonetheless, CEC wanted to continue

to

case,

an

litigate,

in

this

issue

involving

disclosure

of

documents 1 and depositions of attorneys from Schwabe, Williamson &
Wyatt regarding a

related state court action,

Northwest Utility

Services,

Inc. v. Central Electric Cooperat

However, on July

22, 2011,

Northwest Utility Services filed a supplemental response

to the discovery motion revealing that Martin Hansen, who had been
barred from representing CEC in this case,

is in fact playing a

role in the Schwabe issue despite his duties to his former client,
plaintiff Al Gonzalez, and that he may have violated a protective
order by filing confidential documents obtained in the state action
with the Bar and also in yet another litigation involving CEC. 2

IThe court had on an earlier occasion denied the discovery
motion with leave to renew and, once renewed, requested the
documents for in camera review subject to an agreed upon
protective order.
2It should be noted that CEC also submitted the documents
in camera review to this court without first agreeing with

2 - ORDER

Interestingly, also on July 22, 2011, CEC withdrew its discovery
motion.

At any rate, CEC certainly had no bus

Northwest Utility Services now

pursue the matter in this case.
seeks attorney fees

ss continuing to

related to fighting CEC' s motion to reopen

discovery regarding the Schwabe documents in this case.
The court agrees that CECls collateral attacks in this case
aimed at discovery issues in Northwest Utility Services, Inc. v.
Central Electric Cooperative by seeking privileged documents and to
depose Northwest Utility Services attorneys was an abusive use of
process.
after

This is especially true given CECls efforts continued

settlement.

This

court

has

address abuses by parties practi
civ.

P.

1

administered

(The
to

rules
secure

of

the

ng before

procedure
the

inherent

just,

should
speedy,

(If a discovery motion is denied

the moving party to pay the opposing party
incurred in opposing the motion).
discovery mo

to

See, e.g., Fed. R.

determination of every action and proceeding);
37 (a) (5) (B)

authority

be

construed

and

and

inexpensi ve

Fed.

R.

ci v.

P.

court may require
s reasonable expenses

Although sanctions for failed

ons should rarely be imposed, the request to continue

into the collateral matters even after the case had settled in
addition to the other circumstances surrounding the issue warrant
an award of reasonable expenses.

Accordingly,

Northwest Utility

Northwest Utility Services on a protective order as required by
court order (#375).
3 - ORDER

Services' motion is granted and CEC shall pay reasonab
incur

a

er

June

22,

2011,

in

expenses

responding to CEC's mot

Northwest Utility Services's motion for attorney fees (#403)
is granted in the amount of $33,188.
DATED

is

~~ay

of

ember, 2011.

udge