1. Attorneys--approved vacation--hearing conducted during
attorney's absence--adequate representation
The trial court did not abuse its discretion by conducting a
hearing and entering a protective order while one of plaintiffs'
attorneys was on an approved vacation allegedly pursuant to North
Carolina Superior Court Rule 26 in an action seeking the return
of money and other property seized by defendant deputies from
plaintiffs' home, because: (1) the attorney's leave was in
September and October 1999, and Rule 26 was not effective until 1
January 2000; and (2) even if Rule 26 applied to plaintiff
counsel's leave, plaintiffs did not lack adequate representation
at the hearing before the trial court when other associates from
the same law firm participated in plaintiffs' case.
2. Discovery--sanctions--attorney fees
The trial court did not abuse its discretion by awarding a
sanction of attorney fees in favor of defendant surety's counsel
in the 11 October 1999 protective order based on plaintiffs'
failure to properly notice depositions under N.C.G.S. § 1A-1,
Rule 30 in an action seeking the return of money and other
property seized by defendant deputies from plaintiffs' home,
because: (1) defendant surety was not properly served with notice
of the taking of the depositions, and it did not matter whether
defendant surety had actual or constructive notice of the
lawsuit; and (2) plaintiffs failed to seek leave of court for a
deposition that was scheduled prior to the expiration of the 30
days after service of the summons and complaint in violation of
Rule 30(a).
3. Discovery--sanctions--attorney fees--dismissal
The trial court did not abuse its discretion by finding that
plaintiffs violated N.C.G.S. § 1A-1, Rule 8(a)(2) and by awarding
sanctions in the form of a dismissal of the action with attorney
fees under N.C.G.S. § 1A-1, Rule 37(b) in an action seeking the
return of money and other property seized by defendant deputies
from plaintiffs' home, because: (1) plaintiffs repeatedly
violated discovery rules; (2) plaintiffs filed three lawsuits for
improper purposes; (3) there were multiple protective orders
granted on behalf of defendants; (4) earlier impositions of less
drastic sanctions by the trial court did not deter plaintiffs'
wrongful conduct; and (5) the grant of attorney fees under § 1A-1, Rule 37(b) was within the trial court's inherent authority.
Judge GREENE dissenting in part.
Henry T. Drake for plaintiffs-appellants.
Stott Hollowell Palmer & Windham, L.L.P., by Martha Raymond
Thompson for defendants- appellees Sweatt, Rainwater, Sessoms
and Furr.
Kitchin Neal Webb Webb & Futrell, P.A., by Stephan R. Futrell
for defendant-appellee Western Surety.
BRYANT, Judge.
On 10 August 1998, Richmond County deputies (defendants)
searched the plaintiffs' (Pattersons) residence and seized cash and
paperwork. At the time of the seizure, William Patterson was a
suspect in relation to the sale and distribution of cocaine.
Patterson was subsequently charged and pled guilty to several
criminal charges including Possession with Intent to Sell and
Distribute Cocaine and Maintaining a Dwelling Used for the Purposes
of Keeping and Selling a Controlled Substance.
Plaintiffs have filed three lawsuits in relation to the
seizure of the cash and paperwork. The first lawsuit (Patterson I)
was filed in September 1998 and sought the return of money and
other property. The Patterson I lawsuit also sought punitive
damages against defendants, Richmond County law enforcement
officers, for alleged willful and wanton conduct in converting
plaintiffs' money and property. Defendants had Patterson I removedto federal court. Meanwhile, plaintiffs filed a second lawsuit
(Patterson II) in state court while the civil claim was still
pending in federal court. The Pattersons filed notices of
depositions of the two defendant deputies in Patterson II. Upon
defendants' motion, the court entered a protective order. After
the protective order was entered, the trial court dismissed
Patterson II because of the pending federal action. The federal
court thereafter granted plaintiffs' motion for a voluntary
dismissal.
In August 1999, plaintiffs re-filed their complaint,
(originally Patterson II now Patterson III). Plaintiffs' counsel
Henry T. Drake (Drake) confirmed his vacation for the weeks of 27
September 1999, 4 October, 11 October and for the day of 18 October
1999 with Judge Beale, the senior resident superior court judge,
and notified opposing counsel by copy of his letter to Judge Beale.
On 29 September 1999, Carneval, an associate at Drake's firm,
Drake & Pleasant, mailed defendants' counsel Martha Raymond
Thompson (Thompson) notice of depositions of the two defendant-
deputies scheduled for 15 October 1999. Thompson was on maternity
leave and upon receipt of the notice, her office spoke with
Carneval about delaying the depositions until her return. Carneval
refused.
On 1 October 1999, counsel for defendant-surety, Futrell,
filed a Special Appearance, Motion for Protective Order and Request
for Expedited Hearing in relation to the depositions. On 11
October the trial court granted the motion for a protective order
and awarded $312.50 in sanctions against plaintiffs. Theprotective order did not specify a time for the monetary sanction
to be paid.
On 19 October 1999, Thompson filed a Request for Statement of
Monetary Relief and plaintiffs filed a response to that request.
On 16 November 1999, the defendants jointly filed and served a
Motion to Dismiss or For Other Sanctions. Immediately upon
receiving defendants' motion, Drake, without obtaining a judge's
order or filing a request for permission to do so, withdrew
plaintiffs' Response to Request for Statement of Monetary Relief.
Drake filed a response to defendants' motion. On 24 December 1999,
Drake served notice (without certificate of service) of the
videotaped deposition of Wendell Sessoms and Philip Sweatt. On 29
December 1999, Thompson filed a Motion for Protective Order to
Quash the Deposition Notices and for Sanctions. Drake again served
a Notice of Deposition Upon Oral Examination for the taking of the
videotaped deposition of Philip Sweat. In response, Thompson filed
a Second Motion for Protective Order and For Sanctions. On 19
January 2000, an order was granted postponing the depositions of
Sweatt, Rainwater and Sessoms until all of defendants' motions
could be heard. On 7 February 2000, the trial court heard the
motions and ordered a dismissal of plaintiffs' case on several
grounds: 1) the filing of Plaintiffs' Response to Request for
Monetary Relief and its removal without a judge's permission; 2)
plaintiffs' failure to pay $312.50 in sanctions awarded in the
protective order within a reasonable amount of time; and 3) for
attempting to obtain through civil action discovery, that which
cannot be obtained in the criminal action. Plaintiffs appeal fromboth the 11 October 1999 Order allowing defendants' Motion for a
Protective Order and Sanctions and the 7 February 2000 Order
dismissing plaintiffs' case. For the reasons which follow we
affirm the trial court's rulings.
and District Court states in pertinent part:
SECURE LEAVE PERIOD FOR ATTORNEYS
(C) Designation, Effect . . . . the secure leave
period so designated shall be deemed allowed
without further action of the court and the
attorney shall not be required to appear at
any trial, hearing, in-court or out-of-court
deposition, or other proceeding in the Superior
or District Courts during that secure leave
period.
&
nbsp;. . .
(H) Procedure When Deposition Scheduled Despite &
nbsp;
Designation. If ... any deposition is noticed
for a time during the secure leave period,
the attorney may serve on the party that
noticed the deposition a copy of the
designation ... and that party shall reschedule
the deposition for a time that is not within
the attorney's secure leave period.
Gen. R. Pract. Super. and Dist. Ct. 9, 2000 Ann. R. N.C. 7.
We note initially that Rule 26 was adopted in May 1999, but it
was not effective until January 1, 2000. Plaintiffs' lead
attorney, Drake, was on leave in September and October of 1999,
several months before Rule 26's enactment. Thus, Drake wastechnically not on approved vacation under Rule 26.
Assuming, however, that Rule 26 applies to plaintiffs'
counsel's leave, we are nevertheless unpersuaded by plaintiffs'
argument that the trial court erred in conducting a hearing and
entering the protective order for several reasons. First,
plaintiffs did not lack adequate representation at the hearing
before the trial court. Carneval, the associate at Drake's firm
who noticed the depositions of defendant deputies, appeared on
behalf of plaintiffs at the hearing. Plaintiffs have failed to
demonstrate how they were prejudiced by Carneval's defense before
the trial court of his own notices of depositions. Second,
although Drake acted as lead counsel for plaintiffs, it is evident
from the record that Carneval and other attorneys at Drake's firm
actively participated in plaintiffs' case. For example, Carneval
not only signed and filed the notices of deposition, he also
refused the request of defendants' attorney Thompson to postpone
the depositions until she returned from maternity leave.
Furthermore, Carneval and another partner at Drake's firm appeared,
without Drake, on plaintiffs' behalf at the hearing on the motion
for protective order. In light of this procedural history, we
disagree with plaintiffs' assertions that Drake was the only
attorney with the actual authority to represent plaintiffs at the
hearing.
In Jenkins v. Jenkins, 27 N.C. App. 205, 206, 218 S.E.2d 518,
519 (1975), we held the trial court did not abuse its discretion in
denying a motion for a continuance of a matter set for trial where
lead counsel was unavailable and defendant was represented in courtby a member of defendant attorney's law firm. In affirming the
trial court's denial of the continuance, we noted that "[i]t is a
well established rule in North Carolina that the granting of a
continuance is within the discretion of the trial court, and its
exercise will not be reviewed in the absence of manifest abuse of
discretion." Jenkins, 27 N.C. App. at 206, 218 S.E.2d at 519.
Because plaintiffs were adequately represented at the hearing by
counsel with actual authority, we hold that the trial court did not
err in conducting a hearing and entering a protective order. We
therefore overrule plaintiffs' assignment of error.
N.C.G.S. § 1A-1, Rule 37(a)(4) (2000). Rule 8(a)(2) does not
identify a particular sanction that may be imposed for filing a
response to a request for monetary relief before the action hasbeen called for trial or entry of default entered. However, we
reason that the trial court has the same authority to punish such
a violation as it would if a complaint demanding a specific sum
above ten thousand dollars were filed in violation of Rule 8(a)(2).
See 1 G. Gray Wilson, North Carolina Civil Procedure § 8-3, at 136
(1995). A dismissal of the action pursuant to N.C.G.S. § 1A-1,
Rule 41(b) is one of the permissible sanctions for violating the
provision of Rule 8(a)(2) regarding pleading of damages in excess
of ten thousand dollars. McLean v. Mechanic, 116 N.C. App. 271,
275, 447 S.E.2d 459, 461 (1994). However, it is not the only
available sanction and should be imposed only where the trial court
determines that less drastic sanctions are insufficient. Id.
Our court in Miller v. Ferree, 84 N.C. App. 135, 137, 351
S.E.2d 845, 847 (1987), held that sanctions may not be imposed
mechanically. Rather, the circumstances of each case must be
carefully weighed so that the sanction properly takes into account
the severity of the party's disobedience. Id. at 137, 351 S.E.2d
at 847. See also Daniels v. Montgomery Mut. Ins. Co., 81 N.C. App.
600, 344 S.E.2d 847 (1986) (in determining whether to dismiss a
case for violation of motion in limine, trial court must determine
the effectiveness of alternative sanctions). Once the trial court
undertakes this analysis, its resulting order will be reversed on
appeal only for an abuse of discretion. Miller at 137, 351 S.E.2d
at 847. Moreover, our Supreme Court allowed a dismissal to stand
when it [was] clear that a lesser sanction ... would not serve the
best interests of justice. Daniels v. Montgomery Mut. Ins. Co.,
320 N.C. 669, 681, 360 S.E.2d 772, 780 (1987), affirming in partand reversing in part Daniels v. Montgomery Mut. Ins. Co., 81
N.C.
App. 600, 344 S.E.2d 847 (1986) (reversing the Court of Appeals'
decision to vacate the portion of the trial court order dismissing
plaintiff's action).
In addition, our Supreme Court held it to be within the
inherent power of the trial court to order plaintiff to pay
defendant's reasonable costs including attorney's fees for failure
to comply with a court order. Daniels at 674, 360 S.E.2d at 776.
If a party fails to obey a court order, the court has the authority
to require that party to pay the reasonable expenses, including
attorney's fees, caused by the failure. N.C.G.S. § 1A-1, Rule
37(b) (2000).
In the present case, the trial court, in its 9 February 2000
Order, set out the entire history of the three Patterson cases and
cited counsel for plaintiffs' repeated violation of discovery rules
including: 1) backdating certificates of service that accompanied
notices of depositions to make it appear that those notices were
mailed two weeks earlier; 2) noticing depositions without allowing
sufficient notice beforehand; 3) the improper filing of a response
to the Request for Monetary Relief and subsequent removal of that
document without the permission of a judge; 4) continuing efforts
to depose the defendant-deputies despite a protective order; 5) use
of civil action discovery in an attempt to benefit from them in the
criminal action and 6) filing complaints and seeking discovery when
plaintiffs knew and admitted in a written statement, that the
allegations were not legitimate. Also, in support of its decision
to dismiss the case, the court noted that there were indicationsthat the three lawsuits were filed for improper purposes, that
there were multiple protective orders granted on behalf of
defendants, and that the earlier impositions by the trial court of
less drastic sanctions did not deter plaintiffs' wrongful conduct.
For example, the court specifically noted "plaintiff's failure to
pay . . . sanctions awarded by the Protective Order dated October
14, 1999, by Judge Beale . . . within a reasonable time" as one of
the many reasons why dismissal was appropriate.
With respect to the attorneys' fees, the trial court awarded
defendants' attorneys fees for time spent in the defense of this
lawsuit, including the preparation, filing and prosecution of their
respective and joint discovery-related motions . . . . The court
examined the affidavits of counsel for all of the defendants and
found that time expended and expenses incurred by the attorneys
were reasonable under the circumstances. The trial court further
found that $150.00 per hour was a reasonable attorneys' fee
associated with the type of legal work in that region and
commensurate with the experience and training of the attorneys
involved.
Based on the foregoing, we find that the trial court did not
abuse its discretion in ordering the dismissal of plaintiffs'
action with attorneys' fees. We hold that here, like in Daniels it
was clear to the trial court as shown by the findings in the order,
that a lesser sanction would not serve the best interests of
justice. Therefore the trial court's failure to specifically state
that other less drastic sanctions were considered was not error.
Moreover, we hold that the grant of attorneys' fees in favor of thedefendants pursuant to N.C.G.S. § 1A-1, Rule 37(b) was within the
trial court's inherent authority. Accordingly, we affirm the trial
court's decision to dismiss the plaintiffs' action.
AFFIRMED.
Judge TIMMONS-GOODSON concurs.
Judge GREENE dissents in part with a separate opinion.
GREENE, Judge, dissenting in part.
I disagree with the majority that the trial court's failure to
consider less severe sanctions was not error. I, therefore,
respectfully dissent from section III of the majority's opinion.
Before a trial court orders the dismissal of an action, it
must at least consider a less severe sanction, Goss v. Battle,
111 N.C. App. 173, 177, 432 S.E.2d 156, 159 (1993), and dismissal
pursuant to Rule 41(b) should be allowed only when the trial court
determines that less drastic sanctions will not suffice, Harris v.
Maready, 311 N.C. 536, 551, 319 S.E.2d 912, 922 (1984). In this
case, there is no evidence from the 9 February 2000 order that the
trial court considered a less severe sanction before ordering a
dismissal. Accordingly, I believe the order should be remanded to
the trial court for entry of any sanctions deemed appropriate after
consideration of less severe sanctions.
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