STATE OF NEW MEXICO

COUNTY OF SANTA FE

FIRST JUDICIAL DISTRICT COURT

 

NEW MEXICANS FOR FREE ENTERPRISE,

THE SANTA FE CHAMBER OF COMMERCE,

MARK KIFFIN, MARK C. MILLER, MAURICE ZECK,

PEPPERS FOOD & BEVERAGE CO., INC.,

PRANZO, ZUMA CORPORATION,

ROBBIE DAY, JOSEPH HOBACK, and

PINON GRILL AT THE HILTON OF SANTA FE,

 

                                                Plaintiffs,

 

v.                                                                                 No. D-101-CV-2003-00468

 

THE CITY OF SANTA FE,

 

                                      Defendant.

 

MOTION FOR SANCTIONS FOR FAILURE TO COMPLY WITH

COURT’S DISCOVERY ORDER

 

The City of Santa Fe by and through undersigned counsel moves this court for an order imposing sanctions against Plaintiffs for failure to comply with this Court’s order compelling discovery. 

On February 27, 2003, the City of Santa Fe adopted an ordinance requiring specific businesses in Santa Fe to pay their employees a living wage.  The ordinance will become effective on January 1, 2004.   The Complaint in this case was filed on March 10, 2003 challenging the ordinance and seeking to enjoin implementation. 

After Plaintiffs completely failed to respond to the City’s discovery requests served more than five months ago, this Court entered an order requiring Plaintiffs to provide discovery within five days, not counting the weekend, by October 1, 2003.  Plaintiffs have ignored that order.  The discovery was particularly important for assessing Plaintiffs’ claim that they would be irreparably harmed by implementation of the Ordinance.  The City therefore seeks as an appropriate sanction an order precluding Plaintiffs from asserting that they have been irreparably harmed. 

In addition, because the Plaintiffs have ignored the rules of court governing discovery and have now ignored this Court’s own order, the City proposes a monetary sanction to compel compliance with that Order.  The City proposes that this Court impose a fifty dollar per day sanction against each Plaintiff from October 1, 2003, the date that this Court directed that discovery be provided until full and complete discovery is provided. 

Given that the two organizational plaintiffs, the Santa Fe Chamber of Commerce and New Mexicans for Free Enterprise, claim to represent a broad spectrum of the business community and that this is a case of enormous public interest, sanctions for intentional violation of the Court's order on discovery are very important to insure that this Court’s final ruling on the issues is based upon a full and fair procedure.

Attached hereto is a representative copy of the interrogatories sent to the individual Plaintiffs, the interrogatories sent to the organizational Plaintiffs and the Requests for Production that have been served.    

 

I.  Factual Background – Plaintiffs Have Ignored All Attempts to Obtain Discovery Including an Order of This Court

 

Pursuant to an Order of this court, Plaintiffs were compelled to answer outstanding discovery by October 1, 2003.  Plaintiffs have never raised any argument that the discovery is improper or should not be answered.  Plaintiffs have simply ignored their obligation to answer discovery and have ignored this Court’s order.

The City served its first round of written discovery on each of the named Plaintiffs on May 1, 2003.  The City agreed to an extension until June 13, 2003 for Plaintiffs to respond to that discovery.  When Plaintiffs were unable to meet that deadline the City agreed to a second extension, until June 25, 2003, for responses to the outstanding discovery.  Plaintiffs did not ask for any additional time to answer discovery.  No discovery has been provided.

After discussions with Plaintiffs’ counsel, the City of Santa Fe filed and served a Motion to Compel Discovery on July 23, 2003.  Plaintiffs’ counsel indicated that he had no basis to oppose the motion but did not agree to the entry of the order.  When Plaintiffs’ counsel filed no response in opposition to the motion an order was entered on September 11, 2003, granting the Motion to Compel Discovery pursuant to LR1-306 D.  The Court ordered that discovery was to be provided within five days of service of the Order, or by October 1, 2003.  Plaintiffs counsel was contacted to confirm that the order was received.  It was.  Despite having this Court’s order for over four weeks, Plaintiffs have ignored that order and no discovery has been provided.

 

II.  The Harm  --  Plaintiffs Actions Have Prevented the City From Dealing With Issues of Importance  

 

This case involves the issue of whether the City of Santa Fe can take action to insure that persons working in the City are paid a living wage.  The legality of the ordinance is central to the City’s ability to provide for the public welfare.  The ordinance has generated great public interest here in Santa Fe and in cities across the country.  It is outrageous for Plaintiffs to file suit to try and prevent this ordinance from taking effect and then ignore their obligation to provide discovery.  

Plaintiffs have had the time to prepare and submit unsupported conclusory affidavits in opposition to the City’s Motion for Summary Judgment but have been unwilling to take the time to answer interrogatories or requests for production for over five months. 

Plaintiffs’ counsel has represented that there is a proposed motion for preliminary injunction that has been prepared and that counsel is waiting to file.  The City will not be able to fully respond to such a motion because the Plaintiffs refuse to provide even the most basic information that the City needs to oppose that motion.          

Through interrogatories, the City has asked each of the Plaintiffs how they will be irreparably harmed by the City’s ordinance.  Irreparable harm is central to any claim for preliminary injunction.  The City has propounded interrogatories asking Plaintiffs for details of those alleged harms and requested documents that demonstrate those harms. 

 

III.  The Law - Given the Nature of the Failure to Comply With this Court’s Order, the Court Should Preclude Plaintiffs from Asserting that They Have Been Irreparably Harmed - Additionally this Court Should Impose Monetary Sanctions to Ensure Its Orders Are Not Simply Ignored  

 

If a party ignores a discovery order the court has the power to take appropriate action up to and including dismissal of the case.  Rule 1-037B(2) NMRA .  The City does not seek dismissal.   There are lesser penalties that are appropriate given Plaintiffs’ total disregard of the authority of this Court:

(a)  an order that the matters regarding which the order was made or any other designated facts shall be taken to be established for the purposes of the action in accordance with the claim of the party obtaining the order;

(b) an order refusing to allow the disobedient party to support or oppose designated claims or defenses, or prohibiting that party from introducing designated matters in evidence…

Id.

This court has discretion to employ a sanction for any non-compliance, regardless of the willfulness or bad faith of the party.  United Nuclear Corporation v. General Atomic Company, 96 N.M. 155, 629 P.2d 231 (1980).  The level of severity of the sanctions depends on the degree of the non-compliance and the adverse effect or prejudice felt by the other party.  This court is afforded great deference in selecting the appropriate sanction.  Gonzales v. Surgidev Corp., 120 N.M. 151, 158, 899 P.2d 594  (1995); Marchman v. NCNB Texas Nat’l Bank, 120 N.M. 74, 91, 898 P.2d 709 (1995).  

When as here there has been a willful failure to comply with a court’s discovery order the appropriate remedy is to preclude the Plaintiffs from asserting those arguments that are related to the discovery that has not been produced.  This Court is not required to exhaust less punitive sanctions before entering such an order.  See Lewis v. Samson, 2001 NMSC 35, 131 N.M. 317, 323, 35 P.3d 972 (2001), citing, Gonzales v. New Mexico Dept of Health, 2000 NMSC 29, 129 N.M. 586, 11 P.3d 550, 601 (2000).  For an act or omission to be declared willful, it must be conscious and intentional, as distinguished from accidental or involuntary non-compliance, but no wrongful intent need be shown to make such a failure willful.  United Nuclear Corp. at 202, citing Rio Grande at 278, quoting Brookdale Mill v. Rowley, 218 F.2d 728, 729 (6th Cir. 1954).  In the present case, Plaintiffs, failure has not been accidental or involuntary.  They have simply refused to produce discovery for over five months and have failed to obey a court order without any explanation.  

This Court should look at the totality of the circumstances to determine the appropriate sanction.  United Nuclear Corp. at 203.  This Court should balance the nature of the offense, potential prejudice to the parties, relevance of evidence, effectiveness of the sanction, and “the imperative that the integrity of the court’s orders and the judicial process must be protected.”  Enriquez v. Cochran, 1998 NMCA 157, 126 N.M. 196, 211, 967 P.2d 1136 (Ct. App. 1998) (striking several of defendant’s affirmative defenses for willfully failing to respond to multiple discovery requests and court orders, without requiring a showing of wrongful intent).

Plaintiffs should not be allowed to ignore the authority of this Court, ignore the right of the citizens of Santa Fe to litigate this important matter openly and fairly and simply choose those rules and orders with which they will comply.     

            Plaintiffs should not be allowed to proceed with a preliminary injunction motion based on a purported irreparable harm as to which they have refused to produce discovery.  To allow them to proceed will harm the rights of those workers that the City is seeking to protect and will encourage Plaintiffs to continue to ignore this Court.

            Additionally, the City strongly urges this Court to impose a monetary sanction against each of the Plaintiffs for each day that they have ignored this Court’s order and for each day they continue to do so.  Such a penalty will serve to protect the authority of this Court and will help to ensure that the Plaintiffs do not simply continue to prevent the City from litigating this matter.      

 

IV.  Specific Relief  --  This Court Should Order that Plaintiffs are Precluded from Asserting that They Have Been Irreparably Harmed

 

            A copy of representative discovery requests as sent to all Plaintiffs are attached hereto.

1.                  Among other requests, the City asked each of the Plaintiffs to:  “Describe in detail how complying with the Minimum Wage Ordinance will cause you irreparable harm.”  Plaintiffs were directed to produce: “All documents that form the basis for the assertion that ‘Plaintiffs will suffer irreparable harm if the ordinance is allowed to take effect and will suffer injury,’ as stated in paragraph 17 of the Complaint.”  Plaintiffs should be precluded from arguing that they will be irreparably harmed by the Ordinance.  The relief requested is directly tied to the discovery that has been requested and which Plaintiffs have refused to produce.

Limiting relief to this sanction alone, however, will provide no incentive for Plaintiffs to refrain from continuing to ignore the discovery order.  Given the history of Plaintiffs’ actions there needs to be some mechanism in place that will force Plaintiffs to comply with the discovery rules and with this Court’s orders.  Where a party simply ignores a court, the appropriate remedy is through the Court’s contempt power.  The City respectfully requests that the Court sanction each of the Plaintiffs fifty dollars a day for each day they have failed to comply with the Order and fifty dollars per day for each day they continue to ignore that order.  This court has the authority to sanction Plaintiffs for the blatant disregard of its order.  State v. Rivera, 1998 NMSC 24, 125 N.M. 532, 964 P.2d 93 (1998). 

WHEREFORE the City prays for an order of this Court that Plaintiffs be precluded from arguing that they have been irreparably harmed.  In addition the City requests that this Court sanction each of the Plaintiffs in the amount of fifty dollars for each day such Plaintiff has ignored this Court’s order on discovery and for each day such Plaintiff continues to do so until such Plaintiff has fully and completely complied with the Court's order on discovery.

Opposing counsel was called on October 7 and October 8 and messages were left in an effort to discuss this proposed motion and requesting concurrence or opposition.  On October 10 the call was returned and Plaintiffs’ counsel requested another extension on providing discovery.  The City has given Plaintiffs lengthy extensions in the past, but Plaintiffs simply ignored the deadlines to which they agreed and after five and half months have provided no responses.  They ignored this Court’s order and did not even ask for an extension until advised that this motion would be filed.  Given the history of non-compliance with the rules of discovery and the total refusal to obey a court order, an extension could not be granted.  Plaintiffs counsel will oppose this motion.   

                                                            Respectfully Submitted:

THE CITY OF SANTA FE,

 

                                                          _______________________________

                                                          Bruce Thompson

City Attorney

                                                          P.O. Box 909

                                                          Santa Fe, NM 87504-0909

                                                          (505) 955-6511

           

 

 

 

CERTIFICATE OF SERVICE

          I certify that a true and correct copy of this Motion to Compel Discovery was mailed this 10th  day of October, 2003 by regular first class mail, postage prepaid to:

 

GREGORY L. BIEHLER

ZACHARY S. RIGDON

Attorneys for Plaintiffs

6715 Academy Rd NE

Albuquerque, NM  87109

 

                                                                        __________________

                                                          Bruce Thompson