Opinion ID: 2630934
Heading Depth: 1
Heading Rank: 5

Heading: Inherent equitable power of the district court

Text: In Young , we held that courts have inherent equitable powers to dismiss actions or enter default judgments for . . . abusive litigation practices. Litigants and attorneys alike should be aware that these powers may permit sanctions for discovery and other litigation abuses not specifically proscribed by statute. 106 Nev. at 92, 787 P.2d at 779 (alteration in original) (internal quotation and citation omitted). We further concluded that while dismissal need not be preceded by other less severe sanctions, it should be imposed only after thoughtful consideration of all the factors involved in a particular case. Id. at 92, 787 P.2d at 780. In discussing the legal basis for dismissal, we held: that every order of dismissal with prejudice as a discovery sanction be supported by an express, careful and preferably written explanation of the court's analysis of the pertinent factors. The factors a court may properly consider include, but are not limited to, the degree of willfulness of the offending party, the extent to which the non-offending party would be prejudiced by a lesser sanction, the severity of the sanction of dismissal relative to the severity of the discovery abuse, whether any evidence has been irreparably lost, the feasibility and fairness of alternative, less severe sanctions, such as an order deeming facts relating to improperly withheld or destroyed evidence to be admitted by the offending party, the policy favoring the adjudication on the merits, whether sanctions unfairly operate to penalize a party for the misconduct of his or her attorney, and the need to deter both the parties and future litigants from similar abuses. Id. at 93, 787 P.2d at 780. After analyzing all of these factors, we held that the district court did not abuse its discretion in imposing the more severe sanctions of dismissal and entry of default judgment  and that the sanctions were not manifestly unjust. Id. (emphasis added). We stated that the district court gave appropriately careful, correct and express consideration to most of the factors discussed above and that we have affirmed sanctions of dismissal and entry of default judgment based on discovery abuses even less serious than Young's. Id. at 93-94, 787 P.2d at 780. As the district court did in Young , the district court here prepared nine pages of carefully written findings of fact and conclusions of law analyzing the Young factors. These findings of fact detail Goodyear's discovery abuses not only as to the violation of the court order to produce a witness for deposition, but as to improper responses and verifications to answers to interrogatories. For example, the district court found that Goodyear failed to produce any representative in Nevada by December 28, 2006 pursuant to this [c]ourt's order from the December 14, 2006 hearing. Another finding of fact provided, in part, that if the [c]ourt had been made aware of Goodyear's objection to the [d]iscovery [c]ommissioner's recommendations from the December 14, 2006 hearing, the [c]ourt would have overruled Goodyear's objections because the signed recommendation is very clear on its face. The conclusions of law set forth that the degree of willfulness by Goodyear was extreme and itemize nine separate reasons. These conclusions also state that: it is clear that Goodyear has taken the approach of stalling, obstructing and objecting. Therefore, the court considers Goodyear's posture in this case to be totally untenable and unjustified. Goodyear's responses to [p]laintiffs' interrogatories are nothing short of appalling. The conclusions of law further balance various lesser and more severe sanctions and conclude that striking Goodyear's answer as to liability only was the appropriate sanction. The district court additionally awarded monetary sanctions against Goodyear in favor of Bahena and codefendant Garm Investments, Inc., for failure to provide proper answers to interrogatories and verifications. We would further note that the discovery violations of Goodyear are strikingly similar to those in Foster v. Dingwall, 126 Nev. ___, 227 P.3d 1042 (2010). In Foster , the district court struck all the pleadings of the appellants and allowed judgment to be entered by default. Id. at ___, 227 P.3d at 1047. We concluded that the district court orders sufficiently demonstrated that the conduct of the appellants was repetitive, abusive, and recalcitrant. Id. We further concluded that the district court did not err by striking their pleadings and entering a default judgment against them. Id. The discovery abuses in Foster include the initial failure of a party to appear after depositions were noticed. Id. at ___, 227 P.3d at 1046. There were also discovery abuses by the failure of the appellants to supplement their responses to their answers to interrogatories and responses to requests for production of documents. Id. We concluded that NRCP 37(b)(2)(C) and NRCP 37(d) provide that a court may strike a party's pleadings if that party fails to attend his own deposition or fails to obey a discovery order. Id. at ___, 227 P.3d at 1048. We further concluded that entries of complete default are proper where litigants are unresponsive and engaged in abusive litigation practices that cause interminable delays. Id. We held that such sanctions were necessary to demonstrate to future litigants that they are not free to act with wayward disregard of a court's orders, and that the conduct of the appellants evidenced their willful and recalcitrant disregard of the judicial process. Id. at ___, 227 P.3d at 1049. As to the issue of attorney fees, we concluded that the award of attorney fees, in addition to default sanctions, was proper and the award of attorney fees shall be reviewed under the abuse of discretion standard. Id. at ___, 227 P.3d at 1052 (citing Albios v. Horizon Communities, Inc., 122 Nev. 409, 417, 132 P.3d 1022, 1027-28 (2006)). Based upon the holdings of Young , Foster , and Clark County School District v. Richardson Construction , and for all of the reasons set forth above, we conclude that substantial evidence supports the non-case concluding sanctions of striking Goodyear's answer as to liability only pursuant to the district court's inherent equitable power. Further, findings of fact shall not be set aside unless they are clearly erroneous and not supported by substantial evidence. See NRCP 52(a); Beverly Enterprises v. Globe Land Corp., 90 Nev. 363, 365, 526 P.2d 1179, 1180 (1974). The discovery commissioner's recommendations, from the December 5, 2006, and December 14, 2006, hearings, which the district court affirmed and adopted on January 5, 2007, are the findings of a master. Since the district court adopted them, they shall be considered the findings of the court. NRCP 52(a). We further conclude that by Goodyear requesting reconsideration of the discovery sanctions due to the failure of Goodyear's representative to appear for a deposition prior to December 28, 2006, and the order of the district court from the January 9, 2007, hearing, the district court had the inherent equitable power to revise the appropriate sanctions in conjunction with the violation of this order and the failure of Goodyear to properly answer and verify the interrogatories. [7] These non-case concluding sanctions do not have to be preceded by other less severe sanctions. Young, 106 Nev. at 92, 787 P.2d at 780. The district court did not abuse its discretion by doing so since substantial evidence supports the district court's findings, and the findings are not clearly erroneous.