Opinion ID: 360361
Heading Depth: 1
Heading Rank: 4

Heading: Miscellaneous Rulings

Text: 79 Plaintiffs argue that even if sufficient evidence warranting submission of their claims to the jury was not presented, they are entitled to a new trial because they were prevented from presenting the necessary evidence by erroneous rulings of the district court. 80 These rulings must be considered against the background of the procedural history and factual setting of this case. The complaint in this action was filed on March 15, 1974. On January 17, 1977, Judge Hanson was designated to complete the processing and trial of the cause of action. At a pretrial conference on February 22, 1977, it became apparent to the court that the lawsuit and attendant discovery proceedings had been stalled for almost a year. The court adjusted its schedule to permit the plaintiffs additional time to conduct further discovery. At this time defendants' motion to limit proof at trial to those first-run films upon which the plaintiffs had made demand was overruled. However, plaintiffs' proof at trial was confined to first-run films released in the Omaha-Council Bluffs market area between March 15, 1970, and March 15, 1974. 81 In its memorandum opinion the district court stated that from that time on the proceedings were marked by plaintiffs' failure to meet Court imposed deadlines and to take full advantage of those further discovery opportunities that had been permitted. Admiral Theatre Corp. v. Douglas Theatre Co., supra, 437 F.Supp. at 1274. Although the court believed that the plaintiffs' dilatoriness and inadequate trial preparation would have justified dismissal of the action, See National Hockey League v. Metropolitan Hockey Club, Inc., 427 U.S. 639, 96 S.Ct. 2778, 49 L.Ed.2d 747 (1976), it allowed the case to proceed to trial. 82 The plaintiffs object to the trial court's ruling which denied admission to 46 exhibits offered by the plaintiffs pertaining to specific licensing transactions. The court excluded the exhibits on two grounds: (1) they were not called to the attention of the defendants prior to trial, and (2) they could only be considered cumulative. 83 At the pretrial conference on February 22, 1977, the district court informed the parties that the action would be processed under the procedures specified in the Manual for Complex Litigation and that pretrial filings of witness lists, exhibit lists, stipulations, proposed jury instructions and pretrial briefs would be required and strictly enforced. See Manual for Complex Litigation, Supra, §§ 1.11, 3.30. Contrary to the pretrial orders of the court, the plaintiffs did not file their pretrial briefs or list of exhibits until the first day of trial on June 13, 1977. In addition, the 46 exhibits related to specific pictures regarding which the plaintiffs had made no complaint during pretrial discovery. As a result the defendants would have been prejudiced by admission of the exhibits in that they were unprepared to cross-examine or present their own evidence relating to these transactions. If it admitted these exhibits, the district court felt that to avoid prejudice to defendants it would have been compelled to grant a continuance to allow the defendants an opportunity for discovery on the new issues raised. 84 In a complex case the trial court must manage the proceedings with a fair but firm hand to prevent excess expense and delay. See Gaylord Shops, Inc. v. South Hills Shoppers' City, Inc., 33 F.R.D. 303, 305 (W.D.Pa.1963); Manual for Complex Litigation, Supra, § 1.10; Prettyman Report, Procedure in Anti-Trust and Other Protracted Cases, 13 F.R.D. 41, 65-66 (1951). The district court has the discretionary power to exclude exhibits not disclosed in compliance with its pretrial orders. Kozar v. Chesapeake & O. Ry., 320 F.Supp. 335, 374 (W.D.Mich.1970), Aff'd in part & vacated in part for other reasons, 449 F.2d 1238 (6th Cir. 1971); Fed.R.Civ.P. 37(b)(2)(B); Manual for Complex Litigation, Supra, §§ 3.30, 4.23; D.Neb.R. 25(B)(1). Its ruling will be overturned on appeal only if there is a clear abuse of its discretion. Federal Deposit Ins. Corp. v. Glickman, supra, 450 F.2d at 419; Delta Theatres, Inc. v. Paramount Pictures, Inc., 398 F.2d 323, 324 (5th Cir. 1968), Cert. denied, 393 U.S. 1050, 89 S.Ct. 688, 21 L.Ed.2d 692 (1969). 85 In the present case the district court excluded the exhibits because of noncompliance with its pretrial orders only after repeatedly warning the parties that it intended to strictly enforce its pretrial orders and subsequently modifying its orders to accommodate the plaintiffs' requests for more time. We are satisfied that the district court did not abuse its discretion in excluding the exhibits on this basis alone. Therefore, we do not reach the issue of whether the court abused its discretion in excluding the exhibits as cumulative. 86 The plaintiffs also attempted to introduce into evidence the testimony of Alfred Corbino. Although the plaintiffs were directed to have their witness list filed on May 11, 1977 (after receiving an extension from May 2), the identity of Corbino as a witness for the plaintiffs was not disclosed to the defendants until the plaintiffs filed their list of witnesses on June 13, 1977, the first day of trial. The district court refused to let Corbino testify because his name was not timely disclosed to the defendants and because he refused to let the defendants examine documents in his possession, which would have been needed for cross-examination, until the day he was scheduled to testify. 87 The plaintiffs' offer of proof discloses that Corbino would have testified concerning his efforts to open a theatre in Omaha and obtain first-run films. Examination and cross-examination of Corbino would have involved the circumstances surrounding his bids on 39 films of which he obtained none. In effect, the jury would have been asked to hear a separate antitrust action to determine the probative value of his testimony without giving the defendants the benefit of discovery. 88 Similar to its discretionary power to exclude exhibits, the district court may refuse to permit the testimony of witnesses not listed prior to trial. United States v. Pirnie, 472 F.2d 712, 713 (8th Cir. 1973); Fed.R.Civ.P. 37(b) (2)(B); Moore's Federal Practice P 16.16, at 1127 (2d ed. 1974); Manual for Complex Litigation, Supra, §§ 3.30, 4.23; D.Neb.R. 25(B)(2)(D). The power of the trial court to exclude exhibits and witnesses not disclosed in compliance with its discovery and pretrial orders is essential to the judicial management of a complex case. When the district court's ruling is considered as part of the total procedural history of this case, we are convinced that the district court did not abuse its discretion in refusing to allow Corbino to testify. 89 In their brief to this court the plaintiffs challenge various other evidentiary rulings by the district court. We have examined each allegation of error and find that the plaintiffs' contentions are without merit. 90 The plaintiffs' next claim of error is that the district court abused its discretion in limiting the plaintiffs' discovery. Plaintiffs' primary complaints are that discovery and proof at trial were limited to first-run motion pictures released by distributor-defendants in the Omaha-Council Bluffs market area during the period from March 15, 1970, to March 15, 1974, and that plaintiffs' discovery addressing proof of damages was limited to those pictures for which plaintiffs made specific demand. 91 Soon after the complaint in this action was filed on March 15, 1974, discovery by plaintiffs concerning the splitting of first-run films for indoor theatres in the Omaha-Council Bluffs market area followed. On March 28, 1975, the court entered an order so limiting discovery until the depositions of Ralph, Geraldine and Robert Blank had been taken and certain documents had been produced by the plaintiffs. No other discovery procedures were undertaken by the plaintiffs until the final pretrial conference on February 22, 1977, despite the fact that at a pretrial conference held on September 10, 1976, it was agreed by counsel that plaintiffs' discovery would be completed by November 24, 1976, and a trial date in February 1977 would be attempted. At the February 22, 1977, pretrial conference, in complete disregard of the earlier conference, the plaintiffs filed a number of sets of interrogatories and requests for production and announced their intention to take approximately 23 additional depositions. The district court indulged the plaintiffs in every reasonable accommodation in an effort to allow this additional discovery and still have the trial in May or June of 1977. However, these depositions were never taken. 92 Although the district court limited discovery relating to proof of damages to films on which the plaintiffs had made specific unsuccessful demands, it allowed discovery of non-demand films for the purpose of showing the existence of the conspiracy to prevent plaintiffs from bidding on certain films. The court stated that it would modify its order to allow discovery addressing proof of damages to non-demand films if the plaintiffs showed that the activities of defendants made it futile to demand films. 18 The order of the district court was broad enough to permit discovery of information which could be used to support a claim of futility if such were in fact the case. The plaintiffs ultimately failed to show the futility of demand, and consequently the district court properly retained its ruling limiting discovery of damages. 93 Orders by a trial court limiting discovery are within the sound discretion of the court and will not be cause for reversal unless an abuse of discretion is shown. Perel v. Vanderford, 547 F.2d 278, 280 (5th Cir. 1977); Huff v. N.D. Cass Co., 468 F.2d 172, 176-77 (5th Cir. 1972), Modified en banc, 485 F.2d 710 (1973); Barnard v. Wabash R.R., 208 F.2d 489, 498 (8th Cir. 1953). No such showing has been made here. In a complex case to keep discovery within bounds of reason and relevancy the court must establish limits of time and subject matter. Manual for Complex Litigation, Supra, §§ 2.40, 4.30; Prettyman Report, Procedure in Anti-Trust and Other Protracted Cases, Supra, 13 F.R.D. at 73-74. We have examined all of the alleged errors in limiting discovery asserted by the plaintiffs and we are convinced that the limitations which the court imposed were clearly within its discretion. 94 The plaintiffs next contend that the district court improperly assessed plaintiffs $1,000 for attorney fees and office expenses incurred by the defendants in taking the second deposition of plaintiffs' expert witness, Dr. Felton. As early as February 18, 1976, and repeatedly thereafter, the district court stressed the need for plaintiffs to get an expert at an early date so that defendants could discover the plaintiffs' theory of damages. The summary of Felton's testimony filed by the plaintiffs on May 6, 1977, was found by the court not to be in compliance with its previous orders requiring a specific and detailed summary. The court declined to preclude the testimony of Felton, but allowed defendants an opportunity to depose him prior to his testifying at trial. The defendants deposed Felton on June 22, 1977, during a recess in the trial, but he had not yet arrived at any final opinions or prepared the exhibits which he intended to use at trial. At this point defendants again moved for preclusion of Felton's testimony. The district court denied this motion but ordered Felton to submit to a second deposition and required plaintiffs to reimburse defendants for their reasonable expenses in conducting the second deposition. In light of the above circumstances the district court acted within its discretion in assessing the plaintiffs $1,000 under Fed.R.Civ.P. 37(b)(2). 95 The final issue raised on this appeal is whether the district court abused its discretion in including in the taxation of costs against the plaintiffs $10,698.33 for daily copy of the trial transcript and $24.10 for service of a subpoena on Alfred Corbino. Upon review of the circumstances disclosed in this case, plaintiffs-appellants should not have been taxed for costs of daily transcript. The taxation to plaintiffs of the cost for service of the subpoena duces tecum on Corbino was justified because it was not known at that time that the trial court would ultimately preclude him from testifying and the subpoena was apparently the only means by which the defendants could obtain access to the documents needed to prepare for cross-examination. 96 After a careful review of the voluminous record in this case we are convinced that the district court properly granted Central States' motion for summary judgment and the motions for directed verdict by the other defendants. 97 Affirmed, subject to modification striking costs of daily transcript.