Opinion ID: 3167097
Heading Depth: 2
Heading Rank: 1

Heading: Deposition Testimony of Zhao Lei and Zhao Agen

Text: The first issue is whether the district court properly refused to allow Powertrain to use as evidence the deposition testimony of Zhao Lei and Zhao Agen. Powertrain did not sue or depose either of the two individuals. Instead, Powertrain attempted to introduce their July 2007 deposition testimony from the Honda litigation. Rule 32 of the Federal Rules of Civil Procedure provides: (a) Using Depositions. (1) In General. At a hearing or trial, all or part of a deposition may be used against a party on these conditions: (A) the party was present or represented at the taking of the deposition or had reasonable notice of it; (B) it is used to the extent it would be admissible under the Federal Rules of Evidence if the deponent were present and testifying; and (C) the use is allowed by Rule 32(a)(2) through (8). Powertrain contends that Zhao Lei and Zhao Agen’s prior testimony is admissible. 2 Although Rule 32 permits deposition testimony from a prior proceeding to be introduced into a later proceeding in limited circumstances, the Fifth Circuit has stated that “[a] deposition may not be introduced into the record at a trial or hearing for any purpose unless the witness is unavailable or exceptional circumstances justify its admission.” Jauch v. Corley, 830 F.2d 2Powertrain contends that Zhao Lei and Zhao Agen’s prior testimony is admissible pursuant to Federal Rules of Civil Procedure 32(a)(3), (4), and (8). The district court specifically rejected Powertrain’s arguments as to 32(a)(3) and (a)(4) because neither were raised until after trial in its motion for a new trial. Indeed, Powertrain’s Memorandum of Law in Support of its Response to Ma’s Motion in Limine specifically only mentions Rule 32(a)(8). Therefore, the court will only review Powertrain’s 32(a)(8) motion as the other arguments were waived. See Henry’s Marine Serv., Inc. v. Fireman’s Fund Ins. Co., 193 F. App’x 267, 277 (5th Cir. 2006) (quotations omitted) (citing Simon v. U.S., 891 F.2d 1154, 1159 (5th Cir. 1990) (“These [Rule 59] motions cannot be used to raise arguments which could, and should, have been made before the judgment issued. Moreover, they cannot be used to argue a case under a new legal theory.”)). 4 Case: 15-60132 Document: 00513328396 Page: 5 Date Filed: 01/04/2016 No. 15-60132 47, 49–50 (5th Cir.1987); accord Battle ex rel. Battle v. Mem’l Hosp. at Gulfport, 228 F.3d 544, 554 (5th Cir. 2000). Federal Rule of Civil Procedure 32(a)(8) regarding depositions taken in earlier actions provides: A deposition lawfully taken and, if required, filed in any federalor state-court action may be used in a later action involving the same subject matter between the same parties, or their representatives or successors in interest, to the same extent as if taken in the later action. A deposition previously taken may also be used as allowed by the Federal Rules of Evidence. FED. R. CIV. P. 32(a)(8). The district court determined that Powertrain could not introduce the depositions under Rule 32(a)(8) because the depositions were taken in an action involving different parties with different motives and the action involved different issues. The Honda litigation did not involve the “same parties” because Powertrain filed that suit in anticipation of a future lawsuit by Honda against it for allegedly infringing on Honda’s trademark. Honda filed a countersuit against Best, Ma, and others alleging that they infringed upon the Honda trademark. Thus, Ma was sued by Honda and not Powertrain. Moreover, the district court noted that the Honda litigation presented trademark infringement issues. In contrast, the present case presents claims stemming from Ma’s alleged involvement with Best and Powertrain in the import and sale of certain engines that allegedly violated EPA standards. Furthermore, Ma did not have the opportunity to cross-examine or otherwise structure the content of the inquiry of either deponent in the Honda litigation. Thus, the use of the testimony would be fundamentally unfair. Accordingly, the district court did not abuse its discretion in preventing Powertrain from utilizing the depositions for purposes other than impeachment. 5 Case: 15-60132 Document: 00513328396 Page: 6 Date Filed: 01/04/2016 No. 15-60132