Opinion ID: 2031306
Heading Depth: 2
Heading Rank: 1

Heading: Sanctions Against Individual Defendants

Text: The individual defendants, LaVerne Gaarder, Roger Vorachek, and W.J. Vorachek, assert that the trial court was without authority to impose sanctions upon them because the court's order was premised upon the failure to respond to a request for production of documents which was directed solely to the defendant Bank. They assert that they cannot be subjected to sanctions for the Bank's failure to respond. Our Rule 37 is based upon Rule 37 of the Federal Rules of Civil Procedure, and we therefore have looked to interpretive federal caselaw for guidance in construing our rule. E.g., Shark v. Thompson, 373 N.W.2d 859, 863 (N.D.1985); St. Aubbin v. Nelson, 329 N.W.2d 874, 876 (N.D.1983). The federal courts which have considered the issue have recognized that generally a party will not be subjected to sanctions for a co-party's failure to comply with discovery, but an exception exists if the party controlled the actions of the non-complying party. Patton v. Aerojet Ordnance Co., 765 F.2d 604, 606 (6th Cir.1985); Letelier v. Republic of Chile, 748 F.2d 790, 795 n. 2 (2d Cir.1984), cert. denied, 471 U.S. 1125, 105 S.Ct. 2656, 86 L.Ed.2d 273 (1985). Discussing this situation, Professor Moore notes that if the co-parties are a corporation and its officer or managing agent sued in his individual capacity, his failure may serve as a predicate for the imposition of the sanction against both. 4A Moore's Federal Practice ¶ 37.05 at 37-107 n. 21 (2d ed. 1987). See also Anderson v. Air West, Inc., 542 F.2d 1090, 1093 (9th Cir.1976); Flaks v. Koegel, 504 F.2d 702, 710 n. 6 (2d Cir.1974); cf. Fargo Women's Health Organization, Inc. v. Larson, 391 N.W.2d 627, 633 (N.D.1986) (It is also well established that an officer or agent of a corporation may be found in contempt of court if that officer or agent was responsible for the acts or inaction of the corporation that constituted the contempt.). The three individual defendants were the president, vice-president, and cashier, respectively, of the Bank. Each was a member of the board of directors and a full-time employee of the Bank. The three individual defendants managed and controlled the Bank, and any response to the discovery request would have to be performed by them. The trial court recognized as much, because its order of June 26, 1985, required that the defendants produce the documents requested from the Bank. All of the defendants were ordered to comply with the discovery request, and all were warned that failure to so comply within ten days would subject them to Rule 37 sanctions. [2] Under these circumstances, sanctions against the individual defendants were appropriate. We also note that the trial court's order imposing sanctions was not, as the defendants allege, premised solely upon the failure to respond to the request for production of documents directed to the Bank and the corresponding order compelling production of those documents. In imposing sanctions, the trial court specifically found: 5. Defendants remain in full violation of this Court's Order dated June 26, 1985, and in partial violation of this Court's Orders dated February 9, 1984, October 22, 1984, and February 17, 1985. The court's orders of February 9, 1984, October 22, 1984, and February 17, 1985, directed compliance with discovery requests to each of the defendants. We conclude that the trial court was authorized to impose sanctions upon the individual defendants, as well as the defendant Bank, for the continuing pattern of discovery abuse presented in this case.