Opinion ID: 396497
Heading Depth: 2
Heading Rank: 6

Heading: E-Systems's Failure to Admit

Text: 53 ARB also seeks to recover as damages the cost of proving the truth of certain matters which it alleges that E-Systems improperly refused to admit after formal requests under Fed.R.Civ.P. 36. While we are sympathetic to the great expense of conducting a major commercial litigation, this is not the appropriate case for relief. Fed.R.Civ.P. 37(c) sets out clearly the rule on Expenses on Failure to Admit. The master found, and we agree, that E-Systems falls squarely within exception (3): the party failing to admit had reasonable grounds to believe that he might prevail on the matter. (See Mem. Op. at 39-40, J.A. at 791-92).