Opinion ID: 448869
Heading Depth: 2
Heading Rank: 4

Heading: Argo's Alleged Violations Of Its Fiduciary Duties To Camar

Text: 43 On this appeal, Camar represents that Argo violated its fiduciary duties to Camar and, consequently, is not entitled to any compensation. Because we have determined that the trial court did not err in denying Argo's claims for commissions, it is not necessary for us to determine whether or not Argo, as an agent, breached its fiduciary duty to Camar by acting against its principal for its own benefit and by releasing confidential information to a competitor in the bidding process. 44 VI. The Trial Court's Award Of Sanctions Under Rule 37 Of The Federal Rules Of Civil Procedure 45 After it had obtained a dismissal of Argo's claims and a judgment on its counterclaim, Camar applied to the district court for the imposition of monetary discovery sanctions of not less than $50,000.00, pursuant to Rule 37(b)(2) of the Federal Rules Of Civil Procedure. Following a hearing on the matter, the trial judge imposed sanctions upon the plaintiff in the amount of $3,500.00. Argo now appeals this award of sanctions arguing that the discretion of the trial court was rendered unsound by its erroneous belief that Nietsch had submitted forged documents. The Appellant further asserts that the five trial exhibits, which the court below concluded had not been produced as required by the defendant's discovery request, were never specifically requested. Finally, Argo also maintains that expenses should not have been awarded to the defendant because it had failed to produce documents pursuant to plaintiff's demand. 46 The district court concluded that the imposition of sanctions was appropriate in this instance, because it found that the plaintiff had violated its discovery order concerning Nietsch's desk calendar pads. The court below concluded that even if Argo's failure to comply was not willful, but was, instead, a result of its gross or even simple negligence, sanctions may, nevertheless, be imposed. We find that both the facts of this case and the applicable law support the district judge's conclusion. See Cine Forty-Second Street Theatre v. Allied Artists, 602 F.2d 1062, 1066 (2d Cir.1979). 47 The award of sanctions under Rule 37 is subject to the sound discretion of the district court. See National Hockey League v. Metropolitan Hockey Club, 427 U.S. 639, 643, 96 S.Ct. 2778, 2781, 49 L.Ed.2d 747 (1976). It is clear that the plaintiff, without justification, failed to disclose to the defendant material covered by the district court's discovery order and that such nondisclosure caused the defendant to bear costs which would not have been necessary had plaintiff complied with the court's order. Accordingly, the trial court's imposition of monetary sanctions was proper. 48