Sprint Nextel Corporation v. Ace Wholesale, INC
2:14-cv-02119
D. Nev.Apr 17, 2015Background
- Sprint filed a trademark/infringement-related action in N.D. Ga. alleging defendants trafficked and “unlocked” iPhones; Sprint served a Rule 45 subpoena on Worldwide Mobile Trading (WMT) and its principal Chetan Arora to appear in Las Vegas for deposition and produce documents.
- WMT/Arora were served in Nevada; Arora failed to appear at the October 8, 2014 deposition and sent a one-line note that he was "out of country."
- Sprint attempted to meet-and-confer; Arora did not respond. Sprint moved to compel in the district where discovery was to occur.
- The magistrate judge granted Sprint’s motion to compel (March 25, 2015) and ordered a knowledgeable WMT representative to appear April 16, 2015 to show cause for noncompliance.
- WMT/Arora again failed to appear or produce documents at the April 16, 2015 show-cause hearing. The magistrate judge recommends holding Worldwide Mobile Trading in civil contempt and awarding Sprint reasonable fees and costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether WMT failed to obey the Rule 45 subpoena and appear/produce documents for deposition | Sprint: WMT was properly served and failed without adequate excuse to appear and produce responsive documents | WMT: (no response was made; no defenses asserted) | Court: WMT failed to comply and disobeyed the subpoena — noncompliance established |
| Whether WMT should be held in civil contempt for disobeying court orders under Rule 37 | Sprint: Contempt appropriate to compel compliance and to sanction failure to obey subpoena and the court’s order to show cause | WMT: (no response; no showing of inability or good-faith efforts) | Court: Recommend civil contempt under Rule 37(b)(2)(A)(vii); fees and costs to be awarded to Sprint |
Key Cases Cited
- GoVideo, Inc. v. Motion Picture Ass’n of Am., 10 F.3d 693 (9th Cir. 1993) (civil contempt aimed at compelling compliance with court orders)
- Federal Trade Commission v. Enforma Nat. Prods., Inc., 362 F.3d 1204 (9th Cir. 2004) (burden shifts to contemnor to show why compliance was impossible after movant meets its burden)
- Gifford v. Heckler, 741 F.2d 263 (9th Cir. 1984) (court has wide latitude to determine contempt)
- In re Dual–Deck Video Cassette Recorder Antitrust Litig., 10 F.3d 693 (9th Cir. 1993) (good-faith efforts can negate contempt)
- Richmark Corp. v. Timber Falling Consultants, 959 F.2d 1468 (9th Cir. 1992) (contempt inappropriate if all reasonable steps to comply were taken)
- Stone v. City of San Francisco, 968 F.2d 850 (9th Cir. 1992) (recommending contempt where nonparty failed to comply with subpoena)
- Aldridge v. Young, 782 F. Supp. 1457 (D. Nev. 1991) (magistrate’s contempt-certification procedure under 28 U.S.C. § 636(e))
- In re Kitterman, 696 F. Supp. 1366 (D. Nev. 1988) (district judge’s contempt authority after magistrate certification)
- Thomas v. Arn, 474 U.S. 140 (1985) (procedural default for failure to timely object to magistrate recommendations)
- Martinez v. Ylst, 951 F.2d 1153 (9th Cir. 1991) (failure to timely object may waive appeal)
- Britt v. Simi Valley United Sch. Dist., 708 F.2d 452 (9th Cir. 1983) (same waiver principle)
