Sti America, Inc. v. Leyen Food, Llc
74045-8
| Wash. Ct. App. | Oct 3, 2016Background
- Avalon Leasing sold salmon roe to STI; Voyager (a processor) supplied some of the roe; Leyen claimed a right to payment from STI based on dealings with Voyager.
- STI interpleaded the disputed funds into court; discovery and trial deadlines were set (discovery cutoff May 11, 2015; trial June 29, 2015).
- Leyen repeatedly failed to comply with multiple discovery requests and court orders (interrogatories, document production, witness depositions), despite several motions to compel and intermediate sanctions.
- The trial court found Leyen’s failures intentional and willful, and that Avalon was prejudiced because it could not prepare for trial or depose Leyen’s witnesses.
- As a sanction under CR 37(b)(2) and after considering lesser measures, the court barred Leyen from introducing any testimony or evidence on issues that were the subject of discovery, including any claim to the interpleaded funds; the parties then stipulated to entry of judgment awarding the funds to Avalon while preserving Leyen’s right to appeal.
Issues
| Issue | Plaintiff's Argument (Avalon) | Defendant's Argument (Leyen) | Held |
|---|---|---|---|
| Whether the trial court abused its discretion by precluding Leyen from introducing evidence on discovery-subject issues (including claim to funds) | Leyen willfully disobeyed multiple discovery orders, prejudicing Avalon; strict sanction warranted | Sanction is equivalent to an order of default and is an abuse of discretion; lesser sanctions could have sufficed | No abuse of discretion; court applied Burnet factors (willfulness, prejudice, consideration of lesser sanctions) and affirmed the evidentiary preclusion |
| Whether the appeal was frivolous and whether appellate fees should be awarded | Appeal lacks merit and is frivolous; fees appropriate under RAP 18.9 | Appeal not frivolous | Court finds no debatable issues; appeal deemed frivolous; appellate fees awarded to Avalon |
Key Cases Cited
- Burnet v. Spokane Ambulance, 131 Wn.2d 484 (establishes three-factor test for imposing severe discovery sanctions)
- Magana v. Hyundai Motor America, 167 Wn.2d 570 (addresses prejudice from discovery misconduct and late production)
- Robel v. Roundup Corp., 148 Wn.2d 35 (unchallenged findings are verities on appeal)
- Keck v. Collins, 184 Wn.2d 358 (failure to consider Burnet factors is an abuse of discretion)
- Advocates for Responsible Development v. Western Wash. Growth Mgmt. Hearings Bd., 170 Wn.2d 577 (standard for finding an appeal frivolous)