JOSE LUIS HERNANDEZ, Plаintiff-Appellant, versus RESULTS STAFFING, INCORPORATED, Defendant-Appellee.
No. 17-11201
United States Court of Appeals for the Fifth Circuit
October 24, 2018
Before SMITH, CLEMENT, and COSTA, Circuit Judges.
JERRY E. SMITH, Circuit Judge:
“If this case is an example, the term ‘civil procedure’ is an oxymoron.” Green v. GTE Cal., Inc., 34 Cal. Rptr. 2d 517, 518 (Cal. Ct. App. 1994). It comes before us for a second time, more than five years after Results Staffing, Incorporated (“RSI“), fired Jose Hernandez for failing to report to work. Hernandez appeals the interlocutory order granting RSI‘s
I.
RSI, which provides unskilled day laborers to third parties, employed Hernandez, an Army reservist, beginning in early 2013. After attending a weekend militаry training session July 12–14, 2013, Hernandez failed to appear for work on Monday, July 15, and instead visited a local emergency room complaining of a headache and lower back pain. RSI fired Hernandez for violating the company‘s “no call/no show” policy, which “requires employees to call in four hours before a scheduled start time if they are unable to report to work.” Hernandez sued in 2014, alleging that RSI had violated his rights under the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA“).
RSI served Hernandez with two requests for prоduction concerning medical records from his July 15 visit to the emergency room. The first request (“No. 12“) sought “[a]ll documents related to any visits [Hernandez] had with civilian medical personnel in July 2013, including all documents related to [Hernandez‘s] visit to the hospital on July 15, 2013, as alleged in [his] [p]etition.” The second request (“No. 19“) sought “[a]ll documents relating to any medical treatment that [Hernandez] underwent for the injury alleged in [his] [p]etition.”
Hernandez objected to these requests but nonetheless produced a one-page doctor‘s note in which the attending physician wrote that Hernandez was under his care on July 15, 2013, and would be able to work the next day. Neither Hernandez nor his counsel gave any indication that additional medical records existed. RSI later provided Hernandez with an authorization for release of protected health information, which Hernandez signed on March 12, 2015. RSI did not make use of the signed authorization to obtain the relevant
Hernandez‘s counsel received copies of Hernandez‘s medical records from July 15 on (in his words) “either Friday, May 15th or Monday, May 18th [2015],” shortly before trial.1 Hernandez‘s lawyer claims that he then “attempted to fax them to [RSI‘s] counsel, even though [RSI‘s] counsel already had an authorization to obtain the records from the hospital.” The fax allegedly failed to transmit.2
Following a non-jury trial in May 2015, the district court denied Hernandez any relief. We reversed, rendering “judgment in favor of Hernandez” and remanding “the case to the district court to determine [his] damages.” Id. at 908.
On remand, RSI discovered that “[Hernandez] and his wife had given false testimony at trial concerning [his] service-related back cоndition and his reason for going to the emergency room.” Additionally, as the district court explained, RSI also found that “[Hernandez] and his counsel had in their possession in advance of the trial hospital records, which should have been, but were not, disclosed to [RSI] before the trial that showed the true reason for [Hernandez‘s] trip to the emergency room [on] the morning of July 15, 2013.”
After that discovery, RSI filed a Rule 60(b) motion for relief from judgment, attaching Hernandez‘s July 15 emergency room records, which
The district court granted the Rule 60(b) motion, finding that
[Hernandez‘s] visit to the emergency room [on] the morning of July 15, 2013, was not for care or treatment of an aggravation of a bаck condition he suffered while on military duty over the preceding weekend but, instead, was for treatment of a severe headache, probably a migraine in character, that had its onset after he arrived home the morning of July 15, 2013, and that the low back pain he mentioned upon his hospital admission as an associated symptom was not the cause of his visit to the hospital but was a non-disabling chronic back pain that [Hernandez] had been suffering for years.
The court also determined that Hernandez and his wife gave intentionally false testimony “in order to disadvantage and mislead [RSI] in its trial preparation and presentation, and that [this testimony] ultimately misled [the Fifth Circuit] in [Hernandez‘s initial] appeal.” Furthermore, the district court found that Hernandez‘s lawyer failed to “take appropriate steps to supplement an incomplete and misleading response [Hernandez] had made to [RSI‘s] previously served discovery request ... seeking production of all documents related to [Hernandez‘s] visit to the emergency room.” The court determined that Hernandez‘s purpose in doing so was to “mislead[] [RSI] and its counsel into believing that [Hernandez‘s] July 15, 2013 visit to the emergency room was for
In granting the Rule 60(b) motion, the district court ultimately concluded, inter alia, that Hernandez‘s actions placed “[RSI] at an unfair disadvantage in defending itself at the trial” and “put the Fifth Circuit at an unfair disadvantage in evaluating ... the true facts [of this case].” The court also determined, however, that there was “substаntial ground for difference of opinion” concerning whether providing a signed authorization for release of protected health information is sufficient to satisfy the signing party‘s ongoing discovery obligations under
II.
Hernandez contends that the district court lacked jurisdiction to grant relief per
Because Standard Oil did not explicitly state whether its ruling was limited to cases in which the court of appeals affirms, Hernandez asserts that where the appellate court reverses, the district court is not permitted to entertain a Rule 60(b) motion unless “the court of appeals recalls its mandate.” Hernandez cites a previous line of precedent in which the Supreme Court appeared to require the moving party to obtain leave of the higher court before a lowеr court could disturb its judgment.7
Hernandez‘s theory fails for two reasons. First, Standard Oil overruled Hazel-Atlas. See McClure v. F.D.I.C, No. 93-8216, 1994 WL 14096, at *2 n.5 (5th Cir. Jan. 4, 1994). Second, this court has not—at least since Standard Oil—required a party to obtain its leave before a district court may entertain a Rule 60(b) motion. In United States v. Warden, for example, we declined to hear a Rule 60(b) motion for relief, noting that “[a]pplication for relief under
At least one other circuit has squarely addressed this question. In DeWeerth v. Baldinger, 38 F.3d 1266, 1270–71 (2d Cir. 1994), the court held that a district court retains jurisdiction to review a Rule 60(b) motion for relief even after a reversal.9 The court also found, id., that its refusal to recall a mandate had no beаring on the district court‘s jurisdiction over a Rule 60(b) motion.
Accordingly, under Standard Oil the district court had jurisdiction to consider RSI‘s motion for relief under Rule 60. “[T]he appellate mandate relates to the record and issues then before the court, and does not purport to
III.
Hernandez asserts that a party who signs an authorization for release of protected health information is completely discharged from the obligation of producing records controlled by healthcare providers. Again, we disagree.
The production of documents, including medical records, is governed by
RSI responds that “providing a medical records authorization does not relieve Hernandez of the duty to produce documents in his actual possession, particularly where ... such documents contradicted key elements of his prior testimony.” RSI relies on Frieman v. USAir Group, Inc., for the proposition that a defendant‘s “ability to obtain the documents from alternate sources does not excuse the plaintiffs from their obligation to produce the documents.”14
Hernandez‘s disclosure of the initial one-page letter was an incomplete response to at least two of RSI‘s requests for production of the July 15 records. Neither Hernandez nor his counsel gave any further indication that additional medical records from that day existed. Additionally, Hernandez failed to provide RSI with an authorization for release of protected health information as part of his discovery response. RSI got that authorization only when it approached Hernandez to sign a release. As the district court highlighted, Hernandez‘s “discovery response, in effect, told defense counsel that the doctor‘s letter constituted the only emergency record [Hernandez] had the ability to obtain from the hospital.” “Our system of discovery was designed to increase the likelihood that justice will be served in each case, not to promote principles of gamesmanship and deception in which the person who hides the ball most effectively wins the case.” Abrahamsen v. Trans-State Express, Inc., 92 F.3d 425, 428-29 (6th Cir. 1996).
IV.
Hernandez posits that RSI was not prevented from fully and fairly presenting its case, as contemplated by Rule 60. Additionally, in his reply brief, he contends that “review of discretionary decisions,” such as the district court‘s decision to grant RSI relief from this court‘s judgment, “is unavailable on an interlocutory appeal pursuant to
A.
Section 1292(b) provides, in relevant part, as follows:
When a district judge, in making in a civil action an order not otherwise appealable under this section, shall be of the opinion that such order involves a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal from the order may materially advance the ultimate termination of the litigation, he shall so state in writing in such order.
Although “the Court of Appeals’ jurisdiction is not confined to the precise question certifiеd by the lower court (because the statute brings the ‘order,’ [and] not the question, before the court),” our jurisdiction is nonetheless “confined to the particular order appealed from.” United States v. Stanley, 483 U.S. 669, 677 (1987). “[W]hile we may not reach beyond the [district court‘s] order to address other orders in the case, we are free to address ‘questions that are material to the lower court‘s certified order’ as part of an interlocutory
Accordingly, we have discretion to reach the third issue briefed by the parties if it is material to the certified ordеr.17 We review for abuse of discretion the district court‘s decision to grant Rule 60(b) relief.18
The district court based its decision on a finding that RSI was prevented from fully and fairly litigating its case. That finding was material to the certified order because the order itself pertained exclusively to the motion for relief from judgment. The district court premised its grant of the motion on a belief that Hernandez had violated the federal discovery rules by failing to turn over relevant medical records and that that failure constituted misconduct as contemplаted by Rule 60(b).19 Accordingly, we next review, for abuse of discretion, the grant of the Rule 60(b) motion.
B.
1.
The district court made extensive findings that “[Hernandez], often through his attorney, engaged in fraud, misrepresentation, and misconduct in [his] рresentations, verbally and in writing, to the court in pretrial matters, during the trial, and in his presentations to the Fifth Circuit in support of his appeal from [the district] court‘s dismissal of his claims,” sufficient to satisfy Rozier‘s first requirement. Following an exhaustive review of the record, the district court concluded that Hernandez‘s written submissions “were designed to lead the reader to think that [Hernandez‘s] sole reason for going to the emergency room on the morning of July 15, 2013, was to obtain care and treatment for a back injury he aggravated while serving a military tour of duty the preсeding weekend.” The written representations were supported by Hernandez‘s and his wife‘s in-court testimony, and at no point did Hernandez “disclose that his reason for going to the emergency room [on] the morning of July 15, 2013, was for treatment of a headache he developed that morning while at home.”
In addition to the falsifications made to the district court, Hernandez
2.
The district court also found, by clear and convincing evidence, that the misconduct prevented RSI from having a full and fair opportunity to present its case. The court posited that had “the truth concerning [Hernandez‘s] reason for admission to the hospital ... been disclosed during or before the trial, [RSI] would have been in a position to effectively argue,” inter alia, “that [Hernandez‘s] failure to be at work [on] the morning of July 15, 2013, was not the result of any military-related injury, or aggravation of an injury, and that during the day of July 15, 2013, [Hernandez] was not convalescing from such an injury or aggravation.”
The court also found that the misrepresentations to it, as well as the failure to disclose Hernandez‘s medical records, affected RSI‘s initial appeal to this court. Specifically, the district court highlighted an exchange at this court‘s oral argument between one of the judges and counsel for RSI in which the judge asked counsel whether there was any evidence that rebutted Hernandez‘s assertion that an aggravation of a preexisting back injury was the basis for his visit to the emergency room. Ultimately, the district court‘s findings in its order are sufficient to satisfy Rozier‘s second requirement that the alleged misconduct must have prevented RSI from fully and fairly litigating its case.
3.
In Anderson v. Cryovac, Inc., 862 F.2d 910, 925 (1st Cir. 1988), the court
In this sense, the grant of RSI‘s motion for relief from our prior judgment was not an abuse of discretion because it was not based on a “clearly erroneous assessment of the evidence.” Cooter & Gell v. Hartmarx, 496 U.S. 384, 405 (1990). The district court correctly applied our two-pronged test for Rule 60(b)(3) motions, finding, by clear and convincing evidence, that Hernandez engaged in fraud or other misconduct that prevented RSI from fully and fairly litigating its case.
Hernandez contends that Diaz bars relief. There, we affirmed the denial of a plaintiffs Rule 60(b)(3) motion for relief that was based on a post-trial allegation of perjury. Diaz, 46 F.3d at 496–97. Finding that the plaintiff failed to show by clear and convincing evidence that perjury had oсcurred and “that any perjured testimony prevented her from fully and fairly presenting her case,” we declined to reverse. Id. at 497.
Diaz is distinguishable on its facts. “If unequivocal evidence establishes that a party willfully perjured himself, and thereby prevented the opposition from fully and fairly presenting its case, use of Rule 60(b)(3) to grant the innocent party a new trial would be a proper response.” Id. (emphasis added). The Diaz plaintiffs failure to establish by clear and convincing evidence that the
In sum, the district court found that RSI established, by clear and convincing evidence, that Hernandez‘s misconduct prevented it from a full and fair hearing of its case. Thus, the court did not abuse its discretion when it granted relief from judgment.21
The order granting relief under
