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Bulen v. Navajo Refining Co. Inc.8/15/2000
APPEAL FROM: District Court of the Eighth Judicial District, In and for the County of Cascade, The Honorable Thomas M. McKittrick, Judge presiding.
Submitted on Briefs: November 4, 1999
1 The Plaintiffs filed a complaint in the District Court for the Eighth Judicial District in Cascade County, in which they alleged that the Defendants caused the death of Jill M. Metzger. After extensive discovery, the Plaintiffs moved for discovery sanctions. The District Court granted the motion and sanctioned the Defendants by imposing liability. The Defendants then moved the District Court to reconsider its imposition of sanctions. Following a hearing, the District Court refused to reconsider its order. The Defendants appeal from the District Court's imposition of sanctions. We affirm the judgment of the District Court.
2 While the Appellants raise a number of issues on review, we find the following issue dispositive:
3 Did the District Court abuse its discretion when it sanctioned Montana Refining Company and Navajo Refining Company pursuant to Rule 11, M.R.Civ.P., by imposing liability as a matter of law?
FACTS
4 On April 6, 1994, Jill Metzger's body was found lying next to a Hydotreater Unit (HTU) in a petroleum refining plant located in Great Falls, Montana. The Plaintiffs alleged that Metzger died from inhalation of hydrogen sulfide gas after it escaped from the HTU.
5 On December 8, 1994, the Plaintiffs filed a complaint against the parties that designed and constructed the HTU. On February 13, 1997, with leave of the District Court, the Plaintiffs filed their second amended complaint, in which they added, among others, Navajo Refining Company, Inc. and Montana Refining Company (MRC) as Defendants. The Plaintiffs alleged that Navajo Refining had control over the planning, construction, and operations of the HTU as well as the supervision and training of personnel operating the HTU. The Plaintiffs alleged that MRC intentionally exposed Metzger to a high degree of danger and death by allowing her to operate the HTU, and that such conduct was not covered by the exclusive remedy provision of the Workers' Compensation Act.
6 Following extensive discovery, the Plaintiffs settled their claims with the parties who designed and constructed the HTU. MRC, Navajo Refining, and Navajo Northern, however, remained parties to the suit. Following the Plaintiffs' motion to compel discovery and for sanctions, on September 15, 1998, the District Court imposed liability on MRC and Navajo Refining as a sanction for discovery abuse. The District Court's decision was based on the following findings:
Defendants misrepresented that the corporations were totally separate and there was no "discoverable control" over documents or management between the partnership corporations and parent corporations;
Defendants falsely represented in briefs and at hearing, that all documents pertaining to the accident investigation had been provided. They knowingly withheld and concealed significant information regarding the existence of the first investigation as well as reports and notes about it;
Defendants falsely represented in discovery responses, that Navajo Refining Co. Inc. supplied no specifications in the design or construction of the HTU plant, or that any of its employees met or consulted with MRC, Jacobs/Wolder Engineering as to the design and construction of the HTU; and
Defendants falsely represented that the Laurent investigation documents had been prepared for the purposes of litigation.
MRC and Navajo Refining moved the District Court to reconsider its imposition of di
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