Malloy v. WM Specialty Mortgage LLC

          United States Court of Appeals
                     For the First Circuit


No. 07-1026

                    JAMES G. MALLOY, ET AL.,

                     Plaintiffs, Appellants,

                               v.

               WM SPECIALTY MORTGAGE LLC, ET AL.,

                     Defendants, Appellees.


          APPEAL FROM THE UNITED STATES DISTRICT COURT
                FOR THE DISTRICT OF MASSACHUSETTS

         [Hon. Reginald C. Lindsay, U.S. District Judge]


                             Before

                     Torruella, Circuit Judge,
                  Selya, Senior Circuit Judge,
                    and Lipez, Circuit Judge.



     Laird J. Heal on brief for appellants.
     Andrew C. Glass, R. Bruce Allensworth, Phoebe S. Winder,
Gregory N. Blase and Kirkpatrick & Lockhart Preston Gates Ellis
LLP, on brief for appellees Ameriquest Mortgage Company and WM
Specialty Mortgage LLC.
     Mark R. Freitas, George C. Rockas and Wilson, Elser,
Moskowitz, Edelman & Dicker LLP, on brief for appellee Daniel J.
Nigro, Esq.




                         January 7, 2008
          Per Curiam.   This is an appeal from the district court's

dismissal of a civil case, with prejudice, based on plaintiffs'

failure to respond to defendants' discovery requests.   In addition

to the propriety of that sanction, the appeal also presents a

threshold issue of appellate jurisdiction.

          The sequence of events relevant to the jurisdictional

issue was as follows:     After plaintiffs failed to respond to

defendants' discovery requests, even after being ordered to do so

in response to defendants' motion to compel, defendants moved for

relief under Rule 37(b) of the Federal Rules of Civil Procedure,

including dismissal with prejudice.     On November 29, 2006, the

district court granted the above motion, stating as follows:

          The plaintiffs have filed no response to this
          motion.    The moving parties, on the other
          hand, have outlined, in their memorandum in
          support   of   the   motion,   a   pattern  of
          noncompliance by the plaintiffs with their
          obligations under the discovery rules of this
          court.   Accordingly, the court grants the
          present motion to the extent that it seeks
          dismissal of this action.     This order is an
          interlocutory one; it will become final on
          December 8, 2006, unless, on or before that
          date, the plaintiffs show cause why this case
          should not be dismissed.     If no response to
          this order is filed by the plaintiffs by
          December 7, 2006, the order will become a
          final order of the court without further
          action by the court.     The clerk shall then
          enter judgment for the defendants dismissing
          this action.    If the plaintiffs respond to
          this order on or before December 8, 2006, this
          order shall be stayed pending further order of
          the court.



                                -2-
The next day, November 30, 2006, the clerk entered judgment in

defendants' favor.          A week later, on December 7, 2006, plaintiffs

moved to vacate the November 30th judgment, arguing that entry of

judgment was premature under the terms of the November 29th order,

that the delay was excusable, that plaintiffs themselves were not

to blame, that defendants were not prejudiced by the delay, and

that dismissal with prejudice was too harsh a sanction.                         On

December   28,      2006,    before    the     district   court   had   ruled   on

plaintiffs' motion to vacate, plaintiffs filed a notice of appeal

from the November 30th judgment "to the extent that the entry of

judgment is a final decree for purposes of appeal."                  Finally, on

March 5, 2007, the district court denied plaintiffs' motion to

vacate without comment.

           Viewing that sequence of events in a practical way, it

appears    that     the     November    29th     order    was   intended   to   be

interlocutory, that the November 30th judgment of dismissal was

therefore entered prematurely, and that plaintiffs' notice of

appeal from that judgment was also premature because, at the time

of the notice of appeal, a timely motion to vacate the November

30th judgment was pending. However, once the district court denied

the   motion   to    vacate     the    November    30th   judgment   (implicitly

treating the motion as a response to its November 29th order to

show cause why the case should not be dismissed and finding it

unpersuasive), the November 30th judgment of dismissal became final


                                         -3-
and appealable.         Although the notice of appeal from that judgment

was premature when filed, that notice became effective to appeal

the November 30th judgment when the court denied the motion to

vacate, which was, in essence, a timely1 motion to alter or amend

the judgment.      See Fed. R. App. P. 4(a)(4)(B)(i).          Accordingly, we

have jurisdiction over this appeal and so turn to the propriety of

the sanction imposed by the district court.

               "A district court may dismiss an action for noncompliance

with a discovery order." Benitez-Garcia v. Gonzalez-Vega, 468 F.3d

1, 4 (1st Cir. 2006) (citing Fed. R. Civ. P. 37(b)(2)(C)).                 "When

a district court invokes this power, our review is for abuse of

discretion."       Id. (citing Nat'l Hockey League v. Metro. Hockey

Club, Inc., 427 U.S. 639, 642 (1976) (per curiam)).                   Where, as

here, the dismissal is with prejudice, we consider a variety of

substantive      and    procedural   factors    to   determine   whether    that

ultimate sanction was within the district court's discretion.                  Id.

at 5.       "'Among [the substantive factors] commonly mentioned (this

list is not complete) are the severity of the violation, the

legitimacy of the party's excuse, repetition of violations, the

deliberateness vel non of the misconduct, mitigating excuses,

prejudice to the other side and to the operations of the court, and

the   adequacy     of   lesser   sanctions.'"        Id.   (quoting   Robson   v.



        1
      The motion was filed on December 7, 2006, within 10 days of
the November 30th judgment. See Fed. R. Civ. P. 59(e).

                                      -4-
Hallenbeck, 81 F.3d 1, 2-3 (1st Cir. 1996)).    As to procedure, we

consider whether the offending party was given sufficient notice

and opportunity to explain its noncompliance or argue for a lesser

penalty.    Id. at 7.

            Here, the violation was relatively severe.   By the time

the dismissal became final on March 5, 2007, plaintiffs' discovery

responses were more than seven months overdue under the applicable

rules and more than five months overdue under the court's order

granting defendant Ameriquest's motion to compel.   Compare Torres-

Vargas v. Pereira, 431 F.3d 389, 393 (1st Cir. 2005) (finding a

party's disregard of a court order to be "a paradigmatic example of

extreme misconduct"), with Benitez-Garcia, 468 F.3d at 6-7 (finding

that missing discovery deadlines by four months or less, absent a

motion to compel or court order, was insufficiently egregious to

warrant dismissal with prejudice).     Nor was there any indication

that, absent dismissal, the responses would have been promptly

provided.    The violation was also part of a broader pattern of

delay. Plaintiffs did not provide their initial disclosures within

the time agreed to by the parties and eventually did so, three

weeks late, only after being reminded by one of the parties that

the disclosures were overdue.      They also failed to respond to

another defendant's discovery requests until ordered to do so. And

a third defendant's motion to compel overdue responses was pending

at the time the case was dismissed.


                                 -5-
           Perhaps    most     significant,      plaintiffs   proffered     no

legitimate excuse for the delay.            Rather, plaintiffs' counsel

attributed the delay to his inexperience practicing law, the

incompetence of his support staff, and his own deliberate decision

to direct his attention to cases of paying clients instead of this

pro bono matter.     Such excuses are legally insufficient.         Young v.

Gordon, 330 F.3d 76, 82 (1st Cir. 2003); In re Power Recovery Sys.,

Inc., 950 F.2d 798, 801 n.8 (1st Cir. 1991).

           Plaintiffs' passing comment that they themselves were

blameless for the delay and therefore should not be punished by

dismissal of their claims is unavailing.              Even if we were to

consider this perfunctory argument, but see United States v.

Zannino, 895 F.2d 1, 17 (1st Cir. 1990) (deeming such arguments

waived), it would fail.       This circuit has "consistently 'turned a

deaf ear to the plea that the sins of the attorney should not be

visited upon the client.'"2        KPS & Assocs., Inc. v. Designs By FMC,

Inc., 318 F.3d 1, 16 (1st Cir. 2003) (quoting Farm Constr. Servs.,

Inc. v. Fudge, 831 F.2d 18, 21 (1st Cir. 1987)).

           Although the prejudice to defendants appears relatively

slight, that factor, standing alone, is not dispositive.                  Even

without   prejudice   to     the   defendants,    dismissal   may   still   be



     2
      This is not to say that sanctions against counsel himself
would have been inappropriate here. See Fed. R. App. P. 37(b)(2)
(authorizing sanctions against counsel).   That question is not
before us.

                                      -6-
warranted to further "the judiciary's strong institutional interest

in ensuring that litigants honor court orders."              Tower Ventures,

Inc. v. City of Westfield, 296 F.3d 43, 47 (1st Cir. 2002).

Moreover, any lack of prejudice here is outweighed by the other

factors already discussed.

           As to the adequacy of lesser sanctions, our review is

highly deferential to the district court's on-the-scene judgment.

Young, 330 F.3d at 81.           Although the district court did not

expressly consider lesser alternatives, none was suggested by the

plaintiffs.     And    the    court's    implicit    reasons      for   choosing

dismissal with prejudice can be inferred from defendants' arguments

in opposition to plaintiffs' motion to vacate, which the district

court implicitly adopted. Cf. United States v. Jiménez-Beltre, 440

F.3d 514, 519 (1st Cir. 2006) (en banc) (making such inferences in

the criminal sentencing context), cert. denied, 127 S. Ct. 928

(2007).   Those arguments--that a lesser sanction would have been

ineffective--are      well-founded.         Even   after   the    court   warned

plaintiffs that dismissal was imminent, no discovery responses were

provided in the three months that passed before the motion to

vacate was denied and the dismissal became final.                Indeed, rather

than   turn   his   full     attention   to    providing    such     responses,

plaintiffs' counsel took on a new criminal case pro bono. Although

plaintiffs' counsel asked the court to permit plaintiffs to obtain

substitute counsel, there is no evidence of any attempt to do so.


                                      -7-
Under these circumstances, we see no abuse of discretion in the

district court's choice of sanction.

           As to procedural considerations, plaintiffs had ample

notice of the prospect of dismissal and opportunity to offer

excuses for their delay or to advocate for lesser sanctions.

Defendants' motion for sanctions expressly sought dismissal with

prejudice, yet plaintiffs filed no opposition to the motion in

general or to that sanction in particular.            The district court

noted the lack of opposition to the motion but gave plaintiffs a

further opportunity to show cause why the case should not be

dismissed. Although a judgment of dismissal was mistakenly entered

before the time for responding to the show cause order had expired,

plaintiffs did advance their excuses for delay and arguments

against dismissal in a motion to vacate that judgment, which the

court had under advisement for several months before denying it.

This case is therefore readily distinguishable from those where the

sanctioned party had no notice of the potential dismissal or

opportunity to oppose it.       Cf. Malot v. Dorado Beach Cottages

Assocs., 478 F.3d 40, 45 (1st Cir. 2007) (court dismissed the case

without warning that it was considering that sanction); Benitez-

Garcia, 468 F.3d at 3-4, 6-7 (court dismissed the case before

plaintiff had an opportunity to respond to defendants' motion to

dismiss   and   denied   plaintiffs'   motion   for   reconsideration   on




                                  -8-
technical grounds the day after it was filed without giving them an

opportunity to file a conforming motion).

          Finding no substantive or procedural abuse of discretion,

we affirm the district court's judgment.    See 1st Cir. R. 27.0(c).




                               -9-