Gibson-Myers v. Pearce, Unpublished Decision (10-27-1999)
Gibson-Myers v. Pearce, Unpublished Decision (10-27-1999)
Opinion of the Court
DECISION AND JOURNAL ENTRY
This cause was heard upon the record in the trial court. Each error assigned has been reviewed and the following disposition is made: Appellant, Gibson-Myers Associates, Inc., has appealed from an order of the Summit County Court of Common Pleas compelling discovery of certain documents and business records. This Court reverses and remands for proceedings consistent with this decision.
During July, 1997, upon his termination from Appellant's office, Appellee allegedly began diverting and soliciting dozens of Appellant's clients with some success. As a result, on September 17, 1997, Appellant brought suit against Appellee for breach of the employment agreement. Appellee answered and filed a counterclaim alleging he was entitled to compensation under the employment agreement which he never received.
On June 9, 1998, pursuant to Civ.R.30(B)(5), Appellee filed a notice of deposition of Mr. Robert Myers. In this notice, Appellee requested Appellant to provide "copies of any and all commission statements, or equivalent records, received from any insurance company or carrier whose products were sold or offered for sale by [Appellee] for the years 1994 through 1997." Appellant was also requested to bring "any and all copies or agreements of any consulting company, or consulting agent, person or partnership or individual, or any person of any company, corporation, person or partnership for the years 1994 through 1997."
On August 6, 1998, at Mr. Myers' deposition, Appellee for the first time specifically requested the production of the following documents: (1) handwritten production records, (2) all ledger entries regarding each agent's continuing education compensation, (3) accounting records which indicate those accounts Appellee was responsible for recruiting, (4) accounting records pertaining to all clients' payment activity between 1992 and 1997, (5) Appellant's tax records from 1992 to 1997, (6) documents detailing the formula under which Appellee was to be compensated, and (7) Appellant's annual report detailing each agent's amount billed, receipts, etc.
Over two months later, on October 15, 1998, Appellee moved the trial court for an order compelling the production of the seven documents listed above. Four days later, without receiving any response from Appellant or making any other provision, the trial court granted the motion. This appeal followed.
Appellate courts have jurisdiction to "review, affirm, modify, set aside or reverse judgments or final orders." R.C.
R.C.
An order is a final order that may be reviewed, affirmed, modified, or reversed, with or without retrial, when it is one of the following:
* * *
(4) An order that grants or denies a provisional remedy and to which both of the following apply:
(a) The order in effect determines the action with respect to the provisional remedy and prevents a judgment in the action in favor of the appealing party with respect to the provisional remedy.
(b) The appealing party would not be afforded a meaningful or effective remedy by an appeal following final judgment as to all proceedings, issues, claims, and parties in the action.
R.C.
Appellant has argued that the trial court incorrectly granted Appellee's motion to compel the production of documents. Appellant has averred that the documents in question are confidential, and therefore, not subject to discovery.
It is axiomatic that documents containing privileged information or those constituting trade secrets are exempt from disclosure. See State ex rel. The Plain Dealer v. Ohio Dept. ofIns. (1997),
This Court holds that any order compelling the production of documents which constitute trade secrets is a final appealable order under R.C.
The Ohio Rules of Civil Procedure clearly state that Rule 34 requests are the only means by which discovery of documents from a party may be had. Civ.R. 45(A)(1)(c) ("documents may be obtained from a party in discovery only pursuant to Civ.R. 34."(Emphasis added)). Civ.R. 34 states in pertinent part:
[A]ny party may serve on any other party a request to produce and permit the party making the request, or someone acting on the requesting party's behalf (1) to inspect and copy, any designated documents (including writings, * * *) that are in the possession, custody, or control of the party upon whom the request is served; (2) to inspect and copy, test, or sample any tangible things that are in the possession, custody, or control of the party upon whom the request is served; (3) to enter upon designated land or other property in the possession or control of the party upon whom the request is served for the purpose of inspection and * * * photographing, * * *.
Civ.R. 34 goes on to state that the party upon whom the request is served must file a written response within the time specified in the request. Civ.R. 34(B). This provision indicates the method by which the non-requesting party may object to the request.
Civ.R. 37(A)(2) states in part, "if a party, in response to a request for inspection submitted under Rule 34, fails to respond that inspection will be permitted as requested or fails to permit inspection as requested, the discovering party may move for an order compelling * * * inspection in accordance with the request." Thus, reading Civ.R. 34, 37 and 45 together, this Court concludes that a motion to compel the production of documents, and more importantly an order to compel production of documents, may comeonly after a Civ.R. 34 request.
In the case at bar, Appellee failed to submit a formal writing styled "Rule 34 Request for Production of Documents." It appears from the record, however, that Appellee did, in fact, request the documents at issue prior to his motion to compel. On August 6, 1998, during Mr. Myers' deposition, Appellee for the first time specifically requested each of the seven documents in issue.2 Nevertheless, this Court finds that Appellee has not fulfilled his obligation under the Ohio Rules of Civil Procedure. While recognizing and in no way discouraging this practice or any other variation of informal discovery, this Court holds that a formal, written Civ.R. 34 request is absolutely necessary before a motion to compel under Civ.R. 37(A) can be filed. Appellee's informal requests during Mr. Myers' deposition simply do not satisfy the mandate set forth in Civ.R. 45(A)(1)(c). Appellant's third assignment of error is, therefore, sustained.
A written motion, other than one which may be heard ex parte, and notice of the hearing thereof shall be served not later than seven days before the time fixed for the hearing, unless a different period is fixed by these rules or by order of the court.
Likewise, Loc.R. 7.14(A) of the Court of Common Pleas of Summit County, General Division, states:
Every motion filed shall be accompanied by a brief stating the grounds upon which it is based, and a citation of authorities relied upon to support the motion. Within ten (10) days after receipt of a copy of a motion, opposing counsel shall prepare and file a response to the motion setting forth statements relied upon in opposition. Every motion so filed shall be deemed submitted and shall be determined upon the written statements of the reasons in support or opposition, as well as the citation of authorities. At any time after fourteen (14) days from the date of filing of the motion, the assigned judge may rule upon the motion.
In this vein, the Ohio Supreme Court has stated, "However hurried a court may be in its efforts to reach the merits of a controversy, the integrity of procedural rules is dependent upon consistent enforcement because the only fair and reasonable alternative thereto is complete abandonment." Miller v. Lint
(1980),
In this case, the trial court ordered disclosure of the potentially confidential records without ever allowing Appellant time to respond. While Appellant bears the ultimate burden of demonstrating that the records it seeks to protect are trade secrets,3 the trial court must afford it the opportunity to do so. Appellee filed his motion to compel and only four days later, before Appellant had a chance to respond, and in contravention to both the Ohio Rules of Civil Procedure and the Summit County Local Rules, the trial court issued its order.4 It never gave notice to Appellant of its intention to rule quickly. Instead, the trial court simply ordered the information disclosed ex parte. This is unacceptable.
Appellee has argued that Appellant continued to delay and on the eve of trial, refused to disclose this information. This Court notes that if time is truly of the essence, the moving party may always request an accelerated response date, which with notice the trial court may grant.5 In the end, a trial court must follow the Ohio Rules of Civil Procedure and its local rules. The non-moving party must be given time to present its arguments, regardless of their merit. Neither has occurred in the instant action. As such, Appellant's second assignment of error is sustained.
Judgment reversed and cause remanded.
We order that a special mandate issue out of this Court, directing the Court of Common Pleas, County of Summit, to carry this judgment into execution. A certified copy of this journal entry shall constitute the mandate, pursuant to App.R. 27.
Immediately upon the filing hereof, this document shall constitute the journal entry of judgment, and it shall be file stamped by the Clerk of the Court of Appeals at which time the period for review shall begin to run. App.R. 22(E).
Costs taxed to Appellee.
Exceptions.
BETH WHITMORE FOR THE COURT SLABY, P.J.
CARR, J.
CONCUR
To expedite its business, the court may make provision by rule or order for the submission and determination of motions without oral hearing upon brief written statements or reasons in support and opposition.
However, the record fails to indicate any such provision or order by the trial court in the instant action.
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