EVIDENCE OF WHY YOU SHOULD IGNORE CHIRO
Here's what chiro he said concerning the Rabbit case...
Message 13950240
dave johnston and his attorney were found guilty of delivering papers required to be in the judge's office on a friday, on a monday instead. mr. johnston, due to his attorney's mistake of the dates was fined a small amount because they were one day late bringing some papers to court.
NO OTHER FAULT WAS FOUND WITH MR. JOHNSTON. THIS VIOLATION IS EQUIVALENT TO A COUPLE PARKING TICKETS, IMHO. I REPEAT: HE WAS NOT FOUND GUILTY OF ANY FRAUDULANT ACTIVITY.
Here's the Appeal where the $25 million Judgement was affirmed (won by the defrauded investors)...
siliconinvestor.com
Here's what the Appeal Said
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Events Leading to the Sanction Order
The plaintiffs in the underlying litigation are members of a group of investors who alleged that they had been defrauded by a limited partnership scheme to breed rabbits for meat and pelts. The promoters of the scheme were the individual defendants, David B. Johnston, Dennis A. Leatherman and Richard Rampton. Also involved and named as defendants were corporations whose principal or sole owners were the individual defendants. Plaintiffs claimed that they were fraudulently induced to invest in the scheme upon misrepresentations by the defendants of the value of the rabbits and the market for such rabbits. The plaintiffs apparently invested more than $ 3 million in cash and $ 18 million in promissory notes.
Plaintiffs filed the case in July 1985 alleging causes of action under the [**4] Securities Act, 15 U.S.C. õõ 77a-77aa (1988), the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. õõ 1961-1968 (1988), and pendent claims for fraud and deceit. The complaint sought actual damages of $ 25 million, additional interest, additional unspecified damages, and treble damages under RICO. In response, the defendants filed counterclaims for breach of contract, interference with prospective economic advantage and inducing breach of contract.
Plaintiffs' discovery efforts began in May 1986. The magistrate's findings document the sorry obstacle course defendants required plaintiffs to undergo for the next two years. The defendants' conduct with respect to depositions is illustrative. For example, on July 29, 1986, defendants failed to appear for their noticed depositions. The only excuse offered by their counsel was that another attorney was ill and could not accompany them. On August 7, 1987, defendant Leatherman failed to appear at a scheduled deposition. Leatherman again did not appear on the rescheduled date of August 10. On August 11, 1987, defendant Rampton failed to appear at his scheduled deposition. [**5] His lawyer indicated an inability to reach Rampton. On August 13, 1987, defendant Johnston failed to appear at a noticed deposition. In the end, Rampton, Johnston and Leatherman each failed to appear for three properly noticed depositions. The defendants never obtained a protective order relieving them of any obligation to appear, and they did not even inform opposing counsel on most occasions of their intention not to appear.
The record with respect to other discovery is no better. Between May 27, 1986 and January 13, 1988, there were eleven hearings and at least nine orders compelling production of documents described in the plaintiffs' first request for production of documents. Although District Judge Weigel on September 9, 1986 held that the defendants had waived any objections to the production by their failure to make any timely effort to seek a protective order, the defendants continued to withhold the documents under various claims of privilege. The correctness of Judge Weigel's ruling and the unavailability of any privilege to the defendants has never been seriously disputed in the case. A second request for production, on June 16, 1987, yielded no response whatsoever from [**6] the defendants.
The record on interrogatories is similar. On June 16, 1987, plaintiff served a first set of interrogatories on all the defendants. Johnston and Rampton did not respond that year. The response of the remaining defendants was untimely, and purported to be a "joint answer" which did not enable the plaintiffs to determine the position of each defendant, in apparent contravention of the requirement of Federal Rule of Civil Procedure 33 that interrogatories be answered "separately and fully," and "by the party served." Similarly, the corporate defendants did not verify their interrogatories in [*655] contravention of the requirement of Rule 33 that answers be signed.
The magistrate summarized in the following language:
21. Since this case was filed, defendants have done nothing, as far as discovery is concerned, in a timely fashion. The record discloses that defendants have consistently failed to respond, not only to discovery requests from plaintiffs but also to the orders of this court. Defendants have been given repeated opportunities to comply with this court's discovery orders and thereby avoid entry of default judgment. Defendants have twice been [**7] warned, first by Judge Weigel and again by Magistrate Brennan, of the possible consequences of their failure to comply with this court's orders or the applicable rules of discovery. However, defendants have exhibited complete indifference to these warnings, the orders of this court and their discovery obligations, thereby thwarting plaintiffs' every attempt to secure basic, legitimate discovery. We are therefore of the opinion that the record vividly demonstrates defendants' flagrant bad faith and willful disregard of their discovery responsibilities, justifying entry of judgment against defendants and dismissal of the counterclaims herein. |
