Rice v. Ehele, 55 N.Y. 518 (1874)

An order striking out a defendant’s answer and precluding them from any defense in an action requires notice and an opportunity to be heard, even if a prior conditional order threatened such action upon non-compliance with discovery.

Summary

This case addresses the due process requirements for enforcing discovery orders. The New York Court of Appeals held that striking a defendant’s answer and precluding their defense requires notice and an opportunity to be heard, even if a prior order conditionally threatened such action for failing to produce documents. The initial order was deemed an alternative, requiring proof of non-compliance before an absolute order could be issued. The court emphasized that the right to defend an action cannot be taken away without a hearing, and neither a general rule nor an anticipatory order can substitute for proper notice and a chance to be heard.

Facts

The plaintiff sought discovery of books and documents from the defendants. An initial order was issued directing the defendants to produce the documents within a specific timeframe. The order included an alternative provision: if the defendants failed to produce the books within the given time, their answer would be stricken, and they would be precluded from defending the action, unless they obtained an order to show cause explaining their non-compliance.

Procedural History

Justice James initially granted the order for discovery on March 5, 1872. Justice Doolittle subsequently issued an order to show cause on April 11, 1872, at the defendants’ request. Ultimately, Justice Doolittle then struck the defendants’ answer on May 20, 1872, precluding their defense. The defendants appealed this final order, which was taken *ex parte*, after a motion to set aside was denied.

Issue(s)

Whether an order striking a defendant’s answer and precluding them from any defense, based on a failure to comply with a prior discovery order, is valid if issued without notice and an opportunity for the defendant to be heard.

Holding

Yes, because after a party has appeared and pleaded in an action, they are entitled to notice and have a right to be heard before the granting of an order so important as one striking out their pleading and precluding them from any defense therein.

Court’s Reasoning

The court reasoned that the initial order was not absolute and final but rather an alternative. Before the order could become absolute, the defendants must have failed to comply with its requirements, and the court must have legal information thereof. The court found that even with the initial conditional order, the defendants were entitled to notice and an opportunity to be heard before the court issued a final order striking their answer. The court relied on established legal principles of due process and statutory interpretation of the Revised Statutes regarding discovery procedures. The court noted the importance of giving the party the right to show that an order should not be made absolute against him. The court cited Commissioners of Kinderhook v. Clau, 15 J.R., 537, emphasizing that facts are generally shown to the court upon notice when parties have appeared and are litigating. The court also determined that the general rules established by the Supreme Court could not supersede the statutory rights of parties to notice and a hearing. The Court stated, “Our opinion is, that the right to prosecute, or to plead in or defend an action, may not be taken away without a hearing, and that neither a general rule nor an anticipatory order, will stand in the place of notice and opportunity to be heard.”