International Insurance v. Montrose Chemical Corp.

Montrose Chemical Corporation of California and International Insurance Company are involved in litigation to determine whether various insurance companies are obligated to indemnify Montrose for hazardous waste pollution problems at several sites in California. International appeals from an order imposing discovery sanctions against it. We affirm and impose further sanctions for a frivolous appeal.

Facts

During the 1980’s, Richard J. Power was an independent claims adjuster who did some work for International on Montrose’s claim. According to Montrose, Power’s initial communication “acknowledged coverage” by International, an assertion vehemently disputed by International.

Power now lives in Connecticut. Following appropriate procedures, Montrose set Power’s deposition for three days, beginning April 2, 1990, in Connecticut. Power appeared for his deposition, represented by International’s attorney at International’s expense. During the deposition it became apparent that, in preparation for Power’s testimony, International’s attorney had provided numerous documents to Power to refresh his recollection.

After establishing that Power had spent one or two hours…