Liberty Mutual Fire Insurance Co. v. LcL Administrators, Inc.

— In this ordinary breach of contract action by plaintiff Liberty Mutual Fire Insurance Company (Liberty) to recover workers’ compensation insurance premiums, defendant LcL Administrators, Inc. (LcL), filed an answer and cross-complaint alleging that Liberty mishandled its claims.

Liberty propounded simple, straightforward interrogatories, asking for witnesses, documents and evidence to support LcL’s affirmative defenses and cross-claims. Each time, LcL gave vacuous, meaningless responses. Frustrated with LcL’s continued stonewalling, the trial court granted Liberty’s motion for terminating sanctions, striking both the answer and the cross-complaint.

LcL appeals from the resulting judgments, claiming that the trial court abused its discretion in granting terminating sanctions because (1) the court’s finding that LcL “willfully” failed to comply with discovery was not supported by substantial evidence; (2) even if the discovery violations were willful, terminating sanctions were unwarranted because these derelictions did not prejudice Liberty’s ability to try the case; and (3) the sanctions were excessive because they were punitive in nature and addressed past conduct…