Patricia Scott Anderson v. Air West, Incorporated

This is an interlocutory appeal from an order of the district court entering a default judgment and imposing sanctions against cross-defendants Howard Hughes (Hughes), Hughes Air Corp. (Hughes Air), and Summa Corp. (Summa). The order followed a failure of Howard Hughes to appear for deposition as ordered [Fed.R.Civ.P. 37], We affirm.

The district court certified the default order for interlocutory appeal pursuant to 28 U.S.C. § 1292 (b) and this court granted leave to appeal.

In 1973 plaintiff Anderson brought this shareholders’ action against Hughes, Hughes Air and Summa, and the officers and directors of Air West, Inc. (Air West), alleging securities act violations, breach of common law duties and fraud in the 1970 acquisition by Hughes Air of Air West.

Early in 1972 the liquidating trustees of Air West (trustees) had filed an action in California state court, alleging that Hughes, Hughes Air and Summa had wrongfully deprived Air West and its shareholders of more than half the agreed purchase price. The trustees subsequently entered the instant litigation by cross-claiming against Hughes, Hughes Air and Summa, and naming as third-party defendants Hughes’ personal attorney and…