Spring 2022 Gavel-FINAL | Page 21

Simmons v . Cudd Pressure Control , Inc ., et al ., 2022 ND 20 . Filed 1-21-22 .
Simmons was injured when a pipe struck him while he was working on an oil well . The operator of the well was Murex Petroleum Corporation . Cudd Pressure Control Inc . was working on the well for Murex . Cudd was removing sections of pipe from a well using a device called an elevator . Simmons was struck by a section of pipe that slipped through the elevator and fell to the ground .
Murex moved for sanctions alleging Cudd spoliated evidence by changing parts of the elevator after the accident , which Murex claimed made the portion of the elevator that clasped the pipe smaller in diameter than it was when the accident occurred . After a two-day evidentiary hearing , the district court sanctioned Cudd , in part , by striking the defense and indemnification provisions in the Murex / Cudd Master Service Agreement .
The district court found Cudd failed to preserve the elevator on the day of the accident and everyday thereafter . However , the district court found it was not possible to determine when the repairs and replacements occurred because the elevator was cleaned and Cudd hid it for a period of time after the lawsuit was filed . The Supreme Court found the district court abused its discretion when it imposed sanctions for spoilation , because the district court was unable to make a finding on the record presented as to whether the alterations occurred before or after Cudd ’ s duty to persevere evidence arose .
In response to several of McKibbage ’ s discovery requests , CHI asserted privilege objections , and provided a privilege log identifying undisclosed documents and the privileges it claimed . McKibbage filed a motion to compel , asserting CHI did not provide sufficient information in the privilege log . CHI responded it provided all the information it could without violating the peer review law . CHI agreed to produce an amended privilege log containing greater descriptions , including identifying documents as , among other things , “ Peer Review Committee Correspondence ” and “ Peer Review Committee Documents .”
The district court found the law permitted the disclosure of additional information . CHI moved to stay the proceedings pending its supervisory writ to the Supreme Court . In disagreeing with a federal district court order in Kraft v . Essentia Health , No . 3:20-cv- 121 ( D . N . D . Aug . 2 , 2021 ), the Supreme Court took “ the opposite approach , looking first to the words of the peer review statute , and then determining how they apply to the procedure established by N . D . R . Civ . 26 .” The Supreme Court agreed with CHI the dates of the documents were irrelevant to the determination of the peer review privilege and should be protected , and also agreed with CHI the identities of the authors and recipients of the documents and their positions fell within the definition of “ peer review records .” The Supreme Court reversed the district court , granted CHI ’ s petition , and vacated the district court ’ s order on the motion to compel .
Sproule v . Johnson , 2022 ND 51 . Filed 3-17-22 .
The Johnson defendants appealed from an amended judgment dissolving the Johnson Farms partnership , arguing the district court erred in its valuation and distribution of the partnership ’ s assets . The Supreme Court affirmed the district court . At trial , the parties presented evidence on the value of an asset , Shilo Farms , in which Johnson Farms held an ownership interest . The district court found the 2019 appraisal by plaintiffs was more accurate than the 2017 appraisal offered by defendants because the plaintiffs continued contributing capital and paying taxes on undistributed income resulting in growth and increased productivity for Shilo Farms between 2017 and 2019 .
The Supreme Court held valuation is a question of fact , that it presumes a district court ’ s valuations are correct , and a valuation within the range of evidence presented at trial is not clearly erroneous . The district court found the defendants ’ evidence related to taxes was speculative because there were no immediate plans to liquidate Shilo Farms ’ assets , which was affirmed . The Supreme Court also concluded the district court did not err , under the unique facts of the case , in valuing the farm using the 2019 appraisal rather than the 2017 appraisal .
St . Alexius Medical Center v . Nesvig , 2022 ND 65 . Filed 3-17-22 .
McKibbage sued CHI St . Alexius Health Bismarck ( CHI ) for medical malpractice relating to a surgery performed in 2017 .
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