SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-5475-95T3
RENA PONTIDIS and SPIRIDON
PONTIDIS, her husband,
Plaintiffs,
v.
KRIS SHAVELLI and DINA SHAVELLI
Defendants/Third-Party
Plaintiffs/Respondents,
-and-
SKATERS WORLD OF NEW JERSEY
Defendant/Third-Party Plaintiff,
-and-
PETER KOUKOUNAS, KONSTANTINOS
KOUKOUNAS, and IOANA KOUKOUNAS
Defendants,
v.
ST. GEORGE'S GREEK ORTHODOX
CHURCH OF CLIFTON,
Third-Party Defendant,
-and-
AMERICAN TRUST INSURANCE CO.
and GEORGE W. PAYNE & CO.,
Third-Party Defendants.
-------------------------------
IN THE MATTER OF AMIRALI Y. HAIDRI, ESQ.,
Appellant.
_________________________________________________________________
Submitted January 6, 1997 - Decided January
22, 1997
Before Judges Petrella, Landau and Wallace.
On appeal from Superior Court of New Jersey,
Law Division, Passaic County.
Christine M. Guerci, attorney for appellant.
DeYoe, Heissenbuttel & Mattia, attorneys for
respondents (Edward W. Martin, on the brief).
The opinion of the Court was delivered by
LANDAU, J.A.D.
Appellant, Amirali Y. Haidri, Esq. (Haidri), attorney for
plaintiffs in the underlying action, appeals, upon leave granted,
from a Law Division order directing Haidri to pay a money sanction
to defendants arising out of the refusal of plaintiffs' expert to
testify at a deposition.
These are the facts. On May 29, 1990, plaintiff, Rena
Pontidis suffered a fall at Skaters World of New Jersey in Wayne,
New Jersey. She filed a complaint against defendants Kris
Shavelli, Dina Shavelli, Peter Koukounas, Konstantinos Koukounas,
Ioana Koukounas, Skaters World of New Jersey and various fictitious
defendants. Shavelli filed an answer and a third party complaint
against St. George's Greek Orthodox Church of Clifton. Skaters
World filed an answer and a third party complaint against American
Trust Insurance Co. and George W. Payne & Co. St. George's moved
for and was granted summary judgment on November 10, 1993.
On November 25, 1995, DeYoe Heissenbuttel and Mattia (DeYoe),
attorneys for defendants Shavelli, noticed the deposition of John
H. Hanst (Hanst), plaintiffs' recreational hazard expert. The
deposition, initially scheduled for January 24, 1996, was changed
to January 26, 1996, at the DeYoe offices.
Michael Agnello, a per diem associate of Haidri, certified
that he called the DeYoe firm three days before the deposition and
informed them that Hanst required a $500 deposit for his testimony.
Agnello said that he was informed by Hanst's wife on the same day
that $500 was the "reservation fee" and that Hanst's fee for
testifying was $250 per hour. According to Agnello, immediately
upon completion of the conversation with Mrs. Hanst, he called
DeYoe and informed them that the $500 was only a reservation fee
and that the testimony fee was an additional $250 per hour.
The certification of Marilyn Moore, the office manager at
DeYoe, indicated that "plaintiff's attorney" called, but only
advised that Hanst "was charging a $500.00 fee for testifying at
his deposition" and that "if Mr. Hanst's testimony went over two
[2] hours time, Mr. Hanst charged $250.00 per hour". Moore main-tained that she informed plaintiffs' counsel that the deposition
probably would not take more than two hours. She promptly sent a
$500.00 check to Haidri for submission to Hanst.
On January 26, 1996, all parties gathered in the DeYoe offices
for Hanst's deposition. As the deposition was about to begin,
Hanst inquired whether the check for the balance of his testimony
was "in the room". Edward Martin, an attorney at DeYoe, consulted
with a partner in his firm. Martin was informed that because the
"arrangement was quite clear that this amount [$500] included
testimonial time only , not travel time" there was going to be no
further payment unless the deposition extended beyond two hours.
Haidri suggested that the defendants place $500 in escrow
until the dispute could be resolved by the court. This was
apparently acceptable to Hanst. Defendants' counsel refused to
issue another check and Mr. Hanst left without testifying.See footnote 1
Defendants then filed a motion on February 6, 1996,
petitioning the court to: (1) compel Hanst's deposition; (2) set a
reasonable fee for Hanst's appearance; (3) set a reasonable amount
for travel time and expenses for the expert; (4) award defendants
counsel fees for the motion and (5) preclude plaintiff from using
the expert witness if he failed to appear for the deposition.
The judge granted the motion and assessed a sanction against
Haidri personally, stating:
I am also awarding legal fees to the
DeYoe office who went through the motions of
doing everything properly right by the book;
paying the requested fee of $500; appearing
for the deposition; having a court reporter;
beginning the deposition; only to be told
after five minutes, you have five minutes,
unless you pay me more money, this is over.
It doesn't work that way.
Now if anyone has to bear the onus, it is
you [Haidri], as plaintiff's attorney, who
wishes to utilize this expert.
. . . .
I think you are in charge of your case.
you are in charge of your witnesses. You are
in charge of your experts.
The order provided that: (1) Plaintiff's expert Hanst appear
for deposition at the DeYoe firm within thirty days; (2) if Hanst
did not show for deposition, he would be barred from testifying at
trial; and (3) counsel fees would be paid by Haidri to the DeYoe
firm for the "time expended in the preparation of the within motion
papers," the actual amount to be determined by the judge after the
deposition had been taken and certifications submitted to the
court.
Hanst's deposition was taken on March 26, 1996 without
incident. Haidri filed a "Motion for Partial Relief from Order of
March 1, 1996" seeking an "Order vacating that part of the Court's
Order of March 1, 1996 which awarded counsel fees to DeYoe,
Heissenbuttel & Mattia to be paid by plaintiff's attorney". During
the hearing on this motion, the judge noted "to the credit of
plaintiff's counsel" that the expert appeared at the deposition
without any additional fees. However, the judge assessed the
situation as follows:
Well, basically, you hired an expert.
The other firm, the DeYoe firm, asked you how
much of a fee your expert wanted for his
deposition, and they [sic] asked for a $500
payment up front. They paid the money up
front, at your office's direction. Your
expert appears at the deposition and says "I'm
leaving in five minutes, unless you give me
another $500." And your firm did nothing to
control the situation. The deposition stopped
. . . . They put in time, effort; it -- it
was unheard of. I've never heard of such an
egregious situation where an expert says -
who's been paid the amount you asked for, and
says, you have five minutes; unless I get
another $500 I'm leaving. Now if that's not
an applicable sanction, that you pay for their
time, I don't know what is.
The motion for partial relief was denied, and on April 29,
1996, an order was entered against Haidri, awarding the DeYoe firm
$500.00 for counsel fees and also requiring "plaintiff's attorney
to pay plaintiff's expert for any additional fees charged by expert
for attending his deposition". Haidri's motion for a stay of the
judge's order was denied, but we granted leave to appeal the order,
sua sponte, on August 1, 1996.
On appeal, Haidri argues that: (1) the imposition of counsel
fees against counsel was unauthorized by rule, statute or contract;
(2) the court did not have inherent powers to sanction Haidri for
conduct which was "not unprofessional nor negligent nor careless
nor tantamount to bad faith"; (3) the lower court abused its
discretion by awarding $500 for attorney fees; and (4) the lower
court abused its discretion by ordering Haidri to pay any
additional fees sought by Hanst for attending his deposition.
We reverse.
A court has the inherent power in appropriate circumstances,
to sanction an attorney, rather than the client, particularly when
the attorney's improper conduct has resulted in additional costs to
the adverse party or the judicial system. In re Timofai Sanitation
Co.,
252 N.J. Super. 495, 505-06 (App. Div. 1991); Oliviero v.
Porter Hayden Co.,
241 N.J. Super. 381, 384-88 (App. Div. 1990).
In this case, however, we are unable to discern in the record or in
the judge's explanation for this sanction, any basis for imposing
upon plaintiffs' attorney costs arising from the conduct of his
retained expert.
Nothing in the record points to a deliberate effort by
plaintiffs' attorney to sabotage the deposition, or to his
punishable negligence respecting the last minute demands made by
Hanst as a condition to testifying. The expert was not Haidri's
agent, but a retained independent contractor. Moreover, Haidri
appears to have attempted to enable the deposition to proceed by
proposing the escrow alternative.
Plaintiffs' attorney was held responsible and sanctioned for
conduct of a third party because he was deemed to be "in charge of
[his] witnesses." As it was not demonstrated that Haidri had such
control, this was an improper exercise of discretionary power. We
note that the findings respecting the deponent expert's conduct led
to no imposition of sanctions upon that deponent nor upon the
parties plaintiff. See, R. 4:23-1(c); R. 4:23-2(a), (b); R. 1:10-2; cf. B. and H.S. Corp. v. Holly,
198 N.J. Super. 83, 88 (App.
Div. 1984) certif. den.
101 N.J. 255 (1985).
The order of sanction against Haidri is reversed, and the
matter remanded to the Law Division for continuation of the
principal action.
Footnote: 1 Haidri contended at the argument on the motion that he was unable to issue his own check because he was not in his office. He therefore attempted to offer an immediate solution to the problem.