FROM JEFFERSON CIRCUIT COURT HONORABLE MARY M. SHAW, JUDGE
ACTION NO. 14-CI-004614
FOR APPELLANT: Raymond G. Smith Michael W. McClain
FOR APPELLEE: Carolyn A. Taggart Justin J. Joyce Cincinnati,
BEFORE: CLAYTON, CHIEF JUDGE; ACREE AND TAYLOR, JUDGES.
CLAYTON, CHIEF JUDGE.
Consumer Products, LLC ("Royal") appeals from the
Jefferson Circuit Court's grant of summary judgment in
favor of Buckeye Boxes, Inc. ("Buckeye") on
Royal's breach of contract claim against Buckeye. Upon
careful review, we affirm.
September of 2014, Royal filed a complaint against Buckeye
alleging that Buckeye had breached the parties' contract
by failing to timely deliver certain project boards. In its
first interrogatory request, Buckeye asked that Royal
"[i]dentify each person . . . who you know or believe
has knowledge of any facts relevant to [the suit between the
parties] or the allegations contained in the Complaint . . .
[.]" In response, Royal identified Christopher Stiles
and Steve Schulman, and stated:
Mr. Stiles has personal knowledge of the underlying events
that gave rise to this Action. [Royal's] product orders,
communications between the parties regarding [Buckeye's]
failure to fulfill the terms of [Royal's] purchase
orders, the necessity of [Royal] to fill those orders from
other supplies, and personal knowledge of the underlying
events that gave rise to this Action.
representation of Schulman's knowledge was very similar,
Mr. Schulman has personal knowledge of [Royal's] product
orders, communications between the parties regarding
[Buckeye's] failure to fulfill the terms of [Royal's]
purchase orders, and personal knowledge of the underlying
events that gave rise to this Action.
later submitted a second set of interrogatories and requests
for the production of documents aimed at determining specific
evidence of Royal's damages, requesting that Royal:
Identify each and itemize all damages that you are seeking in
this lawsuit, the method by which you determined each amount,
your efforts to mitigate [y]our damages, and identify all
persons with knowledge regarding these damages and all
documents evidencing the same.
responded to this interrogatory in June of 2017 as follows:
ANSWER: [Royal] seeks damages in the total amount of not less
than $14, 331.90. That figure consists of the following
categories of damages: (1) lost margins totaling $14, 331.90
(office Depot - $5, 926.68; K-Mart -$3, 617.82; and Office
Max - $4, 787.40; (2) price increase (for having to resort to
alternate vendors on short notice) totaling ($3, 784.16); and
PAL penalties totaling $2, 098.74. [Royal] attaches hereto
documentation upon which it relied to determine its damages.
[Royal] mitigated its damages by seeking out orders from
alternate vendors to enable [Royal] to meet its requirements.
Steven Schulman and Chris Stiles have knowledge of
[Royal's] damages and of the documents produced herewith.
Attached to Royal's response were several spreadsheets on
which various dollar amounts and vendors were listed.
further submitted a notice for the deposition of Royal's
corporate representative under Kentucky Rules of Civil
Procedure (CR) 30.02(6). Specifically, Buckeye requested that
Royal designate one or more representatives to testify about
the following topics:
- All communications between Royal and Buckeye regarding
agreements and contracts between the parties, payment and
delivery of products under any such agreements and contracts,
purchase orders, and the dispute that is the subject of the
- Royal's policies and practices for making payments on
- Royal's recordkeeping, accounting, and bookkeeping
policies and practices;
- Royal's communications regarding the project boards
with the entity or entities that purchased the project boards
- Royal's "lost sales and penalties," and
documents regarding these lost sales and penalties;
- Royal's allegation that Buckeye had improperly placed a
hold on a certain order, and this hold caused "Royal to
suffer substantial damages and necessitating that Royal
retain the balance of the amount owed as security until such
time as Buckeye agreed to compensate Royal for said
- Royal's allegation that it was "forced to cover .
. . by obtaining substitute boards from another seller,
thereby causing Royal to incur substantial damages including
but not limited to the costs of the substitute project
boards, as well as expediting fees, back order fees, and lost
produced Stiles as its corporate representative under CR
30.02(6), and Stiles was deposed in August of 2017.
deposition, Stiles admitted that he had done nothing in the
way of preparation in order to answer the questions posed to
him as Royal's corporate representative under CR
30.02(6). For example:
Q: All right. What did you do to prepare for your testimony
A: I have done nothing.
Q: Did you review any documents?
A: No ma'am. I don't have any documents to review.
Q: Okay. Have you talked with the attorney for [Royal]?
A: I have.
Q: Okay. And when did you talk to him?
A: I've talked to him via email a couple of times about
my flight today . . . about when to be here. But outside of