In litigation, depositions are a crucial tool for gathering information, clarifying facts, and obtaining testimonies that can influence the outcome of a case. When dealing with corporate entities, the deposition process can vary significantly depending on whether the deposition involves the company itself or an individual employee, either current or former.
A corporate deposition, commonly referred to as a Rule 199.2(b)(1) deposition under the Texas Rules of Civil Procedure, involves the deposition of a company as an entity. In this type of deposition, the company is required to designate one or more representatives to testify on its behalf regarding specific topics identified by the opposing party.
Key Aspects:
The company must appoint at least one individual who is knowledgeable about the topics mentioned in the deposition notice. These representatives don’t need to have firsthand knowledge of the events but should be able to testify on behalf of the company after reviewing the relevant information.
The designated representatives must be adequately prepared to answer questions on the specified topics. This may involve reviewing documents, consulting with other employees, or gathering information from various departments within the company. The company's preparation is crucial because the testimony given is considered the company's official stance.
The testimony provided during a corporate deposition reflects the company’s knowledge and position as a whole. This means the company is bound by the testimony, and it cannot later claim ignorance of the facts discussed during the deposition.
If a designated representative is unprepared or provides inaccurate information, the company may face legal repercussions, including sanctions. The opposing party may also use the testimony to establish binding admissions against the company.
A corporate representative deposition is a specific type of legal proceeding where a company, rather than an individual, is called to testify. Under Texas Rule of Civil Procedure 199.5(b)(1) and Federal Rule of Civil Procedure 30(b)(6), this means that the company must designate one or more people to speak on its behalf about certain topics that are relevant to the case.
Here's how a Corporate Rep deposition works:
Whether the case is in a Texas court or federal court, the party requesting the deposition must clearly list the topics they want to cover. This means they need to provide enough detail so that the company knows which person or people should speak on those topics and can prepare them properly. The notice is crucial because it defines what will be discussed during the deposition.
The company's attorney should review the list of topics and clarify any that are unclear or confusing. If necessary, they should object to prevent any issues during the deposition or trial. The company must then choose one or more representatives who can testify on its behalf. These representatives should be well-prepared and knowledgeable about the topics based on information the company has or can reasonably get.
Deposing a current employee of a company involves taking the testimony of an individual who is still employed by the company. This deposition is distinct from a corporate deposition, as the employee's testimony reflects their personal knowledge and experiences rather than the company's official position.
Key Aspects:
The testimony of a current employee is based on their personal involvement, knowledge, and recollection of the events in question. Because of this, the employee is not required to represent the company’s overall stance or be prepared on every aspect of the case, which would be necessary in a corporate deposition.
There is a possibility that because the employee still works for the company, they might feel some pressure to match their testimony with the company’s interests in the lawsuit. However, their statements do not legally bind the company unless they relate directly to the employee’s job duties and responsibilities.
Due to the scope of the employee's testimony being limited to what they personally know or have experienced, they cannot be compelled to testify about matters beyond their knowledge or outside their job responsibilities.
The testimony of a current employee can still be impactful, particularly if it contradicts the company's position or reveals internal inconsistencies. However, it is not as binding on the company as a corporate deposition would be.
Deposing an employee who is still working for the company and is loyal to it, especially in a breach of contract case involving internal organizational issues, requires careful preparation and consideration of the unique dynamics at play. The company’s legal team needs to be vigilant in preparing the employee while being mindful of the potential for bias, conflicts of interest, and the impact on the employee’s ongoing relationship with the company.
Deposing a former employee of a company presents unique challenges. Unlike current employees, former employees no longer have a direct relationship with the company, which can influence the nature of their testimony.
Key Aspects:
A former employee may feel more independent and less obligated to remain loyal to the company, potentially leading to more candid or unfavorable testimony. However, this independence also means that the company has less control over the former employee's statements.
Similar to a current employee, a former employee's testimony is based on their personal knowledge and experiences. They cannot speak on behalf of the company or provide testimony that extends beyond their time of employment.
A limiting factor in deposing a former employee is they may no longer have access to company documents, records, or other resources that could aid in their testimony.
The testimony of a former employee can be critical, especially if it exposes misconduct, internal issues, or discrepancies with the company's current stance. However, since they are no longer affiliated with the company, their statements are not binding on the company in the same way that a corporate deposition would be.
For example, deposing a former employee who is the plaintiff in a breach of contract case introduces different challenges than deposing a current employee. The former employee’s potential lack of loyalty and willingness to disclose sensitive information about the company’s internal issues requires careful consideration and strategic planning by the company’s legal team. The company must be prepared for a broader and potentially more adversarial deposition, with an emphasis on mitigating any damaging testimony that could arise. The former employee’s testimony could still have significant repercussions for the company, particularly if they reveal previously unknown or sensitive information.
In Texas, every subpoena must meet specific requirements: (1) it must be issued in the name of the State of Texas; (2) include the style of the suit and its cause number; (3) state the court where the suit is pending; (4) list the date of issuance; (5) identify the person being subpoenaed; (6) detail the time, place, and nature of the required action; (7) identify who requested the subpoena and their attorney; (8) include the text of the rule regarding contempt; and (9) be signed by the issuing authority (TRCP 176.1).
Only certain individuals can issue a Texas subpoena: (1) an attorney licensed to practice in Texas; (2) a Texas court clerk; or (3) an officer authorized to take depositions in Texas (TRCP 176.4).
While it’s not mandatory, it's often a good idea to open an ancillary proceeding before serving a subpoena. Doing so ensures you have a court in place to handle any objections to the subpoena, resolve disputes that may come up during a deposition, and hear motions to compel compliance. This step can help secure smoother proceedings and ensure compliance with the discovery process.
Notice requirements in Texas vary based on the type of discovery you're pursuing. For an oral deposition, with or without a request for documents, notice must be served a 'reasonable time' before the deposition (TRCP 199.2(a)). The accompanying subpoena can be served at the same time or after the notice is served (TRCP 205.2).
For a deposition on written questions, with or without a request for documents, notice must be served at least 20 days before the deposition (TRCP 200.1(a)). Again, the subpoena can be served at the same time or after the notice (TRCP 205.2).
When requesting documents without a deposition, notice must be served a 'reasonable time' before the compliance deadline (TRCP 205.3(a)). In this case, the subpoena must be served 10 days after the notice (TRCP 205.2).
Under Texas law, a subpoena can be served anywhere in the state by a sheriff, constable, or any person who is not a party to the case and is at least 18 years old. To properly serve the subpoena, a copy must be delivered to the witness, along with any required fees (TRCP 176.5).
In certain situations, specific fees must be provided when serving a discovery subpoena in Texas. For example, if a non-party is required to attend a deposition, they are entitled to a one-day witness fee of $10 at the time the subpoena is served (CPRC § 20.004). Similarly, if a discovery subpoena requests documents from a custodian of records, the custodian is entitled to a $1.00 fee for the production and certification of those documents, which must also be paid when the subpoena is served (CPRC § 20.004).
If these required fees are not included, the subpoena is considered legally defective.
If a non-party fails to comply with a valid and enforceable subpoena without a sufficient excuse, a Texas court can hold them in contempt and impose penalties, including fines or imprisonment (TRCP 176.8). The court can also compel the non-party to respond to the discovery subpoena.
In the case of Warford v. Childers, the Seventh Court of Appeals ruled that it had jurisdiction to review a trial court’s denial of a party’s motion to compel. The Court of Appeals determined that in an ancillary proceeding like this, the order related to discovery was considered a final judgment. Typically, such an order would be interlocutory if the entire case were being tried in Texas (Warford v. Childers, 642 S.W.2d 63, 66, Tex. App. – Amarillo 1982, no writ).
The Fourteenth Court of Appeals has noted that Texas courts lack jurisdiction to assess whether a commission from another state is defective. This limitation is especially relevant when a party argues that a Texas court should refuse a foreign court’s commission due to insufficient analysis of relevance and materiality by the foreign court (Centennial Psychiatric Associates, LLC v. Cantrell, No. 14-17-00380-CV, 2017 WL 6544283, at *7, Tex. App. – Houston [14th Dist.] Dec. 21, 2017, no pet.).
In an earlier decision, the Fourteenth Court of Appeals ruled that Texas courts 'do not have the authority to quash or limit depositions based on a belief that the discovery is irrelevant' (In Matter of Issuance of Subpoenas Depositions of Bennett, 502 S.W. 3d 373, 378, Tex. App. – Houston [14th Dist.] 2016, no pet.). If an out-of-state party seeks relief regarding the relevancy of the deposition, they should pursue that relief in the jurisdiction where the case is pending.
In Texas, Rule of Civil Procedure 201.2 lets a party involved in an out-of-state legal case compel discovery from a Texas resident. This can be done through either an oral deposition or a deposition on written questions, and both methods may include requests for documents. Additionally, Texas courts permit out-of-state parties to compel discovery through a stand-alone document request.
In Texas, if you’re seeking discovery from a Texas resident for an out-of-state case, you must first obtain a 'mandate, writ, or commission' from the out-of-state court specifying the required discovery (TRCP 201.2; CPRC § 20.002).
Once you have that, a Texas court may compel the witness to appear and testify. However, it's important to note that at least one Texas Court of Appeals has clarified that Rule 201.2 'does not mandate that Texas courts do so.' This was highlighted in the case of In re Seavall (No. 03-13-00205-CV, 2013 WL 3013872, at *2, Tex. App. – Austin June 11, 2013, no pet.)
In Texas, a subpoena is the tool used to compel a non-party to comply with discovery requests. However, it's important to know that a Texas court will not enforce an out-of-state subpoena against a Texas resident.
If you need assistance in business or corporate litigation, including drafting or defending a subpoena, the litigation attorneys at Wilson Whitaker Rynell are here to assist you!
Contact us for a free initial consultation by calling 972-248-8080 or submitting a request via our Contact Form.
Have an idea for a blog? Click and request a blog and we will let you know when we post it!
Let's talk about your legal issue
Wilson Legal Group P.C.
d/b/a Wilson Whitaker Rynell
(972) 248-8080 (Dallas) MAIN OFFICE
(713) 830-2207 (Houston) Appointment Only
(512) 691-4100 (Austin) Appointment Only
For more information on how we can assist in your intellectual property, commercial litigation, divorce, or other personal needs, let us know how we can help you:
WILSON WHITAKER RYNELL
Thank You for Contacting Us!
Your information has been sent, and we will contact you shorlty...issues.
WILSON WHITAKER RYNELL
Oops, there was an error sending your message.
Please try again later.
Disclaimer:
This form does not establish an attorney-client relationship, and should only be used to contact the firm about scheduling a call or meeting. No confidential or sensitive information should be sent using this form.
We represent clients nationwide, including Dallas, Austin, Houston, and other Texas areas such as Fort Worth, Arlington, Carrollton, Plano, Allen, Lewisville, Flower Mound, Irving, Denton, McKinney, North Richland Hills, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.
Wilson Whitaker Rynell
16610 Dallas Parkway, Suite 1000
Dallas, Texas 75248
972-248-8080 (MAIN)
972-248-8088 (FAX)
info@wrrlegal.com (E-MAIL)