This section contains the nature of the case and procedural background.

Cine (P) sued Allied (D) and others operating competing movie theatres for a conspiracy to cut off its access to first-run, quality films. P filed an antitrust suit and sought treble damages and injunctive relief. In 1975, D presented interrogatories on the issue of damages and P repeatedly failed to answer them adequately or on time, even with several extensions. Three years later, P has failed to retain an expert or adequately respond to the interrogatories. The magistrate ordered P to answer, and P’s response was once again late and inadequate. The magistrate found that P's acts were willful and recommended that P be precluded from introducing evidence on those issues. This only left the claim for injunctive relief. The district judge determined that P had been grossly negligent which was not sufficient grounds to invoke the severest sanctions of Fed. R. Civ. P. 37. The judge then fined P $1,000 in costs. The judge certified an interlocutory appeal on his own motion.

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