In a significant ruling, the Washington Court of Appeals has ruled in favor of arguments by PCVA attorneys Darrell Cochran, Andy Ulmer and team upholding nearly $500,000 in sanctions against C3 Manufacturing LLC, a Colorado-based equipment maker, and its former law firm, Sinars Slowikowski Tomaska LLP. The penalties stem from allegations of discovery misconduct in a lawsuit involving a climber’s 2019 fall at a Seattle gym, Vertical World. The court found that C3 and its counsel failed to disclose critical information, including multiple site visits by a defense attorney and the rescission of a $4 million supplemental insurance policy.
The Case Background
The lawsuit began after climber Michael Vandivere sustained serious, life altering injuries when an auto-belay device malfunctioned while climbing at Vertical World. Vandivere and his family sued both C3 Manufacturing, the device maker, and the gym. The case escalated when it was revealed that Chris Furman, an attorney for C3, had visited the gym over 38 times without disclosure during the discovery phase.
The appellate panel noted additionally that C3 concealed the rescission of a $4 million insurance policy by Houston Casualty Co., a development that plaintiffs and Vertical World argued would have significantly impacted their litigation and settlement strategies.
Court Findings
The appellate court, led by Judge Leonard Feldman, affirmed the trial court’s findings, concluding that the undisclosed site visits and insurance rescission justified the sanctions. The judges stated that Furman’s visits “sat at the center of the product defect causes of action” and deemed the failure to update discovery responses as “knowing concealment.”
C3 and Sinars were held jointly liable for $287,527 in costs and fees to Vandivere and $212,630 to Vertical World. The case later settled, with C3 agreeing to pay $5 million and Vertical World contributing $1 million.
Ethical Concerns
The appellate panel also upheld the trial court’s decision to refer Furman and his supervising attorneys to the Washington State Bar Association for potential ethical violations, though the disciplinary outcomes remain separate from the sanctions ruling.
Attorney Reactions
Darrell Cochran, representing Vandivere, praised the court’s rulings as “impressive and well-reasoned,” adding that they “serve justice well.” Cochran further emphasized the gravity of the misconduct, stating, “These violations are unethical and egregious. It was right about the start of the trial that we learned an insurance company tried to cancel its policy for the manufacturer due to fraudulent concealment of information, much the same as we had been fighting to prove.”
PCVA partner Andrew Ulmer, another attorney for Vandivere, highlighted the importance of accountability, saying, “This decision reinforces the critical role of transparency and ethical conduct in litigation.”
What’s Next?
The case underscores the importance of thorough and honest discovery practices in legal disputes. For C3 Manufacturing and Sinars, the sanctions and ethical referrals mark a cautionary tale about the consequences of failing to adhere to court-ordered discovery obligations. As the dust settles, the case serves as a reminder that both legal counsel and their clients bear responsibility for ensuring compliance with the rules of civil procedure.