Simplicity Widget Manufacturers. Inc., a plaintiff in a diversity breach of contract action in federal court, refused to comply with four court orders requiring it to provide discovery to defendant. Simplicity was warned three times that its case would be dismissed if it continued to defy the court's order. After dismissing the case, as a sanction the district court required Simplicity to pay defendant's attorney fees. Under what circumstances would the district court's order be appropriate and under what circumstances would it be inappropriate?