LOUISE W. FLANAGAN, District Judge.
This matter is before the court on the following motions filed by defendant J-M Manufacturing Company, Inc. ("JMM"), which are ripe for ruling:
1. Motion to compel compliance with the court's July 30, 2015, order (DE 226);
2. Proposed sealed motion for further order concerning plaintiffs' counsel's continued use of attorney-client privileged information and for sealing of transcript (DE 238);
3. Motion to seal proposed sealed motion (DE 239);
4. Motion to strike, or, in the alternative, to seal plaintiffs' supplemental response, filed by defendant JMM (DE 249).
Also before the court is plaintiffs' motion for voluntary dismissal, pursuant to Federal Rule of Civil Procedure 41(a) (DE 284).
Plaintiffs brought this action on December 2, 2013, seeking relief for personal injury and loss of consortium, arising from plaintiff Larry Winslowe Lee's ("Larry Lee") mesothelioma diagnosis on or about September 13, 2013. Plaintiffs allege that Larry Lee's condition resulted from asbestos exposure during his employment as a mechanics' helper, maintenance laborer, inspector, construction worker, and pipe salesman, as well as during automotive maintenance work performed on his own personal vehicles and those of his family.
In their complaint, plaintiffs originally asserted claims against a number of defendants engaged in manufacturing and sale of various goods. These original defendants were 1) AK Steel Corp.; 2) Briggs & Stratton Corporation; 3) Certainteed Corporation ("Certainteed"); 4) Clow Valve Company; 5) Dana Companies LLC; 6) Deere & Company; 7) Eckler's Corvette; 8) Ford Motor Company; 9) Formosa Plastics Corporation U.S.A.; 10) Genuine Parts Company ("Genuine Parts"); 11) Grinnell LLC; 12) Hajoca Corporation; 13) Hammer & Steel, Inc.; 14) Honeywell International, Inc.; 15) JMM; 16) Kawasaki Motors Corp., USA, 17) McWane Inc.; 18) Pfizer Inc.; 19) Pneumo Abex LLC ("Pneumo Abex"); 20) Special Electric Company, Inc.; 21) Union Carbide Corporation; and 22) Yamaha Motor Corporation, U.S.A.
These defendants were alleged to have acted negligently in putting asbestos or asbestos-containing products into interstate commerce (First Cause), to have breached implied warranties that asbestos materials were of good and merchantable quality and fit for their intended use (Second Cause), to have acted willfully and wantonly in exposing plaintiff Larry Lee to asbestos (Third Cause), to have committed false representation and fraud regarding the dangers of asbestos exposure to plaintiff Larry Lee (Fourth Cause), and to have failed to warn plaintiff Larry Lee of the dangers associated with asbestos exposure (Fifth Cause). A final defendant, Metropolitan Life Insurance Company was alleged to have engaged in a conspiracy and to be liable for punitive damages, where it was asserted that it aided and abetted the negligence and marketing of asbestos-containing products (Sixth Cause). Plaintiffs also alleged conspiracy and punitive damages liability against defendants Formosa Plastics Corporation, U.S.A. and JMM for the manufacture and sale of asbestos-containing products (Seventh Cause).
Over the course of this case, all defendants except for the four now remaining, JMM, Certainteed, Genuine Parts, and Pneumo Abex, have been dismissed either by voluntary dismissal or by court order.
As pertinent to the instant motion to compel compliance, in its July 30, 2015, order, the court addressed the privileged nature of one of the exhibits plaintiffs had attached in opposition to JMM's summary judgment motion: an unredacted JMM internal memorandum dated August 11, 1983 ("Exhibit 12"). (DE 164-13). In response to plaintiff's filing of Exhibit 12, defendant JMM sought through motion to strike and for protective order the following relief:
(DE 171 at 2). Plaintiffs argued in opposition that Exhibit 12 was not privileged and that any privilege had been waived by disclosure in prior asbestos cases.
In the court's July 30, 2015, order, the court granted defendant JMM's motion on the terms set forth in that order. In particular, the court first concluded that "Exhibit 12 is protected by attorney client privilege and defendant JMM has not waived such privilege." (DE 217 & 221 at 20). With respect to the form of relief granted, the court ordered two categories of relief.
(DE 217 & 221 at 21). Finally, the court limited the relief granted as follows:
(
On August 3, 2015, plaintiffs' lead counsel, Mr. Kevin W. Paul ("Paul"), with the law firm Simon Greenstone, Panatier, Bartlett, ("Simon Greenstone"), appearing
(DE 219). This document was not signed by plaintiffs' local counsel. On August 10, 2015, defendant JMM objected to this certification, requesting local counsel file separate certification in compliance with local rules, and seeking clarification from Simon Greenstone as to the whether all copies of the privileged document were destroyed. Plaintiffs' local counsel complied on August 17, 2015, and is not implicated in the instant motion. (DE 223). Simon Greenstone provided supplemental certification on August 17, 2015, stating as follows:
(DE 224). In response, on August 21, 2015, defendant JMM filed the instant motion to compel Simon Greenstone to comply with the court's prior order. While that motion was pending, on October 26, 2015, defendant JMM filed the instant proposed sealed motion for further order to compel compliance, and its motion to seal the same. On November 16, 2015, Simon Greenstone filed a supplemental response to defendant JMM's motion to compel compliance, but filed no response to defendant JMM's subsequent motions. On November 20, 2015, defendant JMM filed the instant motion to strike, or in the alternative, to seal Simon Greenstone's supplemental response.
Between November 24, 2015 and November 30, 2015, the parties filed fifteen expert-related motions. The four remaining defendants filed, or joined in, motions to exclude certain expert testimony proffered by plaintiffs. (DE 251, 253, 261, 268, 270, 274, 278, 280). Plaintiffs filed motions to exclude certain expert testimony proffered by defendants. (DE 255, 257, 259, 262, 264, 267, 272).
On December 17, 2015, plaintiffs filed the instant motion for voluntary dismissal, accompanied by a motion to stay proceedings pending decision on the motion for voluntary dismissal. Defendant Certainteed responded on December 23, 2015, that it did not oppose the motion to stay. Defendant JMM responded on January 7, 2016, in opposition to the motion for voluntary dismissal and to the motion to stay. On January 11, 2016, Pneumo Abex, joined by Certainteed, filed oppositions to plaintiffs' motion for voluntary dismissal. In the meantime, on January 8, 2016, plaintiffs and the four remaining defendants, filed memoranda in opposition to the expert-related motions.
On January 14, 2016, the court granted in part the motion to stay proceedings, and held in abeyance ruling on those motions in limine now pending until resolution of the motion for voluntary dismissal. The court clarified on January 25, 2016, that the parties may hold in abeyance making any further filings regarding the motions in limine until resolution of the instant motion for voluntary dismissal.
Defendant JMM argues that plaintiffs' counsel must certify that "any and all copies of the privileged document have been destroyed." (DE 227 at 6). Defendant JMM in effect seeks to have plaintiffs' counsel destroy all copies of Exhibit 12 in its possession, whether such copies are maintained for the purpose of this case or any other case in any other jurisdiction.
This relief, however, is not what the court previously ordered. Rather, the court ordered that "
Further, the court denied the "remainder of the requested relief" sought by defendant JMM. (
Defendant suggests that the court's directive to "return or destroy all copies" supports its current request for relief. To the extent the court was ambiguous or unclear in its July 30, 2015, order, the court now amends and clarifies said order to make explicit the limit of relief. In particular, the court does not require plaintiffs' counsel, Simon Greenstone, to destroy all copies of Exhibit 12 in Simon Greenstone's possession, as requested by defendant JMM. As suggested by the court in limiting the relief provided in its July 30, 2015, order, defendant has not provided any basis for the court's authority or jurisdiction to do so, much less the court's ability to enforce such an order in other jurisdictions.
Defendant cites one case in which a court ordered a party "and her counsel . . . to destroy all copies of the privileged documents in their possession or control."
Defendant JMM argues that Federal Rule of Civil Procedure 26(b)(5)(B) supports its position that Simon Greenstone must destroy any and all copies of Exhibit 12. That provision, however, applies only to "part[ies]," where it states that "
Defendant JMM also suggests that this court has authority to order Simon Greenstone to destroy any and all copies of Exhibit 12, based upon the court's authority to issue injunctive relief, or to impose disciplinary sanctions. Defendant JMM cites, for example, Federal Rules of Civil Procedure 11 and 65, as well as Local Civil Rule 83.1. The premise of defendant JMM's argument is flawed, however. The court has made no findings that would support an award of sanctions or injunctive relief against Simon Greenstone under such rules. Moreover, sanctions for discovery issues, provided under Federal Rule of Civil Procedure 37, are more circumscribed, and limited to a case-by-case basis, in contrast to the inherent sanction power vested in the court under Rule 11.
Defendant JMM points to the court's reference to "improper conduct" in its July 30, 2015, order. But this reference, considered in context, does not provide support for the relief here sought. In particular, in the course of considering factors bearing on the waiver issue, the court noted: "it appears that a certain degree of improper conduct occurred following the
In sum, defendant JMM has not provided a basis for expanding the scope of the court's relief to require Simon Greenstone to destroy any and all copies of Exhibit 12 in its possession. To the extent the court's prior order was unclear, the court now amends and clarifies its prior ruling as set forth herein. Therefore, defendant JMM's motion to compel compliance is denied.
In its motion for further order, defendant JMM raises a separate issue regarding plaintiffs' use of Exhibit 12, which requires further clarification of the court's July 31, 2015, order, and a new certification of compliance by Simon Greenstone.
In particular, defendant JMM notes that on October 21, 2015, Paul, of Simon Greenstone, deposed JMM's expert witness Mr. John Spencer ("Spencer"). In that deposition, Paul began questioning Spencer as follows:
(DE 238-2 Tr. 24:4-25:8). After further exchange between counsel, Paul attempted to continue questioning as follows:
(DE 238-2 Tr. 26:9-27:15).
Defendant JMM contends that this line of questioning by Paul evidences Simon Greenstone's failure to comply with the court's order, and that Simon Greenstone should be ordered to refrain from continuing to attempt to put the content of Exhibit 12 in public records. In its July 30, 2015, order, however, the court did not state explicitly that plaintiffs' counsel could not "use" the contents of Exhibit 12, although such restriction was implicit from the court's order. (
As a result of these two factors, Paul's challenged line of questioning of Spencer falls, at least in part, within a grey area of interpretation of the court's July 30, 2015, order. As such, the court will not make a bright line pronouncement as to whether Paul was not in compliance with the court's July 30, 2015, order. Nevertheless, the court now amends and clarifies its July 30, 2015, order, to make more explicit the contours of obligations of Simon Greenstone going forward in this case. In order to protect the privileged nature of Exhibit 12, the court directs Simon Greenstone to file a renewed certification, within 14 days of the date of this order stating:
Based on this clarified standard, the question posed by Paul at page 24, lines 4-12, of the Spencer deposition, specifically referencing Exhibit 12 and summarizing the entirety of its contents, impermissibly discloses privileged information. Because it contains information the court has determined to be privileged, the transcript must be sealed and the parties must submit jointly a redacted form of the transcript within 14 days of the date of this order omitting that privileged portion of the transcript. In this respect, defendant JMM's motion for further order and motion to seal shall be granted.
By contrast, while the hypothetical questions posed by Paul at pages 26 to 28 of the deposition transcript may be objectionable or improper for other reasons, not presently at issue before the court, such hypothetical questions do not constitute an impermissible disclosure of privileged material. In so holding, the court expresses no opinion on the propriety of the particular hypothetical questions posed or the potential admissibility of any answer that may be sought from using such question. Likewise, the court expresses no opinion on whether a more detailed form of hypothetical question could be said to constitute impermissible disclosure or use of Exhibit 12 or its unredacted contents, where such further detailed hypothetical question is not before the court.
In sum, defendant JMM's motion for further order is granted in part and denied in part as set forth herein. With respect to defendant JMM's motion to seal its memorandum, the court grants in part and denies the motion. The court directs defendant JMM to file a redacted version of said memorandum of law within 14 days, removing only the content protected by attorney client privilege consistent with the terms of this order. The motion to seal is denied in remaining part.
Defendant JMM moves to strike, or in the alternative to seal, plaintiffs' supplement to their response to defendant JMM's motion to compel compliance, filed November 16, 2015. In this supplement plaintiffs seek to "supplement their Response . . . with two subsequently decided decisions," describing and attaching two state court orders, dated November 5, 2015 and November 6, 2016, concerning the use of Exhibit 12 in those jurisdictions. (DE 246).
Motion practice in this court is governed by Local Civil Rule 7.1. That rule sets forth rules and deadlines for filing responses to motions.
Therefore, because it is not in compliance with Local Civil Rule 7.1, the court grants defendant JMM's motion to strike plaintiffs' supplement.
Plaintiffs move for voluntary dismissal of the action without prejudice, pursuant to Federal Rule of Civil Procedure 41(a). Plaintiffs note that Larry Lee died November 16, 2015, triggering the need to appoint a personal representative for his estate and evaluate legal options. Counsel for plaintiffs anticipates that the family will pursue a wrongful death claim in state court. Defendants JMM, Pneumo Abex, and Certainteed, oppose voluntary dismissal on the basis that plaintiffs have not presented a valid reason for dismissal, and because it would be unduly prejudicial. In the alternative, defendant JMM asks the court to suspend decision on plaintiffs' motion pending ruling on its motion to compel compliance and for further order. In the alternative, defendant Pneumo Abex and Certainteed ask the court to impose conditions on a voluntary dismissal.
Federal Rule of Civil Procedure 41(a) provides that "an action may be dismissed at the plaintiff's request only by court order, on terms that the court considers proper," if dismissal is sought after an opposing party has served an answer or motion for summary judgment. Fed. R. Civ. P. 41(a)(2). "The purpose of Rule 41(a)(2) is freely to allow voluntary dismissals unless the parties will be unfairly prejudiced."
"It is well established that, for purposes of Rule 41(a)(2), prejudice to the defendant does not result from the prospect of a second lawsuit" or "the possibility that the plaintiff will gain a tactical advantage over the defendant in future litigation."
In this case, defendants JMM, Pneumo Abex, and Certainteed, contend that voluntary dismissal would be inappropriate and prejudicial for several reasons. They first suggest that plaintiffs' reason for dismissal is disingenuous because Susan Lee has already been appointed administrator of the estate of Larry Lee, and amendment of the complaint is straightforward. With respect to prejudice, defendant JMM points to the substantial amount of discovery that has taken place in this case, the court's decisions on several motions for summary judgment, as well as its discovery motions regarding Exhibit 12. Defendant Pneumo Abex and Certainteed also point to the advanced stage of the litigation, along with the significant discovery and briefing that has already taken place on
As an initial matter, the court rejects the suggestion that plaintiffs have not offered a viable reason for dismissal. While plaintiffs could continue litigation in this court by amending the complaint to account for the death of plaintiff Larry Lee, such a significant event as the death of a party in itself provides a legitimate reason "to evaluate the available legal options." (DE 284-1).
In this respect, this case stands in contrast to circumstances suggested in some cases cited by defendants where plaintiffs have sought voluntary dismissal in order to avoid impending adverse rulings.
In addition, much of the prejudice raised by defendants has been, or can be, alleviated by the rulings and conditions set forth in the present order. Any prejudice that would result from leaving discovery motions undecided has been resolved by the court's present ruling on such motions. Similarly, although the court does not have a basis to direct any state court to make a particular ruling as to privileged Exhibit 12, to alleviate prejudice of refiling suit in state court, the court will condition any voluntary dismissal on plaintiffs' certification, through counsel, that they will not use Exhibit 12 in any re-filed state court litigation against defendant JMM.
Next, in order to "prevent[] plaintiffs from litigating, losing, and then wiping the slate clean by voluntarily dismissing their action,"
Furthermore, with respect to the costs and expenses of discovery, "conditions should be imposed as a matter of course in most cases" requiring a plaintiff upon voluntary dismissal to pay a defendant's taxable costs and "agree to the use of discovered materials in any state court proceeding."
On the present record, however, without further submissions from the parties, the court is unable to determine the appropriate amount of taxable costs or attorneys' fees to impose as a condition of voluntary dismissal. Defendant Pneumo Abex suggests, for example, without further elaboration, that such taxable attorneys' fees necessarily include fees for "time spent taking expert depositions and preparing and responding to Daubert motions." (DE 307 at 9). But it is not clear that such work could not be carried over easily to litigation of remaining claims in state court, if plaintiff Susan Lee will be relying on the same experts in state court. Further submissions are necessary to enable the court to make a more reasoned determination of the appropriate taxable costs and attorneys' fees conditions to impose on voluntary dismissal.
Accordingly, the court will hold in abeyance decision on plaintiffs' motion for voluntary dismissal pending further submissions by the parties. If plaintiffs seek to proceed with voluntary dismissal for purposes of refiling in state court, within
Based on the foregoing, the court orders as follows:
1. Defendant JMM's motion to compel compliance (DE 226) is DENIED; however, the court amends and clarifies its July 30, 2015, order as set forth herein.
2. Defendant JMM's proposed sealed motion for further order (DE 238) is GRANTED IN PART and DENIED IN PART. The parties must submit jointly a redacted form of the Spencer deposition transcript within
3. Defendant JMM's motion to seal (DE 239) is GRANTED IN PART and DENIED IN PART.
4. Defendant JMM's motion to strike (DE 249) is GRANTED. The clerk is DIRECTED to strike docket entry 246, allowing only court access to the originally filed material.
5. Decision on plaintiffs' motion for voluntary dismissal (DE 284) is HELD IN ABEYANCE pending further submissions by the parties. In particular, if plaintiffs continue to seek to proceed with voluntary dismissal for purposes of refiling in state court, plaintiffs must file within
SO ORDERED.