Opinion by Chief Justice MORRISS.
This five-year-old antitrust action by Josh Bray d/b/a Sanitation Solutions against Waste Management of Texas, Inc., claims antitrust violations
Mandamus issues only when the mandamus record establishes (1) a clear abuse of discretion or the violation of a duty imposed by law and (2) the absence of a clear and adequate remedy at law. Walker v. Packer, 827 S.W.2d 833, 839-40 (Tex.1992) (orig. proceeding); see In re Prudential Ins. Co. of Am., 148 S.W.3d 124, 135-36 (Tex.2004) (orig. proceeding). A trial court clearly abuses its discretion when it reaches a decision "so arbitrary and unreasonable it amounts to a clear and prejudicial error of law or it clearly fails to correctly analyze or apply the law." In re Olshan Found. Repair Co., 328 S.W.3d 883, 888 (Tex.2010) (orig. proceeding); Walker, 827 S.W.2d at 839. "In a mandamus proceeding, we review a trial court's legal conclusions with limited deference because the trial court has `no discretion in determining what the law is or applying the law to the facts.'" In re Dillard Dep't Stores, Inc., 198 S.W.3d 778, 781 (Tex. 2006) (orig. proceeding) (quoting Walker, 827 S.W.2d at 840); In re Frank Kent Motor Co., 361 S.W.3d 628, 630-31 (Tex. 2012) (orig. proceeding).
To determine whether a party has an adequate remedy by appeal, we apply a balancing test. See Prudential, 148 S.W.3d at 136; see In re AIU Ins. Co., 148 S.W.3d 109, 115 (Tex.2004) (orig. proceeding). Under this test, a remedy available on direct appeal is adequate when the detriments of mandamus review outweigh the benefits. Prudential, 148 S.W.3d at 136. If the benefits of mandamus review outweigh the detriments, the appellate court must determine whether the remedy by appeal is adequate. Id. The Texas Supreme Court reasoned:
Id. "Whether an appellate remedy is `adequate' so as to preclude mandamus review depends heavily on the circumstances presented and is better guided by general principles than by simple rules." Id. at 137. Mandamus review should be limited to "exceptional cases" only to prevent impairment of "important substantive and procedural rights." Id. at 136; cf. In re Union Pac. Res. Co., 969 S.W.2d 427, 428 (Tex.1998) (incidental errors not subject to mandamus review).
Before Prudential, the Texas Supreme Court recognized discovery as one of the categories for which mandamus relief was available. See, e.g., In re Kuntz, 124 S.W.3d 179, 181 (Tex.2003) (orig. proceeding); Walker, 827 S.W.2d at 843; S. Bag & Burlap Co. v. Boyd, 120 Tex. 418, 38 S.W.2d 565, 570 (1931) (adopting commission of appeals opinion). These cases are based on the reasoning that the appellate court would not be able to cure the trial
Frequently, mandamus relief is issued when "the very act of proceeding to trial — regardless of the outcome — would defeat the substantive right involved." Id. at 468. Because improper disclosure of a trade secret cannot be adequately remedied on appeal, mandamus relief is appropriate. In re Union Pac. R.R. Co., 294 S.W.3d 589, 593 (Tex.2009) (orig. proceeding); In re Bass, 113 S.W.3d 735, 745 (Tex.2003) (orig. proceeding). Thus, if trade secrets have been ordered disclosed, mandamus relief would be available.
One principal reason for Waste Management's request for mandamus relief is its claim that the 2012 discovery order requires disclosure of "trade secrets and proprietary, confidential information, to a direct competitor."
On March 5, 2009, the trial court
On May 27, 2011, approximately a year and a half after Waste Management produced those items, Bray filed a fourth request for production of documents seeking the electronic discovery in its native format, that is, the same format in which Waste Management maintains the data in the regular course of business. On June 23, 2011, Bray filed a fifth document production request and, later, a second motion to compel. At the resulting hearing, Bray claimed the format of the previously produced electronic discovery did not allow the comprehensive review of that material. Bray additionally requested that metadata be provided. On September 21, 2012, the trial court,
Waste Management argues that we have already determined trade secrets to be at issue in an earlier ruling involving these parties. See In re Waste Mgmt. of Tex., Inc., 286 S.W.3d 615, 617 (Tex.App.-Texarkana 2009, orig. proceeding). Waste Management contends that the trial court abused its discretion because Bray failed to establish the alleged trade secrets are necessary for a fair adjudication.
Bray responds that Waste Management did not file a withholding statement
Bray argues the trial court's protective order permitting certain information to be designated attorney's eyes only is sufficient to protect any trade secret privilege.
In our earlier mandamus proceeding, we addressed whether Bray could personally review documents designated pursuant to an agreed order "Confidential — Attorney's Eyes Only." We held, because "both parties seem to have agreed that trade secrets were at issue," Bray had the burden to show the disputed items, including customer lists, were necessary to a fair adjudication of his claims. Id. We do not find our prior mandamus ruling determinative here because (1) it concerned a different, albeit related, subject, (2) our prior ruling assumed that Bray conceded the trade secrets status of the records, and (3) the Texas Supreme Court has disagreed that such a procedure affords sufficient protection. A few months after we decided our earlier mandamus proceeding, the Texas Supreme Court issued its opinion in Union Pacific Railroad. Co., which could be interpreted as disapproving of the attorney's-eyes-only procedure. See In re Union Pac. R.R. Co., 294 S.W.3d at 593. Although the trial court had entered an order "restricting those who could view" the trade secrets, the high court concluded, "[T]hat alone does not ensure that an order will not violate the trade secret privilege." Id.; see also In re Energy XXI, Gulf Coast, Inc., No. 01-10-00371-CV, 2010 WL 5187730, 2010 Tex.App. LEXIS 10117 (Tex.App.-Houston [1st Dist.] Dec. 23, 2010, orig. proceeding) (not designated for publication) ("There is no authority that would allow a trial court to order a party to produce privileged documents to the opposing party's attorney, even with the qualification that the documents be produced for `attorney's eyes only' and subject to the parties' protective order.").
The disapproval expressed in Union Pacific Railroad Co., 294 S.W.3d at 593, is a reflection of the unique characteristics of a trade secret when compared with other intellectual property. While other forms of intellectual property protections (patents, copyrights, and trade dress) protect intellectual property that has become public knowledge, an owner of a trade secret is only protected from wrongful disclosure of the trade secret. See Wissman v. Boucher, 150 Tex. 326, 240 S.W.2d 278, 280-81 (1951). The law provides, "[O]ne who either discloses or uses another's trade secret, without a privilege to do so, is liable for such disclosure or use if the disclosure or use constitutes a breach of confidence reposed in the party disclosing or using the trade secret by the owner of the trade secret." IBP, Inc. v. Klumpe, 101 S.W.3d 461, 472 (Tex.App.-Amarillo 2001, pet. denied) ("To be actionable, the disclosure or use of the trade secret ordinarily must be to the competitive disadvantage of the owner of the trade secret.").
To qualify as a trade secret, the information must be secret and have value to the owner's trade or business. Wissman, 240 S.W.2d at 280-81; Astoria Indus. of Iowa, Inc. v. SNF, Inc., 223 S.W.3d 616, 634 (Tex.App.-Fort Worth 2007, pet. denied); H.E. Butt Grocery Co. v. Moody's Quality Meats, 951 S.W.2d 33, 35 (Tex.App.-Corpus Christi 1997, pet. denied);
To the extent the "Confidential — Attorney's Eyes Only" procedure fails to provide sufficient protection, Waste Management was required to follow the protocol for asserting the trade secret privilege. The Texas Supreme Court has developed the following protocol for asserting the trade secret privilege:
In re Cont'l Gen. Tire, 979 S.W.2d 609, 613 (Tex.1998).
The first step requires Waste Management to establish that the information is a trade secret. Id. To determine whether information is a trade secret, we consider the following six-factor test:
Union Pac. R.R. Co., 294 S.W.3d at 592; Bass, 113 S.W.3d at 739 (RESTATEMENT OF TORTS § 757 cmt. b (1939) has been omitted from most recent restatement of torts but incorporated in RESTATEMENT (THIRD) OF UNFAIR COMPETITION § 39 reporter's note cmt. d (1995)). It was Waste Management's burden to introduce evidence that the discovery order will disclose trade secrets, and Waste Management has failed to introduce any such evidence. Merely claiming trade secrets are at issue is not sufficient. Because the burden does not shift to the requesting party until the opposing party establishes that the disputed discovery contains trade secrets, Bray never had the burden to prove the trade secrets were necessary for fair adjudication. The trial court did not abuse its discretion.
According to Waste Management, the order requires production of data outside the relevant geographic area and is thus an overbroad "fishing expedition."
"An order that compels overly broad discovery is an abuse of discretion for which mandamus is the proper remedy." In re Deere & Co., 299 S.W.3d 819, 820 (Tex.2009) (orig. proceeding). An overbroad request is improper regardless of whether it is burdensome. In re Allstate Cnty. Mut. Ins. Co., 227 S.W.3d 667, 670 (Tex.2007) (orig. proceeding). A discovery request is "overbroad" when it encompasses "time periods, products, or activities beyond those at issue in the case" and, therefore, is not "reasonably tailored to include only relevant matters." In re Alford Chevrolet-Geo, 997 S.W.2d 173, 180 n. 1 (Tex.1999) (orig. proceeding); see also Deere & Co., 299 S.W.3d at 820; In re Graco Children's Prods., 210 S.W.3d 598, 600 (Tex.2006) (orig. proceeding).
Waste Management argues the order is overbroad because it orders production of data concerning areas outside Lamar County. In this case, the relevant geographic area has been defined as Lamar County.
Waste Management assumes that the geographic market determination cannot be reconsidered and that discovery must be limited to that market. We disagree with both assumptions. Any geographic market determination before discovery has been completed is preliminary at best. The composition of the relevant geographic market is often a fact issue for the jury. See, e.g., Gordon v. Lewistown Hosp., 423 F.3d 184, 212 (3d Cir.2005) ("The geographic scope of a relevant product market is a question of fact to be determined in the context of each case in acknowledgment of the commercial realities of the industry being considered."); Seidenstein v. Nat'l Med. Enters., Inc., 769 F.2d 1100, 1106 (5th Cir.1985) (Although "usually [a question] of fact for the jury," the relevant market can be determined as a matter of law "in some instances."). As a fact issue, any determination before discovery is inherently preliminary. Even if the relevant geographic market is Lamar County, information concerning activities outside the county can still be reasonably calculated to result in relevant evidence. While it might be easier for Bray to review the data limited to just Lamar County, the trial court did not clearly abuse its discretion by granting Bray's request for the 25.27 gigabytes of data identified by Waste Management as potentially relevant.
Waste Management claims Bray's request, similar to the discovery at issue in
The 25.27 gigabytes of data are the electronic files that Waste Management designated as "potentially relevant" to these requests and to similar requests made in Bray's other requests for production. The requests are not for "all evidence" as in Loftin.
Additionally, Waste Management cites Texaco, Inc. v. Sanderson, 898 S.W.2d 813, 815 (Tex.1995) (orig. proceeding); In re American Optical Corp., 988 S.W.2d 711 (Tex.1998) (orig. proceeding); and In re CSX Corp., 124 S.W.3d 149, 153 (Tex.2003) (orig. proceeding), for its claim that Bray's requests amount to a fishing expedition. In Sanderson, the request for "all documents authored by Sexton on the subject of safety, without limitation as to time, place or subject matter, is overbroad." Sanderson, 898 S.W.2d at 815. In American Optical Corp., the requests "were not tied to particular products which plaintiffs allegedly used or to the time periods of such use." Am. Optical Corp., 988 S.W.2d at 712. The request in CSX Corp. was for safety information "for twenty-five years beyond the applicable time period." CSX Corp., 124 S.W.3d at 153. Bray's requests are limited to a specific time period, place, and subject matter.
The general rule is that a party may obtain discovery regarding any matter that is not privileged, is relevant, and is reasonably calculated to lead to the discovery of admissible evidence. See Crown Cent. Petroleum Corp. v. Garcia, 904 S.W.2d 125, 127 (Tex.1995) (orig. proceeding); see also TEX.R. CIV. P. 192.3(a). Because reasonable people can disagree concerning whether information related to counties adjacent to Lamar County is reasonably calculated to result in admissible evidence, we are unwilling to find a clear abuse of discretion.
Waste Management's remaining overbreadth complaints merely challenge the amount of discovery being ordered. "[T]he sheer volume of a discovery request does not in itself render the request irrelevant or overbroad as a matter of law." In re Am. Home Assur. Co., 88 S.W.3d 370, 374 (Tex.App.-Texarkana 2002, orig. proceeding). Although a large amount of electronic discovery has been ordered, that fact does not, by itself, amount to an overly
The current discovery order places on it an undue burden, Waste Management argues, on numerous bases: (a) that the order is a "do over" that requires Waste Management to review and redact the data a second time, (b) that it requires the production of metadata after metadata was relinquished earlier, (c) that it insufficiently specifies the form in which the data is to be produced, (d) that production in native format makes redaction impossible, and (e) that producing metadata in native format is more costly. We disagree.
According to Waste Management, Bray denied any request for metadata in 2009 and is not entitled to change his mind after production has occurred.
At a 2008 hearing on Bray's motion to compel compliance with his third request for production, the following colloquy occurred:
The 2009 order provided that "the parties agreed that metadata shall be preserved but need not be produced at this time."
That conversation and the order do not deny any desire for metadata; rather, the decision is merely postponed. A party's nonproduction is not justified merely because a request is burdensome; "it is only undue burden that warrants nonproduction." In re Energas Co., 63 S.W.3d 50, 55 (Tex.App.-Amarillo 2001, orig. proceeding); see Alford Chevrolet-Geo, 997 S.W.2d at 181 (requiring demonstration of undue burden or harassment). The trial court's decision to postpone any decision concerning metadata does not, by itself, create an undue burden.
Waste Management contends, because Bray failed to specify a form for the electronic discovery as required by the discovery rules, the production in PDF format was reasonable and any "do-over" is an undue burden. See TEX.R. CIV. P. 196.4.
We do not think Bray failed to specify a form for electronic discovery. Rule 196.4 provides that the request "specify the form in which the requesting party wants [the discovery] produced." TEX.R. CIV. P. 196.4. Bray made three requests for electronic discovery before Waste Management produced the documents. Although the second request did not contain any definitions
The Texas Supreme Court has instructed that the Texas Rules governing electronic discovery are sufficiently similar to the Federal Rules for Texas courts to "look to the federal rules for guidance." Weekley Homes, 295 S.W.3d at 317. Although the Texas Rules of Civil Procedure do not contain a default form, the default form under the Federal Rules of Civil Procedure is "a form or forms in which it is ordinarily maintained or in a reasonably useable form or forms." FED.R.CIV.P. 34(b). We conclude Bray's original instruction that the electronic discovery must be produced in a "reasonable manner" is the functional equivalent of the Federal "reasonably useable form or forms."
Waste Management cites Weekley Homes for the proposition that requests for production of electronic records must be "clearly understood" so that disputes can be avoided. See Weekley Homes, 295 S.W.3d at 314. The Texas Supreme Court, though, was not referring to specificity concerning the file format, but was referring to the subject matter being requested, "deleted emails." Id. We do not read Weekley Homes as requiring the rigid specificity claimed by Waste Management. Waste Management appears to be under the impression that the requesting party must specify the exact computer file format. We do not believe such minute specificity is required.
A request for reasonably useable or a reasonable manner is sufficient. It provides some flexibility to the producing party. For example, a request for.docx file format used by Microsoft Word 2010 might require some producing parties to purchase the specific software requested and expend resources converting files to the requested format. On the other hand, if the request was simply for a "reasonably useable" electronic discovery, the producing party could produce files in Word Perfect X4 format instead. Communication between the parties is essential,
Conclusory allegations of undue burden are insufficient; a party resisting discovery must produce some evidence supporting its claim of undue burden. Alford Chevrolet-Geo, 997 S.W.2d at 181; Energas Co., 63 S.W.3d at 55. The only evidence we have been directed to establishes an estimated cost of $5,500.00.
Waste Management claims it will have to review and redact the documents a second time. As argued by Bray, there is no evidence to support this allegation. Although Waste Management cites estimates for the cost of a document review conducted in 2009,
Waste Management argues production in native format renders it impossible to redact the electronic discovery to protect trade secrets or other privileged information. As noted above, Waste Management abandoned all of its unspecified privilege claims except trade secrets. Also, Waste Management has failed to provide any evidence supporting its allegations that trade secrets will be disclosed. We fail to see how an inability to redact can be relevant when there is no evidence presented supporting any right to redact.
Further, a discovery request will not result in an undue burden when the burden of responding to it is the result of the responding party's own "conscious, discretionary decisions." ISK Biotech Corp. v. Lindsay, 933 S.W.2d 565, 569 (Tex.App.-Houston [1st Dist.] 1996, orig. proceeding);
Finally, Waste Management claims that the trial court abused its discretion by refusing to let Waste Management produce the metadata in PDF form instead of producing the files in native format. Waste Management claims the trial court erred in failing to weigh the costs and benefits of this alternative. Although Waste Management claims this procedure would be "much less costly," its claim is not supported by the evidence. Parra estimates the cost of supplementing the PDF electronic discovery with metadata in PDF form at $2,500.00. Thus, the difference between the cost of producing metadata in PDF form and the trial court's order is $3,000.00. We do not find this difference sufficient to constitute an abuse of discretion.
There is federal authority that removal of metadata can render documents not "reasonably useable":
FED.R.CIV.P. 34 (notes of advisory committee to 2006 amendments); see, e.g., In re Payment Card Interchange Fee, No. MD 05-1720, 2007 WL 121426, at *3-5, 2007 U.S. Dist. LEXIS 2650, at *14-18 (E.D.N.Y. Jan. 12, 2007) (documents stripped of metadata do not comply with Rule 34(b) of the Federal Rules of Civil Procedure); cf. Aguilar v. Immigration & Customs Enforcement Div., 255 F.R.D. 350, 355 (S.D.N.Y.2008) (citing advisory committee's notes); Dahl v. Bain Capital Partners, LLC, 655 F.Supp.2d 146, 150 (D.Mass.2009) (spreadsheets must be produced in native format to be reasonably usable).
Despite Waste Management's unsupported allegations to the contrary, the record provided to us in this case establishes an estimated cost of $5,500.00 to comply with the trial court's order. Waste Management has failed to show the trial court's order is unduly burdensome.
According to Waste Management, the trial court abused its discretion because the order contradicts an agreed scheduling order entered ten weeks before. The agreed scheduling order requires Waste Management to provide data for a time period of only September 1, 2005, through October 31, 2010. The trial court order
While Waste Management's argument resonates with us, we cannot grant relief on this issue. Waste Management failed to raise this argument and has not directed us to where this argument was presented to the trial court. This issue has not been preserved for review. See TEX.R.APP. P. 33.1; E. Tex. Med. Ctr. Athens, 154 S.W.3d at 936. Mandamus relief is not available until the trial court is afforded the opportunity to correct the alleged mistake or error.
Waste Management's sole remaining argument is that Bray should be responsible for the costs because a "do-over" is an "extraordinary step." Rule 196.4 provides:
TEX.R. CIV. P. 196.4. Additionally, Waste Management cites two cases discussing cost shifting under the Federal Rules of Civil Procedure. See Zubulake v. UBS Warburg, LLC, 217 F.R.D. 309, 317 (S.D.N.Y.2003); Surplus Source Grp., LLC v. Mid Am. Engine, Inc., No. 4:08-cv-049, 2009 WL 961207, 2009 U.S. Dist. LEXIS 29260 (E.D.Tex. Apr. 7, 2009) (not designated for publication). It is not necessary for us to determine if a "do-over" is an "extraordinary step."
Even if Bray should bear the costs, Waste Management has an adequate remedy by appeal. To put it bluntly, this dispute merely concerns a de minimus amount of money given the scale of this litigation. Parra states in his affidavit that production of the 25.27 gigabytes of electronic discovery in its native form will cost $5,500.00.
Mandamus relief is available only when the benefits of mandamus review outweigh the detriments. Prudential Ins. Co., 148 S.W.3d at 136. Waste Management knew that metadata was to be preserved and that it may be ordered to be produced in the future. The difference between the cost of producing metadata in PDF form and the trial court's order is $3,000.00. Given the scale of this case, the difference of $3,000.00 is insignificant and fails to justify the extraordinary remedy of mandamus relief. This issue presents the circumstance predicted by the Texas Supreme Court in McAllen Medical Center, Inc., 275 S.W.3d at 469. The complained of error is "so innocuous or incidental that the burden of reviewing an order to produce them outweighs the benefits of such a review." Id. If the trial court erred by ordering Waste Management to pay $3,000.00 worth of discovery costs because it was a "redo" and therefore "extraordinary," Waste Management can seek to recover these costs on appeal. Because any error can be fully remedied on appeal, mandamus review is not available.
We hereby lift the stay granted at Waste Management's request. Waste Management has requested that we restart the time period granted by the trial court for compliance. Bray argues, in light of the age of this case and the August trial setting, that we should decline to grant such an extension. Our decision on this question will make a difference of thirty-one business days in the deadline for compliance, a period we believe is not significant considering the posture of this case. The trial court granted "60 business days" for compliance with its order. We hereby restart that sixty-day period as of the date of this opinion. Therefore, compliance with the trial court's order should occur within sixty business days from the date of this opinion, subject to any further adjustment the trial court might make to that schedule.
We believe that Waste Management has failed to preserve error on this issue.