Adolph Coors Co. v. Wallace

570 F. Supp. 202, 37 Fed. R. Serv. 2d 752
CourtDistrict Court, N.D. California
DecidedJune 8, 1983
DocketC-82-0656 SW
StatusPublished
Cited by52 cases

This text of 570 F. Supp. 202 (Adolph Coors Co. v. Wallace) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adolph Coors Co. v. Wallace, 570 F. Supp. 202, 37 Fed. R. Serv. 2d 752 (N.D. Cal. 1983).

Opinion

ORDER AND MEMORANDUM

SPENCER WILLIAMS, District Judge.

On February 23, 1983, this Court heard oral argument on defendant Solidarity’s motion to review Magistrate Woodruff’s order of January 13, 1983, compelling certain of plaintiffs’ interrogatories be answered by defendant, and awarding attorneys’ fees of $5291.00. We conclude that the Magistrate’s order failed to address several crucial considerations in determining the appropriateness of Plaintiffs’ discovery re *204 quests, and hereby REMAND the matter for consideration consistent with the principles herein discussed. Further, the Court finds sanctions awarded plaintiffs under Fed.R.Civ.P. 37 inappropriate, in light of the serious constitutional issues framed by Solidarity’s appeal and hereby order that no attorneys’ fees be permitted either party in connection with the prior motion to compel before Magistrate Woodruff.

BACKGROUND

This lawsuit arose from the cancellation of a contract between plaintiffs and KQED, a public television station in the San Francisco Bay Area. The contract provided that Coors, a rapidly growing regional brewery, would subsidize the full cost of one day of a three day annual “teleauction” to raise funds and public support for KQED’s broadcasting activities.

Plaintiffs allege that Howard Wallace individually, as well as on behalf of the other defendants, met with KQED officials and dissuaded the station from fulfilling its contractual obligations. Plaintiffs claim damages in the amount of $13,000, representing the fair market value of lost promotional and advertising opportunity.

Defendant Solidarity is a political organization comprised exclusively of gay men and lesbian women. Howard Wallace is an avowed member of the organization and admits being the head of the Northern California Boycott Committee—a group distinct from Solidarity—whose raison d’etre is to exert pressure upon plaintiffs to modify their political positions. Solidarity claims that its only connections to this suit are: (1) that a “Boycott Coors” message was printed on the back of a Solidarity flyer; and, (2) that Wallace was a member of Solidarity. It denies taking part in any action to prevent KQED’s performance of its contractual obligations to the plaintiffs.

Plaintiffs filed interrogatories in the course of this suit seeking, inter alia, the names of Solidarity’s members, the sources of its financial support and the scope of its activities. Solidarity answered the majority of questions propounded, but objected to those seeking information it felt “chilled” its associational privacy or freedom of political expression.

In an attempt to reconcile plaintiffs’ right to civil discovery in connection with its complaint with defendant Solidarity’s concern for its First Amendment rights, Solidarity proposed a stipulation suggesting modifications of certain questions to render them unobjectionable, and offering answers to these reformulated questions. This offer was to be in exchange for plaintiffs’ promise to confine these answers to counsel and to stipulate that defendant Solidarity’s constitutional privilege had in no manner been “waived” by its answers. Plaintiffs refused this offer and chose to pursue a motion to compel answers for the questions as originally propounded.

Following the hearing on December 1, 1982, Magistrate Woodruff ordered: (1) Solidarity to answer plaintiffs’ interrogatories, as modified by the proposed stipulation; (2) the information confined to the parties and their counsel, as Solidarity had proposed; and, (3) Solidarity had not waived any future constitutional claims of privilege during the course of this litigation. However, the Magistrate held, without permitting any oral argument on the matter, that Solidarity’s assertion of constitutional privilege, objecting to the interrogatories was “not substantially justified”, and imposed penalties upon it, under Fed.R.Civ.P. 37(c), in the amount of $6291 1 .

STANDARD OF REVIEW:

28 U.S.C. § 636(b)(1), establishes two different standards for review of magistral decisions appealed to this Court. The first, 28 U.S.C. § 636(b)(1)(B) provides for de novo review of findings on specifically enumerated types of dispositive motions. 2 The *205 other, 28 U.S.C. § 636(b)(1)(A), provides that this Court should review the findings below to determine whether they were either “clearly erroneous or contrary to law”. Since the determination of a pre-trial discovery matter is not specifically enumerated under subsection (B), our review is appropriately under § 636(b)(l)(A)’s more deferential standard.

Both parties appear to assume that the “clearly erroneous” language of subsection (A) is applicable to conclusions both of fact and law. Defendant contends that application of the “clearly erroneous” standard in the case at bar would violate the exclusive constitutional allocation of the judicial power of the United States vested in Article III judges 3 by permitting a non-Article III court to determine constitutional rights, while Plaintiffs assert that the requirement is met by an appellate review under this “clearly erroneous” standard. See, e.g., U.S. v. Raddatz, 447 U.S. 667, 676, 100 S.Ct. 2406, 2412, 65 L.Ed.2d 424 (1980). Both parties appear to overlook the second aspect of § 636(b)(1)(A), which permits this Court to review the magistrate’s order to the extent it may be “contrary to law”. Thus, while we may review magistral findings of fact, subject only to the “clearly erroneous” standard, we may overturn any conclusions of law which contradict or ignore applicable precepts of law, as found in the Constitution, statutes or case precedent. Thus, it is necessary to determine precisely the character of the magistrate’s specific findings and conclusions.

In the proceedings below, plaintiffs sought to compel defendant Solidarity to answer interrogatories concerning, inter alia, the identity of some of its members and sources of its financial backing. Defendant argued that an order to supply such information would violate its First Amendment rights of associational privacy, as developed by substantial ease law 4 , most recently commented upon by the Supreme Court in NAACP v. Clairborne Hardware, et al., - U.S. -, 102 S.Ct. 3409, 73 L.Ed.2d 1215 (1982). In ordering defendant Solidarity to answer the outstanding interrogatories, subject to a protective order, the Magistrate rejected defendants’ claims of constitutional privilege.

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Bluebook (online)
570 F. Supp. 202, 37 Fed. R. Serv. 2d 752, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adolph-coors-co-v-wallace-cand-1983.