Aerojet Rocketdyne, Inc. v. Global Aerospace, Inc.

District Court, E.D. California·Decided September 30, 2022·No. 2:17-cv-01515·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 | Aerojet Rocketdyne, Inc., No. 17-cv-01515-KJM-AC 12 Plaintiff, ORDER 13 v. 14 Global Aerospace, Inc., et al., Id Defendants. 16 17 Defendant-insurer Global Aerospace, Inc. moves this court to reconsider the magistrate 18 | judge’s order on its Motion for a Protective Order and plaintiff Aerojet Rocketdyne, Inc.’s related 19 | Motion to Compel. Having considered the parties’ submissions, relevant legal authority, and the 20 | record in this case, the court denies Global’s motion in full. 21 | I. BACKGROUND 22 In this insurance coverage and bad faith lawsuit, Aerojet has been attempting to obtain 23 | discovery about non-party Condon & Forsyth’s pre-denial claim investigation for almost five 24 | years. See Smith Decl. § 10, ECF No. 306. Global has responded to Aerojet’s discovery requests 25 | by asserting privilege and work-product protection. See, e.g., 2018 Mot. Protective Order at 15— 26 | 16, ECF Nos. 130 & 134; see also Jan. 2019 Order at 4-6, ECF No. 137 (rejecting Global’s 27 | MII

1 attorney-client privilege and work-product arguments). Global’s response has led to a protracted 2 discovery dispute, which this court outlined in a previous order: 3 Aerojet filed a motion to compel production on February 1, 2019, see 4 ECF No. 151, which the court granted a month later, see Mot. 5 Compel Order, ECF No. 189. Global then moved for 6 reconsideration, see ECF No. 197, which Aerojet opposed, see ECF 7 No. 200, and the court denied on October 7, 2019, see First Mot. to 8 Recons. Order, ECF No. 239. Global then moved for reconsideration 9 a second time. See ECF No. 248. Again, Aerojet opposed. See ECF 10 No. 249. The court denied the Motion for Reconsideration and 11 granted the Motion to Compel in its entirety, again, on January 14, 12 2021. See generally Second Mot. to Recons. Order, ECF No. 277. 13 All in all, it took roughly two years to resolve Aerojet’s Motion to 14 Compel. . . . Aerojet only started receiving the contested documents 15 in February 2021, and it soon began to meet and confer regarding 16 what it perceived as deficiencies in the production. Global sent its 17 last batch of production to Aerojet on May 12, 2021. See Mot. 18 Amend Sched. at 17 n.6, ECF No. 286-1. 19 Mot. Am. Order at 3–4, ECF No. 295. In response to alleged deficiencies in Global’s production, 20 this court granted Aerojet’s Motion to Reopen Limited Discovery on its bad faith insurance claim 21 on January 4, 2022. See id. at 10. Specifically, this court granted Aerojet leave to conduct up to 22 five depositions and to propound five requests for production, five requests for admission, and 23 five interrogatories focused on the reasonableness and adequacy of Condon & Forsyth’s claim 24 investigation and incongruities between Condon & Forsyth’s billing entries and Global’s 2021 25 document production. Id. 26 On February 16, 2022, Aerojet moved to compel responses to certain of the additional 27 discovery granted, namely two interrogatories and two requests for admission, see ECF Nos. 303 28 & 306, and Global sought a protective order barring Aerojet from conducting a Rule 30(b)(6) 29 deposition, see ECF Nos. 301 & 305. The magistrate judge granted Aerojet’s Motion to Compel 30 in its entirety, see Order at 11, ECF No. 308, and denied Global’s Motion for a Protective Order 31 in its entirety, id. at 7, finding Global’s motion was a “somewhat disingenuous attempt to re- 32 litigate the order issued by” this court, id. at 4. Global now moves this court to reconsider the 33 magistrate judge’s order. See generally Mot. Recons., ECF No. 312. 1 II. LEGAL STANDARD 2 Federal Rule of Civil Procedure 72(a) requires that district judges consider timely 3 objections to non-dispositive pretrial orders issued by magistrate judges and “modify or set aside 4 any part of the order that is clearly erroneous or is contrary to law.” Fed. R. Civ. P. 72(a); see 5 also 28 U.S.C. § 636(b)(1)(A); E.D. Cal. R. 303(f). A magistrate judge’s decision is “‘contrary to 6 law’ if it applies an incorrect legal standard, fails to consider an element of [an] applicable 7 standard, or fails to apply or misapplies relevant statutes, case law, or rules of procedure.” Martin 8 v. Loadholt, No. 10-00156, 2014 WL 3563312, at *1 (E.D. Cal. July 18, 2014); 12 Fed. Prac. & 9 Proc. Civ. § 3069 (3d ed.) (noting “‘contrary to law’ appears to invite plenary review,” though 10 “many matters such as discovery scheduling or disputes might better be characterized as suitable 11 for an abuse-of-discretion analysis”). “A finding is ‘clearly erroneous’ when although there is 12 evidence to support it, the reviewing [body] on the entire evidence is left with the definite and 13 firm conviction that a mistake has been committed.” Concrete Pipe and Prods. v. Constr. 14 Laborers Pension Trust, 508 U.S. 602, 622 (1993) (alteration in original) (quoting United States 15 v.United States Gypsum Co., 333 U.S. 364, 395 (1948)). “[R]eview under the ‘clearly erroneous’ 16 standard is significantly deferential[.]” Id. at 623. 17 III. DISCUSSION 18 The court first addresses the motion for reconsideration as to Global’s Motion for a 19 Protective Order before turning to Aerojet’s Motion to Compel. 20 A. Global’s Motion for a Protective Order 21 On reconsideration, Global makes three principal arguments. First, Global argues this 22 court’s January 2022 order did not grant Aerojet leave to conduct a Rule 30(b)(6) deposition. See 23 Joint St. at 5, ECF No. 305; Mot. Recons. at 19. The magistrate judge correctly rejected this 24 argument. As relevant here, this court granted Aerojet leave to conduct up to five depositions, see 25 Mot. Am. Order at 4, 10; a Rule 30(b)(6) deposition is a deposition. Moreover, the parties 26 explicitly contemplated Aerojet’s taking a Rule 30(b)(6) deposition in their briefing on Aerojet’s 27 Motion to Amend the Scheduling Order. See, e.g., Global’s Opp’n at 21, ECF No. 287 (“Aerojet 1 insists that it should be given an opportunity to conduct a Rule 30(b)(6) deposition of Condon & 2 Forsyth to test the completeness of [its] production.”); Aerojet’s Reply at 6, ECF No. 290 3 (“Aerojet is seeking . . . a Rule 30(b)(6) deposition from the witness at Condon & Forsyth 4 knowledgeable about these documents and [it] should be allowed.”). This court found “Aerojet is 5 entitled to [its] requested discovery.” Mot. Am. Order at 9. 6 Second, Global submits Aerojet’s proposed Rule 30(b)(6) deposition “bears no relation to 7 the reasonableness or adequacy of the claim investigation or any other information that is 8 potentially relevant to Aerojet’s bad faith claim.” Joint St. at 5. The magistrate judge correctly 9 found to the contrary. Aerojet’s proposed 30(b)(6) topics align with the additional discovery 10 contemplated in this court’s January 2022 order. Compare Mot. Am. Order at 4, 10 (granting 11 Aerojet leave to conduct discovery focused on reasonableness and adequacy of Condon & 12 Forsyth’s claim investigation and incongruities between Condon & Forsyth’s billing entries and 13 Global’s document production), with, e.g., Am. Rule 30(b)(6) Dep. Not. at 5, ECF No. 305-4 14 (“Topic 14: The individuals responsible for reviewing documents prior to production, the training 15 provided to such individuals for identifying responsive documents, and the methods used by 16 reviewers to identify responsive documents.”).

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Aerojet Rocketdyne, Inc. v. Global Aerospace, Inc., (E.D. Cal. 2022).

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