A.M. Castle & Co. v. Byrne

123 F. Supp. 3d 895, 2015 U.S. Dist. LEXIS 106144, 2015 WL 4756928
CourtDistrict Court, S.D. Texas
DecidedAugust 12, 2015
DocketCiv. A. H-13-2960
StatusPublished
Cited by15 cases

This text of 123 F. Supp. 3d 895 (A.M. Castle & Co. v. Byrne) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.M. Castle & Co. v. Byrne, 123 F. Supp. 3d 895, 2015 U.S. Dist. LEXIS 106144, 2015 WL 4756928 (S.D. Tex. 2015).

Opinion

OPINION AND ORDER

MELINDA HARMON, District Judge.

Pending before the Court in the above referenced cause, alleging. breach of employee confidentiality agreement, breach of fiduciary duty, unjust enrichment, tortious interference with contract, tortious interference with prospective economic advantage, and civil conspiracy, and seeking compensatory and injunctive relief against a former employee of Plaintiff A.M. Castle & Co. (“Castle”), Thomas K. Byrne (“Byrne”), and his new employer, Oilfield Steel Supply, LLC (“OSS”) .(collectively “Defendants”), are Castle’s objections (instrument #53) to United States Magistrate Judge Frances Stacy’s order (#52) granting in part and denying in part Defendants’ motion to compel (# 42) and denying Castle’s motion to compel and request for show cause order (# 44).

Castle and OSS are direct competitors in supplying pipe and materials to the oil [898]*898and gas industry. Byrne was employed initially by Tube Supply, Inc., which was acquired by Castle, a Maryland- corporation with its principal place of business in Illinois, as an Inside Sales Representative in Houston, Texas. By virtue of his employment in Castle’s Oil .& Gas business unit, Castle claims that Byrne had access to its confidential information. Byrne signed a confidentiality agreement in April 2009 when Tube Supply was his employer, promising not to use his employer’s confidential information for the benefit of any third parties. Byrne resigned from Castle on April 30, 2013 and went to work for OSS. Castle claims that over a course of months before he resigned, Byrne misappropriated confidential information, including customer lists and information, vendor contact information, and sales and revenue data, and subsequently provided them to his new employer, OSS. [Furthermore, according to Castle, Byrne then began soliciting Castle’s customer and vendor lists on behalf of OSS from this wrongfully obtained information.

In its objections to the Magistrate Judge Stacy’s rulings on Castle’s motions to compel, Castle contends that Defendants did not perform a thorough search of all computers and electronic devices potentially having relevant information and therefore ask the Court to give it physical access to Defendants’ electronic devices.

Standard of Review

This Court referred the motions to compel to United States Magistrate Judge Frances Stacy under 28 U.S.C. section 636(b)(1)(A) for resolution.-

A magistrate judge is permitted broad discretion in resolving' nondispositive pretrial motions. Id. A magistrate’s order for nondispositive matters may only be -reconsidered where it has been shown that the magistrate judge’s order is clearly erroneous or contrary to law. Id.; Fed.R.Civ.P. 72(a)1; Moore v. Ford Motor Co., 755 F.3d 802, 806 & n. 6 (6th Cir.2014). Thus factual findings are reviewed under a clearly erroneous standard and legal conclusions are reviewed de novo. Moore, 755 F.3d at 806 & n. 7, citing Alldread v. City of Grenada, 988 F.2d 1425, 1434 (5th Cir.1993).

Relevant Discovery Rules

Under Federal Rule of Civil Procedure 26(b)(1), “Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense.” Moreover, “[Relevant information need not be admissible at trial if the discovery appears reasonably calculated to lead to discovery of admissible evidence.” Id. “Relevant evidence” is “evidence having any tendency to make the existence of- any fact more probable or less probable than it would be without the evidence.” Fed.R.Evid. 401.

In 2006 Federal Rule of Civil Procedure 34 was amended to allow a party to explicitly request production of electronically stored information just as it had been allowed to seek production of paper documents.2 Federal Rule of Civil Proce[899]*899dure 34 provides that a party may request another party to produce “electronically stored information ,.. stored in any medium from which information can be obtained”3 and requires that a document request “must describe .with reasonable particularity each item or .category of ' items to be inspected” or produced.

The party receiving the request “must respond in writing within 30 days after being served” [Rule 34(b)(2)(A) ] and “[f]or each item or category, the response must either state that the inspection ... will be permitted as requested or staté an objection to the request, including the reasons [Rule 34(b)(2)(B) ].” When a request for production or an interrogatory is not answered, the party seeking discovery may move for an order compelling production against the nonresponding party under Federal Rule of Civil Procedure 37(a)(3). An evasive or incomplete answer each item or category, of items to be inspected; is deemed to be a failure to respond. Fed.R.Civ.P. 37(a)(4).

Federal Rule of Civil Procedure 26(b)(2)(B) permits the district court to compel production of information that is not reasonably 'available only “if the requesting party shows good cause.”4 To determine if the party has shown “good cause,” aihong factors that the court should' consider are whether “the burden or expense of the proposed discovery outweighs its likely benefit, considering the needs of the case, the amount in controversy, the parties’ resources, the importance of the issues at stake in the action, and the importance of discovery in resolving the issues.” Rule 26(b)(2)(C)(iii).

[900]*900Because granting a party access to an opponent’s electronic storage device, itself, is highly intrusive, according to the Advisory Committee’s comments to the 2006 amendments to Rule 34, while direct “access [to a party’s electronic storage device] might be justified in some circumstances,” the rules were “not meant to create a routine right of direct access” and court should “guard against undue intrusiveness.” Thus courts are very cautious about ordering mirror imaging of computers, especially where the request is overly broad and where the connection between the party’s claims and the computer is vague and unproven. See, e.g., Han v. Futurewei Technologies, Inc., No. 11-CV-831-JM(JMA), 2011 WL 4344301 (S.D.Cal. Sept.

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Bluebook (online)
123 F. Supp. 3d 895, 2015 U.S. Dist. LEXIS 106144, 2015 WL 4756928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/am-castle-co-v-byrne-txsd-2015.