Application of RSM Production Corp. v. Noble Energy, Inc.

195 F. Supp. 3d 899, 2016 U.S. Dist. LEXIS 82930
CourtDistrict Court, S.D. Texas
DecidedJune 27, 2016
DocketMiscellaneous Action H-16-1135
StatusPublished
Cited by2 cases

This text of 195 F. Supp. 3d 899 (Application of RSM Production Corp. v. Noble Energy, Inc.) 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
Application of RSM Production Corp. v. Noble Energy, Inc., 195 F. Supp. 3d 899, 2016 U.S. Dist. LEXIS 82930 (S.D. Tex. 2016).

Opinion

ORDER

Gray H. Miller, United States District Judge

Pending before the court is petitioners RSM Production Corporation and Jack J. Grynberg’s (collectively, “Petitioners”) ex parte petition and application to permit discovery from respondent Noble Energy, Inc. (“Noble”) for use in a foreign proceeding. Dkt. 1. The court ordered Petitioners to serve the petition and application to Noble and ordered Noble to file a response. Dkt. 6. The court held a hearing on the petition on June 15, 2016, at 10:00 a.m. Dkt. 14. After the hearing, Petitioners filed a supplemental brief and a motion to modify them discovery requests. Dkt. 19, 22. Respondent filed a response to the motion to modify, and Petitioners filed a reply. Dkts. 23, 24. After considering the application, motion, responsive filings, arguments at the hearing, and applicable law, the court is of the opinion that the motion to modify discovery requests (Dkt. 22) should [901]*901be GRANTED and the application to permit discovery for use in a foreign proceeding, as modified, (Dkt. 1) should be GRANTED IN PART AND DENIED IN PART.

I. Background

Petitioners request limited discovery in connection with a civil case pending in the Jerusalem District Court in the State of Israel, RSM Production Corp. et al. v. Minister of National Infrastructures, Energy and Water, et al. Case No. 27516-04-15. Dkt. 4. Petitioners are the plaintiffs in the Israeli proceeding. Id. RSM Production Corporation (“RSM”) is a Colorado corporation with its principal place of business in Colorado. Id. It is a hydrocarbon exploration and drilling company. Id. Grynberg, a citizen. of Colorado, is the CEO of. RSM. Id, Petitioners seek damages in the Israeli proceeding for alleged misconduct by Israeli government officials with regard to the issuance or restriction of permits and licenses that allowed individuals and companies to explore and drill in the Eastern Mediterranean Sea. Id.

Petitioners contend that Noble and Israeli tycoon Yitzhak Teshuva obtained the only exploration and drilling permit and license for the Eastern Mediterranean area that had hydrocarbon deposits in commercial quantities. Id. Specifically, Petitioners contend that Noble “is the majority participant in a consortium of companies that in and around 2006-2008 received licenses and permits from [the defendants in the Israeli case] to explore for and exploit the sizable natural gas deposits in the [State of Israel’s exclusive economic zone].” Id. Petitioners believe that Noble has electronic and other documents that will demonstrate how the Israeli Ministry of Energy and other defendants in the Israeli case administered the issuance of these permits during the relevant years. Id. They also contend that Noble officials have personal knowledge of the manner in which this licensing regime was administered. Id. They seek discovery of documents and testimony from Noble officials to aid in the Israeli case. Id. Noble is headquartered in the Southern District of Texas. Id.

Noble opposes the discovery. Dkt. 11. Noble asserts that it conducts all of its activities in Israel through its affiliate, Noble ■ Energy Mediterranean Ltd. (“NEML”). Id. Noble contends that Petitioners are merely attempting to -circumvent Israel’s discovery rules by obtaining an order to conduct discovery on NEML’s parent company, and Noble seeks the court’s protection from Petitioners’ over-broad and burdensome discovery requests. Id. Noble points out that no discovery has even taken place in the Israeli case and that there are pending motions to dismiss in that case. Id. Noble notes that civil depositions are rare in Israel and that Petitioners have not even subpoenaed NEML, even though it is within the Israeli court’s jurisdiction.

II. Legal Standard

Under 28 U.S.C. § 1782,
(a) The district court of the district in which a person resides or is found may order him to give his testimony or statement or to produce a document or other thing for use in a proceeding in a foreign or international tribunal, including criminal investigations conducted before formal accusation. The order may be made pursuant to a letter rogatory issued, or request made, by a foreign or international tribunal or wpon the application of any interested person and may direct that the testimony or statement be given, or the document or other thing be produced, before a-person appointed by the court. By virtue of his appointment, the person appointed has power to administer any necessary oath and take the testimony or statement. The order [902]*902may prescribe the practice and procedure, which may be in whole or part the practice and procedure of the foreign country or the international tribunal, for taking the testimony or statement or producing the document or other thing. To the extent that the order does not prescribe otherwise, the testimony or statement shall be taken, and the document or other thing produced, in accordance with the Federal Rules of Civil Procedure. A person may not be compelled to give his testimony or statement or to produce a document or other thing in violation of any legally applicable privilege, (b) This chapter does not pre- • elude a person within the United States from voluntarily giving his testimony or statement, or producing a document or other thing, for use in a proceeding in a foreign or international tribunal before any person and in any manner acceptable to him.

28 U.S.C. § 1782(emphasis added). “[0]nce an interested party makes the requisite showing that it has met the statutory factors, the district court judge has the discretion to grant the application seeking the authority to issue subpoenas.” Tex. Keystone, Inc. v. Prime Nat. Res., Inc., 694 F.3d 548, 553 (5th Cir.2012). “‘[Section] 1782 does not establish a standard for discovery. Instead, it provides for a threshold détermination of whether to allow foreign litigants to enjoy discovery in U.S. courts in accordance' with federal rules. The manner in which discovery proceeds will be determined by normal discovery rules.’” Id. at 554 (quoting Gov’t of Ghana v. ProEnergy Servs., LLC, 677 F.3d 340, 343 (8th Cir.2012)).

A “district court is not required to grant a § 1782(a) discovery application simply because it has authority to do so.” Intel Corp. v. Adv. Micro Devices, Inc., 542 U.S. 241, 264, 124 S.Ct. 2466, 159 L.Ed.2d 355 (2004).

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Bluebook (online)
195 F. Supp. 3d 899, 2016 U.S. Dist. LEXIS 82930, Counsel Stack Legal Research, https://law.counselstack.com/opinion/application-of-rsm-production-corp-v-noble-energy-inc-txsd-2016.