Athletics Investment Group, LLC v. Schnitzer Steel Industries, Inc.

District Court, N.D. California·Decided August 23, 2024·No. 3:21-cv-05246·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 ATHLETICS INVESTMENT GROUP, Case No. 21-cv-05246-MMC (DMR) LLC, 8 Plaintiff, ORDER ON JOINT DISCOVERY 9 LETTER RE: WAIVER OF THE v. ATTORNEY-CLIENT PRIVILEGE 10 AND WORK PRODUCT DOCTRINE SCHNITZER STEEL INDUSTRIES, INC., 11 Re: Dkt. No. 210 Defendant. 12 13 Plaintiff Athletics Investment Group, LLC (“AIG”) moves for an order finding that third 14 party Bay Area Air Quality Management District (“BAAQMD”) waived any claim of privilege 15 over 67 documents because of its untimely assertions of privilege and protection. [Docket Nos. 16 210, 212.] BAAQMD contends that its actions should not result in a waiver. As part of that 17 argument, it explains that 34 of the 67 disputed documents are “partial (near) duplicates of 18 documents” for which it previously asserted privilege. The court ordered BAAQMD to lodge 19 those 34 documents for in camera review. [Docket Nos. 212, 218, 222.] 20 This matter is suitable for resolution without a hearing. Civ. L.R. 7-1(b). For the 21 following reasons, the court finds that BAAQMD has waived the attorney-client privilege and 22 work product protection with respect to 43 of the 67 documents it withheld from production. 23 I. BACKGROUND 24 This is an action brought under the Clean Air Act’s (“CAA”) citizen suit enforcement 25 provision, 42 U.S.C. § 7604, to challenge Defendant Schnitzer Steel Industries, Inc.’s 26 (“Schnitzer”) operations at its metal shredding facility in West Oakland. 27 The undersigned’s May 14, 2024 and May 28, 2024 Orders detail the factual and 1 (May 28, 2024 Order).] In brief, in March 2023 AIG served a subpoena on BAAQMD for 2 production of 17 categories of documents, to which BAAQMD responded in April 2023. In 3 January 2024, following several requests for extensions, BAAQMD produced approximately 4 5,000 responsive documents and served a privilege log stating that it withheld more than 9,300 5 documents based on various privileges and confidentiality agreements. This included withholding 6 approximately 9,000 documents based on the deliberative process privilege. BAAQMD also 7 redacted information from over 900 documents on the ground that the information was non- 8 responsive. AIG moved to compel, challenging the sufficiency of BAAQMD’s privilege log, its 9 claim of deliberative process privilege, the withholding of documents pursuant to interagency 10 confidentiality agreements, and the redactions for relevance. [See Docket No. 103 (Jan. 12, 2024 11 Jt. Letter).] 12 Following in camera review of exemplar documents, the court held that “[s]ome but not all 13 of BAAQMD’s claims of deliberative process privilege are supported by the record and by the 14 law,” concluding that it had established the privilege over approximately one-third of the 15 exemplars. May 14, 2024 Order 2, 6-7. The court ordered BAAQMD to re-review each document 16 withheld based on the deliberative process privilege “using the rulings provided . . . and applying 17 them as guidance across the universe of withheld documents” and to produce documents for which 18 it withdraws its deliberative process privilege claim and provide updated privilege logs by May 19 21, 2024. Id. at 14-15. It also ordered the parties to brief AIG’s argument that BAAQMD’s 20 claims of the deliberative process privilege should be overridden based on AIG’s need for the 21 information. Id. at 14. See F.T.C. v. Warner Commc’ns Inc., 742 F.2d 1156, 1161 (9th Cir. 1984) 22 (“[a] litigant may obtain deliberative materials if [their] need for the materials and the need for 23 accurate fact-finding override the government’s interest in non-disclosure.”). The court later 24 ordered the parties to meet and confer to focus on the district’s pre-2020 documents, which AIG 25 identified as key to the claims and defenses at issue, and to use targeted search terms for the 26 remaining documents. The parties subsequently agreed to extend the deadline for the re-review of 27 responsive documents and production of an updated privilege log to June 7, 2024. [Docket Nos. 1 On May 28, 2024, the court ruled that “AIG’s need for disclosure of the documents 2 withheld based on the deliberative process privilege overrides BAAQMD’s interest in 3 confidentiality” with respect to all pre-2020 documents withheld by BAAQMD based on the 4 deliberative process privilege, “as well as withheld documents from 2020 and later that have been 5 or will be identified by the parties via targeted search terms.” May 28, 2024 Order 6-7. The court 6 also found that BAAQMD had withdrawn any claim of privilege over documents previously 7 withheld based on interagency agreements under the law enforcement/official information 8 privilege. Id. at 8. As a result, it ordered BAAQMD to produce all documents withheld solely on 9 the basis of the law enforcement/official information privilege, as well as all documents withheld 10 on that basis plus the deliberative process privilege where that privilege had been overridden. Id. 11 The court noted it was “unclear” if revised privilege logs were necessary in light of its rulings and 12 ordered the parties to meet and confer on the issue. It ordered BAAQMD to produce any revised 13 privilege log by June 7, 2024. Id. The parties later agreed to extend that deadline to June 19, 14 2024. [Docket Nos. 206, 208.] 15 The parties filed this joint letter brief on June 26, 2024. [Docket No. 210 (Jt. Letter).] 16 According to BAAQMD, in preparing its production of documents withheld based on the 17 deliberative process privilege, it discovered 214 documents that it contends, for the first time, “are 18 privileged on grounds other than the deliberative process privilege.” It revised its privilege log to 19 reflect these new assertions of attorney-client privilege and attorney work product protection. Id. 20 at 3. AIG argues that BAAQMD waived these privilege claims by asserting them in late June 21 2024. Id. at 2. It also argues that BAAQMD has not met its burden of sustaining the claims of 22 attorney-client privilege and work product protection. Id. at 2-3. BAAQMD argues that the court 23 should not find waiver of the new assertions of attorney-client privilege and work product 24 protection and contends that its privilege log is sufficient. Id. at 4-5. BAAQMD also asserted that 25 it was “working to compile a complete list of duplicate copies where attorney privileges were 26 previously asserted” and stated its intention to notify AIG of “any assertions that are being 27 withdrawn” and to identify any duplicate documents for which it previously asserted attorney- 1 On July 3, 2024, the court issued an order laying out the applicable federal law regarding 2 the attorney-client privilege and the work product doctrine. The order expressed a lack of 3 confidence “that BAAQMD has properly and narrowly applied the foregoing standards in its 4 privilege review,” based on the court’s knowledge of BAAQMD’s privilege assertions through 5 conducting in camera review. [Docket No. 211 (July 3, 2024 Order) 2-3.] Before analyzing the 6 waiver issue as to the 214 disputed documents, the court ordered BAAQMD to “immediately re- 7 review its claims of privilege and protection over the remaining documents in light of [the July 3, 8 2024] order,” and to produce an amended privilege log by July 8, 2024. The court ordered the 9 parties to then meet and confer and file a joint status report by July 11, 2024. Id. at 3-4. 10 The parties filed a timely joint status report in which they explained that they narrowed 11 their dispute from 214 to 67 documents.

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Athletics Investment Group, LLC v. Schnitzer Steel Industries, Inc., (N.D. Cal. 2024).

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