Atlantic Specialty Insurance Company v. Midwest Crane Repair, LLC

CourtDistrict Court, D. Kansas
DecidedAugust 31, 2020
Docket5:20-cv-04013
StatusUnknown

This text of Atlantic Specialty Insurance Company v. Midwest Crane Repair, LLC (Atlantic Specialty Insurance Company v. Midwest Crane Repair, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Specialty Insurance Company v. Midwest Crane Repair, LLC, (D. Kan. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

ATLANTIC SPECIALTY INSURANCE COMPANY, et al.,

Plaintiffs, Case No. 20-4013-JAR-ADM v.

MIDWEST CRANE REPAIR, LLC,

Defendant.

MEMORANDUM AND ORDER

This case arises out of the collapse of a Terex American HC165 boom crane (“Terex crane”) at a construction site in Fredonia, Kansas, after the boom hoist wire rope failed. Plaintiff Crossland Heavy Contractors, Inc. (“Crossland Heavy”) owns the crane and is insured by plaintiff Atlantic Specialty Insurance Company (“Atlantic”). After the collapse, Atlantic reimbursed Crossland Heavy for damages to a building that was under construction at the site, as well as the Terex crane, related equipment, and expenses. In this lawsuit, Atlantic and Crossland Heavy seek to recover from defendant Midwest Crane Repair, LLC (“Midwest Crane”) for its alleged negligence in inspecting the crane, which they contend caused the crane to collapse. This case is now before the court on two motions to compel. First, plaintiffs ask the court to compel Midwest Crane to produce written statements that its owner Jonathan Henry and other Midwest Crane employees or representatives gave to the Occupational Safety and Health Administration (“OSHA”) when OSHA investigated the crane collapse. (ECF 87.) As explained below, the extent to which these OSHA statements are in Midwest Crane’s possession, custody, or control is unclear. To the extent that they are not in Midwest Crane’s possession, custody, or control, plaintiff’s motion is denied because Midwest Crane has no obligation to produce them under the Federal Rules of Civil Procedure. However, the court rejects Midwest Crane’s assertion that it is entitled to assert any “privilege” or exemption that OSHA may have to withhold such documents. Only OSHA would be entitled to assert any such privilege or exemption and only with respect to documents in OSHA’s possession—for example, in response to a Freedom of Information Act (“FOIA”) request. So plaintiffs’ motion is granted to the extent that any such

documents are in Midwest Crane’s possession, custody, or control because Midwest Crane cannot assert OSHA privileges or exemptions over those documents. In the second motion, Midwest Crane seeks to compel Crossland Heavy to produce documents relating to another crane that Crossland Heavy owns, a Grove TMS 9000E crane (“Grove crane”). (ECF 88.) Midwest Crane contends these documents bear on the issue of causation because they will show Crossland Heavy’s practices in failing to properly maintain and repair its cranes, including not following Midwest Crane’s recommendations. The court agrees that these documents are relevant, and further finds that plaintiffs have not established that producing these documents would be unduly burdensome or disproportionate to the needs of the

case. Accordingly, Midwest Crane’s motion to compel is granted. I. LEGAL STANDARD “Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case.” FED. R. CIV. P. 26(b)(1). In other words, considerations of both relevance and proportionality now expressly govern the scope of discovery. FED. R. CIV. P. 26(b)(1) advisory committee’s note to the 2015 amendment. Relevance is “construed broadly to encompass any matter that bears on, or that reasonably could lead to other matter that could bear on, any issue that is or may be in the case.” Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 351 (1978); see Rowan v. Sunflower Elec. Power Corp., No. 15-9227, 2016 WL 3745680, at *2 (D. Kan. July 13, 2016) (applying Oppenheimer after the 2015 amendment); see also Kennicott v. Sandia Corp., 327 F.R.D. 454, 469 (D.N.M. 2018) (analyzing the 2015 amendment and concluding that it did not change the scope of discovery but clarified it, and therefore Oppenheimer still applies). When a responding party fails to make a disclosure or permit discovery, the discovering

party may file a motion to compel. FED. R. CIV. P. 37(a). The party seeking discovery bears the initial burden to establish relevance, but it does not bear the burden to address all proportionality considerations. See Landry v. Swire Oilfield Servs., L.L.C., 323 F.R.D. 360 (D.N.M. 2018) (discussing the effect of the 2015 amendment on the party seeking discovery); Gen. Elec. Capital Corp. v. Lear Corp., 215 F.R.D. 637, 640 (D. Kan. 2003) (stating the moving party bears the initial burden to demonstrate relevance); Hofer v. Mack Trucks, Inc., 981 F.2d 377, 380 (8th Cir. 1992) (“Some threshold showing of relevance must be made before parties are required to open wide the doors of discovery and to produce a variety of information which does not reasonably bear upon the issues in the case.”); FED. R. CIV. P. 26(b)(1) advisory committee’s note to the 2015 amendment

(noting the amendment “does not place on the party seeking discovery the burden of addressing all proportionality considerations” and that “the parties’ responsibilities [on a discovery motion] would remain the same as they have been”). Relevance is often apparent on the face of the request. See Johnson v. Kraft Foods N. Am., Inc., 238 F.R.D. 648, 652-53 (D. Kan. 2006). When the discovery sought appears relevant on its face, or the discovering party has established relevance, the party resisting discovery bears the burden to support its objections. See Ehrlich v. Union Pac. R.R. Co., 302 F.R.D. 620, 624 (D. Kan. 2014) (holding the party resisting discovery bears the burden to show why a discovery request is improper); Martin K. Eby Const. Co. v. OneBeacon Ins. Co., No. 08-1250-MLB-KGG, 2012 WL 1080801, at *3 (D. Kan. Mar. 29, 2012) (“Once this low burden of relevance is established, the legal burden regarding the defense of a motion to compel resides with the party opposing the discovery request.”). The party resisting discovery does not carry this burden by asserting “conclusory or boilerplate objections that discovery requests are irrelevant, immaterial, unduly burdensome, or overly broad.” Sonnino v. Univ. of Kan. Hosp. Auth., 221 F.R.D. 661, 670 (D.

Kan. 2004). Rather, an objecting party “must specifically show in its response to the motion to compel, despite the broad and liberal construction afforded by the federal discovery rules, how each request for production or interrogatory is objectionable.” Id. at 670-71. II. PLAINTIFFS’ MOTION TO COMPEL PRODUCTION OF THE OSHA STATEMENTS When OSHA investigated the Terex crane collapse, it obtained a written statement from Midwest Crane owner Jonathan Henry. Plaintiffs now ask the court to compel Midwest Crane to produce Mr. Henry’s statement, as well as “any statements provided to OSHA by any other owners, employees or representatives of Midwest [Crane], to the extent they exist.” (ECF 87, at 3.) A. Midwest Crane Has No Obligation to Produce OSHA Statements That Are Not Within Its Possession, Custody, or Control Midwest Crane contends that Mr. Henry’s OSHA statement is not in its possession, custody, or control. During Mr. Henry’s deposition, plaintiffs’ counsel asked for a copy of the statement. (ECF 87-1, at 4.) Midwest Crane’s counsel stated that he did not have the statement and that Mr. Henry might have a copy, but Midwest Crane would not produce the statement anyway because it is protected by an “OSHA privilege.” (Id.) Now, Midwest Crane contends that it does not have a copy because when OSHA responded to Midwest Crane’s FOIA request, OSHA withheld the statement and produced only a coversheet.

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Atlantic Specialty Insurance Company v. Midwest Crane Repair, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-specialty-insurance-company-v-midwest-crane-repair-llc-ksd-2020.