BAE Systems San Diego Ship Repair Inc. v. United States

CourtDistrict Court, S.D. California
DecidedApril 24, 2023
Docket3:22-cv-00515
StatusUnknown

This text of BAE Systems San Diego Ship Repair Inc. v. United States (BAE Systems San Diego Ship Repair Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BAE Systems San Diego Ship Repair Inc. v. United States, (S.D. Cal. 2023).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 SOUTHERN DISTRICT OF CALIFORNIA 6 7 BAE SYSTEMS SAN DIEGO SHIP Case No.: 22-cv-00515-L-BGS REPAIR INC., 8 ORDER: Plaintiff, 9 v. (1) GRANTING DEFENDANT’S 10 MOTION FOR A THE UNITED STATES OF AMERICA, 11 PROTECTIVE ORDER, Defendant. 12 (2) GRANTING THE PARTIES’ 13 JOINT MOTION TO FILE UNDER SEAL EXHIBIT 1, 14 AND 15 (3) GRANTING PLAINTIFF’S 16 MOTION TO FILE UNDER 17 SEAL EXHIBIT 1 TO PLAINTIFF’S SUPPLEMENT 18 TO JOINT STATEMENT 19 [ECF 33, 34, and 40] 20

21 On March 8, 2023, the parties filed a Joint Statement regarding the United States’ 22 Motion for a Protective Order under Federal Rule of Civil Procedure 26(c). (ECF 33.) In 23 relevant part, BAE Systems San Diego Ship Repair, Inc., Plaintiff, served deposition 24 notices for United States Navy Vice Admirals Galinis and Kitchener, Rear Admiral 25 Haycock, and Rear Admiral Ver Hage. In response, the United States of America, acting 26 through the Department of the Navy, Southwest Regional Maintenance Center, 27 28 1 Defendant, has moved for the Court to enter a protective order precluding Plaintiff from 2 deposing the four on the basis that they are protected by the “Apex” doctrine.1 (Id.) 3 On February 27, 2023, the parties placed a joint call to this Court with a discovery 4 dispute over the deposition of the four witnesses. (See ECF 30.) This Court ordered the 5 parties to file a joint brief regarding the dispute. (Id.) The parties have filed the joint 6 brief (ECF 33) and a joint motion to file documents under seal (ECF 34), Plaintiff has 7 filed a supplemental document (ECF 39), and a motion to file documents related to the 8 supplemental document under seal (ECF 40), and Defendant has filed a response to 9 Plaintiff’s supplemental document (ECF 42). 10 For the following reasons, the Court GRANTS the parties’ joint motion for 11 Permission to File Under Seal Exhibit 1 (ECF 34) and Plaintiff’s motion for Permission 12 to File Under Seal Exhibit 1 to Plaintiff’s Supplement to Joint Statement (ECF 40). The 13 Court declines to consider Exhibit 1 to Plaintiff’s Supplement, however. The Court also 14 declines to consider Plaintiff’s supplemental document. (ECF 39.) The Court GRANTS 15 Defendant’s motion for a protective order. (ECF 33.) 16 I. BACKGROUND 17 Plaintiff provides “emergency and planned ship repair, modernization, and 18 overhaul services for [Defendant].” (Compl. [ECF 1] ¶ 9.) Plaintiff uses subcontractors 19 including South Bay Sandblasting & Tank Cleaning, Pacific Tank Cleaning, and 20 California Marine Cleaning. (Compl. ¶ 10.) 21 In September 2019, Plaintiff was awarded contracts to repair, maintain, and 22 modernize the USS Decatur and the USS Stethem, which are “Arleigh Burke-class 23 guided-missile destroyers.” (Compl. ¶¶ 2, 15-16.) 24 25 26 1 “Under the Apex doctrine (also referred to as the Morgan doctrine), high-ranking 27 government officials are not subject to deposition absent extraordinary circumstances.” Barlow v. Washington, No. C20-5186 BHS, 2021 WL 5910485, at *1 (W.D. Wash. Jan. 28 1 As part of its contracts with Defendant, Plaintiff flushed portions of the two ships’ 2 air systems. (Compl. ¶ 2.) Plaintiff alleges that Defendant found deficiencies in the air 3 systems, which prompted it to sample them. (Compl. ¶ 2.) Defendant then found 4 evidence of alleged oil contamination. (Id.) Defendant asserted that Plaintiff and 5 Plaintiff’s subcontractor were to blame for the contamination. (Id.) 6 Plaintiff alleges that in March and April 2021, Defendant directed Plaintiff to re- 7 flush the dry air systems on both ships using Nitrogen Oxide Cleaner (NOC). (Compl. ¶¶ 8 45, 49.) Later in April 2021 and in May 2021, Defendant directed Plaintiff to use 9 Tribasic Sodium Phosphate (TSP) instead. (Compl. ¶¶ 50, 53.) Plaintiff alleges that 10 NOC flushing “is not normally conducted on surface ships like the Decatur and Stethem” 11 (Compl. ¶ 46), and that NOC flushing was “a significant change to the contract 12 requirements of ‘hot water’ flushing” (Compl. ¶ 48). 13 While the ships were being cleaned, Defendant sampled air systems in the USS 14 Carney, another Arleigh Burke-class ship, which was located in Jacksonville, Florida. 15 (Compl. ¶ 29.) Plaintiff alleges that the Carney’s air systems were “dirtier than 16 expected.” (Compl. ¶ 30.) Plaintiff also alleges that “contamination found in the air 17 systems aboard the Carney exhibited similarities to the contamination found in the 18 Decatur and the Stethem, which further indicated that the air system contamination on the 19 Decatur and Stethem predated any flushing performed by [Plaintiff’s subcontractor].” 20 (Compl. ¶ 64.) 21 Plaintiff alleges that its “independent and qualified experts identified 22 contamination in areas not flushed by [Plaintiff’s subcontractor], which confirmed that 23 the contamination was not attributable to or a result of [the subcontractor’s] flushing 24 activities.” (Compl. ¶ 62.) In March 2022, after Plaintiff submitted Requests for 25 Equitable Adjustment to the Government and was unable to get compensated, Plaintiff 26 submitted formal claims to the Government. (Compl. ¶ 5.) Plaintiff sought 27 reimbursement for all costs associated with the additional flushing work. (Compl. ¶¶ 4, 28 5.) On March 8, 2022, in two Contracting Officer’s Final Decisions, Plaintiff’s claims 1 were denied. (Compl. ¶ 7.) On April 14, 2022, Plaintiff filed the Complaint in this case. 2 (ECF 1.) Plaintiff’s Complaint asserts four claims: (1) Dispute Under the Contract; (2) 3 Breach of Contract (Changes); (3) Breach of Contract (Superior Knowledge); and (4) 4 Quantum Meruit. (Id.) 5 I. MOTIONS TO SEAL AND SUPPLEMENTAL DOCUMENT 6 In accordance with the Civil Local Rule 79.2, Judge Skomal’s Chambers’ Rules, 7 and the parties’ Stipulated Protective Order Regarding Confidential Information, the 8 parties jointly move to file Exhibit 1 to the Declaration of Alex E. Wallin (ECF 33-2) 9 under seal (ECF 24), and Plaintiff moves to file Exhibit 1 to its supplemental document 10 (ECF 39), under seal. In the joint motion, the parties designate Exhibit 1 as 11 “Confidential” in accordance with the protective order in this case. (ECF 34 at 2.) The 12 parties describe Exhibit 1 as “an email thread including several Navy personnel that 13 discusses, among other things, information regarding Navy ships that [the Navy] claims 14 should be protected from public disclosure.” (ECF 34 at 2.) Plaintiff seeks to file Exhibit 15 1 to the supplement as “Confidential” in accordance with the protective order as well. 16 (ECF 40.) 17 Unlike judicial records that have been attached to a dispositive motion, judicial 18 records attached to “[n]on[-]dispositive motions ‘are often unrelated, or only tangentially 19 related, to the underlying cause of action,’ and, as a result, the public’s interest in 20 accessing dispositive materials does ‘not apply with equal force’ to non-dispositive 21 materials.” Pintos v. Pac. Creditors Ass’n, 605 F.3d 665, 678 (9th Cir. 2010) (quoting 22 Kamakana v. City & Cty. of Honolulu, 447 F.3d 1172, 1179 (9th Cir. 2006)). “A ‘good 23 cause’ showing will suffice to seal documents produced in discovery.” Kamakana, 447 24 F.3d at 1180 (citing Fed. R. Civ. P. 26(c)). “For good cause to exist, the party seeking 25 protection bears the burden of showing specific prejudice or harm will result if no 26 protective order is granted.” Phillips ex rel. Estates of Byrd v. Gen. Motors Corp., 307 27 F.3d 1206, 1210-11 (9th Cir. 2002).

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Bluebook (online)
BAE Systems San Diego Ship Repair Inc. v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bae-systems-san-diego-ship-repair-inc-v-united-states-casd-2023.