Bougé v. Smith's Management Corp.

132 F.R.D. 560, 29 Wage & Hour Cas. (BNA) 1663, 1990 U.S. Dist. LEXIS 13194, 1990 WL 146641
CourtDistrict Court, D. Utah
DecidedOctober 5, 1990
DocketNo. 89-C-1066 S
StatusPublished
Cited by14 cases

This text of 132 F.R.D. 560 (Bougé v. Smith's Management Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bougé v. Smith's Management Corp., 132 F.R.D. 560, 29 Wage & Hour Cas. (BNA) 1663, 1990 U.S. Dist. LEXIS 13194, 1990 WL 146641 (D. Utah 1990).

Opinion

MEMORANDUM DECISION AND ORDER

RONALD N. BOYCE, United States Magistrate.

The plaintiff, Donald Bougé, filed the instant action against Smith’s Management Corporation claiming the defendant, a large grocery chain operator, violated the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. Plaintiff alleged he was not compensated for overtime work and that some of the time that plaintiff worked was uncompensated. Plaintiff has also joined a claim for wrongful termination. An answer denying liability was filed and the ease referred to the magistrate under 28 U.S.C. § 636(b)(1)(B). The parties, thereafter, engaged in discovery which has resulted in several disputes, most of which counsel have earnestly sought to resolve among the parties. See Rule 9(h) Rules of Civil Practice, United States District Court for District of Utah.

The plaintiff filed a petition for an order to show cause for defendant and its agent to appear and show why they should not be prevented from prohibiting the defendants’ employees from speaking to plaintiff and plaintiff’s counsel and investigators.1 The plaintiff filed a memorandum in support of the request for protective relief. Plaintiff contended in his memorandum, and in his [562]*562oral argument before the magistrate, that he only wished to interview non-management employees. It appears the subjects of the interview would be lower level grocery store employees of defendant, who had charge of various departments of one of the defendant’s large supermarkets in St. George, Utah. Such employees are non-management and non-policy making employees. Defendant has not authorized the employees to speak in its behalf or to make binding admissions on its behalf. The plaintiff’s motion for protective relief was supported by his own affidavit to the effect that employees of defendant’s store had been told not to speak to the plaintiff.2 Plaintiff contends he has a right to interview potential witnesses and persons who may have information relevant to his claim.

In response, defendant filed a motion to prohibit plaintiff’s counsel and agents from interrogating employees of the defendant or to restrict the use of confirmation letters or recorded transcripts. Defendant contends that plaintiff’s counsel has caused and will cause employees of the defendant to be interrogated outside the presence of the defendant's counsel, that interviews are sometimes tape recorded, and thereafter, following the interview, letters of confirmation are sent to the employee specifying the information provided. At hearing, defendant’s counsel protested that employees are often unaware of the consequences of their statements and the possible use to which such statements could be put at trial. On the other hand, the technique used by plaintiff is a means of obtaining impeachment evidence or avoiding defendant or its employee from changing evidence or the nature of testimony at the time of trial.

The defendant places reliance on ABA Code of Professional Responsibility DR-7-104(A)(1)3 restricting an attorney from contacting another party who is represented by counsel (PI. memo, File Entry # 25, p. 5). The plaintiff cites ethical opinions from the San Diego Bar Association Ethics Committee, Opinion 1984-5, (November 5, 1984), the New York County Lawyer’s Association, Opinion 528 and others, that a plaintiff’s attorney may not communicate “directly with employees of a defendant corporation whether or not they are in managerial positions ...”. (PI. memo. Id. p. 6). The defendant did not submit copies of these opinions, however, the defendant’s position is obviously that the ethical rule is a restriction on discovery in this case and that it applies to any employee. The defendant’s contention would have the effect of preventing a plaintiff from contacting any of the corporate defendant’s employees after the litigation commenced, no matter how trivial the employees’s status. The effect would require a plaintiff to employ expensive deposition or other formal discovery. The cost of this process may be prohibitive and contrary to efforts to reduce the costs which the burden of formal discovery places on litigants, counsel and the courts. Oberer, Trial by Ambush or Avalanche, The Discovery Debacle, 1987 Missouri Jnl. of Dispute Resolution 1; Wolfson, Addressing the Adversarial Dilemma of Civil Discovery, 36 Cleveland St. L.Rev. 17 (1987). In this case, the plaintiff’s monetary claim for violation of the Fair Labor Standards Act is $39,997.80 plus unpaid wages for wrongful termination and attorney fees. The claim is modest and obviously limits the expense which plaintiff may incur in pretrial discovery. On the other hand, the defendant, in this ease, is a large multi-enterprise corporation. To ac[563]*563cept the defendant’s position is to give a distinct economic advantage to the corporate structure and protect the corporate interest during litigation from cheaper discovery alternatives that a cost-conscious plaintiff, with limited assets, may wish to employ. See National Conference on the Causes of Popular Dissatisfaction with the Administration of Justice, reported 70 F.R.D. 83 (1976) 76 F.R.D. 277 (1978), 74 F.R.D. 159.

Defendant also cites to American Bar Association Opinion (No. 1410, 1978) which plaintiff contends prohibits contact with persons who had managerial responsibility on behalf of the corporation or with any other person whose act or omission in connection with the litigation “may be imputed to the organization for purposes of civil liability or whose statements may constitute an admission on the part of” the defendant corporation. This standard if accepted in light of Rule 801(d)(2)(D), Federal Rules of Evidence is essentially one of prohibiting ex parte interviews with corporate employees. Rule 801(d)(2)(D), F.R.E. provides that a non-hearsay admission takes place where there is a statement by an employee “concerning a matter within the scope of the agency or employment, made during the existence of the relationship ...”4 Also of significance is the fact that counsel could not usually know of any possible admission by an employee until an interview is conducted. If counsel knew that no admissible evidence would be obtained from an interview, there would be little reason in most instances to interview the employee. To this extent the ethical rule5 frustrates the search for the truth by preventing an opposing party from obtaining reasonable access to admissible evidence, it does not assist in the fair and accurate resolution of disputes.

The defendant’s counsel filed an affidavit protesting the process used by plaintiff in the interview of defendant’s employees. It is contended by defendant that without a warning of some sort to the employee such person is not really aware of the need for caution and for exact truth during the interview. There is little question the method used by plaintiff in some instances could be a significant impeachment tool.6 On the other hand, the letter is not oppressive and asks the employee to advise counsel if the letter misstates the conversation. Also, the employee is given pretrial notice of his or her evidence.

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Bluebook (online)
132 F.R.D. 560, 29 Wage & Hour Cas. (BNA) 1663, 1990 U.S. Dist. LEXIS 13194, 1990 WL 146641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bouge-v-smiths-management-corp-utd-1990.