Chao v. Westside Drywall, Inc.

254 F.R.D. 651, 2009 U.S. Dist. LEXIS 569, 2009 WL 35271
CourtDistrict Court, D. Oregon
DecidedJanuary 6, 2009
DocketCiv. No. 08-6302-AC
StatusPublished
Cited by2 cases

This text of 254 F.R.D. 651 (Chao v. Westside Drywall, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chao v. Westside Drywall, Inc., 254 F.R.D. 651, 2009 U.S. Dist. LEXIS 569, 2009 WL 35271 (D. Or. 2009).

Opinion

OPINION AND ORDER

ACOSTA, United States Magistrate Judge:

Introduction

The Secretary of the United States Department of Labor (“the Secretary”) brings this action against defendants Westside Drywall, Inc., Hohsen Salem, and Shirine Salem (collectively “Defendants”) under the Fan-Labor Standards Act (“FLSA”) for injunctive relief, damages, and liquidated damages for unpaid minimum wages and unpaid overtime compensation to fifty-two individuals, and for Defendants’ failure to maintain proper records of persons Defendants employed and paid. Defendants move to compel production of “fully unredacted copies of (1) all statements and summaries of statements taken from all of the claimants identified on Exhibit A to the complaint, and (2) all documents relied on by Plaintiff to calculate the amount of damages each has claimant allegedly suffered.” Defs.’ Motion 2. The Secretary relies upon the informant’s privilege to oppose Defendants’ motion and support her motion for protective order.

Defendants may obtain copies of the statements of those claimants of the fifty-two claimants listed in Exhibit A that are no longer in the United States or who cannot be located by the parties, because Defendants have sufficiently demonstrated a compelling need for those statements. However, the copies of those statements will be redacted of any information that discloses that any claimant complained to or initiated a complaint with DOL regarding Defendants’ pay practices. Furthermore, Defendants may obtain from the Secretary unredacted copies of all the statements the Secretary obtained during her investigation if the Secretary does not properly invoke the informant’s privilege within the time period and in the manner consistent with this opinion and order. Accordingly, Defendants’ motion to compel is granted in part and denied in part and the Secretary’s motion for protective order is granted in part and denied in part.

[655]*655 Background,

Defendants are a drywall construction company and its two owners based in Hubbard, Oregon, approximately thirty miles south of Portland. In April 2007 the Secretary began an investigation of Defendants’ pay practices and eighteen months later, in October 2008, the Secretary filed its FLSA complaint against Defendants. Attached to the Secretary’s complaint as Exhibit A is a two-page list that contains the names of fifty-two persons the Secretary claims Defendants employed but failed to properly pay and for whom Defendants did not maintain proper records, all in violation of the FLSA.

The instant motion concerns Defendants’ motion to compel unredacted versions of the statements made by forty-three of the fifty-two claimants, and the wage calculations for each claimant, that the Secretary produced in redacted form among the 1,251 pages of documents she initially provided to Defendants. Specifically, the redacted versions of the statements omitted claimants’ names, dates and hours worked, and jobs worked; as well as the names of coworkers and supervisors, and names mentioned of defendant Westside Drywall’s employees. Defs.’ Memo 2-3. The Secretary states that she omitted the specific claimant’s name from each of the forty-three statements “to protect the identity of the witnesses” and other information “that could reasonably be used to identify the witness.” Secretary’s Memo 2. The worksheets omitted claimants’ names, and the job numbers and job locations on at least some of the produced documents. The worksheets the Secretary produced purportedly show the “specific calculations ... [of the] amount of back wages due to each of the individuals identified in Exhibit A.” Secretary’s Memo 2.

Defendants argue that unredacted versions of the witness statements are necessary because “[w]ithout access to the redacted information, Defendants are unable to compare the information in the witness statements with Defendants’ records to check their accuracy.” Defs.’ Memo 3. Defendants also argue that they cannot use depositions to “test the witnesses for truthfulness” by comparing specific statements to each witness’s deposition testimony. Id. Regarding the worksheets, Defendants state that the redacted versions “mak[e] it impossible” to compare the worksheets to their records to verify whether these jobs were Westside Drywall’s jobs, which subcontractor worked the specific job, and the amount of time a specific claimant spent on each job. Id. Without the unre-dacted versions, Defendants claim they are unable to determine whether the Secretary’s calculations for each claimant contain inaccuracies. Id. Thus, Defendants conclude, without access to the redacted information they cannot defend against the Secretary’s claims. Id.

The Secretary objects to Defendants’ proposed discovery and seeks a protective order because “the identities of the individuals who gave statements to the [DOL] during the course of the investigation and the statements themselves are protected from disclosure by the government informant’s privilege.” Secretary’s Memo 3. Relying on this “well-recognized” privilege, the Secretary asserts that disclosure of cooperating witnesses’ identities “would interfere with the Secretary’s ability to investigate violations of the [FLSA].” Secretary’s Memo 3. The Secretary points to the upcoming depositions that Defendants have scheduled of some of the workers allegedly owed back pay, and contends that Defendants will be able to question each witness about all the redacted documents to determine whether each witness cooperated in the investigation. Id. at 2-3. The Secretary concludes by asserting that Defendants “have not shown that their need for that information outweighs the privilege,” and that Defendants should be prohibited “from inquiring about the identities of the informants or seeking to obtain their statements during the discovery phase of this case.” Secretary’s Memo 3.

Standards

“What is usually referred to as the informer’s privilege is in reality the Government’s privilege to withhold from disclosure the identity of persons who furnish information of violations of law to officers charged with enforcement of that law.” Roviaro v. United States, 353 U.S. 53, 59, 77 S.Ct. 623, 1 L.Ed.2d 639 (1957). The privilege’s purpose is “the furtherance and protection of the [656]*656public interest in effective law enforcement.” Id. By preserving the anonymity of citizens who provide information, the privilege encourages citizens to perform their obligation of communicating to law enforcement their knowledge of the commission of crimes, id., and to “ ‘make retaliation impossible.’ ” Brock v. On Shore Quality Control Specialists, Inc., 811 F.2d 282, 284 (5th Cir.1987), quoting Continental Finance & Loan Co. of West End, 326 F.2d 561, 564 (5th Cir.1964). The informant’s privilege may be used to conceal the names of claimant-employees who filed complaints that precipitated an FLSA action brought by the Secretary of Labor. Does I Thru XXIII v. Advanced Textile Corporation, 214 F.3d 1058, 1072 (9th Cir.2000) (applying privilege in private FLSA action). It applies “whether the DOL solicited statements from an employee or the employee made a complaint to the DOL ...

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Cite This Page — Counsel Stack

Bluebook (online)
254 F.R.D. 651, 2009 U.S. Dist. LEXIS 569, 2009 WL 35271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chao-v-westside-drywall-inc-ord-2009.