Chrysler v. Zigray

7 Pa. D. & C.4th 408, 1990 Pa. Dist. & Cnty. Dec. LEXIS 214
CourtPennsylvania Court of Common Pleas, Lackawanna County
DecidedSeptember 13, 1990
Docketno. 89 Civil 2004
StatusPublished

This text of 7 Pa. D. & C.4th 408 (Chrysler v. Zigray) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lackawanna County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chrysler v. Zigray, 7 Pa. D. & C.4th 408, 1990 Pa. Dist. & Cnty. Dec. LEXIS 214 (Pa. Super. Ct. 1990).

Opinion

MUNLEY, J.,

Before the court is the motion for a protective order, pursuant to Pa.R.C.P. 4012, of defendants James Zigray and Deborah Leiber, in which they request the court to designate certain materials as confidential/trade se[409]*409crets and thus prohibit the examination and use of these documents by plaintiff, Creavey Seal Company. Protective orders are governed by the language and purpose of Pa.R.C.P. 4012 which reads in relevant part as follows:

“(a) Upon motion by a party or by the person from whom discovery or deposition is sought and for good cause shown, the court may make any order which justice requires to protect a party or person from unreasonable annoyance, embarrassment, oppression, burden or expense. . .”

As the matter now stands, this is an action against the defendants for an alleged violation of a covenant not to compete. Covenants are agreements in which the covenantor agrees for a specific period of time and within a particular area to refrain from competition with the covenantee. Black’s Law Dictionary 712 (5th edition 1979). As the term is commonly used, covenants signify the existence of a profound personal relationship contingent on mutual trust. Defendants entered into such covenant as employees of the original Creavey Seal Company. When ■the company was sold, the defendants departed and subsequently incorporated a similar business under the name of Sealmor Industries. Plaintiff argues that certain business practices of Sealmor Industries are in breach of this covenant. Through discovery, plaintiff has sought blueprints, designs and other information relating to defendants’ business. It is clear that precomplaint discovery is contemplated and allowed by the Rules of Civil Procedure; its purpose is to lay bear the appropriate facts. Pa.R.C.P. 4001(c). However, “the granting of relief in a discovery proceeding is dependent upon a prima facie showing of necessity, since the relief is not to be granted as a matter of right.” In re Estate of Roart, 390 Pa. Super. 38, 568 A.2d 182 (1989).

[410]*410First, defendants contend, under the construction of rule 4012, that a protective order restricting the dissemination of information provided through discovery would issue whenever the information provided contains trade secrets or other confidential information, the dissemination of which would assist competitors or otherwise disadvantage the party. This court must determine whether or not the documents here in question may properly be characterized as trade secrets and whether harm will occur to the defendant corporation if such order is granted. In making its determination whether these materials rise to the level of a trade secret, the court will be guided by considerations as are embodied in the Restatement of Torts. “A trade secret may consist of any formula, pattern, device or compilation of information which is used in one’s business and which gives him an opportunity to obtain an advantage over competitors who do not know or use 'it.” Restatement of Torts, §757, comment b (1939). Further, a trade secret requires, inter alia, that the owner of the secret maintain a substantial amount of secrecy. Substantially, matters of public knowledge or general knowledge in an industry or matters which are completely disclosed by the goods which one markets cannot be appropriated by one as secret. West Mountain Poultry Company v. Gress, 309 Pa. Super. 361, 455 A.2d 651 (1982).

A party moving for a protective order based on Pa.R.C.P. 4012 bears the burden of establishing the objectionable nature of the discovery he is withholding. The judicial sanction of a protective order should rarely be employed. 6 Standard Pa. Practice 2d §34:35; see also, Bealla v. Zuba, 4 D.&C. 2d 545 (1955). A party objecting to discovery has not sustained his burden with a showing of mere annoy-[411]*411anee, oppression or expense as unreasonable. Knappenberger v. Feldman, 6 D.&C. 2d 728 (1956). In accord Klein v. Commonwealth, 9 D.&C. 2d 792 (1956); Miller v. Bethlehem Steel Corp., 56 D.&C. 2d 269 (1972); Lynn Engineering & Mfg. Co. v. Achey, 73 D.&C. 2d 129 (1976); Provident Nat. Bank v. Soltoff, 1 D.&C. 3d 600 (1977). This court is prompt to say it will not deprive plaintiff of the right of discovery in this case on the grounds of unreasonable annoyance. Plaintiff is making a bona fide attempt to discover facts to assist him in presenting a more complete case. “So far as annoyance is concerned, litigants must reconcile themselves, to the fact that under the rules every inquiry carries with it some degree of annoyance. . .” Klein v. Commonwealth, 9 D.&C. 2d 792 (1956).

Defendants posit that the information requested should not be disclosed because much of the information is confidential. Defendants contend that the court should liberally grant a protective order, and in support of this claim, defendants cite rule 4012(a), supra, which permits a court to enter a protective order, but rule 4012(a) also provides that an order shall be entered only “for cause shown ... to protect a party or person from unreasonable annoyance, . embarrassment, oppression, burden or expense.” In their motion for a protective order, defendants have not set forth specific and concrete factual allegations that would support either a finding that the information which they are producing constitutes confidential research, development or commercial information or a finding that the dissemination of such information would harm defendants. Defendant’s request for a protective order is overly broad. They seek a court order barring the general dissemination of all information instead of identify[412]*412ing specific information which might be protected. Generally, defendants contend that unlimited use of this information by plaintiff would severely prejudice defendants’ right to privacy and would place them at a competitive disadvantage and deprive, them of the proprietary value of “trade secrets.” Compare West Mountain Poultry Co., supra.

In determining whether there is good cause to issue a protective order restricting dissemination, the federal courts (Pennsylvania discovery rules are modeled upon the federal discovery rules) require the moving party to show that the information sought to be protected is confidential and that public disclosure of the information will result in a clearly defined and very serious injury. Furthermore, these cases hold that general allegations of competitive harm are insufficient to meet this burden. Koster v. Chase Manhattan Bank, 93 F.R.D. 471 (S.D.N.Y. 1982); Waelde v. Merck, Sharpe & Dohme, 94 F.R.D. 27 (C.D. Mich. 1981); U.S. v. Hooker Chemicals & Plastics Corp., 90 F.R.D. 421 (W.D.N.Y. 1981); Zenith Radio Corp. v. Matsushita Electric Industrial Co., 529 F.Supp. 866 (E.D. Pa. 1981); and Parsons v. General Motors Corp., 85 F.R.D. 724 (N.D. Ga. 1980). The court opines none of these materials have been shown by the defendant to be trade secrets or that they are of a confidential propriety matter which should not be obtainable through discovery in this case.

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Related

West Mountain Poultry Co. v. Gress
455 A.2d 651 (Superior Court of Pennsylvania, 1982)
In Re Estate of Roart
568 A.2d 182 (Supreme Court of Pennsylvania, 1989)
Zenith Radio Corp. v. Matsushita Electric Industrial Co.
529 F. Supp. 866 (E.D. Pennsylvania, 1981)
Parsons v. General Motors Corp.
85 F.R.D. 724 (N.D. Georgia, 1980)
United States v. Hooker Chemicals & Plastics Corp.
90 F.R.D. 421 (W.D. New York, 1981)
Koster v. Chase Manhattan Bank
93 F.R.D. 471 (S.D. New York, 1982)
Waelde v. Merck
94 F.R.D. 27 (E.D. Michigan, 1981)

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Bluebook (online)
7 Pa. D. & C.4th 408, 1990 Pa. Dist. & Cnty. Dec. LEXIS 214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chrysler-v-zigray-pactcompllackaw-1990.