Cities Service Helex, Inc.

216 Ct. Cl. 470, 1978 U.S. Ct. Cl. LEXIS 125, 1978 WL 8445
CourtUnited States Court of Claims
DecidedApril 27, 1978
DocketNo. 138-75
StatusPublished
Cited by8 cases

This text of 216 Ct. Cl. 470 (Cities Service Helex, Inc.) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cities Service Helex, Inc., 216 Ct. Cl. 470, 1978 U.S. Ct. Cl. LEXIS 125, 1978 WL 8445 (cc 1978).

Opinions

"This matter comes before the court on defendant’s interlocutory request for review of Trial Judge Spector’s orders of January 27, 1977, and February 3, 1977, denying in part, and sustaining in part, defendant’s asserted executive privilege, attorney-client privilege, and attorney work-product privilege in several documents sought to be discovered by plaintiff. The basic dispute involves the termination of plaintiffs long-term helium contract with the Federal Government. For the history of the underlying controversy, see Cities Service Helex, Inc. v. United States, 211 Ct. Cl. 222, 543 F.2d 1306 (1976); Northern Helex Co. v. United States, 197 Ct. Cl. 118, 455 F.2d 546 (1972), and 207 Ct. Cl. 862, 524 F.2d 707 (1975), cert. denied, 429 U.S. 866 (1976).

"This Cities Service Helex case is still in its pre-trial stage. Plaintiff sought production of all relevant documents in defendant’s custody relating to the establishment and funding of the helium conservation program, the termination notice issued by Under Secretary Russell on January 26, 1971, the Government’s failure to pay for helium deliveries subsequent to June 30, 1972, and the termination notice issued by Secretary Morton on February 2, 1973. The trial judge first granted the motion to produce in its entirety. Defendant filed a motion for reconsideration which was denied, as was a second motion for reconsideration. Defendant then filed a motion to modify the trial judge’s order to produce, asserting that a large number of the documents involved were exempt from discovery under either executive privilege or attorney-client or work-product privilege. The trial 'judge ordered defendant to produce the allegedly privileged documents for his in camera inspection; following this inspection, he issued an order on January 27, 1977, on defendant’s claim of attorney-client or work-product privilege, which granted defendant’s motion in large part but ordering the production of all or part of twelve of the forty-two documents for [472]*472which defendant had asserted the privilege. On February 3, 1977, the trial judge issued a second order, this one on defendant’s claim of executive privilege, and again granted defendant’s motion in large part but ordering disclosure of all or part of twenty-two of the fifty-four documents for which defendant had claimed the privilege. Plaintiff, which, of course, has not seen the documents, accepts the trial judge’s characterization of their contents and the results of his orders. Defendant, which does know the contents of the documents, has appealed both orders insofar as they direct production of documents (or parts of documents).1

"We have heard oral argument en banc on this request for review and, after argument, have examined in camera the documents which the trial judge ordered produced in whole or in part.2 In this order we give our rulings on the two classes of documents for which privilege is claimed— attorney-client and/or work-product privilege, and executive privilege.

I.

Preliminary Considerations

"A. Our study of the problems posed by the request for review has taken account of a number of factors special to these helium cases.

"First, Cities Service Helex, Inc., supra, 211 Ct. Cl. 222, 543 F.2d 1306, held that Under Secretary Russell’s termination of January 1971 has now only a secondary importance (we ruled there that Secretary Morton’s 1973 termination is the only operative one for this case) and that the earlier termination is relevant only insofar as it bears on the Morton termination. Most of the documents ordered by Trial Judge Spector to be produced pre-date the Russell [473]*473termination. We think that materials relating to the Russell termination still have some significance in the case, at this discovery stage, and therefore that plaintiff should not be entirely precluded, on the ground that only the Morton termination remains important, from receiving them. On the other hand, the secondary position of the Russell termination has led us, in deciding which of the pre-Russell documents should be produced, to note, among other factors, the closeness of the date and contents of the document to the Russell termination, as well as the cumulative or duplicative nature of the document.

"Second, it is clear, from what we know of this case, that plaintiff wishes to prove that the President or the Bureau of the Budget ordered or directed Under Secretary Russell (and/or Secretary Morton) to terminate the contract against their own views and that of their immediate advisers. Without, of course, passing at all on that ultimate question, we see that this is not at all a frivolous position and that plaintiff definitely has need of government documents if it is to hope to prove that proposition and the subsidiary propositions leading to it. In our Northern Helex order, supra, we directed production of documents which included 'orders or directives to the Secretary of the Interior to terminate plaintiffs contract.’ The fuller development since that order of the 'need’ exception to the privileges with which we are now concerned (see, e.g., Sun Oil Co. v. United States, 206 Ct. Cl. 742, 514 F.2d 1020 (1975)) teaches us that plaintiffs need should not be restricted to express orders or directives to Under Secretary Russell (or to Secretary Morton), but should also cover documents revealing circumstances from which it could reasonably (even though not necessarily) be inferred or learned that such an order or directive was given by the President or the Budget Bureau, expressly or impliedly. Such an order or directive, or comparable compulsion, could be proved by circumstantial evidence, as well as by a direct written or oral pronouncement. However, in view of the secondary role of the Russell termination and the presumption in favor of the privileges where they exist, plaintiff is not entitled, on the basis of need, to every scrap of paper with some conceivable bearing on the Russell termination. There is a substantial element of judgment involved, and we have exercised our best judgment, giving due deference to the trial judge’s rulings.

[474]*474"The third element — closely connected with the two factors already discussed — is that plaintiff already has had access to a substantial body of government documents bearing on the helium controversy (in general) and the Russell termination (in particular). An exception to the privileges because of need must take account of the materials the plaintiff already has. The more the litigant already knows the less the need for essentially cumulative or duplicative documents. As noted above, plaintiff cannot expect to receive, and is not entitled to receive on the ground of need, every privileged word, sentence, or paragraph with some conceivable bearing on the Russell termination.

"Fourth, when Trial Judge Spector considered the defendant’s motion he had before him only claims of executive privilege by officers of the previous national administration (Secretary of Interior and Director of the Office of Management and Budget).

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Cite This Page — Counsel Stack

Bluebook (online)
216 Ct. Cl. 470, 1978 U.S. Ct. Cl. LEXIS 125, 1978 WL 8445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cities-service-helex-inc-cc-1978.