Comes v. Microsoft Corp.

775 N.W.2d 302, 2009 Iowa Sup. LEXIS 123, 2009 WL 3878141
CourtSupreme Court of Iowa
DecidedNovember 20, 2009
Docket07-2063
StatusPublished
Cited by23 cases

This text of 775 N.W.2d 302 (Comes v. Microsoft Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Comes v. Microsoft Corp., 775 N.W.2d 302, 2009 Iowa Sup. LEXIS 123, 2009 WL 3878141 (iowa 2009).

Opinion

HECHT, Justice.

Parties to litigation pending against Microsoft in Canadian courts sought to intervene in this case for the purpose of obtaining access to documents and data produced pursuant to a protective order. The district court granted the Canadian plaintiffs’ motion to intervene and modified the protective order to allow the Canadians the access they requested subject to the order’s terms of confidentiality. Upon our review of the district court’s ruling, we affirm.

I. Background Facts and Proceedings.

Plaintiffs in Iowa (Iowa plaintiffs) filed a class-action, antitrust lawsuit against Microsoft Corporation (Microsoft) in February 2000. At the time, several other similar lawsuits were pending against Microsoft in various federal and state courts. The discovery in the other pending cases was coordinated and protected by a protective order. At the outset of this case, the Iowa plaintiffs and Microsoft agreed to continue to coordinate discovery with the plaintiffs in the other jurisdictions. The protective order entered in the federal multidistrict litigation (MDL) provided confidential information obtained through discovery could be disclosed to “counsel in *304 any action arising out of the same facts and circumstances alleged in [the multidis-trict litigation] provided he or she agrees” to be bound by the terms of the protective order. The Iowa Pre-Trial Procedures Order No. 1 provided for discovery in the Iowa case to be coordinated with the discovery in the federal MDL and in other state courts “so as to prevent duplication of effort and waste of private and judicial resources.” 1

A stipulated protective order was entered in the Iowa case on January 23, 2003, providing that “certain documents and information produced or to be produced during discovery in this litigation should be kept confidential in order to protect the legitimate business interests of the parties.” The protective order limited the universe of persons to whom “confidential” and “highly confidential” documents could be disclosed and limited the use of such documents to the Iowa litigation. It further required the parties either return to the producing party or destroy all “confidential” or “highly confidential” documents within thirty days of the termination of the Iowa litigation. However, the protective order did expressly anticipate its modification by a subsequent court order upon the request of “[a]ny party or third party.”

In February 2007, Microsoft and the Iowa plaintiffs agreed to settle the case. The parties stipulated that

[a]ll discovery materials and information ... produced or provided by any of the parties or non-parties either before, on or after the date of this Settlement Agreement, whether produced or provided informally or pursuant to discovery requests, shall be governed by all Confidentiality/Protective Orders in force as of the date of this Settlement Agreement, subject to such modifications, if any, that the Court may make to such Confidentiality/Protective Orders as the result of any agreements between Lead Counsel for the Iowa Class and Microsoft or as the result of any future motions or proceedings.

The settlement agreement was approved by the district court on August 31, 2007.

At the time the settlement agreement was reached, several antitrust suits were still pending against Microsoft in Mississippi, Arizona, British Columbia, Quebec, and Ontario. According to Microsoft, plaintiffs in those cases requested discovery from Microsoft after the settlement agreement was reached but before it was approved by the district court in this case. 2 On September 25, 2007, Microsoft filed a motion requesting modification of the protective order to permit Microsoft to retain the documents from the Iowa action until the suits in Mississippi, Arizona, and Canada were resolved. The next day, the plaintiffs in the Canadian actions 3 filed a motion in the district court seeking to in *305 tervene in the Iowa action to gain access to the Iowa discovery.

The district court granted Microsoft’s motion to modify the protective order on October 16, 2007, allowing Microsoft to retain the discovery documents until the litigation in Canada, Arizona, and Mississippi is resolved. Six days later, the Iowa plaintiffs moved the court to make the modification of the protective order mutual, permitting the Iowa plaintiffs to retain discovery documents in their possession until the termination of the lawsuits in Canada, Mississippi and Arizona. On December 3, the district court granted both the Canadian intervenors’ and the Iowa plaintiffs’ motions. Microsoft appealed.

II. Scope of Review.

A trial court has wide discretion to enter a protective order pursuant to Iowa Rule of Civil Procedure 1.504. 4 See Farnum v. G.D. Searle & Co., 339 N.W.2d 384, 389 (Iowa 1983). We review the district court’s decisions regarding discovery for an abuse of discretion. Id.; Mediacom Iowa, L.L.C. v. Inc. City of Spencer, 682 N.W.2d 62, 66 (Iowa 2004).

III. Discussion.

Microsoft does not appeal the district court’s decision to allow the Canadian plaintiffs to intervene in the Iowa case. Microsoft contends the district court abused its discretion by modifying the protective order to allow the Canadian plaintiffs access to the discovery documents and to allow the Iowa plaintiffs to maintain the discovery documents until the litigation in Mississippi, Arizona, and Canada is resolved.

A. Iowa Rule of Civil Procedure 1.504. Iowa Rule of Civil Procedure 1.504 addresses the availability of protective orders during discovery in civil litigation. Upon a showing of good cause, the district court

a. [m]ay make any order which justice requires to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense, including one or more of the following:
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(7) [t]hat a trade secret or other confidential research, development, or commercial information not be disclosed or be disclosed only in a designated way.

Iowa. R. Civ. P. 1.504(l)(a). 5

Although the district court has wide discretion to fashion an appropriate protective order, a protective order is not entered lightly. We have previously discussed the good cause showing required to obtain a protective order: ‘We ... insist[ ] on ‘a particular and specific demonstration of fact, as distinguished from stereotyped and conclusory statements in order to establish good cause.’ ” State ex rel. Miller v. Nat’l Dietary Research, Inc., 454 N.W.2d 820, 823 (Iowa 1990) (quoting

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Bluebook (online)
775 N.W.2d 302, 2009 Iowa Sup. LEXIS 123, 2009 WL 3878141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/comes-v-microsoft-corp-iowa-2009.