Davis v. General Motors Corp.

64 F.R.D. 420, 19 Fed. R. Serv. 2d 1379, 184 U.S.P.Q. (BNA) 288, 1974 U.S. Dist. LEXIS 6839
CourtDistrict Court, N.D. Illinois
DecidedSeptember 9, 1974
DocketNo. 73 C 1302
StatusPublished
Cited by5 cases

This text of 64 F.R.D. 420 (Davis v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. General Motors Corp., 64 F.R.D. 420, 19 Fed. R. Serv. 2d 1379, 184 U.S.P.Q. (BNA) 288, 1974 U.S. Dist. LEXIS 6839 (N.D. Ill. 1974).

Opinion

MEMORANDUM OPINION AND ORDER

BAUER, District Judge.

This cause comes on the motions of both parties for an order compelling certain answers to interrogatories and production of catalyst samples. Both parties are in agreement as to some form of simultaneous exchange but disagree as to the scope and method of exchange. The Court is aware of the acute nature of the problem and the reluctance of the parties since each side- seeks the discovery of the other’s alleged trade secrets.

Plaintiff contends that he has invented, developed, and is the owner of trade secrets relating to certain catalysts for use in the control and suppression of hydrocarbon and carbon monoxide emissions from internal combustion engines.

Plaintiff and defendant previously entered into an agreement whereby plaintiff furnished catalyst samples to defendant in order that defendant could test and evaluate them as part of its automotive emissions control program. The agreement provided for testing the samples but purported to prohibit General Motors from analyzing the composition and design of the catalyst.

In his complaint plaintiff charges inter alia that the defendant obtained various alleged trade secrets by analyzing the composition of the sample catalysts in violation of the agreement.

Although both parties have stated a willingness to answer interrogatories relating to the alleged trade secrets, and, to produce catalyst samples, defendant now refuses to answer interrogatories 128 (m), 129 (m), and 192, all of which deal with the method of production and manufacture of the catalyst for use on General Motors’ 1975 vehicles.

The catalysts installed on General Motors’ 1975 vehicles are being manufactured and supplied by four different manufacturers. Defendant states that it has only fragmentary information re[422]*422garding the method of manufacture and production. Furthermore, defendant resists answering on the basis of the fact that plaintiff is a competitor of the current suppliers and that any disclosure would be unfair. If compelled to answer interrogatories the defendant has requested a protective order that would give confidentiality to the answers and prevent access to them by the plaintiff.

It is well settled that where information sought is relevant and necessary to the presentation of a case, the fact that such information may constitute a trade secret ne.ed not halt the discovery process. Covey Oil Co. v. Continental Oil Co., 340 F.2d 993 (10th Cir. 1965), cert. denied 380 U.S. 964, 85 S.Ct. 1110, 14 L.Ed.2d 155 (1965); National Utility Service, Inc. v. Northwestern Steel & Wire Co., 426 F.2d 222 (7th Cir. 1970); Natta v. Zletz, 405 F.2d 99 (7th Cir. 1968); Triangle Ink and Color Co., Inc. v. Sherwin-Williams Co., 61 F.R.D. 634 (N.D.Ill.1974).

There is no true privilege against discovery of trade secrets or other confidential business matters but the courts have been willing to exercise their discretion to limit any unnecessary disclosure of such information. A. H. Robins Co. v. Fadely, 299 F.2d 557 (5th Cir. 1962); Moore, Federal Practice Vo. 4, 20.60 [4]. Thus, when a court directs discovery in such a case it may choose to impose special conditions for the protection of the party required to answer. Triangle Ink and Color Co., Inc. v. Sherwin-Williams Co., supra; Spartanics Ltd. v. Dynetics Engineering Corporation, 54 F.R.D. 524 (N.D.I11.1972) ; V. D. Anderson Co. v. Helena Cotton Oil Co., 117 F.Supp. 932 (E.D.Ark.1953).

The nature of the plaintiff’s claim in this case is that the defendant has divulged, or intends to divulge, information which it obtained in analyzing the catalysts, to other manufacturers and thereby utilize the benefits of plaintiff’s research and technology without compensating plaintiff. Whether or not General Motors’ suppliers are manufacturing the catalysts for the 1975 automobiles on the basis of plaintiff’s sample catalyst is a crucial question in this litigation. Consequently, the defendant should divulge any information it has regarding the design and manufacture of the catalyst by answering interrogatories 128(m), 129 (m) and 192 submitted by plaintiff.

However, because of the sensitive nature of this problem and the potential for even inadvertent disclosure of the alleged trade scerets the Court must take certain precautions in alowing this discovery.

First, since the design of the catalyst may be relevant to plaintiff’s case he is entitled to any instructions, plans, or memoranda exchanged between General Motors and the manufacturers which relate to the design of the catalyst used on the 1975 automobiles. However, defendants should not be forced to disclose materials relating to such areas as purchasing, the manufacturing process itself, or other areas not immediately relevant to plaintiff’s case. See Stonier v. Droz Wood Company, 52 F.R.D. 232 (E.D. Penn.1971).

Second, because the disclosure of the requested material may affect other parties in addition to the defendant, i. e., manufacturers and suppliers, this Court considers it proper at this time to require that such information be disclosed only to plaintiff’s trial attorney and non-party, Court approved, independent experts or consultants. Should counsel for the plaintiff need to consult with the plaintiff regarding this confidential information in order to prepare for the litigation, this Court will entertain a petition to disclose further the essential material.

Accordingly, it is hereby ordered:

1. Plaintiff will answer defendant’s interrogatories 6(a)(i), 8, 33(d), 39(a) and 40(a).

2. Defendant will simultaneously answer plaintiff’s interrogatories [423]*423128 (including (m)), 129 (including (m)), 138, 140-44, 167, 168(c), 169(c), 170(c), 171, 180 (b), 180(c), 180(f), and 180(g).

3. The parties shall simultaneously exchange catalyst samples.

4. Access to any materials which are the subject of or relate to a trade secret or other confidential research, development, or commercial information (hereinafter collectively referred to as “confidential information”) and which are disclosed during the course of discovery in this action shall be restricted solely to trial counsel for the party obtaining such discovery:

a. for the purposes of this Order, the term “trial counsel” shall refer only to those attorneys charged with the responsibility for and actively engaged in trial preparation of this case;
b. it shall be the duty of the party claiming privilege as to such confidential information to indicate to the other party and its attorneys which of the materials are considered to be confidential.

5. The term “confidential information” used herein means information designated in writing, or orally if recorded as part of a deposition or court record, by a party as confidential.

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64 F.R.D. 420, 19 Fed. R. Serv. 2d 1379, 184 U.S.P.Q. (BNA) 288, 1974 U.S. Dist. LEXIS 6839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-general-motors-corp-ilnd-1974.