Donovan v. Prestamos Presto Puerto Rico, Inc.

91 F.R.D. 222, 32 Fed. R. Serv. 2d 921, 1981 U.S. Dist. LEXIS 14128
CourtDistrict Court, D. Puerto Rico
DecidedAugust 19, 1981
DocketCiv. No. 80-547
StatusPublished
Cited by4 cases

This text of 91 F.R.D. 222 (Donovan v. Prestamos Presto Puerto Rico, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donovan v. Prestamos Presto Puerto Rico, Inc., 91 F.R.D. 222, 32 Fed. R. Serv. 2d 921, 1981 U.S. Dist. LEXIS 14128 (prd 1981).

Opinion

OPINION AND ORDER

PEREZ-GIMENEZ, District Judge.

This matter is before the Court for consideration of plaintiff’s Motion for Order to Compel Deponent to Answer Certain Matters and for the Production of Subpoenaed Document filed herein on June 11, 1981.

Specifically, plaintiff has moved that the Court enter an order allowing the deposition of Mr. Robert Selander, Vice President of Citibank, N.A., to be continued and com[223]*223pelling said deponent to answer certain questions posed by plaintiff’s counsel during the deposition and to produce the document requested by plaintiff in the Subpoena Duc-es Tecum which was duly served on deponent herein. The line of questioning referred to above relates to matters concerning the terms of the sale of stock of defendant corporation by Citibank Overseas Investment Corporation (hereafter COIC) to Associates Corporation of North America, and matters relating to the relationship between defendant and COIC, between COIC and Citibank, N.A., and between defendant and Citibank, N.A. The document subpoenaed by plaintiff is a “Stock Purchase Agreement” (or Purchase Agreement) between COIC and Associates Corporation of North America. Counsel for defendant objected to all of the aforesaid matters on the ground that the same are totally irrelevant to the subject matter involved in this action and outside the scope of discovery on the basis of the allegations in the complaint. Consequently, deponent, a non-party, on advice from defendant’s counsel, did not answer the line of questioning here in issue nor did he produce the subpoenaed document. Extensive memoranda have been filed by both parties, after which the matter stands submitted for decision.

The basic philosophy of the present federal procedure is that prior to trial every party to a civil action is entitled to the disclosure of all relevant information in the possession of any person, unless the information is privileged. The scope of discovery allowed under the discovery procedure adopted by Rules 26 to 37 of the Federal Rules of Civil Procedure, as amended, has been made very broad and the restrictions imposed upon it are directed chiefly at the use of, rather than the acquisition of, the information discovered. Wright and Miller, Federal Practice and Procedure, Section 2001 (1970). As the Supreme Court stated in the leading case of Hickman v. Taylor, 329 U.S. 495, 501, 67 S.Ct. 385, 388, 91 L.Ed. 451 (1947), in regard to the role of the deposition-discovery process in the preparation for trial:

“The way is now clear, consistent with recognized privileges, for the parties to obtain the fullest possible knowledge of the issues and facts before trial.”

Rule 26 of the Federal Rules of Civil Procedure provides, in pertinent part, that “parties” may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action, whether it relates to the claim or defense of the party seeking discovery or to the claim or defense of any other party. It is not ground for objection that the information sought will be inadmissible at the trial if the information sought appears reasonably calculated to lead to the discovery of the admissible evidence. The scope of discovery provided by this Rule is to be liberally construed so as to provide both parties with information essential to proper litigation on all the facts. Mitsui & Co. v. Puerto Rico Water Resources Authority, 79 F.R.D. 72 (D.C.P.R. 1978); Mallinckrodt Chemical Works v. Goldman Sachs & Co., 58 F.R.D. 348, 352-53 (S.D.N.Y.1973). Also, see Horizons Titanium Corp. v. Norton Co., 290 F.2d 421, 425 (1 Cir. 1961) (which case also involved subpoenas duces tecum served by plaintiff therein upon non-parties to the proceeding requiring the production of documents), wherein Circuit Judge Aldrich stated as follows:

“This rule apparently envisions generally unrestrictive access to sources of information, and the courts have so interpreted it.”

The rule requires only that the information sought be “relevant to the subject matter involved in the pending action”. The test is the relevancy to the subject matter of the action which is broader than the relevancy to the issues presented by the pleadings. Felix A. Thillet, Inc. v. Kelly-Springfield Tire Company, 41 F.R.D. 55 (D.C.P.R.1966); Holliman v. Redman Development Corp., 61 F.R.D. 488 (1973). As stated by Judge Leibell in Stevenson v. Melady, 1 F.R.D. 329, 330 (D.C.N.Y.1940):

“To limit an examination to matters relevant to only the precise issues presented by the pleadings, would not only be con[224]*224trary to the express purposes of Rule 26 * * *, but also might result in a complete failure to afford plaintiff an adequate opportunity to obtain information that would be useful at the trial.”

Further, Rule 26(b)(1) makes it clear that admissibility at trial is not a limitation on discovery provided that “the information sought appears reasonably calculated to lead to the discovery of admissible evidence”. U. S. v. International Business Machines Corp., 66 F.R.D. 180 (D.C.N.Y.1974). Therefore, the fact that the information sought may be inadmissible at trial does not bar discovery if it is relevant to the subject matter of the action and there is a reasonable possibility that the information sought may provide a lead to other evidence that would be admissible. Duplan Corporation v. Deering Milliken, Inc., 397 F.Supp. 1146, 1187 (D.C.S.C.1975); Scuderi v. Boston Insurance Company, 34 F.R.D. 463 (D.C.Del. 1964); Moore’s Federal Practice, Section 34.10; C. Wright, Law of Federal Courts, Section 81, at 359, n. 47 (2 Ed. 1970). Discovery will be permitted unless it is clear that the information sought can have no possible bearing upon the subject matter of the action. Marshall v. Electric Hose and Rubber Company, 68 F.R.D. 287, 295 (1975).

In the case at bar, one of the main issues in dispute between the parties is whether the violations charged to defendant under the Fair Labor Standards Act are of a willful nature, as alleged in plaintiff’s complaint, and to which defendant has raised an affirmative defense claiming that the action is totally or partially barred by the statute of limitations. Plaintiff contends that information concerning the relationship between defendant corporation and Citibank Overseas Investment Corporation, and Citibank, N.A., is relevant to the issue of willfulness; that the line of questioning posed to the deponent herein seeks information that would establish the relationship of corporate defendant with COIC and Citibank, N.A., in particular as to their supervision of defendant’s operation, including among others their input in defendant’s policies regarding wages, hours of work, working conditions and the applicability to defendant’s operations of the provisions of the Fair Labor Standards Act, as well as its responsibility or accountability towards said corporations.

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Bluebook (online)
91 F.R.D. 222, 32 Fed. R. Serv. 2d 921, 1981 U.S. Dist. LEXIS 14128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donovan-v-prestamos-presto-puerto-rico-inc-prd-1981.