Draus v. Healthtrust, Inc.

172 F.R.D. 384, 1997 U.S. Dist. LEXIS 4439, 1997 WL 166078
CourtDistrict Court, S.D. Indiana
DecidedMarch 24, 1997
DocketNo. NA 92-0083-C H/G
StatusPublished
Cited by15 cases

This text of 172 F.R.D. 384 (Draus v. Healthtrust, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Draus v. Healthtrust, Inc., 172 F.R.D. 384, 1997 U.S. Dist. LEXIS 4439, 1997 WL 166078 (S.D. Ind. 1997).

Opinion

ENTRY ON DEFENDANTS’ MOTION FOR RETURN OF PRIVILEGED DOCUMENT AND PLAINTIFF’S MOTION TO COMPEL PRODUCTION OF DOCUMENTS

HAMILTON, District Judge.

Defendants have moved to compel plaintiff to return a document they produced to plaintiffs counsel in discovery. The document is a letter dated November 18, 1991, from attorney Claudia Dickerson to the Board of Trustees of North Clark Community Hospital concerning the board’s “appellate review meeting” and “joint conference function” regarding the peer review of plaintiff, Dr. John M. Draus. Defendants assert that the production of the document was an inadvertent error that should not amount to waiver of the attorney-client privilege with respect to the document. Plaintiff argues that the document is not properly privileged and that, in any event, any privilege was waived by production of the document. In addition, plaintiff has moved to compel production of other documents as to which defendants have asserted attorney-client and/or attorney work product privilege. For the reasons explained below, defendant’s motion to compel return of the Dickerson letter is denied, and plaintiffs motion to compel production of document is granted in part and denied in part.

I. THE DICKERSON LETTER

The Dickerson letter is on the letterhead of “LAW OFFICES/CLAUDIA W. DICKERSON, P.C.” On the first page, it bears the clear legend, underlined, in capital boldface letters: “PRIVILEGED AND CONFIDENTIAL/ATTORNEY-CLIENT PRIVILEGED.” In connection with the two-day deposition of plaintiff Draus on August 3-4, 1993, defendants produced approximately 2,400 documents in ten binders. The Dickerson letter was included in the documents produced. The Dickerson letter was also listed in a log prepared by defendants and produced to plaintiff listing responsive documents as to which defendants claimed a privilege from discovery. Defendants’ counsel has submitted two affidavits asserting that counsel did not intend to produce the privileged document. The second affidavit (attached to docket no. 139) states that two attorneys and a paralegal reviewed the master set of documents obtained from Dickerson and reviewed the master set for responsiveness and for privilege. The second affidavit also states that both a paralegal and the attorney reviewed the responsive documents to separate out any privileged documents.

During the second day of the deposition, defendants’ counsel realized the Dickerson [386]*386letter had been produced and demanded its return. Plaintiffs counsel refused. Two days later, defendants’ counsel again requested the return of the letter. On August 12, 1993, counsel for plaintiff refused again to return the letter. On December 13, 1993, defendants filed their motion to compel return of the Dickerson letter. On December 20, 1993, plaintiff responded. Magistrate Judge Godich resolved the motion concerning the Dickerson letter on a basis not argued by the parties — that the Dickerson letter was privileged under the Indiana Peer Review Act, Ind.Code § 34-4-12.6-1 et seq., and that that privilege had not been waived by the peer review committee. Plaintiff objected to that determination and asked this court to review it. This court agreed with Judge Godich that the original protective order entered in this case did not satisfy the requirements for a waiver under Ind.Code § 34-4-12.6-2(c). The parties have responded with a joint explanation in which they agree that the waivers were sufficient. The court is satisfied with that submission and finds that the peer review privilege has been waived insofar as it might affect the pending motions. Accordingly, the defendants’ motion to compel return of the Dickerson letter is ripe for resolution on the terms the parties originally briefed — the attorney-client privilege.

A. Application of the Attorney-Client Privilege to the Dickerson Letter

Plaintiff argues that there was no attorney-client relationship between Dickerson and the hospital’s board of trustees because Dickerson represented only Healthtrust or the hospital. Dickerson represented Health-trust, but that fact does not preclude the existence of an attorney-client relationship between Dickerson and the hospital’s board of trustees. The warning on the letter itself shows that Dickerson thought she was providing privileged legal advice to a client. Dickerson also testified in her affidavit that she viewed the board of trustees as a client because she had been asked to represent the hospital in the Draus peer review, and because she knew that hospital boards of directors in the Healthtrust corporate family delegated peer review authority to the (usually advisory) boards of trustees of the hospitals involved. The McCain affidavit also supports the conclusion that Dickerson represented the board of trustees. The portion of the Lisa Merchant deposition asserting (before Ms. Merchant’s corrections) that Dickerson told her she was “representing the hospital and not the board of trustees” is not persuasive evidence to the contrary. There is no indication that Ms. Merchant, a member of the hospital’s clerical staff, would have been focused on the sometimes subtle distinctions in the identity of a lawyer’s client in an institutional setting like this one. Merchant’s correction of her deposition testimony on this point appears reasonable and credible. Also, there is no indication that anyone at Healthtrust or the hospital took any action inconsistent with the expectation that Dickerson represented the board of trustees as part of her representation of the hospital. Accordingly, the court finds that the Dickerson letter was subject to the attorney-client privilege.

B. Waiver of the Attorney-Client Privilege

“The essence of the attorney-client privilege lies in the confidentiality of the information.” Parkway Gallery Furniture, Inc. v. Kittinger/Pennsylvania House Group, Inc., 116 F.R.D. 46, 50 (M.D.N.C.1987). Disclosure of a privileged communication during discovery ordinarily results in waiver and loss of the privilege. However, defendants contend that their disclosure of the Dickerson letter in this case should not be deemed a waiver of the privilege because the disclosure was inadvertent. Defendants rely on at least two distinct lines of cases. One line of cases holds that an inadvertent disclosure of a privileged communication cannot result in waiver of the privilege; the other holds that inadvertent disclosure does not necessarily result in a waiver. Defendants also contend that they took reasonable measures to prevent accidental disclosure of privileged documents.

In In re Recombinant DNA Technology Patent and Contract Litigation, MDL No. 912, slip op. at 8-9, 1994 WL 270712 (S.D.Ind. March 22, 1994), Judge Dillin re[387]*387viewed the three principal approaches taken by federal courts in cases of inadvertent disclosure of privileged communications. Some eases have applied a test of strict accountability, holding that nearly any disclosure of the communication waives the privilege. See, e.g., In re Sealed Case, 877 F.2d 976, 980 (D.C.Cir.1989): F.D.I.C. v. Singh, 140 F.R.D. 252, 253 (D.Me.1992); International Digital Sys. Corp. v. Digital Equip. Corp. 120 F.R.D.

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Bluebook (online)
172 F.R.D. 384, 1997 U.S. Dist. LEXIS 4439, 1997 WL 166078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/draus-v-healthtrust-inc-insd-1997.