Dravo Corp. v. Liberty Mutual Insurance

164 F.R.D. 70, 1995 U.S. Dist. LEXIS 17846, 1995 WL 684561
District Court, D. Nebraska·Decided June 5, 1995·No. No. 4:CV95-3094·Published·Cited by 40 cases

Opinion

MEMORANDUM AND ORDER

PIESTER, United States Magistrate Judge.

Pending before the court is Defendant Liberty Mutual’s and Hartford Accident and Indemnity Corporation’s motion to compel document and deposition discovery from non-party Hastings Industries, Inc. (Filing 1.) For the reasons below, I shall grant the motion.

I. BACKGROUND

This is yet another strand in the tangled web of litigation that may someday result in the actual cleanup of a environmentally contaminated site at or near Hastings, Nebraska. From 1968 to 1982, Plaintiff Dravo Corporation (“Dravo”) operated a manufacturing plant at an industrial plant at the site. Part of Dravo’s manufacturing process involved “vapor degreasing,” a process which used liquid solutions containing trichloroethylene (TCE), 1,1,1-trichloroethane (TCA), and tet-rachoroethene (PCE). Dravo disposed of these solutions through a floor drain, which in turn drained into a sanitary sewer system which apparently leaked, contaminating sur[72]*72rounding soil. Apparently Dravo sold the site in 1982.

Following testing by both the State of Nebraska and the Environmental Protection Agency (“EPA”) in the early and mid-1980’s, on September 28, 1990 the EPA filed a Unilateral Administrative Order directing Dravo to design and execute a plan to decontaminate the site. In 1991 Dravo sued several other parties (all prior owners or lessees of the contaminated site) for contribution to the expenses required by the EPA’s order. The court concluded that the defendants were protected from contribution liability by virtue of a de minimis settlement agreement between them and the EPA. See Dravo Corp. v. Zuber, 804 F.Supp. 1182 (D.Neb.1992), aff'd, 13 F.3d 1222 (8th Cir.1994) (“contribution suit.”) After losing its contribution suit, Dravo sued various insurance companies over policies which might provide indemnity to Dravo regarding the site. Dravo Corporation v. The Hartford Accident and Indemnity Company, Liberty Mutual Insurance Company, and Bituminous Casualty Corporation, 92-0674-P-C (S.D.Ala.) (“insurance suit”). The insurance suit remains pending in Alabama, and the discovery dispute here arises from discovery sought with respect to that suit.

This action seeks to compel discovery of certain documents and deposition discovery pursuant to several subpoenas served upon non-party Hastings Industries, Inc. (“Hastings”). Apparently Hastings owned and operated the site from May, 1982 to December, 1983, conducting the same “vapor degreas-ing” operations as Dravo during that time.1 (See Defendants’ Brief, 2; cf. Filing 13, Mu-rtagh Aff., at ¶ 3; Filing 1, at ¶ 5.) Although defendants allege that Hastings has been designed as a “Potentially Responsible Party” by the EPA, (Filing 1, at ¶ 5), it was not one of the named parties in Dravo’s contribution suit.

On June 11,1993 Defendant Liberty Mutual served a document subpoena on Hastings pursuant to Fed.R.Civ.P. 45, requesting documents relating to the Hastings site and operations. (See Defendants’ Exh. 1.) Hastings served written objections2 upon Liberty, after which Hastings and Liberty attempted to resolve their differences. (See Defendants’ Exh. 10.) On June 13, 1994 Defendant Hartford Insurance Co. served a Rule 30(b)(6) deposition subpoena3 upon [73]*73Hastings. (See Defendants’ Exh. 2.) Hastings again served written objections, not with respect to the deposition per se, but rather to the extent an examination schedule attached to the deposition notice constituted a demand for production of documents. (See Defendants’ Exh. 11.) Pursuant to subsequent communication between counsel, a supplemental Rule 30(b)(6) deposition subpoena was served. (See Defendants’ Exh. 3.) Hastings again objected with respect to certain examination schedule matters. (See Defendants’ Exh. 12.) After some delay, the deposition was taken November 15, 1994. (See Defendants’ Exh. 4.) Dissatisfied with Hastings’ production of documents and deposition testimony in response to the subpoenas, defendants have filed the present motion to compel.

Defendant seeks three groups of discovery material: (1) various documents; (2) “full and complete factual answers” to questions posed in the Rule 30(b)(6) deposition; and (3) a proper designee under Rule 30(b)(6).

II. DISCUSSION

A. Production of documents

Defendants first seek production of three groups of documents. First, defendants seek certain “post-1983” documents pertaining to Hastings’ operations at the site, most importantly any vapor degreasing. (See Defendants’ Brief, at 11-15.) Hastings appears to argue that any such documents have already been produced, although there seems to be some confusion on this point. (See Filing 13, Murtagh Aff., at ¶¶ 26-27; see also Defendant’s Brief, at 14-15.) If Hastings has produced all responsive “post-1983” documents, it should end the confusion and state so directly. If it has not, any withheld documents should now be produced, since Hastings has asserted no privilege and the subject matter is clearly relevant to the insurance litigation.

Second, defendants seek production of certain “[ejnvironmental filings, reports and communications” pertaining to the site. (See Defendants’ Brief, at 16.) Rather than address whether it is in possession of any such documents, Hastings simply asserts that the only documents “not produced” are public records, and that it appears defendants have many of the documents already. (See Filing 13, Murtagh Aff., at ¶ 4.) As above, if this means that Hastings has produced all “[e]n-vironmental filings, reports and communications” in its custody or control responsive to the subpoena, it should clearly say so and end the matter. If it has not, it must do so now since no privilege has been asserted.

Third, defendants seek production of an alleged “Superfund file” apparently referred to during a deposition. (See Defendants’ Brief, at 16-17.) Hastings asserts that there is no such “Superfund file,” but rather only copies of “court papers and correspondence between counsel arising out of this matter, all of which presumably are in the possession [of defendants].” (Filing 13, Murtagh Aff., at ¶ 36.) If Hastings has documents responsive to the subpoena, it must produce them, whether or not they reside in a “Superfund file,” since no privilege has been asserted.

B. Instructions not to answer deposition questions

Defendants next seek to compel answers to deposition questions concerning the “post-1983” documents and “[ejnvironmental filings, reports and communications” discussed above. At various points in the deposition, Hastings’ counsel instructed its designee— Richard Hartsock — not to answer certain questions pertaining to these documents. (See Defendants’ Brief, at 17-23; Defendants’ Exh. 4, at 160-63; 113-15.) Hastings argues that Hartsock “attempted, at all times ... to provide as complete and as detailed answers as he was able.” (Filing 13, Mu-rtagh Aff., at ¶8.)

As the Fourth Circuit decided in a case well before the 1993 Amendments to Fed.R.Civ.P. 30:

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Dravo Corp. v. Liberty Mutual Insurance, 164 F.R.D. 70, 1995 U.S. Dist. LEXIS 17846, 1995 WL 684561 (D. Neb. 1995).

164 F.R.D. 70 (Dravo Corp. v. Liberty Mutual Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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