E.I. DuPont De Nemours & Co. v. Kolon Industries, Inc.

268 F.R.D. 45, 2010 U.S. Dist. LEXIS 51373
CourtDistrict Court, E.D. Virginia
DecidedMay 25, 2010
DocketCivil Action No. 3:09cv58
StatusPublished
Cited by17 cases

This text of 268 F.R.D. 45 (E.I. DuPont De Nemours & Co. v. Kolon Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E.I. DuPont De Nemours & Co. v. Kolon Industries, Inc., 268 F.R.D. 45, 2010 U.S. Dist. LEXIS 51373 (E.D. Va. 2010).

Opinion

MEMORANDUM OPINION

ROBERT E. PAYNE, Senior District Judge.

This matter is before the Court on the PLAINTIFF E.I. du PONT de NEMOURS AND COMPANY’S MOTION TO COMPEL DEPOSITIONS OF MANAGING AGENTS OF DEFENDANT KOLON INDUSTRIES, INC. (Docket No. 186). For the foregoing reasons, the motion will be denied in part and granted in part.

BACKGROUND

On February 3, 2009, E.I. du Pont de Nemours and Co. (“DuPont”) filed a Complaint against Kolon Industries, Inc. (“Kolon”), alleging trade secret misappropriation, conspiracy, and other business torts. To synopsize, DuPont alleges that Kolon stole its secret processes and technologies for manufacturing Kevlar, and that Kolon has improved its product line based on this trade secret theft.

During discovery, in September 2009, Kolon’s document productions and interrogatory responses identified five Kolon employees in Korea who were in a position to have knowledge of information Kolon had obtained about DuPont.1 DuPont asserts that, shortly after identifying these employees, it asked whether Kolon would accept service on behalf of these employees to appear at depositions, but Kolon refused, indicating that many of these employees had separate counsel. When DuPont learned that many of these employees had separate counsel in the United States, DuPont asked the separate counsel whether they would accept service on behalf of their clients to appear at depositions, either in the United States or in Korea. These requests were uniformly rejected, after which DuPont initiated service under the Hague Convention.

After several conferences in December 2009 and January 2010, during which the parties discussed whether Kolon had to produce these employees as “managing agents” under Fed.R.Civ.P. 30 and decisional law construing it, Kolon appeared to relent. In a letter to the Court on January 20, 2010, Kolon represented that, while it would not technically concede that these employees are managing agents, it would treat them as such:

Rather than dispute whether any of these witnesses are properly Fed.R.Civ.P. 30(b)(1) witnesses or argue the legal requirements of these definitions and whether they are to be applied at the time subpoenas are served rather than at the time of the conduct relevant to the dispute, Kolon has agreed to instruct, and has instructed, all individuals who are currently employed by Kolon to appear for a deposition on or about the dates noticed by DuPont, which are in March 2010. However, all of these witnesses, to our knowledge, will be represented by separate counsel who likely will provide advice to their clients based on the constitutional rights afforded to them.

Kolon confirmed that representation during a conference call on February 2, 2010. See Transcript at 5:12-18 (indicating that Kolon has “said ... we’re instructing you as the company and as your employer, at least to those that are still employed, that they [48]*48ought to appear for their deposition. And we have done that with everybody that we’ve been able to contact.”). Although Kolon identified, at the time, one former employee whose whereabouts were unknown, its affirmation that it would instruct its employees to appear for deposition indicated that, as to all current employees of Kolon, the issue was resolved because there was no reason to doubt Kolon’s ability to produce its own employees for deposition. And, the statements by Kolon reflected Kolon’s belief that it could enforce the attendance of the employees at depositions.

However, when DuPont sent letters to the employees’ separate counsel, again requesting that the American lawyers accept service on behalf of their Korean clients, these requests were refused. When this matter was again raised with the Court on March 26, 2010 in DuPont’s Opposition (Docket No. 154) to Kolon’s Motion to Compel, Kolon replied that “the parties and the Court have already addressed this issue,” in that the persons would be served pursuant to the Hague Convention. After discussion during a hearing on April 1, 2010 about if and how these witnesses may be deposed, DuPont filed this motion to compel the depositions of Kolon’s employees as managing agents.

Kolon contends that, because none of these employees are presently managing agents, none of them may be deposed. Kolon further contends that many of these persons never were managing agents. Finally, Kolon contends that, if any depositions are ordered, they should be held in Korea.

The matter has been fully briefed, and the issues are ripe for resolution. The parties have agreed that the motion is to be decided without oral argument.

WHETHER THE PROPOSED DEPONENTS QUALIFY AS MANAGING AGENTS

A. Applicable Law

The phrase “managing agent” appears in several places in the Federal Rules of Civil Procedure pertaining to discovery.2 However, the framework for determining whether a particular person qualifies as a managing agent is primarily a construction of decisional law concerned with ensuring that an organization is deposed through its proper representatives concerning the matters at issue in the litigation. The examining party may request that the organization select and produce a representative deponent who is an officer, a director, or a managing agent of the entity; alternatively, the examining party may select a particular officer, director, or managing agent for deposition and order the organization to produce the person. In re Honda, Am. Motor Co., 168 F.R.D. 535, 540 (D.Md.1996). In the latter scenario, the organization, upon notice of the deposition, must produce the specified individual. Id. If the specified person, however, is not an officer, director, or managing agent, then the examining party “must resort to Fed. R.Civ.P. 45 for subpoenas on non-party witnesses.” Id.

As both parties recognize, “[t]he law concerning who may properly be designated as a managing agent is sketchy.” Id. (quoting Founding Church of Scientology, Inc. v. Webster, 802 F.2d 1448, 1452 (D.C.Cir.1986)). “Largely because of the vast variety of factual circumstances to which the concept must be applied, the standard ... remains a functional one to be determined largely on a case-by-case basis.” Webster, 802 F.2d at 1452; accord Honda, at 540.

Honda, decided by another district court within the Fourth Circuit, effectively synthesized the several factors that generally are considered in making a case-specific determination of a person’s managing agent status: (1) the discretionary authority vested in the person by the corporation; (2) the employee’s dependability in following the employer’s directions; (3) whether the individual is more likely to identify with the corpora[49]*49tion or the adverse party in the litigation; and (4) the degree of supervisory authority in areas pertinent to the litigation.3 Id. at 540-41.

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268 F.R.D. 45, 2010 U.S. Dist. LEXIS 51373, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ei-dupont-de-nemours-co-v-kolon-industries-inc-vaed-2010.