Equal Rights Center v. Archstone-Smith Trust

251 F.R.D. 168, 2008 U.S. Dist. LEXIS 53000, 2008 WL 2717762
CourtDistrict Court, D. Maryland
DecidedFebruary 7, 2008
DocketNo. AMD-04-3975
StatusPublished
Cited by2 cases

This text of 251 F.R.D. 168 (Equal Rights Center v. Archstone-Smith Trust) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equal Rights Center v. Archstone-Smith Trust, 251 F.R.D. 168, 2008 U.S. Dist. LEXIS 53000, 2008 WL 2717762 (D. Md. 2008).

Opinion

MEMORANDUM AND ORDER

BETH P. GESNER, United States Magistrate Judge.

This case has been referred to me for the resolution of discovery disputes. 28 U.S.C. § 636. Currently pending are Cross-Plaintiffs Archstone-Smith Trust and ArehstoneSmith Operating Trust’s (collectively, “Arch-stone”) Motion for a Protective Order Barring Discovery of Settlement Negotiations, Niles Bolton’s Associates, Inc.’s (“NBA”) Response and Arehstone’s Reply. (Paper Nos. 128, 129, 132.) Based upon a review of the pleadings and for the reasons stated below, Archstone’s Motion is granted.

The original complaint in this case was filed by plaintiffs Equal Rights Center, American Association of People with Disabilities, and United Spinal Association (collectively, “plaintiffs”) alleging that Arehstone and others violated the accessibility requirements of the Fair Housing Act (“FHA”) and the Americans with Disabilities Act (“ADA”) in connection with the design and construction of more than 100 apartment buildings owned and operated by Arehstone throughout the United States. After settlement negotiations, Arehstone and plaintiffs entered into a settlement agreement, embodied in a Consent Decree entered by this court on June 9, 2005. (Paper No. 37.) Pursuant to the agreement, Arehstone paid plaintiffs $1.4 million and obligated itself to survey and retrofit 71 properties to comply with the requirements of the FHA and the ADA. Fifteen (15) of these properties are alleged to have been designed by NBA under contracts between Arehstone and NBA. Arehstone filed a cross-claim against NBA seeking to recover the portion of the $1.4 million attributable to NBA properties (identified as 21% of that amount), the costs of retrofitting those portions of the NBA properties that were not designed in conformity with applicable FHA and ADA requirements, and a portion of Archstone’s attorney’s fees incurred in the ease.

NBA served Arehstone with a document request seeking “all non-privileged documents which concern or relate to the negotiation, execution and substantive terms of the settlement reached between [Arehstone] and Plaintiffs.” (Paper No. 128 at 2-3.) Arehstone objected to production of those documents. NBA did not file a motion to compel, but instead served subpoenas on plaintiffs and their counsel seeking basically the same information they sought from Arehstone.1 Archstone’s Motion for a Protective Order followed. Because the terms of the settlement agreement in the Consent Decree are available to NBA and because Arehstone asserts that it “has already agreed to provide ... what remediations Arehstone agreed to make at each of the NBA Properties, the costs of the remediations, and what FHA or ADA standard made the remediations necessary,” (Paper No. 128 at 9), the issue remaining is whether NBA can discover materials regarding positions taken by each side in the settlement negotiations and how the parties brokered their compromise.

[170]*170Archstone argues that the settlement materials sought are inadmissible as evidence pursuant to Federal Rule of Evidence 408 and that NBA has not established that the materials are likely to lead to the discovery of admissible evidence as required by Federal Rule of Civil Procedure 26(b). Archstone maintains that the ultimate issue presented by its cross-claim is whether the architectural plans that NBA designed for Archstone were in compliance with the accessibility requirements of the FHA and the ADA. (Paper No. 128 at 2.) NBA responds that Rule 408 does not prohibit discovery of settlement related documents and that the majority of courts have rejected the notion of a “settlement” privilege. NBA argues that the documents are discoverable and lists a number of issues that must be resolved in the context of Archstone’s indemnity claim against NBA, each of which NBA maintains is significantly impacted by the information contained in the documents NBA has requested. (Paper No. 129 at 9-11.) In reply, Archstone notes that it does not claim that there is a federal settlement privilege and argues that NBA has failed to establish that the materials are likely to lead to the discovery of admissible evidence. (Paper No. 132 at 3-8.)

As a preliminary matter, the court notes that neither party apparently urges this court to recognize a federal settlement privilege, nor does the court find, based upon its review of the case law, that such a privilege should be recognized. Indeed, in Johns Hopkins University, et al. v. Datascope Corp., No. WDQ-05-0759, 2007 WL 1450367, at *1 (D.Md. May 16, 2007), Magistrate Judge Paul Grimm did not consider the existence of a settlement privilege in determining whether documents concerning settlement negotiations and a settlement agreement were discoverable. Rather, Judge Grimm employed a traditional analysis under Federal Rule of Civil Procedure 26(b)(1) in determining whether the documents at issue were relevant and, therefore, discoverable. Id. Such an analysis is appropriate in this case as well.2

The scope of discovery is governed by Fed.R.Civ.P. 26(b)(1) which limits discovery to “any matter, not privileged, that is relevant to the claim or defense of any party.” As Judge Grimm noted in Datascope, this language was intended to narrow the scope of discovery and limit it to the claims and defenses raised in the pleadings. Id. The Rule allows for broader discovery of matters relevant to the subject matter of the action upon a showing of good cause by the moving party. Finally, the Rule notes that “Relevant information need not be admissible at trial if the discovery appears reasonably calculated to lead to the discovery of admissible evidence.” Fed.R.Civ.P. 26(b)(1). Relevance is not defined by Rule 26(b)(1) but reference to Fed.R.Evid. 401 is helpful because it defines that term as “evidence having the tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence.” Fed.R.Evid. 401.

Here, NBA argues that the settlement materials are relevant because Arch-stone seeks indemnification from NBA for payments it agreed to make as part of the settlement and, therefore, all documents related to that settlement process are relevant. Federal Rule of Evidence 408 by its terms renders settlement negotiations inadmissible at trial except under circumstances not argued by the parties to be applicable here. Because the settlement materials are inadmissible themselves, they are discoverable under Federal Rule of Civil Procedure 26(b)(1) if they are reasonably calculated to lead to the discovery of other evidence that would be admissible at trial.

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Bluebook (online)
251 F.R.D. 168, 2008 U.S. Dist. LEXIS 53000, 2008 WL 2717762, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-rights-center-v-archstone-smith-trust-mdd-2008.