Falise v. American Tobacco Co.

193 F.R.D. 73, 2000 U.S. Dist. LEXIS 128, 2000 WL 16920
CourtDistrict Court, E.D. New York
DecidedJanuary 4, 2000
DocketNos. CV-99-7392 (JBW), CV-97-7658 (JBW), CV-98-675 (JBW), CV-98-1492 (JBW), CV-98-3287 (JBW)
StatusPublished
Cited by17 cases

This text of 193 F.R.D. 73 (Falise v. American Tobacco Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Falise v. American Tobacco Co., 193 F.R.D. 73, 2000 U.S. Dist. LEXIS 128, 2000 WL 16920 (E.D.N.Y. 2000).

Opinion

[74]*74MEMORANDUM AND ORDER

WEINSTEIN, Senior District Judge.

Defendants have appealed from the magistrate judge’s order of November 17, 1999, compelling disclosure of approximately 37,-000 documents claimed to be subject to the attorney-client privilege. The sole issue is whether they are available for the purpose of discovery. There is no need to decide now whether these materials will be admissible at trial.

These documents have already been ordered released to the public in connection with Minnesota state courts proceedings, although this order has apparently been stayed. See Minnesota v. Philip Morris, Inc., No. C1-94-8565, 1998 WL 257214 (Minn.Dist.Ct.1998). Congress also released onto the internet what appear to be the same documents, again over defendants’ objection. They were widely commented upon by the media. Cf. Simon v. Philip Morris, Inc., 99 CV 1988, (E.D.N.Y. Jan. 4, 2000) (documents in question relied upon in decision on jurisdiction with consent of defendant B.A.T. Industries, p.l.c.).

The magistrate judge’s order is affirmed for the reasons stated in his amended opinion insofar as it is limited to the issue of discovery. See Falise v. American Tobacco Co., 99 CV 7392 (E.D.N.Y. Dec. 28, 1999) (Gold, M.J.). Moreover, once Congress released the documents to the world at large, there was no point in trying to hide their contents at the discovery stage.

First, a trial court should not blind itself in the investigative stage of an important litigation to critical facts known to the world. Justice is blind to persons; absent strong policy reasons, it should not act as if it were ignorant of what every well advised person knows. Cf., e.g., von Bulow v. von Bulow (In re von Bulow), 828 F.2d 94, 103 (2d Cir.1987) (“Matters actually disclosed in public lose their privileged status because they obviously are no longer confidential. The cat is let out of the bag, so to speak.”).

Second, as a constitutional matter, Congress has the broadest power and responsibility of inquiry and of informing the public about what it has learned. See, e.g., Watkins v. United States, 354 U.S. 178, 187, 200-01 & n. 33, 77 S.Ct. 1173,1 L.Ed.2d 1273 (1957) (discussing breadth of congressional power to investigate and inform). Any backhanded attempt by the courts to muzzle Congress even partially by covering up in the investigative stage of a litigation what that organ of government has revealed could be construed as a form of unjustified interference with, and criticism of, another branch of government.

There may conceivably be situations where protection of the constitutional and other rights of individuals requires the courts to check congressional abuse of its investigative powers. See id. at 196-200, 77 S.Ct. 1173 (“[Tjhere is no congressional power to expose for the sake of exposure.”); see also United States v. Welden, 377 U.S. 95, 116-18, 84 S.Ct. 1082, 12 L.Ed.2d 152 (1964) (Douglas, J., dissenting) (“We have repeatedly said that a congressional investigation which exposes [75]*75for exposure’s sake or which is ‘conducted solely for the personal aggrandizement of the investigators or to “punish” those investigated (is) indefensible.’ ” (quoting Watkins, 354 U.S. at 187, 77 S.Ct. 1173)). This is not such a case. The constitutional rights of defendants are not claimed to have been violated.

A different rule may apply at trial where some balancing between partial protection of a tattered privilege claim and the need for the documents may be required. True, the Supreme Court has generally rejected a balancing test in determining the contours of the attorney-client privilege. See Swidler & Berlin v. United States, 524 U.S. 399, 118 S.Ct. 2081, 2086, 141 L.Ed.2d 379 (1998); Upjohn v. United States, 449 U.S. 383, 393, 101 S.Ct. 677, 66 L.Ed.2d 584 (1981). Yet Swidler & Berlin and Upjohn involved attempts by the government to obtain information that still remained confidential. In the instant case, the information has already been released to the public; the question will be to what extent it should be admissible at trial.

If privileged material was revealed without fault of the owner and without waiver, courts have the power to take reasonable steps to give the holder some protection— and thus to uphold the concept and power of the privilege for the future. Thus, there may be circumstances where the iron-clad rule enunciated in Swidler & Berlin and Upjohn as interpreted by von Bulow may be inappropriate. The court may find it necessary to consider the privilege claim in connection with other factors such as probative force, necessity, and cumulativeness. Cf. In re Petroleum Prods. Antitrust Litig., 680 F.2d 5, 7 (2d Cir.1982) (reporters’ privilege may be trumped by “highly material and relevant, necessary or critical to the maintenance of the claim, and not obtainable from other available sources”). Such an approach may uphold the concept of privileged communications without making the litigation process appear foolish for failing to recognize what everyone else already knows.

This complex question is best left for resolution prior to trial as the admissibility of individual documents is considered at an in limine pre-trial hearing. The matter is on appeal in Minnesota, so that the nature of that state’s view of the privilege as applied to the documents in question may be available at the time of trial in the instant case, now scheduled for April 2000.

The motion of defendants to suppress is denied. The opinion of the magistrate judge is appended to the present memorandum and made a part of it.

SO ORDERED.

AMENDED MEMORANDUM & ORDER

GOLD, United States Magistrate Judge.

Introduction

Plaintiffs in these related actions assert claims for damages against the major tobacco companies. Plaintiffs’ complaints set forth various causes of action, including claims under the federal Racketeer Influenced and Corrupt Organizations (RICO) statute.

Currently pending before the Court are plaintiffs’ motions to declare approximately 37,000 documents not privileged and to compel disclosure of related communications pursuant to a claim of subject matter waiver.1 Plaintiffs assert that defendants waived any privilege that may have attached to these documents by consenting to their release when settling The State of Minnesota v. [76]*76Philip Morris, Inc., et al., Case No. C1-94-8565, 1998 WL 257214 (Minn.Dist.Ct.1998), the “Minnesota litigation,” and by not sufficiently resisting congressional subpoenas calling for their production. Plaintiffs further argue that defendants’ privilege claims should be rejected because most, if not all, of the documents are now publicly available.

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Cite This Page — Counsel Stack

Bluebook (online)
193 F.R.D. 73, 2000 U.S. Dist. LEXIS 128, 2000 WL 16920, Counsel Stack Legal Research, https://law.counselstack.com/opinion/falise-v-american-tobacco-co-nyed-2000.