Falstaff Brewing Corp. v. Kessler

489 F. Supp. 191, 1980 U.S. Dist. LEXIS 11274
CourtDistrict Court, E.D. Wisconsin
DecidedMay 5, 1980
Docket80 Misc. 6
StatusPublished
Cited by2 cases

This text of 489 F. Supp. 191 (Falstaff Brewing Corp. v. Kessler) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Falstaff Brewing Corp. v. Kessler, 489 F. Supp. 191, 1980 U.S. Dist. LEXIS 11274 (E.D. Wis. 1980).

Opinion

DECISION and ORDER

MYRON L. GORDON, District Judge.

Pursuant to Rule 6(e), Federal Rules of Criminal Procedure, the petitioners seek access to subpoenas issued by the United States attorney and documents produced in response to said subpoenas during the course of a grand jury investigation currently taking place in this district. For reasons which follow, I find that the instant petition should be denied.

I. BACKGROUND

The petitioners, Falstaff Brewing Corp., and General Brewing Co., and S & P Co., are plaintiffs in an antitrust action currently pending against Philip Morris, Inc. and the Miller Brewing Co. in the northern district of California. The respondent, Ms. Kessler, is the United States attorney for the eastern district of Wisconsin and as such is the custodian of records subpoenaed by grand juries sitting in this district.

In a subpoena duces tecum, dated February 6,1980, and directed to Ms. Kessler, the petitioners sought production of “all subpoenas, civil investigative demands and other requests for production of documents prepared and served by the U.S. Government or its agent or designee with respect to the Grand Jury Investigation of the Miller Brewing Company currently pending in Milwaukee, Wisconsin.” The petitioners also sought all documents produced in response to such subpoenas and all other documents related to the grand jury investigation of the Miller Brewing Co.

In a letter response to the petitioners’ subpoena, dated February 13, 1980, the United States attorney’s office declined to produce the documents in question, stating that “an ongoing investigation would be impeded, even jeopardized, by the disclosure sought here.” As a result the petitioners filed their instant petition on February 26, 1980, seeking a court order compelling the United States attorney to comply with the subpoena.

The petitioners and the respondent have filed briefs and affidavits with regard to the instant petition. Miller and Philip Morris have also submitted a brief on the issue at bar. Their standing in this matter is clearly established by recent precedent. Douglas Oil Co. of California v. Petrol Stops *193 Northwest, 441 U.S. 211 n.8, 99 S.Ct. 1667, 60 L.Ed.2d 156 (1979); Illinois v. Sarbaugh, 552 F.2d 768 (7th Cir.), cert. denied, 434 U.S. 889, 98 S.Ct. 262, 54 L.Ed.2d 174 (1977).

II. LEGAL STANDARD UNDER RULE 6(e)

“Since the 17th century, grand jury proceedings have been closed to the public, and records of such proceedings have been kept from the public eye.” Douglas Oil Co. v. Petrol Stops Northwest, 441 U.S. 211, 218 n.9, 99 S.Ct. 1667, 1672, 60 L.Ed.2d 156 (1979). Rule 6(e)(2), Federal Rules of Criminal Procedure, codifies the historical policy of secrecy with regard to grand jury matters:

“(2) General Rule of Secrecy. — A grand juror, an interpreter, a stenographer, an operator of a recording device, a typist who transcribes recorded testimony, an attorney for the government, or any person to whom disclosure is made . under paragraph (3)(A)(ii) of this subdivision shall not disclose matters occurring before the grand jury, except as otherwise provided for in these rules. No obligation of secrecy may be imposed on any person except in accordance with this rule. A knowing violation of Rule 6 may be punished as a contempt of court.”

Rule 6(eX3) provides exceptions to this general rule of secrecy, including Rule 6(e)(3)(C) which states:

“(C) Disclosure otherwise prohibited by this rule of matters occurring before the grand jury may also be made—
(i) when so directed by a court preliminarily to or in connection with a judicial proceeding; . . . ”

Parties seeking grand jury transcripts under Rule 6(e) “must show that the material they seek is needed to avoid a possible injustice in another judicial proceeding, that the need for disclosure is greater than the need for continued secrecy, and that their request is structured to cover only material so needed.” Douglas Oil Co. v. Petrol Stops Northwest, 441 U.S. at 222, 99 S.Ct. at 1674. Disclosure of such materials “is appropriate only in those cases where the need for it outweighs the public interest in secrecy, and . . . the burden of demonstrating this balance rests upon the private party seeking disclosure.” Id. at 223, 99 S.Ct. at 1675. The Supreme Court has declared that the secrecy protected by Rule 6(e) “must not be broken except where there is a compelling necessity,” which “must be shown with particularity.” United States v. Proctor & Gamble, 356 U.S. 677, 682, 78 S.Ct. 983, 986, 2 L.Ed.2d 1077 (1958); Pittsburgh Plate Glass Co. v. United States, 360 U.S. 395, 399-400, 79 S.Ct. 1237, 1240-1241, 3 L.Ed.2d 1323 (1959).

The court of appeals for this circuit has held that the policy of grand jury secrecy has a more limited application to subpoenaed documents than it does to grand jury transcripts. United States v. Stanford, 589 F.2d 285, 291 (7th Cir. 1978); State of Illinois v. Sarbaugh, 552 F.2d 768, 772 n.2 (1977). However, the court of appeals has also indicated that disclosure of documents in evidence before a grand jury may at some point be precluded by Rule 6(e). United States v. Stanford, 589 F.2d at 291 n.6.

With these standards in mind, I now will examine the competing interests of secrecy and disclosure, in order to determine whether the instant petition should be granted.

III. INTEREST IN SECRECY

The United States attorney as well as Miller and Philip Morris have argued that the traditional secrecy surrounding grand jury proceedings should preclude access to the subpoenaed documents in this case. The policies underlying this traditional secrecy were recently stated by the Supreme Court in Douglas Oil Co. v. Petrol Stops Northwest, 441 U.S. at 219, 99 S.Ct. at 1673:

“First, if preindictment proceedings were made public, many prospective witnesses would be hesitant to come forward voluntarily, knowing that those against whom they testify would be aware of that testimony. Moreover, witnesses who appeared before the grand jury would be *194 less likely to testify fully and frankly, as they would be open to retribution as well as to inducements.

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Bluebook (online)
489 F. Supp. 191, 1980 U.S. Dist. LEXIS 11274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/falstaff-brewing-corp-v-kessler-wied-1980.