Farley v. McGee

7 Navajo Rptr. 600
United States District Court·Decided April 23, 1999·No. No. SR-CV-04-95·Published

Opinion

MEMORANDUM OPINION AND ORDER

Judge Lorene Ferguson presiding.

THIS MATTER came on for consideration of the plaintiffs’ Motion to Compel Production of Documents and Answers to Interrogatories, filed on April 25, 1997, against Kerr McGee, Vanadium Corporation of America, Foote Minerals Corporation, and Cyprus Foote Minerals Corporation, Jointly and Severally. Since the filing of this Motion, the parties have resolved by agreement the majority of the issues encompassed within plaintiffs’ Motion. The only issue remaining before this Court is whether Cyprus Foote Minerals Corporation should be compelled to produce approximately eighteen boxes of documents within their possession, containing information relating to the various uranium mining and milling activities Cyprus engaged in at their locations other than the Shiprock Mill, which was the site out of which plaintiffs’ complaint arose.

At the July 14, 1998 hearing attended by Counsel for both parties, this Court, having heard oral arguments and considered the briefs and responsive pleadings of the parties, ordered Cyprus to produce the documents at issue.

FACTUAL BACKGROUND

Plaintiffs served their First Request for Production of Documents to defendants on February 25, 1997. On March 27, 1997, defendants filed their response to plaintiffs’ Request for Production, agreeing to produce documents relevant to the Shiprock site but objecting to production of the documents which are the subject of this opinion. As the parties were unable to agree upon the scope of discovery, on April 25, 1997, plaintiffs filed a Motion to Compel Production of Documents and Answers to Interrogatories, to which defendants responded with a Motion for a Protective Order, filed on May 27,1997. Both parties’ respective positions were argued orally before this Court on November 12, 1997 and April 29, 1998, and supported in writing by memoranda. At the time of the hearing which took place on July 14, 1998, all other issues addressed in the pleadings and plaintiffs’ initial discovery request had been resolved by agreement of the parties, with the exception of the production of documents within Cyprus’ possession, relating to their mining and milling activities at locations other than Shiprock.

[601]*601DISCUSSION

On February 25, 1997, plaintiffs served their First Request for Production of Documents to defendants, who then filed their Response on March 27,1997, setting forth ten objections to plaintiffs’ request. However, subject to and without waiving their stated objections, defendants agreed to make available documents that may be responsive to plaintiffs’ request regarding the Shiprock Mill, at defendants’ Corporate Headquarters. On April 25, 1997, the parties filed a joint submission, relating to the schedule for the filing of motions to compel responses to discovery, in which they stated the parties were unable to reach a compromise on the scope of discovery, specifically, whether defendants were required to produce documents relating to facilities they operated other than the Shiprock Mill, or whether defendants could limit their production to the Shiprock Mill information. Thus, the parties agreed to submit this single issue to the Court for resolution. Simultaneously, plaintiffs filed their Motion to Compel Production of Documents and Answers to Interrogatories, supported by a Memorandum of Law. Defendants responded with a Motion for Protective Order and a Consolidated Memorandum supporting their motion and responding to plaintiffs’ motion. The arguments set forth by both parties follow.

PLAINTIFFS’ ARGUMENTS

First, plaintiffs assert that defendants were “negligent in failing to warn plaintiffs of the dangers posed by their milling activities when they knew or should have known” of the foreseeable hazards to the plaintiffs’ health, and that “defendants failed to exercise proper care in operating the Shiprock Mill so as to minimize the hazards posed to plaintiffs.” Thus, plaintiffs argue that documents establishing defendants’ awareness of such hazards, as well as health and safety practices they could have employed, both before and during the time period in which defendants operated the Shiprock Mill, would be critical to their case.

Plaintiffs further assert that the requested information is relevant within the meaning of Navajo Rule of Civil Procedure 26(b), which states, “[pjarties may discover any relevant matter, not subject to an evidentiary privilege, which pertains to any fact or issue involved in the pending matter.” Plaintiffs argue that if discovery were limited to the Shiprock Mill information, documents such as memoranda concerning uranium related illnesses at mills or mines other than Shiprock, or health reports within defendants’ possession revealing an increase in cancer rates in workers at uranium mills or mines, would be excluded, despite the fact that such documents would constitute prima facie evidence of defendants’ corporate “state of mind.”

Plaintiffs next argue that the majority of employees at the Shiprock Mill were Navajo Indians, who often do not fare as well under corporate management as do white employees. They claim that information evincing a greater standard of care taken by management for the health and safety of White employees at defen[602]*602dants’ other locations, in contrast to a lack of such protection at the Shiprock Mill, would support an allegation of recklessness or outrageous conduct and thus, the imposition of punitive damages. Plaintiffs also suggest that the Shiprock Mill was a small facility, employing few persons with substantial corporate authority, and therefore was not a likely place for defendants to maintain extensive records revealing corporate knowledge.

Further, plaintiffs argue that defendants’ protest of the undue burden that would be placed upon them if they were forced to produce all the information requested of them is without merit, as a party “cannot escape their disclosure obligations simply because they are large corporations with thousands of documents in many locations,” nor avoid them “merely because it requires the production of a large number of documents.” Finally, plaintiffs assert that they should not be penalized if the defendants have maintained records “in disorganized fashion” and urged the Court to consider the importance of the documents and information requested to plaintiffs’ case, as well as the prejudice that would result if such production requests were not granted.

DEFENDANTS’ ARGUMENTS

Defendants’ Reply Memorandum does not address plaintiffs’ arguments point by point, but rather, focuses on the potentially vast scope of the plaintiffs’ discovery requests, as well as the complexity of the present litigation and the need to bring discovery under “manageable control.” They argue that the requests for production are “overbroad” and “unduly burdensome,” indicating a need for hands-on involvement by the Court.

With regard to the plaintiffs’ argument that documents from sites other than the Shiprock Mill are needed to reveal the “corporate state of mind” of the defendants, as it relates to their preexisting knowledge of the dangers posed by their milling activities, defendants agree that some of the documents requested are properly discoverable. Defendants further suggest that the Court’s assistance is needed to accomplish the necessary production in the most expeditious and cost-efficient manner possible and urge a procedure for the “phasing of discovery,” which they claim is appropriate for complex litigation.

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Farley v. McGee, 7 Navajo Rptr. 600 (usdistct 1999).

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