Gail v. New England Gas Co.

243 F.R.D. 28, 68 Fed. R. Serv. 3d 575, 2007 U.S. Dist. LEXIS 46687
CourtDistrict Court, D. Rhode Island
DecidedJune 27, 2007
DocketC.A. Nos. 05-221T, 05-274T, 05-370T, 05-522T
StatusPublished
Cited by4 cases

This text of 243 F.R.D. 28 (Gail v. New England Gas Co.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gail v. New England Gas Co., 243 F.R.D. 28, 68 Fed. R. Serv. 3d 575, 2007 U.S. Dist. LEXIS 46687 (D.R.I. 2007).

Opinion

MEMORANDUM AND ORDER

TORRES, Senior District Judge.

TABLE OF CONTENTS

Background......................................................................31

Discussion.......................................................................32

I. Asserting Privilege.....................................................32

II. Inadvertent Disclosure as a Waiver of Privilege............................34

III. RIDEM’s Privilege Claim...............................................35

A. Assertion of the Privilege............................................35

B. Loss or Waiver of the Privilege.......................................37

IV. Remedies for Inadvertent Disclosure......................................37

Conclusion.......................................................................39

The Rhode Island Department of Environmental Management (“RIDEM”), which is not a party in this case, seeks a protective [31]*31order regarding allegedly privileged documents that it claims to have inadvertently produced in response to a subpoena duces tecum issued by defendant New England Gas Company, Inc. (“NE Gas”). More specifically, RIDEM seeks return of the documents; an order prohibiting NE Gas from, in any way, using the information contained in the documents; and disqualification of any NE Gas counsel who reviewed the documents.1 NE Gas contends that the documents are not privileged and that, even if they were, any privilege was waived by RIDEM’s failure to properly assert the privilege and by RI-DEM’s failure to take timely corrective action after learning of the disclosure. For the reasons hereinafter stated, the motion for a protective order is denied.

Background

The litigation from which this dispute arises is a suit against NE Gas by a number of landowners in Tiverton, Rhode Island, who claim that their property has been contaminated by coal gasification by-products generated by NE Gas’s predecessor and buried approximately 50 years ago. See Corvello v. New England Gas Co., Inc., 460 F.Supp.2d 314 (D.R.I.2006).

In September 2006, RIDEM issued a formal Notice of Violation (“NOV”), alleging that NE Gas, a subsidiary of Southern Union Company, is responsible for contamination of the plaintiffs’ property and ordering NE Gas to remediate the site. RIDEM also has commenced administrative proceedings against NE Gas which are pending before RIDEM’s Administrative Adjudication Division.

On September 29, 2006, NE Gas served a subpoena duces tecum on RIDEM requesting all documents, reports, and communications in RIDEM’s files relating to the alleged Tiverton contamination. RIDEM’s then deputy chief legal counsel, Brian Wagner, identified approximately 6,300 pages of relevant documents, 400 of which he states he deemed privileged and marked accordingly.

RIDEM then engaged WarRoom Document Solutions (“WarRoom”), a document processing and management service, to use the Bates stamp system to number the pages and to scan the documents onto computer discs (“CDs”). According to Wagner, he requested that the privileged documents be scanned onto one CD and that the non-privileged documents be scanned onto a separate CD. WarRoom, on the other hand, contends that it was instructed to produce two CDs, one marked “privileged” that contained all documents identified by Wagner as privileged and one marked “Bay Street/Tiverton,” that contained both the “privileged” and non-privileged documents.

WarRoom delivered the CDs that it says it was told to produce to Wagner who, on October 25, 2006, provided the “Bay Street/Tiver-ton” CD to NE Gas’s counsel, apparently, without first reviewing its contents.

On November 2, 2006, NE Gas’s counsel wrote to Wagner informing him that the CD contained “internal communications with counsel,” and that NE Gas had halted its review of the documents pending confirmation from RIDEM that it had intended to produce them. The following day, Wagner responded by leaving a voice mail message indicating his awareness that the Bays-treet/Tiverton CD contained two letters from RIDEM’s executive counsel requesting records relating to the Tiverton contamination and a letter transmitting various documents to RIDEM’s executive counsel bearing Bates numbers 201, 202 and 249 “over which privilege could have been asserted,” but he stated that RIDEM was not concerned about those letters; and, if they were the kind of documents NE Gas was referring to, NE Gas could assume that they were produced intentionally.

Approximately two weeks later, on November 17, 2006, Wagner sent a privilege log to NE Gas’s counsel (the “first privilege log”) listing 104 documents that RIDEM claimed were privileged. It is not clear whether the privilege log was meant as a further response to NE Gas’s subpoena or whether it reflected second thoughts by Wagner with respect to the documents on the Bay Street/Tiverton CD. Nor did that privilege log fully describe the documents or the basis for claiming that they were privileged.

[32]*32In any event, NE Gas’s counsel promptly informed Wagner that all of the documents listed on the privilege log were contained on the Bay Street/Tiverton CD and that they already had been reviewed by counsel for NE Gas. In a follow-up letter sent that same day, NE Gas’s counsel took the position that RIDEM had waived any claim of privilege to documents on the CD by providing them to NE Gas and, then, failing to promptly assert the claim of privilege after having been alerted by NE Gas, on November 2, that the CD contained possibly privileged materials.

When NE Gas refused to return the documents listed on the privilege log, RIDEM filed its motion for a protective order. The relief requested in RIDEM’s motion and supporting memorandum includes return of the documents; a prohibition against any use of the documents by NE Gas in either this litigation or RIDEM’s administrative proceeding and disqualification of any of NE Gas’s counsel who have reviewed the documents.

This Court ordered NE Gas to file the Bay Street/Tiverton CD with the Court pending resolution of RIDEM’s claim of privilege and, on March 7, 2007, an evidentiary hearing was held for the purpose of addressing the following issues:

1. Whether the documents in question were privileged.
2. If so, whether the privilege had been ' waived or lost.
3. If the documents were privileged and the privilege had not been waived or lost, what remedy was appropriate.

However, instead of presenting evidence, the parties chose only to argue about whether the previously described events amounted to a waiver of any privilege and, if not, what relief should be granted.

Because it remained unclear whether the documents in question were privileged and because there were serious questions as to whether RIDEM’s privilege log sufficiently described the documents for which privilege was claimed, this Court afforded RIDEM an opportunity to submit an amended privilege log further describing the documents and explaining the bases for claiming that they were privileged. This court, also, directed the parties to file supplementary memoranda addressing:

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Bluebook (online)
243 F.R.D. 28, 68 Fed. R. Serv. 3d 575, 2007 U.S. Dist. LEXIS 46687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gail-v-new-england-gas-co-rid-2007.