Ghana Supply Commission v. New England Power Co.

83 F.R.D. 586, 28 Fed. R. Serv. 2d 1196, 5 Fed. R. Serv. 848, 1979 U.S. Dist. LEXIS 9954
CourtDistrict Court, D. Massachusetts
DecidedSeptember 7, 1979
DocketCiv. A. No. 75-4166-G
StatusPublished
Cited by13 cases

This text of 83 F.R.D. 586 (Ghana Supply Commission v. New England Power Co.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ghana Supply Commission v. New England Power Co., 83 F.R.D. 586, 28 Fed. R. Serv. 2d 1196, 5 Fed. R. Serv. 848, 1979 U.S. Dist. LEXIS 9954 (D. Mass. 1979).

Opinion

[587]*587MEMORANDUM OF DECISION ON DISCOVERABILITY

GARRITY, District Judge.

On October 2, 1975, plaintiff Ghana Supply Commission (hereinafter GSC), a subject of the Republic of Ghana, filed its original complaint against defendant New England Power Company (hereinafter NEPCO), a citizen of the Commonwealth of Massachusetts, to recover the unpaid portion of the sales price of fuel oil allegedly converted by NEPCO to its own use. Jurisdiction is based on diversity of citizenship, 28 U.S.C. § 1332. After nearly four years, the case, expanded to include third and fourth party defendants, is still at the discovery stage. The motions now before the court relate to a small, yet significant, segment of that discovery.

Before proceeding with the analysis of the issues, it will be helpful briefly to summarize the essential background to this litigation. On or about May, 1974, GSC entered into a contract with Trefalcon Corporation, an American oil merchant and shipper, in which GSC promised to supply residual fuel oil refined in Ghana at an agreed F.O.B. price. Trefalcon sold the oil it received to Incontrade, Inc., who in turn sold some to NEPCO. Although relations between GSC and Trefalcon began smoothly, their association gradually deteriorated over the period from August 1974 to July 1975. According to GSC, it continued to supply oil to Trefalcon, but Trefalcon failed to meet several of its obligations under the contract. In particular, GSC claims that Trefalcon did not pay for much of the oil it received.

In May 1975, Mr. J. V. Mensah assumed the position of Managing Director of GSC and, with the assistance of high level Ghanaian officials, took steps to collect on the debt owed GSC by Trefalcon. Following unsuccessful attempts to negotiate with Trefalcon for payment, GSC commenced this action against NEPCO for unlawful conversion of the fuel oil, arguing both (a) that NEPCO could not have received title to the oil because the agreed-upon procedure for transferring title from GSC to Trefalcon had not been followed and (b) that NEPCO was not a bona fide purchaser in good faith because it knew or should have known that possession of a negotiable bill of lading, which Incontrade did not have, was a necessary condition to possession of title to the oil.

On August 30, 1975, the. National Redemption Council of the Republic of Ghana 1 created a Committee of Inquiry to in[588]*588vestigate the indebtedness of Trefalcon Corporation to GSC, to explore the existence of possible fraud on the part of Ghan-aians and to recommend methods for collecting the outstanding debt and sanctions against those suspected of wrongdoing. Executive Instrument 126, § 2 (August 30, 1975). The proceedings of the Committee were to be held in camera, Executive Instrument 126, § 4(3), and the Committee was expressly given power to compel attendance and testimony of witnesses. Id., at §§ 5, 6. It appears that the testimony was recorded. See, Deposition of J. V. Mensah, Sept. 7, 1977, at 75. Although testimony was completed and briefs filed with the Committee by April 22, 1977, no final report has yet been issued.

NEPCO seeks to obtain by way of a request for documents, pursuant to Rule 34, Fed.R.Civ.P., by means of answers to interrogatories, and through questions on oral deposition, the content of certain documents, memoranda, reports and correspondence and the substance of testimony introduced before the Committee of Inquiry. The Republic of Ghana has asserted a limited privilege against disclosure of this information. It has produced all regular documents in its custody, possession or control of which were generated in the normal course of business and which were in existence prior to the creation of the Committee of Inquiry, even though these documents may have been produced as evidence before the Committee. However, documents created solely for the Committee and all oral testimony before the Committee have been withheld pursuant to a claim of executive privilege. It is the assertion of this privilege that forms the core of the present controversy.

Two motions are now before us for decision. First, NEPCO has moved for an order to compel production of documents requested in NEPCO’s Request for Production of Documents dated May 22, 1978 insofar as the documents relate to the investigation conducted by the Ghanaian Executive Committee of Inquiry into the circumstances surrounding GSC’s sale of residual fuel oil to Trefalcon Corporation and Incontrade, Inc. Second, NEPCO, through a motion for sanctions, seeks an order precluding GSC from supporting certain claims and awarding against GSC the expenses incurred by NEPCO in obtaining adequate answers to its interrogatories. After studying the extensive briefs submitted by both parties and hearing oral argument, we order GSC to produce all documents sought by NEPCO’s May 22, 1978 Request for Production of Documents, insofar as production of those documents has been opposed only on grounds of intragovernmental or executive privilege. NEPCO’s motion for sanctions is denied without prejudice to its being renewed should GSC not comply fully with the orders of this court.

The following discussion of the issue of governmental privilege is divided into four sections. The first three sections treat important preliminary questions which are vital to a decision of the ultimate issue, which is presented in the fourth and final section.

I. Choice of Law

First there is a threshold conflicts question: whether to apply the privilege law of the United States or of Ghana. Rule 501 of the Federal Rules of Evidence guides our choice:

However, in civil actions and proceedings, with respect to an element of a claim or defense as to which the State law supplies the rule of decision, the privilege of a witness, person, government, State, or political subdivision thereof shall be determined in accordance with State law. Jurisdiction in this case is based on the

diversity grant of 28 U.S.C. § 1332 since the plaintiff is “[a] foreign states or citizens or subjects thereof” and the defendant is a citizen of Massachusetts. The crux of plaintiff’s claim is to recover for unlawful conversion of fuel oil, a common law tort, and there is no federal law or strong federal interest involved. Under these circumstances Erie Railroad Co. v. Tompkins, 1938, [589]*589304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188, mandates that state law provide the rule of decision as to claims and defenses. See, Domingo v. States Marine Lines, S.D.N.Y. 1972, 340 F.Supp. 811, 816, n. 5; Svenska Handelsbanken v. Carlson, D.Mass.1966, 258 F.Supp. 448, 450; Republic of Iraq v. First Nat. City Bank, S.D.N.Y.1965, 241 F.Supp. 567, 572-73, aff’d 2 Cir. 1965, 353 F.2d 47, cert. denied 1966, 382 U.S. 1027, 86 S.Ct. 648, 15 L.Ed.2d 540; cf., John Sanderson & Co. (Wool) Pty. v. Ludlow Jute, 1 Cir. 1978, 569 F.2d 696, 697, n. 1. Fed.R.Ev., Rule 501 thus requires that we look to state law for resolution of the privilege question.

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83 F.R.D. 586, 28 Fed. R. Serv. 2d 1196, 5 Fed. R. Serv. 848, 1979 U.S. Dist. LEXIS 9954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ghana-supply-commission-v-new-england-power-co-mad-1979.