Golden Valley Microwave Foods, Inc. v. Weaver Popcorn Co.

132 F.R.D. 204, 18 U.S.P.Q. 2d (BNA) 1867, 1990 U.S. Dist. LEXIS 11708, 1990 WL 126244
District Court, N.D. Indiana·Decided July 23, 1990·No. Civ. No. F 88-251·Published·Cited by 45 cases

Opinion

MEMORANDUM OF DECISION AND ORDER

ROGER B. COSBEY, United States Magistrate.

This matter is before the Court1 on plaintiff’s (hereinafter, “Golden Valley”) [206]*206Motion to Compel Production of Documents directed to Beatrice/Hunt-Wesson (hereinafter, “Hunt-Wesson”) and American Packaging (hereinafter, “American”) filed on June 8,1990. Hunt-Wesson and American filed a response on June 19, 1990. Golden Valley's reply was filed on June 27, 1990. All filings were under seal because they contained confidential information subject to a protective order. For the reasons stated below the Motion to Compel will be granted in part and denied in part.

I. PROCEDURAL BACKGROUND

This patent infringement case,2 brought by Golden Valley, a producer and seller of microwave food products including microwave popcorn, against Weaver Popcorn (hereinafter, “Weaver”), and Hunt-Wesson and American, manufacturers of microwave popcorn, is again before the court for resolution of various discovery matters.3 This latest dispute involves: 1) whether Hunt-Wesson has waived the attorney-client privilege as to certain documents, and if so, to what extent; 2) whether American has balked at Golden Valley’s requests for production; 3) whether Hunt-Wesson has adequately responded in a recent document production; and 4) whether certain requested Hunt-Wesson draft patent applications (and related documents) are relevant and should be produced. The court will discuss these four areas, and their related facts seriatim.

II. ATTORNEY-CLIENT PRIVILEGE WAIVER

Golden Valley received from Hunt-Wesson in the normal course of document production a copy of a February 25,1987 letter (“the letter”) written by Attorney Schroeder (outside patent counsel for Hunt-Wesson) to Anne Gordinier (in-house counsel for Hunt-Wesson). The letter sets forth in detail an analysis of the patentability and potential infringement problems of a specific microwave device either individually, or in combination with a microwave compatible popcorn bag.4

Golden Valley insists that as a result of this production any attorney-client privilege Hunt-Wesson had, has now been waived; not only as to this document, but “any communications referring or relating to attorney opinions addressing these issues.” See Golden Valley Brief in Support of Motion to Compel at 2. Of course the ultimate sweep of this argument would effectively mean there was no remaining privilege; and Golden Valley now wants Hunt-Wesson to disgorge the forty-one other documents that purportedly enjoy the attorney-client privilege.5

Golden Valley also claims that an internal Hunt-Wesson memo (generally referred to as “PX 116”), Id. at Exhibit C, also discusses privileged attorney-client matters and bolsters the waiver argument. A fair reading of that memo, however, appears to be a mere response from the Hunt-Wesson Director of Marketing (McNeil) to his apparent superior (Bayless) about Hunt-Wesson’s packaging vis a vis Golden Valley’s patent. Thus, it is not an attorney communication at all, it could not be privileged, and its production would not waive the attorney-client privilege.6 “The privilege applies only if ... (2) the person to whom the communication was made (a) is a member of the bar of a court, or his [207]*207subordinate and (b) in connection with this communication is acting as a lawyer [.]” United States v. United Shoe Machinery Corp., 89 F.Supp. 357 (D.Mass.1950); 4 Moore’s Federal Practice 1126.60[2] page 26-193 (1989).

The burden is on the party asserting the attorney-client privilege to establish its existence. Gramm v. Horsehead Industries, Inc., No. 87 Civ. 5122, 1990 WL 142404 (S.D.N.Y. Jan. 25, 1990) (LEXIS, Genfed library, Dist. file); 4 Moore’s Federal Practice ¶ 26.60[1] (1989). On that score, however, there does not appear to be any dispute that the requested documents are indeed privileged attorney-client communications. Rather, the parties have focused their arguments on whether or not a waiver of the privilege has occurred.

Hunt-Wesson’s pitch to the court is that the letter was inadvertently disclosed by an associate from trial counsel’s law firm. When the producing party claims inadvertent disclosure it has the burden of proving that the disclosure was truly inadvertent, and that the privilege has not been waived. Parkway Gallery Furniture v. Kittinger/Pennsylvania House Group, Inc., 116 F.R.D. 46 (M.D.N.C.1987). Hunt-Wesson argues that the inadvertent disclosure worked at most a waiver as to the letter alone; and not to the remaining forty-one (or forty-two; See Hunt-Wesson’s Opposition to Motion to Compel at Exhibit 8, page 2) privileged documents.

While an unsworn mea culpa is arguably deficient to establish inadvertent disclosure, there are certain other indices that the court can consider to determine whether a disclosure is truly inadvertent. First, it is no secret that this case involves tremendous and ongoing discovery efforts, national in scope, with a number of additional corporate non-parties involved. Counsel for Hunt-Wesson asserts that in total they have examined 90,000 documents; from which they have identified approximately forty-one documents (consisting of approximately 279 pages) as falling within the attorney-client privilege. (Hunt-Wesson Brief in Opposition, at 11). Hunt-Wesson observes, (and Golden Valley confirms) that it has produced approximately 14,000 documents to Golden Valley through discovery.7

In addition, numerous intricate protective orders governing document production have been fashioned and agreed to by the parties (including non-parties) for submission to the court. Finally, counsel have been scrupulous in their filings to reflect the protective nature of the information submitted. In all this, it should not be surprising that an inadvertent disclosure could occur. See Kansas-Nebraska Natural Gas v. Marathon Oil Co., 109 F.R.D. 12 (D.Neb.1985) (One document inadvertently disclosed out of 75,000 justifies a finding of non-waiver of attorney-client privilege even in the absence of a description of precautionary procedures). Therefore, the court concludes that the disclosure of the letter was truly inadvertent and not the product of some conscious but erroneous decision; or worse, a sly attempt to gain advantage using truth garbling tactics.8 Kansas-Nebraska Natural Gas, 109 F.R.D. at 21.

Golden Valley tries to throw the court a curve with its citation to Abbott Lab. v. Baxter Travenol Lab., Inc., 676 F.Supp. 831 (N.D.Ill.1987) to establish waiver of the attorney-client privilege. This attempt misses the plate, however, because Abbott Lab. involved a partial voluntary disclosure of privileged attorney-client communications. Voluntary disclosure, as opposed to inadvertent disclosure, waives the privilege as to remaining documents of that [208]*208subject matter. See 4 Moore’s Federal Practice H 26.60[2], page 26-201-202 (1989).

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Golden Valley Microwave Foods, Inc. v. Weaver Popcorn Co., 132 F.R.D. 204, 18 U.S.P.Q. 2d (BNA) 1867, 1990 U.S. Dist. LEXIS 11708, 1990 WL 126244 (N.D. Ind. 1990).

132 F.R.D. 204 (Golden Valley Microwave Foods, Inc. v. Weaver Popcorn Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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