Gottstein v. National Ass'n for the Self Employed

186 F.R.D. 654, 1999 U.S. Dist. LEXIS 10120, 1999 WL 455322
District Court, D. Kansas·Decided June 24, 1999·No. CIV.A.Nos. 98-2339-KHV, 98-2540-KHV, 98-2541-KHV·Published·Cited by 3 cases

Opinion

MEMORANDUM AND ORDER

RUSHFELT, United States Magistrate Judge.

Before the court is Defendants’ Motion for Protective Order (doc. 42). Pursuant to Fed. R.Civ.P. 26(c), defendants PFL Life Insurance Company, UICI, Ron Jensen, and the National Association for the Self-Employed seek an order to protect confidential, commercially sensitive, and proprietary information produced during discovery. Plaintiffs oppose the motion.

The parties generally agree that a confidentiality order is necessary to prohibit unlimited dissemination of certain information obtained in discovery. They also generally agree on the contents of such order, except for the inclusion of paragraph ten. It provides:

10. Whenever CONFIDENTIAL INFORMATION includes lists of, or information regarding, current or former policyholders of any defendant, or includes lists of, or information regarding, current or former general or independent sales agents of any defendant, no party may use such CONFIDENTIAL INFORMATION to contact such policyholders or agents (whether by phone, mail, electronically or otherwise) without the express knowledge and written consent of all parties and the [656]*656Court. A party’s consent shall not be unreasonably withheld.

In the absence of the protection afforded by proposed paragraph ten defendants do not want to identify non-party policyholders. They suggest they have a legitimate business interest in preventing unrestricted contact with them customers. They assert that a protective order is necessary to shield them from the untested allegations of plaintiffs. They contend that unregulated contacts pose significant danger to them businesses and jeopardize their relationships with their customers. They also suggest that counsel for plaintiffs may improperly solicit business from identified individuals. They envision mass mailings and cold-call solicitations from counsel for plaintiffs. In addition they suggest that this litigation will involve disclosure of confidential, proprietary, and trade secret information. They believe the protective order proper to limit dissemination of such information.

Plaintiffs attack the motion on various procedural grounds. In this instance those attacks fail. The court thus addresses the motion on its merits. Although plaintiffs purport to oppose the motion in its entirety, they oppose it only for paragraph ten of the proposed protective order. Their arguments on the merits address only that one paragraph. They suggest the paragraph unnecessarily imposes procedures on the parties and the court. They also contend it is overly broad and improperly limits their right to interview witnesses.

Defendants suggest that the court follow Jackson v. Motel 6 Multipurpose, Inc., 130 F.3d 999 (11th Cir.1997) and prohibit unregulated communication with their customers. The court finds Jackson essentially unpersuasive and distinguishable on its facts. In Jackson the defendant sought a writ of mandamus to vacate an order “authorizing the plaintiffs in two consolidated race discrimination cases to advertise them allegations to the public at large and to communicate with current and former ... employees through mass mailings.” Id. at 1001. The district court authorized the communications after plaintiffs moved for an order granting relief from a local rule. The rule provides in pertinent part that

[i]n every case sought to be maintained by any party as a class action, all parties thereto and their counsel are hereby forbidden, directly or indirectly, orally or in writing, to communicate concerning such actions with any potential or actual class member, not a formal party to the case, without approval by the Court.

Id. at 1002 (quoting Middle District of Florida’s Local Rule 4.04(e)). The Eleventh Circuit found the “order authorizing class communications prior to class certification” an abuse of discretion. Id. at 1004. It stated that such an order “is likely to be an abuse of discretion when (1) the communication authorized by the order is widespread and clearly injurious and (2) a certification decision is not imminent or it is unlikely that a class will in fact be certified.” Id.

Jackson is factually distinguishable. Defendants in this case do not suggest that plaintiffs intend to advertise their allegations to the public at large. Defendants fear the possibility of mass mailings, but provide nothing of substance to suggest plaintiffs intend them. The court finds nothing to suggest that plaintiffs have any intent to conduct a mass mailing of any sort.

The District of Kansas, furthermore, has no local rule corresponding to Rule 4.04(e). In this case no one wants the court to authorize communications by plaintiffs and their counsel. Defendants instead want to prohibit such communications in the absence of their consent and that of the court. For all of these reasons the court finds Jackson factually distinguishable.

Were Jackson on point, its application would not require the inclusion of paragraph ten. The Eleventh Circuit did not vacate its order to authorize “inquiries and communications that would be allowable as a normal discovery matter.” 130 F.3d at 1008 n. 19. The paragraph proposed by defendants would disallow even those types of communications, unless they and the court consented to them. Defendants have presented nothing else to convince the court that excluding paragraph ten from the proposed protective order would be an abuse of its discretion. [657]*657They only conjecture that communications of counsel for plaintiffs will be widespread or clearly injurious. They provide nothing beyond speculation to support the alleged harm to their reputation or profits. From the facts before it, the court finds nothing to create an inference that the future communications by plaintiffs or their counsel will be widespread or clearly injurious.

Having found Jackson distinguishable, the court will determine the standards to be applied in determining the motion. Defendants refer to Fed.R.Civ.P. 26(c) for their requested protective order. That rule, however, applies only to discovery. As the reply brief of defendants clearly indicates, plaintiffs had served no formal discovery to precipitate the motion. No one suggests, furthermore, that the disclosure requirements of Fed.R.Civ.P. 26(a)(1) prompted it. It thus appears that Rule 26(c) has no applicability to the motion as initially submitted. Defendants attach to their reply brief, however, Plaintiffs’ Opening Interrogatories and First Request for Production of Documents. The formal discovery seeks information subject to the proposed protective order. Although the requests for discovery came after the motion, the court, nevertheless, finds Rule 26(c) applicable to the extent the motion seeks protection from that discovery. Such finding appears consistent with the dictates of Fed.R.Civ.P. 1 that the court construe and administer the

Gottstein v. National Ass'n for the Self Employed, 186 F.R.D. 654, 1999 U.S. Dist. LEXIS 10120, 1999 WL 455322 (D. Kan. 1999).

186 F.R.D. 654 (Gottstein v. National Ass'n for the Self Employed) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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