Grace v. Center for Auto Safety

155 F.R.D. 591, 1994 U.S. Dist. LEXIS 8540, 1994 WL 282124
CourtDistrict Court, E.D. Michigan
DecidedJune 20, 1994
DocketNo. 93-CV-74435-DT
StatusPublished
Cited by6 cases

This text of 155 F.R.D. 591 (Grace v. Center for Auto Safety) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grace v. Center for Auto Safety, 155 F.R.D. 591, 1994 U.S. Dist. LEXIS 8540, 1994 WL 282124 (E.D. Mich. 1994).

Opinion

OPINION AND ORDER GRANTING NON-PARTY GENERAL MOTORS CORPORATION’S MOTION FOR SANCTIONS

HACKETT, District Judge.

Non-party General Motors Corporation (GM) filed a motion for sanctions against defense counsel Mark Robinson and defendant Clarence Ditlow for violating the court’s protective order. Because the court finds that Robinson and Ditlow willfully violated the court’s protective order, GM’s motion for sanctions shall be granted.

BACKGROUND

To protect non-party GM from having the deposition of its attorney Maynard Timm disseminated to products liability attorneys with no connection to this lawsuit, the court entered a protective order limiting access to the Timm deposition. Robinson and Ditlow flagrantly violated the protective order by wrongfully disseminating the deposition to products liability attorneys in direct contravention of the explicit language and clear intent of the order. Having acted with complete disregard for the court’s order, they must now pay the consequences for their severe misconduct. To appreciate why Robinson’s and Ditlow’s egregious actions make the imposition of substantial sanctions necessary, the court will describe the events preceding their willful violation of the court’s protective order in some detail.

A. Discovery Disputes

This matter arose because of discovery disputes regarding deposition and document subpoenas served in this district against non-party GM and its current and former employees. The discovery requests arose out of a defamation lawsuit which was pending in the United States District Court for the Central District of California.1 The plaintiff in the defamation suit is former GM attorney Eugene Grace. Grace brought the libel action against Clarence Ditlow alleging that Ditlow had falsely accused him at a national press conference of directing a group of young attorneys to destroy documents which Ditlow claimed would incriminate GM in pending C/K pickup truck product liability lawsuits.

Clarence Ditlow is an attorney and the executive director of the Center for Auto Safety. The Center for Auto Safety was also a named defendant in the defamation lawsuit. The Center for Auto Safety is a consumer advocacy group founded by Ralph Nader and Consumers Union, whose work includes assisting products liability attorneys in lawsuits related to automotive safety.2 The defamation case has now been settled. Defendants agreed to pay plaintiff $500,000 to dismiss the lawsuit.3

Defendants and GM first appeared before the court on October 25, 1993, to address non-party GM’s motion to quash subpoena. [594]*594In their motion to quash the subpoena for documents, GM argued that defendants were using discovery for improper purposes, specifically to engage in a fishing expedition to obtain discovery for unrelated products liability actions pending against GM in regards to pickup truck fuel tank fire cases. Current and former employees of GM also filed a motion joining in GM’s motion and seeking to quash subpoenas served on them for testimony and documents.

The court denied in part GM’s motion and ordered that substantial discovery occur. Because whether or not the statements made about Eugene Grace were true was an issue in the defamation lawsuit, defendants were allowed to discover evidence from GM which might assist in their defense. In allowing discovery against GM to proceed, the court noted that the Federal Rules of Evidence allow for broad discovery. (Tr. of October 25, 1993, hearing at 65). Specifically, Rule 401 provides: “‘Relevant evidence’ means evidence having any tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence.” But in allowing discovery to proceed against a non-party, GM’s argument that defendants were using the Grace defamation suit to conduct discovery for unrelated products liability actions against GM was not lost on the court.

At the hearing, defense counsel Robinson admitted that he had suggested bringing lawyers working on product liability actions against GM to review documents: “If you want to speed things up, I can get some plaintiffs attorneys that really know these records to go through, [sic] No, he doesn’t want that. I said fine.” (Tr. of October 25, 1993, at 76). The court cautioned defense counsel Robinson that it would be inappropriate to review the documents with attorneys who represented plaintiffs in product liability actions and reminded Robinson that discovery was limited to the defamation lawsuit:

Not appropriate, not appropriate counsel. This discovery’s limited to this lawsuit. It’s the defamation claim in the California Court. It’s the purpose of the subpoena. It’s limited to that, not a general fishing expedition for all kinds of product liability cases that might be brought by someone at sometime or pending elsewhere.
If it’s for some purpose other than the defamation suit, not appropriate. Clearly beyond the scope of the subpoena and certainly beyond what this court is ordering at this time.

(Tr. of October 25, 1993, at 47). Despite the court’s strong admonition that the defamation lawsuit not be used as a back door to obtain discovery for use in products liability actions, that is exactly what defendant Ditlow and defense counsel Robinson did.

B. Purpose of Protective Orders

In allowing discovery against a non-party to continue despite the serious and obvious potential for abuse, the court was guided by Fed.R.Civ.P. 26(b) which provides for nearly unlimited discovery of any non-privileged material relevant to a pending action. Because Fed.R.Civ.P. 26(b) provides for very broad discovery, trial courts also have discretion to issue protective orders to protect parties and witnesses under Fed.R.Civ.P. 26(c).4 “It is impossible to set out in a rule [595]*595all of the circumstances that may require limitations on discovery or the kinds of limitations that may be needed. The rules, instead, permit the broadest scope of discovery and leave it to the enlightened discretion of the district court to decide what restrictions may be necessary in a particular case.” 8 Charles A. Wright & Arthur R. Miller, Federal Practice & Procedure: Civil § 2036 (1970).

The Supreme Court has stated that district courts have broad discretion to issue protective orders to prevent discovery abuses:

Rule 26, however, must be viewed in its entirety. Liberal discovery is provided for the sole purpose of assisting in the preparation and trial, or the settlement, of litigated disputes. Because of the liberality of pretrial discovery permitted by Rule 26(b)(1), it is necessary for the trial court to have the authority to issue protective orders conferred by Rule 26(c). It is clear from experience that pretrial discovery by depositions and interrogatories has a significant potential for abuse.

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Related

United States v. Marsten Apartments, Inc.
175 F.R.D. 257 (E.D. Michigan, 1997)
Matter of Searer
950 F. Supp. 811 (W.D. Michigan, 1996)
In Re TMI Litigation Cases Consolidated II
922 F. Supp. 997 (M.D. Pennsylvania, 1996)
Grace v. Center For Auto Safety
72 F.3d 1236 (Sixth Circuit, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
155 F.R.D. 591, 1994 U.S. Dist. LEXIS 8540, 1994 WL 282124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grace-v-center-for-auto-safety-mied-1994.