Hydramar, Inc. v. General Dynamics Corp.

119 F.R.D. 367, 10 Fed. R. Serv. 3d 675, 1988 U.S. Dist. LEXIS 1126, 1988 WL 21399
CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 9, 1988
DocketCiv. A. No. 85-1788
StatusPublished
Cited by10 cases

This text of 119 F.R.D. 367 (Hydramar, Inc. v. General Dynamics Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hydramar, Inc. v. General Dynamics Corp., 119 F.R.D. 367, 10 Fed. R. Serv. 3d 675, 1988 U.S. Dist. LEXIS 1126, 1988 WL 21399 (E.D. Pa. 1988).

Opinion

MEMORANDUM AND ORDER

HANNUM, Senior District Judge.

The matter presently before the Court arises out of Hydramar, Inc.’s motion to compel discovery from defendant, General Dynamics Corporation. This motion was addressed previously by this Court in a Memorandum and Order issued on September 22, 1986. See Hydramar, Inc. v. General Dynamics Corporation, 115 F.R.D. 147 (E.D.Pa.1986).

In its Memorandum and Order, this Court acknowledged that plaintiff sought information bearing “on how General Dynamics handled plaintiff’s January 21, 1983 claim to adjust equitably the contract price.” Information of this sort, plaintiff argued “[was] essential both to a determination of whether General Dynamics’ conduct was tortious as [...] alleged in Counts II-VII of plaintiff’s complaint and to a determination of whether General Dynamics negotiated and dealt with Hydramar with the utmost good faith and fair dealing as ... alleged in the defendant’s answer to the plaintiff’s complaint.” Hydramar, Inc., at 149 (E.D.Pa.1986) (hereinafter “Slip opinion”).

The defendant in the papers it submitted to this Court objected “to the discovery of this type information on the ground that it [constituted] ‘opinion’ work product.” Id. [369]*369More specifically, the defendant contended “that the requested information was prepared in anticipation of litigation and that discovery of this information [would] reveal defendant’s trial strategy and thoughts with respect to the breach of contract action alleged in Count I of plaintiff’s compláint.” Id.

This Court found upon the record before it that the “defendant [had] failed to meet its burden of proving that documents generated prior to May 13, 1983 that plaintiff [sought] to discover were prepared or obtained because of the prospect of litigation.” At 150.

This Court, at that time “held that all documents generated ... prior to May 13, 1983 by the defendant [were subject to discovery] ... by the plaintiff” if otherwise in satisfaction of Fed.R.Civ.P. 26. At 151.

As to documents prepared by General Dynamics on or after May 13, 1986, the Court stated that it was not in a position to say whether these documents were prepared in anticipation of litigation from the papers submitted by the parties to the Court. Equally the Court related in its Memorandum and Order that without actually viewing the documents in question it was not “in a position to pass upon defendant’s claim that any such document or testimony based upon any such document contains work product or ‘opinion’ work product.” At 151.

This Court then ordered the defendant “to submit under seal any documents or information based upon any such document generated on or subsequent to May 13, 1986, that it claims is protected from discovery by virtue of the work product doctrine for in camera inspection.”

After this Court’s Order dated September 22, 1986 was issued, the parties attempted to resolve this matter amicably. However, their efforts in this regard were unsuccessful.

The defendant has submitted on two occasions documents for in camera review subsequent to this Court’s decision of September 22,1986 that it claims are protected from discovery by virtue of the work product doctrine. It is to the in camera inspection that the Court will now turn.

I. Anticipation of Litigation

The threshold issue presented for decision remains whether the documents prepared by the defendants on or after May 13,1986, were prepared in anticipation of litigation. Of course, the burden of showing that these documents were in fact prepared in anticipation of litigation remains with the party asserting the work product doctrine; which in this case is the defendant, General Dynamics. See Conoco Inc. v. United States Department of Justice, 687 F.2d 724 (3d Cir.1982).

In passing upon the “in anticipation of litigation” issue, this Court, in its Memorandum and Order of September 22, 1986, noted that Hydramar did not threaten General Dynamics with the prospect of litigation until May 13, 1983. This Court also realized at that time that this particular threat of litigation would play an important role in the in camera inspection that it is now called upon to make.

This Court observed that:

As to documents prepared by General Dynamics on or after May 13, 1986, this Court will decide, upon an in camera inspection, with the first threat of litigation being a significant factor, whether the defendant has established that the documents were prepared in anticipation of litigation.

At 150 n. 3.

With this in mind, the Court has examined the documents submitted and finds that there is other significant evidence in the record, which, in addition to or combined with Hydramar’s first threat of litigation, demonstrates that the documents submitted for in camera inspection were prepared in anticipation of litigation. Thus, these materials are entitled to work product protection.

A. The Factual Backdrop

As the Court has noted above, Hydramar threatened to sue General Dynamics on May 13,1983. Significantly, Hydramar followed this threat with a telex dated June [370]*37029, 1983, which asserted that General Dynamics had forced Hydramar into bankruptcy. See Memorandum of General Dynamics Corporation Regarding In Camera Review of Documents Submitted Under Seal, (hereinafter “In Camera Review Memorandum”) at p. 4 and Exhibit 2.

Thereafter, Duane, Morris & Heckscher, Hydramar’s counsel in this litigation, became involved in Hydramar’s discourse with General Dynamics. On October 20, 1983, Duane, Morris & Heckscher sent a letter both to General Dynamics’ in-house counsel and to Foley, Hoag & Eliot once again threatening to sue General Dynamics. See In Camera Review Memorandum at Exhibit 3. On October 28, 1983, attorneys from Duane, Morris & Heckscher and Foley, Hoag & Eliot met to discuss Hydra-mar’s claim. On that date, the parties entered into a non-disclosure agreement in order to foster settlement negotiations. See In Camera Review Memorandum at Exhibit 4. On November 30, 1983, Duane, Morris & Heckscher, defendants allege, sent another letter to General Dynamics’ in-house counsel and outside litigation counsel, once again mentioning the possibility of litigation. See id. at p. 5.

B. Analysis

The events occurring after May 13, 1983, related above, when considered with Hydramar’s first threat of litigation, make clear that the relationship between the parties was, on and after May 13,1983, altered considerably. Hydramar’s claim to adjust equitably the contract price became, in all respects, a demand on General Dynamics—a demand that one makes before actually instituting litigation. This is confirmed by a review of the documents submitted for in camera inspection.

These documents reveal that after May 13, 1983, General Dynamics pursued a course of conduct whereby it sought to and did in fact accumulate through its ranks, all evidence relevant to choosing a posture with respect to the litigation of this matter.

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119 F.R.D. 367, 10 Fed. R. Serv. 3d 675, 1988 U.S. Dist. LEXIS 1126, 1988 WL 21399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hydramar-inc-v-general-dynamics-corp-paed-1988.