In re Air Passenger Computer Reservation Systems Antitrust Litigation

116 F.R.D. 390, 8 Fed. R. Serv. 3d 740, 1986 U.S. Dist. LEXIS 25824
CourtDistrict Court, C.D. California
DecidedMay 6, 1986
DocketNos. MDL 667, CV 84-8918-ER, CV 86-0696-ER and CV 86-0697-ER
StatusPublished
Cited by11 cases

This text of 116 F.R.D. 390 (In re Air Passenger Computer Reservation Systems Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Air Passenger Computer Reservation Systems Antitrust Litigation, 116 F.R.D. 390, 8 Fed. R. Serv. 3d 740, 1986 U.S. Dist. LEXIS 25824 (C.D. Cal. 1986).

Opinion

ORDER GRANTING MOTION TO COMPEL

RAFEEDIE, District Judge.

INTRODUCTION

Plaintiffs' motion to compel production of civil investigative demand (“CID”) deposition transcripts in possession of defendants came on for hearing March 17, 1986. The court heard oral argument and took the motion under submission.

Plaintiffs’ motion presents the court with what is apparently an issue of first impression: “Are transcripts of depositions taken during a U.S. Department of Justice CID discoverable in private antitrust litigation when defendants have the transcripts in their possession?”

Plaintiffs argue that the transcripts are relevant and not privileged and therefore should be produced by defendants pursuant to Federal Rules of Civil Procedure 26(b)(1) and 34. Defendants contend that CID depositions are taken as part of special governmental investigations and, by statute, are required to be kept confidential. Alternatively defendants contend CID deposition transcripts are analogous to grand jury transcripts and plaintiffs must show a particularized need before the court can order production.

[391]*391FACTS

In 1983 the Department of Justice began an investigation of computer reservation systems (“CRS”) in the airline industry. As part of the investigation, officers and employees of defendants American Airlines (“American”) and United Airlines (“United”) were subpoenaed to testify at CID depositions. The witnesses obtained copies of the transcripts of their depositions and apparently turned over those transcripts to defendants American and United. In 1984 and 1985 these civil antitrust actions were filed against American and United by a group of airlines. In this motion, plaintiffs are seeking to compel production of the CID deposition transcripts that are in the possession of American and United.

CIVIL INVESTIGATIVE DEMANDS

CID’s are authorized by the Antitrust Civil Process Act, 15 U.S.C. § 1311 et seq. (hereinafter all Sections refer to 15 U.S.C. unless otherwise stated) and are considered by Congress to be “the basic investigative tools necessary for expeditious investigations into possible civil violations of the federal antitrust laws.” H.R. No. 94-1343, U.S.Code Cong. & Admin.News 1976, pp. 2572, 2596 (hereinafter “Legislative History ”). CID’s allow the government to conduct pre-complaint antitrust investigations that procedurally fall somewhere in between ordinary civil discovery and grand jury investigations, but share more of the attributes of civil discovery. CID investigative tools are the “traditional and familiar features of federal civil litigation” that are “routinely available to any civil litigant.” Id. As in ordinary discovery, witnesses may have counsel present during depositions, which is not the case when a witness is called before a grand jury. Section 1312(i)(7)(A). Congress gave “any CID witness an absolute right to inspect the transcript of his CID testimony. Significantly, no grand jury witness has such a right.” Legislative History at 2609.

Finally, contrary to the assertions of defendants that CID depositions are “conducted without the traditional legal safeguards available under the Federal Rules of Civil Procedure,” Defendants’ Opposition to Motion to Compel at 8, CID investigations are governed by the Federal Rules of Civil Procedure and there are a multitude of grounds for objecting to CID inquiries. Section 1312(c)(1)(B); Legislative History at 2604-05. The 1976 amendments to the Antitrust Civil Process Act resolved the legal doubt about the applicability of the Federal Rules of Civil Procedure to CIDs “in favor of protecting CID recipients” permitting CID recipients to premise objections “under the grand jury standard and the civil discovery standard as well.” Legislative History at 2604. For procedural reasons, the Federal Rules of Civil Procedure only apply to CID investigations when “appropriate and consistent with the provision and purposes of th[e] Act.” Section 1312(c)(1)(B). This language, however, does not deny CID recipients the right to the “maximum protections” of the Federal Rules of Civil Procedure. Legislative History at 2606-07 (explaining why CIDs cannot be completely governed by the Federal Rules of Civil Procedure). In sum, CID recipients do have the same protections as witnesses in ordinary civil litigation because “the federal judiciary may treat objections to CIDs much like objections [to] civil discovery requests.” Legislative History at 2606. Similarly CID witnesses may raise all the privileges witnesses in ordinary civil cases may raise because Congress “neither expanded] nor limit[ed] these privileges” when it established the CID process. Legislative History 2603.

Significantly, most of the “detailed safeguards” Congress built into the CID investigative process make CIDs more like civil discovery than grand jury investigations. These include right to counsel and the right to inspect and receive a transcript of testimony. Section 1312(i); Legislative History at 2597. What makes CIDs different from civil discovery is the absence of court supervision. Recognizing this, Congress provided a vehicle for CID recipients to object in court to all or part of a CID. Section 1314(b) and (c).

[392]*392An additional safeguard is that CID investigations are closed to interested parties (i.e. targets who might become defendants in a civil action) and, although there are exceptions, the government generally cannot disseminate information gathered by CIDs to the public. CID investigative files are exempt from public disclosure under the Freedom of Information Act. Section 1314(g). Congress required “that strict confidentiality be accorded to all CID investigative files in order to protect the reputation and standing of witnesses, as well as their trade secrets and proprietary financial data.” Legislative History at 2597. “CID materials may not be disclosed to persons outside the government without the consent of the provider [Section 1313]. This requirement was imposed to safeguard the rights of individuals under investigation and to protect witnesses from retaliation.” Illinois v. Abbott, 460 U.S. 557, 103 S.Ct. 1356, 1363, 75 L.Ed.2d 281 (1983).

There are exceptions to the rule of strict confidentiality. Information gathered by a CID may be disclosed to and used by Department of Justice employees, congressional committees, and the Federal Trade Commission. Sections 1313(c)(3) and (d)(2). Information may be introduced into the record of agency, court, or grand jury proceedings. Section 1313(d)(1).

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Bluebook (online)
116 F.R.D. 390, 8 Fed. R. Serv. 3d 740, 1986 U.S. Dist. LEXIS 25824, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-air-passenger-computer-reservation-systems-antitrust-litigation-cacd-1986.