In re Burlington Northern, Inc.

822 F.2d 518
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 14, 1987
DocketNo. 87-2177
StatusPublished
Cited by48 cases

This text of 822 F.2d 518 (In re Burlington Northern, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Burlington Northern, Inc., 822 F.2d 518 (5th Cir. 1987).

Opinions

REAVLEY, Circuit Judge:

The plaintiffs in this antitrust suit claim that the defendant railroads conspired to prevent construction of a coal slurry pipeline. Contending, among other things, that the railroads accomplished their anticompetitive goal through filing and defending certain lawsuits, the plaintiffs seek discovery of documents relating to those lawsuits. The railroads resist discovery on the grounds of attorney/client privilege and work product immunity. The district court rejected this claim of privilege, holding that [521]*521because the documents were prepared in furtherance of an illegal conspiracy they fall within the crime/fraud exception to the privilege. The railroads claim the protection of Noerr-Pennington for their litigation activities and seek a writ of mandamus. We conclude that the district court erred in allowing discovery without considering whether the litigation activities themselves were significantly motivated by a genuine desire for judicial relief. We reject, however, the railroads’ contention that the district court is precluded from finding sham by the railroads’ partial success in one of the lawsuits and their defensive posture in the other lawsuits.

I

Background

The underlying antitrust claim here arises from Energy Transportation Systems, Inc., and ETSI Pipeline Project’s (collectively ETSI) unsuccessful attempt to build a coal slurry pipeline from Wyoming to Arkansas.1 ETSI claims the defendant railroads, afraid of losing business to the pipeline, unlawfully conspired to prevent, or at least delay and make more expensive, the pipeline’s construction by denying permission for it to cross their rights-of-way and by engaging in sham administrative and judicial challenges to ETSI attempts to secure crossing rights, water rights, and administrative permits. After more than ten years of trying to obtain all of the necessary rights, permits, and financing, ETSI abandoned the project in 1984. It now alleges that the project’s failure was caused by the railroads’ illegal conspiracy and seeks a judgment against the railroads of $4.2 billion in damages after trebling. This mandamus petition arises from ETSI’s desire to obtain documents prepared in connection with the railroads’ allegedly sham litigation activities. Specifically at issue here are documents from two groups of lawsuits.

A. The Andrews Litigation

The first group consists of consolidated lawsuits that the parties refer to as the Andrews litigation. The Andrews lawsuits were brought to invalidate a water contract between ETSI and the United States Department of the Interior that would allow ETSI to purchase water from the federal Oahe Reservoir in South Dakota for use in its pipeline. The plaintiffs in the lawsuits included three states — Missouri, Iowa, and Nebraska — several environmental and farmers’ groups, and one of the defendant railroads — Kansas City Southern. Another railroad — Union Pacific — provided legal assistance through its attorneys to the state of Nebraska. The Andrews plaintiffs asserted numerous grounds for invalidating the contract; they have thus far been successful in their position that the Secretary of the Interior did not have statutory authority to execute the contract without the participation of the Army Corps of Engineers. See Missouri v. Andrews, 586 F.Supp. 1268 (D.Neb.1984), aff'd, 787 F.2d 270 (8th Cir.1986), cert. granted, — U.S. -, 107 S.Ct. 1346, 94 L.Ed.2d 517 (1987).

B. The Window Litigation

The second group of lawsuits from which ETSI seeks documents consists of a series of suits ETSI brought to establish rights to cross the railroads’ rights of way. In the very early stages of the pipeline project, ETSI attempted to negotiate the purchase of these crossing rights. When these efforts proved unavailing, allegedly because of an unlawful agreement between the railroads to jointly withhold crossing rights, ETSI began locating places along the railroads’ property where the railroads owned only an easement rather than a fee title. It then purchased easements from the underlying landowner and brought suit to establish that these easements were sufficient to allow it to cross under the railroads’ tracks without the railroads’ consent. The parties refer to these easements as windows and to ETSI’s lawsuits as the window litigation. Apparently, ETSI was essentially success[522]*522ful in every one of these window suits, all of which involved virtually identical issues.

The railroads have refused to turn over many of the documents ETSI seeks on the ground of attorney/client privilege or attorney work product immunity. ETSI filed a motion to compel production of these withheld documents on the ground they were prepared in connection with a violation of the antitrust laws. The railroads argued in response that to obtain discovery ETSI had to show that their litigation activities were sham activities and thus not protected by the Noerr-Pennington doctrine.2 A special master agreed with the railroads and concluded that ETSI had not made the requisite showing. The district court, however, disagreed and granted ETSI’s motion. The railroads filed this petition for a writ of mandamus.

II

Justification For Mandamus Relief

Before reaching the merits, we must address ETSI’s contention that a writ of mandamus is not an appropriate mechanism to review this discovery ruling. ETSI correctly points out that “mandamus has historically been a drastic remedy generally reserved for really ‘extraordinary’ cases.” In re Equal Employment Opportunity Commission, 709 F.2d 392, 394 (5th Cir. 1983) (citing Kerr v. United States District Court, 426 U.S. 394, 402, 96 S.Ct. 2119, 2123, 48 L.Ed.2d 725 (1976). It argues that because the district court’s ruling was neither a “usurpation of judicial power” nor a “clear abuse of discretion,” see Bankers Life & Casualty Co. v. Holland, 346 U.S. 379, 383, 74 S.Ct. 145, 148, 98 L.Ed. 106 (1953), we should dismiss the petition without reaching the merits.

In recent years, several courts have concluded that mandamus is an appropriate method of review of orders compelling discovery against a claim of privilege. See United States Department of Energy v. Brimmer, 776 F.2d 1554, 1559 (Temp. Emer.Ct.App.1985), cert. denied, — U.S. -, 106 S.Ct. 1261, 89 L.Ed.2d 571 (1986); Sporck v. Peil, 759 F.2d 312, 314-15 (3d Cir.), cert. denied, 474 U.S. 903, 106 S.Ct. 232, 88 L.Ed.2d 230 (1985); Bogosian v. Gulf Oil Corp., 738 F.2d 587, 591-92 (3d Cir.1984); Diversified Industries, Inc. v. Meredith, 572 F.2d 596, 599 (8th Cir.1977); Heathman v. United States District Court, 503 F.2d 1032, 1033 (9th Cir.1974); Pfizer Inc. v. Lord, 456 F.2d 545, 547-48 (8th Cir.1972); Harper & Row Publishers v. Decker, 423 F.2d 487

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Bluebook (online)
822 F.2d 518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-burlington-northern-inc-ca5-1987.