In re Convergent Technologies Second Half 1984 Securities Litigation

122 F.R.D. 555, 14 Fed. R. Serv. 3d 151, 1988 U.S. Dist. LEXIS 15954, 1988 WL 115284
CourtDistrict Court, N.D. California
DecidedOctober 28, 1988
DocketNo. C 85 20130 SW/WDB
StatusPublished
Cited by20 cases

This text of 122 F.R.D. 555 (In re Convergent Technologies Second Half 1984 Securities Litigation) is published on Counsel Stack Legal Research, covering District Court, N.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 Convergent Technologies Second Half 1984 Securities Litigation, 122 F.R.D. 555, 14 Fed. R. Serv. 3d 151, 1988 U.S. Dist. LEXIS 15954, 1988 WL 115284 (N.D. Cal. 1988).

Opinion

MEMORANDUM OF DECISION

WAYNE D. BRAZIL, United States Magistrate.

In this opinion the court addresses four principal issues: (1) does the fact that a statement taken from a non-party witness is purely factual, or is in the form of a verbatim transcription of her words, disqualify that statement from protection under the work product doctrine? (2) should the court quash a subpoena by which defendants attempt to secure a copy of an adopted statement directly from the non-party who gave the statement to plaintiffs’ counsel? (3) by asking certain non-party witnesses to review, correct and adopt their statements, did plaintiffs’ counsel waive whatever work product protection otherwise would have attached to such statements? (4) should the court prohibit defendants, at this juncture in the pretrial period, from reviewing, acquiring, or using copies of adopted non-party statements even though the non-parties who gave those statements to plaintiffs’ counsel are willing to share copies of the statements with defendants? Of these four issues, the second and third are of first impression. The fourth has been addressed by only one other court, with whose conclusion this opinion disagrees.

PROCEDURAL HISTORY

Several years after the events that gave rise to this suit, counsel for plaintiffs privately interviewed at least two former employees of the defendant corporation. These employees, Conrad Sosnow and Michael Dunmire, are not parties to this action but held consequential positions within the defendant corporation and have access to information that could prove significant in the disposition of this matter. Plaintiffs’ counsel took notes during the interviews of these two former employees, then showed the employees the notes and asked them to correct any errors that might be in the notes. Mr. Dunmire signed his statement. Mr. Sosnow was not asked to sign his. As a result of evidence proffered and adduced earlier in this matter, the court concluded that Mr. Sosnow and Mr. Dunmire had “adopted” the statements in question, thus bringing them within the ambit of the second paragraph of Federal Rule of Civil Procedure 26(b)(3).

Sometime after learning that plaintiffs’ counsel had interviewed and acquired statements from these non-parties, defense counsel began seeking ways to discover the statements. Earlier this year, defense counsel filed a motion in this court asking that plaintiffs’ counsel be compelled to identify every former employee of the defendant corporation who had been interviewed by plaintiffs’ counsel and to produce every statement taken from such former employees. In response to that motion, this court held that the witness statements were classic work product, that the mere showing of the statements to the witnesses for the purpose of correcting errors in them did not constitute a waiver of the protection the statements would otherwise enjoy under the work product doctrine, and that defendants had failed to make the kind of showing required to penetrate the work product protection.1

In support of their assertion that plaintiffs’ counsel had waived work product protection, defense counsel argued that when plaintiffs’ counsel asked the non-party witnesses to adopt the statements, they (plaintiffs’ counsel) substantially increased the likelihood that defense counsel would gain access to the statements. Defense counsel reasoned that once a non-party adopted a statement, that non-party was entitled, under Rule 26(b)(3), to a copy of that statement on demand, with no showing of good cause, and that since the non-party was entitled to his statement, the statement [557]*557was in his constructive possession, with the result that if defense counsel subpoenaed the statement from the non-party, that non-party would be compelled to demand it from plaintiffs’ counsel and then to turn it over to defense counsel. Since a reasonable attorney should have foreseen this scenario, defense counsel argued, it follows that when plaintiffs’ counsel asked the non-party witnesses to adopt their statements, plaintiffs’ counsel were voluntarily setting in motion a chain of events that substantially increased the likelihood that defense counsel would acquire the statements through the subpoena power, and that in so doing plaintiffs’ counsel waived the work product protection these statements might otherwise enjoy.

The persuasiveness of this line of reasoning depends, in part, on the assumption that a court would order the non-party to demand from plaintiffs’ counsel, then produce in response to a subpoena from defense counsel, the non-party’s adopted statement. When this argument was first presented, the court was not prepared to make a judgment about the likelihood that the subpoena power could be so used, as against an assertion of work product by plaintiffs’ counsel. So the court invited defense counsel to attempt to subpoena Mr. Dunmire’s statement from him. Because Mr. Dunmire is not a party to this action, and because he resides in the state of Washington, defense counsel sought to subpoena Mr. Dunmire’s statement through the district court in Washington. When plaintiffs’ counsel sought an order quashing the subpoena, the court in Washington referred the issues raised by the subpoena back to this court, perceiving their relation to the issues first raised by defendants’ original motion to compel.

MAY PURELY FACTUAL WITNESS STATEMENTS RECEIVE PROTECTION UNDER THE WORK PRODUCT DOCTRINE?

Defense counsel have asserted that “[t]o the extent that these witness statements contain only facts, or are verbatim witness accounts, they are discoverable because they do not even come within the scope of work product protection.” (emphasis in original) Note 3, Defendants’ Supplemental Memorandum of Points and Authorities Re: Defendants’ Motion to Compel Further Answers to Interrogatories and Compliance with Subpoena Duces Tecum, received October 12, 1988. In support of this unorthodox proposition, defendants offer the following purported citation: “See, e.g., Mervin v. Federal Trade Commission, 591 F.2d 821, 825 (D.D.C.1978).” The Mervin opinion lends support to defendants’ position here only if it is read superficially. The portion of the Mervin opinion on which defendants’ apparently rely reads as follows: “For example, a government attorney may not protect a verbatim witness statement from disclosure (either under the FOIA or in civil discovery) merely by including its text in a memorandum prepared for use in litigation.” 591 F.2d at 825.

There are two problems with this statement. The first is that while it is accurate as far as it goes, it does not go very far with respect to civil litigation outside FOIA. That is so because, as subsequent sections of this opinion make clear, under Hickman v. Taylor, 329 U.S. 495, 67 S.Ct. 385, 91 L.Ed. 451 (1947), a statement a lawyer or an investigator takes from a witness is classic work product and is presumptively protected against disclosure, whether it is included in a separate memorandum written by counsel or not.

The second problem with defendants’ reliance on this passage begins with the fact that the Mervin court was interpreting the Freedom of Information Act. Federal courts are required by Congress to interpret that Act liberally in favor of disclosure because disclosure is the Act’s principal purpose.

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Bluebook (online)
122 F.R.D. 555, 14 Fed. R. Serv. 3d 151, 1988 U.S. Dist. LEXIS 15954, 1988 WL 115284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-convergent-technologies-second-half-1984-securities-litigation-cand-1988.