in Re Cooper Tire & Rubber Company

Court of Appeals of Texas·Decided March 28, 2018·No. 04-18-00005-CV·Published

Opinion

Fourth Court of Appeals San Antonio, Texas

OPINION No. 04-18-00005-CV

IN RE COOPER TIRE & RUBBER COMPANY

Original Mandamus Proceeding 1

Opinion by: Patricia O. Alvarez, Justice

Sitting: Sandee Bryan Marion, Chief Justice Karen Angelini, Justice Patricia O. Alvarez, Justice

Delivered and Filed: March 28, 2018

PETITION FOR WRIT OF MANDAMUS CONDITIONALLY GRANTED

The trial court signed a “Protective Order of Confidentiality” submitted by the plaintiffs

below/real parties in interest here (hereinafter, the plaintiffs). Cooper Tire & Rubber Company,

the relator, filed a petition for writ of mandamus complaining about the trial court’s entry of the

plaintiffs’ order, as opposed to a proposed protective order submitted by Cooper Tire. We

conditionally grant Cooper Tire’s petition.

BACKGROUND

The plaintiffs were involved in an automobile accident, which they contend was caused by

the defective design and manufacture by Cooper Tire of the tires on the plaintiffs’ vehicle.

Plaintiffs allege the tires are Sierradial A/S Plus, size 265/75R16 tires. Plaintiffs served Cooper

1 This proceeding arises out of Cause No. DC-16-306, styled Juan Jose Salazar, et al. v. Delta Tire & Wheel, et al., pending in the 229th Judicial District Court, Duval County, Texas, the Honorable Jose Luis Garza presiding. 04-18-00005-CV

Tire with requests for admissions, interrogatories, and production of documents. Cooper Tire

objected to the discovery based on the trade secret privilege. Both sides submitted proposed

protective orders. After the parties attempted, but failed, to reach an agreement on the terms of

the protective order, the trial court signed the protective order submitted by the plaintiffs. Cooper

Tire filed a petition for writ of mandamus, to which the plaintiffs responded and Cooper Tire

replied.

THE PARTIES’ ARGUMENTS

Cooper Tire asserts the protective order signed by the trial court fails to provide adequate

protections to maintain the secrecy of its trade secrets and confidential information. More

specifically, Cooper Tire contends the order allows plaintiffs to reveal Cooper Tire’s confidential

and trade secret information to any witness without a showing that the disclosure is relevant and

necessary to a fair adjudication of plaintiffs’ claims and even if that witness refuses to agree to

maintain secrecy. Cooper Tire also asserts the order permits the wide-spread dissemination and

use of its confidential information and trade secrets at the discretion of plaintiffs’ counsel, without

a showing of relevance and necessity. Finally, Cooper Tire complains about several “procedural

traps” it contends make protecting its trade secrets more difficult.

The plaintiffs respond to each of these arguments in turn, but, as a preliminary matter, they

also assert Cooper Tire has an adequate remedy via an interlocutory appeal, and the petition for

writ of mandamus is not ripe for review because the trial court has not yet compelled discovery.

We address the plaintiffs’ preliminary arguments first.

AVAILABILITY OF MANDAMUS RELIEF

To obtain mandamus relief, a relator generally must show both that the trial court clearly

abused its discretion and that the relator has no adequate remedy by appeal. In re Prudential Ins.

Co. of Am., 148 S.W.3d 124, 135 (Tex. 2004) (orig. proceeding). A trial court clearly abuses its -2- 04-18-00005-CV

discretion if it reaches a decision so arbitrary and unreasonable as to amount to a clear and

prejudicial error of law, or if the trial court clearly fails to analyze the law correctly or apply the

law correctly to the facts. In re Cerberus Capital Mgmt. L.P., 164 S.W.3d 379, 382 (Tex. 2005)

(orig. proceeding) (per curiam). No adequate appellate remedy exists if a trial court orders a party

to produce privileged trade secrets absent a showing of necessity. In re Bass, 113 S.W.3d 735,

745 (Tex. 2003) (orig. proceeding).

Cooper Tire asserts the trial court abused its discretion because the protective order (1)

permits dissemination of protected materials to witnesses without a showing of necessity and who

refuse to agree to be bound by the protective order, and (2) allows plaintiffs’ attorneys to

disseminate Cooper Tire’s trade secrets to third parties who have not established a viable exception

to the trade secret privilege.

The plaintiffs assert Cooper Tire has an adequate remedy through an interlocutory appeal

via Texas Rule of Civil Procedure 76a, which sets the procedure for sealing court records. That

section provides:

Any order (or portion of an order or judgment) relating to sealing or unsealing court records shall be deemed to be severed from the case and a final judgment which may be appealed by any party or intervenor who participated in the hearing preceding issuance of such order. The appellate court may abate the appeal and order the trial court to direct that further public notice be given, or to hold further hearings, or to make additional findings.

TEX. R. CIV. P. 76a(8).

We do not agree with plaintiffs’ argument that Cooper Tire may raise its complaints in an

interlocutory appeal under Rule 76a(8) because this case involves the scope of a protective order

and not a sealing order.

-3- 04-18-00005-CV

RIPENESS

Plaintiffs next assert this court does not have jurisdiction to consider the scope of the

protective order because no discovery has yet been compelled. We disagree. Several appellate

courts have considered the scope of protective orders. See Garcia v. Peeples, 734 S.W.2d 343,

345-47 (Tex. 1987) (orig. proceeding) (considering whether trial court abused its discretion by

issuing the protective order, by failing to modify the order, and by not prohibiting GMC from

enforcing several protective orders issued by courts in other states); Am. Honda Motor Co., Inc. v.

Dibrell, 736 S.W.2d 257, 258 (Tex. App.—Austin 1987, orig. proceeding) (“In this mandamus

proceeding, Honda requests this Court to order Judge Dibrell to vacate or modify his order to deny

plaintiffs the right to disseminate discovered material to anyone not connected with this action or

in the alternative to require the limitations requested by Honda in lieu of paragraph nine.”); In re

State Farm Lloyds, 09-03-311 CV, 2003 WL 22149155, at *1 (Tex. App.—Beaumont Sept. 18,

2003, orig. proceeding) (per curiam) (mem. op.) (relator asked appellate court “to vacate a

protective order and to issue a different protective order that restricts the use and disclosure of

certain privileged documents to the specific case before the trial court”); see also In re Cont’l Gen.

Tire, Inc., 979 S.W.2d 609, 613 (Tex. 1998) (orig. proceeding) (“The issue there was not whether

trade secret documents should be produced, but rather the scope of the protective order

accompanying the production.”).

Therefore, we conclude this court is not required to wait for the trial court to compel

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Related

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In Re Cerberus Capital Management, L.P.
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736 S.W.2d 257 (Court of Appeals of Texas, 1987)
In Re Bridgestone/Firestone, Inc.
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In Re Continental General Tire, Inc.
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734 S.W.2d 343 (Texas Supreme Court, 1987)