In re Ethylene Propylene Diene Monomer (EPDM) Antitrust Litigation

255 F.R.D. 308, 2009 U.S. Dist. LEXIS 5591, 2009 WL 276768
CourtDistrict Court, D. Connecticut
DecidedJanuary 26, 2009
DocketCivil Action No. 3:03md1542 (SRU)
StatusPublished
Cited by43 cases

This text of 255 F.R.D. 308 (In re Ethylene Propylene Diene Monomer (EPDM) Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Ethylene Propylene Diene Monomer (EPDM) Antitrust Litigation, 255 F.R.D. 308, 2009 U.S. Dist. LEXIS 5591, 2009 WL 276768 (D. Conn. 2009).

Opinion

RULING ON MOTION TO INTERVENE FOR THE LIMITED PURPOSE OF SEEKING MODIFICATION OF THE CONFIDENTIALITY ORDER

STEFAN R. UNDERHILL, District Judge.

Stone Paradise, Inc. has moved to intervene in this action under Rule 24(b) of the Federal Rules of Civil Procedure for the limited purpose of seeking modification of the Stipulation and Order Concerning Confidentiality of Documents and Materials (“Protective Order”) (doc. #37) entered in this litigation. According to the terms of the Protective Order, “[a]ll documents and materials containing or which are derived from trade secrets or other confidential research, development, or commercial information of current commercial value” may be filed under seal and are available only to designated parties. Protective Order II 1(a). Stone Paradise has moved to intervene and modify the Protective Order so that it may have access to the discovery materials produced by the DSM defendants in this action. Stone Paradise is the lead plaintiff in a collateral Canadian class action suit against ethylene propylene diene monomer (“EPDM”) suppliers, which is currently pending in the Ontario Superior Court of Justice, Stone Paradise Inc. v. Bayer Inc., et al., Court File No. 45604CP (Oct. 25, 2004). It believes the DSM materials will be relevant in pursuing its Canadian class action suit. For the reasons that follow, Stone Paradise’s motion to intervene and modify the Protective Order is granted, subject to several conditions discussed below.

I. Factual Background

This multi-district litigation is an antitrust class action suit filed on behalf of all persons who purchased EPDM synthetic rubber in the United States from the defendants between January 1994 and December 2002. Consolidated Amended Complaint ¶ 2. The plaintiff-purchasers seek damages and other relief, alleging that defendants conspired to fix, raise, maintain and/or stabilize EPDM prices in the U.S. market in violation of U.S. antitrust laws. Consolidated Amended Complaint ¶¶ 2, C-F.

Stone Paradise is the lead plaintiff in a currently pending EPDM antitrust class action lawsuit filed the Ontario Superior Court of Justice. Stone Paradise Exhibit A at 1. That complaint asserts essentially the same claim as the present underlying suit, namely that between January 1994 and December 2002 defendants conspired to artificially fix, raise, and/or maintain the price of EPDM on the Canadian market in violation of Canada’s Competition Act. Stone Paradise Exhibit A at 14-15. Both cases arise out of the same nucleus of operative facts, although each case [314]*314seeks damages for the effect of the alleged multi-national price-fixing scheme on the markets of their respective countries.

At the time Stone Paradise filed its motion to intervene, discovery had yet to commence in the Canadian anti-trust litigation. Declaration of Michael Robb ¶ IV. Stone Paradise is hoping to avoid the time and expense of conducting duplicative discovery by having access granted to the materials filed in connection with this suit. Stone Paradise has agreed to abide by the terms of the Protective Order and to submit to the personal jurisdiction of this court for the purpose of enforcing the Protective Order. Declaration of Michael Robb ¶ VII.

II. Discussion

The DSM defendants (“DSM”) oppose the motion to intervene and to modify the Protective Order on the ground that Stone Paradise has not met its burden for either (1) permissive intervention under Fed.R.Civ.P. 24(b) or (2) modification of the Protective Order. DSM asserts that Stone Paradise has the ability to conduct discovery on its own in Canada and that intervening in the U.S. litigation would prejudice it by the unnecessary disclosure of sensitive and highly confidential materials. The defendants further argue that under Canadian discovery rules, many of the documents and depositions would be inadmissible and that Stone Paradise is seeking to do an “end run” around Canadian discovery rules by retrieving materials produced in the U.S. litigation. Stone Paradise counters that in similar eases, U.S. courts have granted access to the discovery materials, but allowed the Canadian courts to sort through the admissibility of the individual documents and depositions in the Canadian litigation.

Whether to grant intervention and whether to grant modification of a protective order are two separate issues. The decision to allow a party to intervene for the limited purpose of modifying a protective order does not automatically mean the court will grant the motion to modify the protective order. In re Vitamins Antitrust Litig., 2001 WL 34088808, *2, 2001 U.S. Dist. Lexis 25068, at *27 (D.D.C.2001). Instead, a court will consider first whether a party has met the threshold criteria for permissive intervention and then engage in a balancing test of the parties’ interests to determine whether, in its discretion, the motion to intervene should be granted. Id. Only if the court determines that a party should be permitted to intervene, is the issue of modification of a protective order examined. Id.

A. Rule 21(b) Permissive Intervention

Stone Paradise seeks to intervene in this suit for the sole purpose of obtaining a modification to the Protective Order that would permit it to access the discovery materials submitted in the case. “[P]ermissive intervention is the proper method for a non-party to seek a modification of a protective order.” AT & T Corp. v. Sprint Corp., 407 F.3d 560, 562 (2d Cir.2005) (citing Martindell v. Int’l Tel. & Tel. Corp., 594 F.2d 291, 293-94 (2d Cir.1979)); see also EEOC v. Natl Children’s Ctr., Inc., 146 F.3d 1042, 1045 (D.C.Cir.1998) (noting that “despite the lack of a clear fit with the literal terms of Rule 24(b), every circuit court that has considered the question has come to the conclusion that nonparties may permissively intervene for the purpose of challenging confidentiality orders”) (citing cases); 8 Charles Alan Wright, Arthur R. Miller, and Richard L. Marcus, Federal Practice & Procedure: Civil 2d § 2044.1 (2d ed. 1994) (“Wright & Miller”) (“Procedurally, the common manner by which these nonlitigants seek modification is to move for intervention under Rule 24(b).”).

Rule 24(b)(2) states that “[o]n a timely motion, the court may permit anyone to intervene who ... has a claim or defense that shares with the main action a common question of law or fact.” The decision to grant permissive intervention is “wholly discretionary with the trial court.” U.S. Postal Serv. v. Brennan, 579 F.2d 188, 191 (2d Cir.1978). Rule 24(b)(3) directs that “[i]n exercising its discretion, the court must consider whether the intervention will unduly delay or prejudice the adjudication of the original parties’ rights.” The trial court’s discretion in considering motions for permissive intervention is considered “very broad” and the Second Circuit employs a clear abuse of discretion [315]*315standard of review. Brennan,

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255 F.R.D. 308, 2009 U.S. Dist. LEXIS 5591, 2009 WL 276768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-ethylene-propylene-diene-monomer-epdm-antitrust-litigation-ctd-2009.