In Re Grand Jury Proceedings, (Billy J. Williams, Gj88-1) v. United States

995 F.2d 1013, 1993 WL 236296
CourtCourt of Appeals for the Eleventh Circuit
DecidedJune 29, 1993
Docket89-8735
StatusPublished
Cited by28 cases

This text of 995 F.2d 1013 (In Re Grand Jury Proceedings, (Billy J. Williams, Gj88-1) v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Grand Jury Proceedings, (Billy J. Williams, Gj88-1) v. United States, 995 F.2d 1013, 1993 WL 236296 (11th Cir. 1993).

Opinion

TJOFLAT, Chief Judge:

The Government appeals the district court’s order quashing a grand jury subpoena seeking a court reporter’s notes of a deposition that the appellee gave as the plaintiff in an earlier civil suit. The district court had no valid reason for quashing the subpoena, and, accordingly, we reverse.

I.

Appellee Billy J. Williams brought a civil action in the United States District Court for the Northern District of Georgia against his former employer, North American Life Assurance Company (North American), to recover commissions that were allegedly due on policies he had sold. North American contended that it did not owe Williams any commissions because he had “rebated,” a practice by which an agent gives part of his commission to an insured as an inducement to purchase the insurance. Both Georgia law and Williams’ employment contract with North American prohibit rebating.

At the time Williams brought his civil suit, a Northern District of Georgia grand jury was investigating whether Williams had violated the mail and wire fraud statutes, 18 *1014 U.S.C. §§ 1341 and SL343 (1988), by his actions. Williams, fearing that his responses to North American’s discovery requests in the civil suit might incriminate him and lead to a grand jury indictment, moved the district court pursuant to Fed.R.Civ.P. 26(c) for a protective order. 1 The court granted the order, limiting the use of the discovery Williams provided North American to the civil case.

Following initial discovery pursuant to this order, North American sought to take Williams’ deposition. Williams, concerned whether the previous protective order would cover the deposition, refused to testify unless North American consented to the entry of another protective order. North American consented, and signed an order Williams had prepared. They presented the order to the judge, who later signed the order. The order stated in part:

It is hereby ordered that portions of the deposition of the plaintiff designated by the plaintiff, including all transcripts and copies thereof shall be privileged.... No transcript or copies thereof nor any statements or testimony given therein shall be used or disseminated except in strict compliance with the following restrictions:
(2) That the privileged deposition information shall be used solely and exclusively for the purpose of this civil action only and may not be used either directly or indirectly for any other purpose....

Williams gave his deposition, and soon after, Williams and North American settled the suit. 2

Some time later, the federal grand jury issued a subpoena duces tecum, for the court reporter’s notes of Williams’ deposition testimony. Williams moved the district court in this case to quash the subpoena, claiming that if the court reporter honored the subpoena she would disobey the protective order that had been entered in the civil suit and would abridge his Fifth Amendment right against self-incrimination. The district judge who had presided over Williams’ earlier civil suit and had entered the protective order granted the motion to quash.

In his dispositive order, the district judge noted that the Eleventh Circuit had never been called upon to weigh the competing interests at stake — the grand jury’s need for the subpoenaed deposition notes, on the one hand, and the district court’s need for the protective orders to facilitate the resolution of the civil suit, on the other. He looked for guidance to the Second and Fourth Circuits.

In Martindell v. International Telephone & Telegraph Corp., 594 F.2d 291 (2d Cir. 1979), the Second Circuit first addressed these competing interests. There, the government sought to obtain depositions that witnesses had given in a civil suit pursuant to a Rule 26(c) protective order. To do so, the government attempted to modify the protective order. 3 The Court of Appeals concluded that

absent a showing of improvidence in the grant of a Rule 26(c) protective order or some extraordinary circumstance or compelling need ..., a witness should be entitled to rely upon the enforceability of a protective order against any third parties, including the Government, and that such an order should not be vacated or modified *1015 merely to accommodate the Government’s desire to inspect protected testimony for possible use in a criminal investigation.

Id. at 296. 4

The Fourth Circuit rejected the Second Circuit’s Martindell test and the rationale underpinning it. In In re Grand Jury Subpoena, 836 F.2d 1468, 1477 (4th Cir.), cert. denied, 487 U.S. 1240, 108 S.Ct. 2914, 101 L.Ed.2d 945 (1988), the Fourth Circuit adopted a per se rule that a protective order will not shield information from a grand jury subpoena. That court stated that “a reasonable balancing of the respective interests of the civil courts and grand jury investigations favors enforcement of a grand jury subpoena despite the existence of an otherwise valid protective order.” Id. at 1477.

The district judge in the instant case rejected the Fourth Circuit’s per se rule and stated that he would follow the Second Circuit’s Martindell test. Focusing upon Mar- tindell’s basic assumption that “a witness should be entitled to rely upon the enforceability of a protective order against ... the Government,” 594 F.2d at 296, the district court reasoned that because Williams relied on the Rule 26(c) protective order and waived his Fifth Amendment right to remain silent, he was entitled to have the order enforced. In effect, the court considered itself estopped to deny the enforcement of the protective order and, therefore, quashed the subpoena. 5 The Government appeals.

II.

The sole issue before us is whether a protective order issued under Rule 26(e) of the Federal Rules of Civil Procedure may shield a deposition given in a civil suit from a subsequent federal grand jury subpoena. We reject the Second Circuit’s Martindell approach of balancing the interests involved in favor of the Fourth Circuit’s per se rule.

A.

We first examine Martindell’s primary assumption that a witness should be able to rely on the enforceability of a protective order against a grand jury subpoena. This inquiry necessarily weighs the grand jury’s need for information against the district court’s need for protective orders to facilitate litigation.

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Cite This Page — Counsel Stack

Bluebook (online)
995 F.2d 1013, 1993 WL 236296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-grand-jury-proceedings-billy-j-williams-gj88-1-v-united-states-ca11-1993.