In re Merck & Co.

197 F.R.D. 267, 2000 U.S. Dist. LEXIS 17497, 2000 WL 1721076
CourtDistrict Court, M.D. North Carolina
DecidedMarch 3, 2000
DocketNo. 1:00MC17
StatusPublished
Cited by5 cases

This text of 197 F.R.D. 267 (In re Merck & Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Merck & Co., 197 F.R.D. 267, 2000 U.S. Dist. LEXIS 17497, 2000 WL 1721076 (M.D.N.C. 2000).

Opinion

ORDER

ELIASON, United States Magistrate Judge.

Petitioner Merck & Co., Inc., a New Jersey corporation, has submitted an applica[269]*269tion pursuant to 28 U.S.C. § 1782(a) for an order permitting it to take discovery in aid of a foreign proceeding. The applicant shows that an action entitled, Collag Corp. and Collag, Ltd. v. Merck & Co., Inc. (“Col-lag”) was commenced in the High Court of Justice of England and Wales, Chancery Division, Patents Court, on or about June 4, 1998. The plaintiffs in that action allege that defendant Merck misappropriated and misused confidential information relating to certain pesticide formulations. Petitioner claims that one aspect of the litigation was plaintiff Collag’s claim that Merck provided confidential information to Novartis Crop Protection AG (“Novartis”), a Swiss corporation, which has facilities in Greensboro, North Carolina. Novartis allegedly manufactured or procured the manufacture of a formulation using Collag’s alleged confidential information. Petitioner contends that certain Novartis employees located in Greensboro, North Carolina, have information concerning whether Novartis, in fact, performed said acts.

Petitioner Merck asserts that Novartis refuses to voluntarily provide the information for the litigation pending in the United Kingdom and, therefore, it needs to obtain an order to conduct depositions pursuant to 28 U.S.C. § 1782.

In addition to an order permitting Merck to take discovery, it also requests that the Court require certain practices and procedures, to wit:

(a) The depositions of the Novartis witnesses will be conducted pursuant to the Federal Rules of Civil Procedure and recorded both by sound-and-visual means and by a United States stenographer;
(b) Stephen Bennett and Thomas Mitcheson — who are attorneys of record in the UK Litigation and, respectively, a solicitor of the Supreme Court of England and Wales and a member of the bar of England and Wales — or, at Merck’s option, Merck’s U.S. counsel, will be allowed to depose the witnesses on behalf of Merck;
(c) Collag’s English counsel or, at Col-lag’s option, its U.S. counsel will be allowed to cross-examine the Novartis witnesses on behalf of Collag;
(d) The parties may depose the witnesses by way of videoconference;
(e) The form of confidentiality undertaking which is being used in the UK Litigation (Exhibit 3) will apply to the depositions of the Novartis witnesses, unless the parties agree to another form of confidentiality agreement; and
(f) Unless waived by the parties or Novartis, the Novartis witnesses will be permitted to review their transcripts and make changes pursuant to Fed.R.Civ.P. 30(e).

(Application at 4)

Petitioner Merck states that Novartis does not object to the depositions and that Merck has requested that Collag agree to the depositions. It further states that it has provided copies of the Application by U.S. Mail and fax to Collag’s counsel and to Novartis’ counsel. Petitioner wants to take the depositions on March 7 and 8, 2000, in Winston-Salem, North Carolina. The Application was submitted to the undersigned for review on February 28, 2000. The undersigned instructed the Clerk to hold the matter until the other parties in the United Kingdom action had time to file a response. Thereafter, petitioner Merck submitted a letter dated February 29, 2000 wherein it instructed the Court:

I write to clarify that this is an ex parte matter under 28 U.S.C. § 1782 to which there are no other parties, so that there is no one entitled to file a response. In that regard, this Application is much like a request for a subpoena to take discovery in another state in state-court litigation.

The Court was further informed by Merck that, in its view, anyone wishing to contest taking the depositions could only do so by filing a motion to quash the subpoenas after issuance. Counsel then added that both counsel for deponents and opposing counsel in the United Kingdom action were consulted about the Application and expressed no objection.

The Court takes issue with Merck’s contention that every application made pursuant to 28 U.S.C. § 1782 is an ex parte matter in which no other party or person may participate. The Court further takes issue with [270]*270Merck’s suggestion that the Court has little, if any, discretion in ruling on a Section 1782 application. Evidently, counsel expects the Court to sign any order for discovery presented to it which otherwise meets the prerequisites of Section 1782. The Court disagrees with this reading of the statute and the Court’s powers and responsibilities.

In pertinent part, Section 1782(a) provides:

The district court of the district in which a person resides or is found may order him to give his testimony or statement or to produce a document or other thing for use in a proceeding in a foreign or international tribunal, .... The order may be made ... upon application of any interested person and may direct that the testimony or statement be given, or the document or other thing be produced, before a person appointed by the court____ The order may prescribe the practice and procedure, which may be in whole or part the practice and procedure of the foreign country or the international tribunal, for taking the testimony or statement or producing the document or other thing. To the extent that the order does not prescribe otherwise, the testimony or statement shall be taken, and the document or other thing produced, in accordance with the Federal Rules of Civil Procedure.

The Second Circuit has indicated that there are three basic requirements to obtain an order under Section 1782: (1) the person from whom discovery is sought must reside in the district; (2) the discovery must be for use in a proceeding before a foreign tribunal; and (3) the application can be made either by a foreign or international tribunal or “any interested person.” Application of Esses, 101 F.3d 873, 875 (2d Cir.1996). A proceeding includes any proceeding in which an adjudicated function is being exercised or is imminent. Lancaster Factoring Co., Ltd. v. Mangone, 90 F.3d 38 (2d Cir.1996). An interested person includes a party to the foreign litigation, whether directly or indirectly involved. Id. (agent of Trustee in foreign bankruptcy proceeding).

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Cite This Page — Counsel Stack

Bluebook (online)
197 F.R.D. 267, 2000 U.S. Dist. LEXIS 17497, 2000 WL 1721076, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-merck-co-ncmd-2000.