In Re Napp Technologies, Inc. Litigation

768 A.2d 274, 338 N.J. Super. 176
CourtNew Jersey Superior Court Appellate Division
DecidedOctober 4, 2000
StatusPublished
Cited by6 cases

This text of 768 A.2d 274 (In Re Napp Technologies, Inc. Litigation) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Napp Technologies, Inc. Litigation, 768 A.2d 274, 338 N.J. Super. 176 (N.J. Ct. App. 2000).

Opinion

768 A.2d 274 (2000)
338 N.J. Super. 176

In re NAPP TECHNOLOGIES, INC. LITIGATION
Application Of Holt & Ross, Inc. To Quash Subpoena.

Superior Court of New Jersey, Law Division, Bergen County.

Decided October 4, 2000.

*276 Louis Pashman, Hackensack, of Pashman Stein appearing on behalf of a non-party witness Holt & Ross, Inc.

Martis Ann Brachtl, New York City, of Goodkind, Labaton, Rudoff & Sucharow, LLP; and Mark S. Shane, Esq., appearing on behalf of plaintiffs Katharine Christiano, et al.

Michael Dore, and Rosemary E. Ramsey, of Lowenstein Sandler, appearing on behalf defendant-third party plaintiff Napp Technologies, Inc.

Robin L. Main, Providence, RI, of McGovern, Noel & Benik; and Edward Seaver, Newark, of Podvey, Sachs, Meanor, Catenacci, Hildner & Cocoziello, appearing on behalf of defendant Technic, Inc.

William P. Reis of Purcell, Reis, Shannon, Mulcahy & O'Neill, appearing on behalf of defendant Patterson-Kelley, Co., a Division of Harsco Corporation.

*275 WALSH, J.S.C.

This matter is before the Court by way of an appeal from a recommendation and ruling by the Special Master serving in these consolidated actions quashing a subpoena served on nonparty witness Holt & Ross, Inc. ("H & R"). The subpoena was issued at the request of Technic, Inc. ("Technic") and seeks testimony and documents relating to work performed by H & R, a public relations firm for Napp Technologies, Inc. ("Napp"). For the reasons set forth in this opinion, the Court declines to follow the Special Master's recommendation and ruling. Accordingly, H & R's motion to quash the subpoena is denied.

I

In October 1995, H & R distributed two press statements on behalf of Napp. These press statements dealt with an investigation Napp purportedly conducted into the causes of an explosion which had occurred at its chemical plant in Lodi, New Jersey on April 21, 1995. That explosion led to the death of five Napp employees and the injury of numerous others. It caused blast damage virtually destroying the Napp plant, showering flaming debris on the surrounding neighborhood, releasing large quantities of toxic gases as well as smoke and fumes into the atmosphere, and causing widespread harm to people and property in the plant's vicinity. In the wake of this explosion, hundreds of lawsuits were instituted on behalf of employees working at the plant and individuals and businesses in the plant's vicinity.[1]

H & R was apparently retained by Napp shortly after the explosion and thereafter helped to author and distribute the two press statements. The first was styled "Napp Technologies, Inc. Responds to OSHA Citations" ("Napp Response") and was dated October 23, 1995. It discussed the accident and implicated Technic and Patterson-Kelley Co., a Division of Harsco Corporation ("Patterson-Kelley") as responsible parties.[2] The Napp Response *277 referred to "a detailed statement ... [in which] Napp reported the results of its own investigation of the events that preceded the explosion." That report entitled "Status Report Regarding Napp Technologies' April 21, 1995 Explosion" ("Explosion Report") was published and distributed by H & R on behalf of Napp that same day. The Explosion Report was signed by Napp and accused Technic of failing to provide adequate information to Napp about the explosive potential presented by the combination of the chemicals Napp was blending for Technic. The Explosion Report asserted that:

At present, the Material Safety Data Sheet for this material ... [provided by Technic] addresses the risk of fire but does not disclose the risk of catastrophic decompositions or explosion and particularly does not disclose the risk of the unique type of event that apparently occurred at the Napp facility on April 21, 1995. This is so despite the fact that Napp has since learned that an explosion injuring four workers had occurred when this same Technic product was blended at a facility in Waterbury, Connecticut in 1980.

Napp also faulted Patterson-Kelley for the accident. Napp noted that its investigation indicated that a mechanical seal on the PK-125 had failed thus permitting water which was used to cool moving parts in the blender to enter the mixing chamber where it then came in contact with the water reactive chemicals being blended. This, according to Napp, caused the explosion and its disastrous consequences.

As the consolidated lawsuits proceeded, on September 9, 1999 Technic directed a subpoena to the records custodian at H & R. The subpoena sought ten (10) categories of documents related to the Napp Response and Explosion Report as well as communications and interviews H & R had with: Napp; its managers and employees; the experts retained by the company in connection with the consolidated lawsuits; and, the involved governmental agencies.

On October 15, 1999, H & R sought to quash the subpoena claiming protection from compelled disclosure under the newsperson's privilege established by the New Jersey Shield Law. N.J.S.A. 2A:84A-21 to 21.8. H & R argued that it is a member of the news media because it regularly disseminates information to the public regarding newsworthy events. It also asserted that the materials sought in the subpoena were privileged because they were obtained during the course of H & R's professional activities and included source material and research as well as documents related to its confidential business strategy for disseminating information, including the specific strategy used by it to advise Napp. Finally, H & R argued that the information sought from it was either publicly available or available through the discovery process from the parties in the litigation or from others.

Technic responded to this motion by seeking to depose a representative of H & R concerning the nature of its business and the services rendered to Napp in order to test its assertion of the newsperson's privilege. Technic also sought advertisements, promotional brochures, literature and other materials distributed to potential clients through which H & R promoted its services. But H & R resisted these efforts, claiming that the newsperson's privilege is absolute absent *278 a conflicting constitutional right to such information. See Maressa v. New Jersey Monthly, 89 N.J. 176, 445 A.2d 376, cert. denied, 459 U.S. 907, 103 S.Ct 211, 74 L.Ed.2d 169 (1982). The Special Master denied these discovery requests finding that the New Jersey Shield Law, N.J.S.A. 2A:84A-21.2c anticipated only discovery sought by criminal defendants. The denial was contained in a Recommendation/Ruling dated November 24, 1999.

H & R seeks to establish its prima facie entitlement to the newsperson's privilege through a Certification dated October 13, 1999 and filed by Jonathan T. Holt ("Holt"), one of H & R's principals. The Holt Certification asserts that H & R "is retained by clients to provide counseling and expert advice regarding the most effective way for clients to comment publicly and/or state their positions publicly concerning news events .... After sufficient information has been gathered, Holt & Ross evaluates the information and then advises the best way in which to proceed in disseminating the ... [client's] position on the news event to the general public or to particular segments of the public such as business or industry information sources." H & R concedes that it "... disseminated...

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768 A.2d 274, 338 N.J. Super. 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-napp-technologies-inc-litigation-njsuperctappdiv-2000.