In re Sulfuric Acid Antitrust Litigation

231 F.R.D. 331, 62 Fed. R. Serv. 3d 946, 2005 U.S. Dist. LEXIS 19116
District Court, N.D. Illinois·Decided September 6, 2005·No. MDL Docket No. 1536; No. 03 C 4576·Published·Cited by 56 cases

Opinion

MEMORANDUM OPINION AND ORDER RE: PLAINTIFFS’ MOTION TO COMPEL GAC CHEMICAL CO. TO COMPLY WITH CERTAIN DISCOVERY REQUESTS

COLE, United States Magistrate Judge.

INTRODUCTION

Throughout the range of the law, there are time limits imposed on litigants at every stage of the case: some are mandatory and admit of no deviations; others are more flexible. But in each instance, lawyers who do not pay heed to them do so at substantial peril to their and their clients’ interests. See, e.g., Brosted v. Unum Life Insurance Co. of America, 421 F.3d 459 (7th Cir.2005). This is such a case. On July 1, 2005, the day discovery closed — following two prior extensions of discovery — the plaintiffs filed a series of motions to compel compliance with outstanding discovery. Not surprisingly, GAC has objected that the motion directed to it is untimely.

The Federal Rules of Civil Procedure place no prescribed time limit on the outside date for filing a motion to compel discovery. In one regard, however, a line of sorts has been sketched by a series of decisions: motions to compel filed after the close of discovery are almost always deemed untimely. Packman v. Chicago Tribune Co., 267 F.3d 628, 647 (7th Cir.2001).1 Greater uncertainty occurs where the motion is made very close to the discovery cut-off date. Some districts by local rule have imposed time limits within which motions to compel must be brought. See, e.g. United States ex. rel. Becker v. Westinghouse Savannah River Co., 305 F.3d 284, 290 (4th Cir.2002)(Local Rule 37.01 of the District of South Carolina requires that motions to compel must be filed within 20 days after receipt of the discovery response); Sonnino v. University Kansas Hospital Authority, 220 F.R.D. 633, 636 (D.Kan.2004)(Lo[333]*333cal Rule 37.1(b) of the District of Kansas requires that the motion to compel be filed within 30 days after receipt of the discovery response). Most, however, have no such rules, and the matter is left to the broad discretion possessed by the district courts to control discovery.

How is that discretion to be exercised? Is a motion to compel filed four days before the close of discovery too late? At least one court has said it is. Ridge Chrysler Jeep, LLC v. Daimler Chrysler Services North America, LLC, 2004 WL 3021842 (N.D.Ill. 2004). What if the motion had been made six or perhaps twelve days before the close of discovery? Would the result have been different? Is a week the proper cut-off point, or perhaps two weeks? To pose the question is to demonstrate that there is no principled or mathematical way of determining in advance in every case when a motion to compel should be deemed untimely based upon an arbitrarily prescribed number. As Justice Cardozo said in another context, “[w]here the line is to be drawn between the important and the trivial cannot be settled by a formula.” Jacob & Youngs, Inc. v. Kent, 230 N.Y. 239, 243, 129 N.E. 889 (1921). Compare, Louisville Gas & Electric v. Coleman, 277 U.S. 32, 41, 48 S.Ct. 423, 72 L.Ed. 770 (1928)(Holmes, J., dissenting). The answer then must necessarily be found in the entire complex of circumstances that gave rise to the motion, and what is untimely in one case may not be in another.

FACTUAL BACKGROUND

The complaint in this multi-district, antitrust case charges the defendants with having conspired to raise, fix, maintain, or stabilize the price of sulfuric acid in the United States in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1. A consolidated amended class action complaint was filed on September 5, 2003. Six months later, in March 2004, GAC — then a non-party — was served with a document subpoena seeking documents relating to Delta Chemicals, Inc.’s decision to shut down its sulfuric acid plant in 1988. GAC had purchased Delta’s assets six years later in 1994. GAC agreed to produce certain documents that it had made available to a federal grand jury.

Plaintiffs added GAC as a defendant in their second amended consolidated complaint on May 24, 2004. That complaint alleged that, as part of the purported conspiracy, Delta had shut down its sulfuric acid plant in 1988 pursuant to an illicit agreement with defendant, Noranda, Inc. On July 30, 2004, GAC produced approximately three boxes of documents that had been produced to the grand jury and simultaneously filed, pursuant to Rule 12(b)(6), Federal Rules of Civil Procedure, a motion to dismiss the claims against it for failure to state a claim on which relief could be granted. On September 15, 2004, plaintiffs served GAC — along with all newly-named defendants — with its first set of interrogatories and documents requests. Shortly thereafter, on October 18th, GAC formally objected in its responses to discovery that it did not have to respond to further discovery requests while its motion to dismiss was pending. (See Objections to First Set of Interrogatories at ¶ 7). It also claimed that the discovery requests covered the same ground as the grand jury documents it had already produced.

On November 1, 2004, plaintiffs’ counsel wrote to GAC’s lawyer disagreeing with GAC’s contention it need not respond to the interrogatories. The letter threatened a motion to compel would be filed if this was GAC’s final position. The next day, GAC wrote outlining its discovery compliance to date and renewing its objection to responding to additional discovery. The letter expressed a willingness to continue talks if plaintiffs would refine its requests. If not, the letter invited plaintiffs’ counsel to file a motion to compel. (Plaintiffs’ Exh. G).

On November 8, 2004, by letter, GAC reaffirmed its position that it should not have to “engage in costly additional discovery.” (Plaintiffs’ Exhibit G). Nonetheless, it agreed to produce, by November 19, 2004, additional documents that could be gathered without substantial burden, including organizational charts and documents regarding corporate structure, financial reports, documents relating to antitrust compliance policies, and exhibits from the 1994 GAC-Delta [334]*334asset purchase agreement. There was no agreement to answer any interrogatory.

On November 9th, plaintiffs’ counsel, by letter, indicated that they were interested in deposing Tim and Jim Poure and Barbara Haase, whom plaintiffs counsel stated she understood were GAC employees. She said: “please let me know if you will produce them voluntarily....” Plaintiffs also warned GAC that, despite GAC’s additional document production, they were unwilling to await the resolution of GAC’s motion to dismiss before proceeding with production and again said they would be filing a motion to compel “as to this discovery.”

On November 19th, GAC’s counsel wrote a terse four-line letter attaching an organizational chart, copies of GAC’s antitrust compliance policy and the GAC/Delta Assert Purchase Agreement with exhibits.

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In re Sulfuric Acid Antitrust Litigation, 231 F.R.D. 331, 62 Fed. R. Serv. 3d 946, 2005 U.S. Dist. LEXIS 19116 (N.D. Ill. 2005).

231 F.R.D. 331 (In re Sulfuric Acid Antitrust Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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