In re the Republic of Ecuador

280 F.R.D. 506
CourtDistrict Court, N.D. California
DecidedMarch 9, 2012
DocketNos. 11-mc-80171 CRB (NC), 10-mc-80324 CRB (NC), 10-mc-80087 CRB (NC), 11-mc-80110 CRB (NC), 11-mc-80225 CRB (NC), 11-mc-80172 CRB (NC)
StatusPublished
Cited by15 cases

This text of 280 F.R.D. 506 (In re the Republic of Ecuador) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Republic of Ecuador, 280 F.R.D. 506 (N.D. Cal. 2012).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART APPLICANTS’ MOTION TO COMPEL PRODUCTION OF DOCUMENTS FROM DR. MICHAEL A. KELSH

NATHANAEL M. COUSINS, United States Magistrate Judge.

The Republic of Ecuador moves to compel the further production of documents from Respondent Kelsh and his former employer, Exponent, Inc., under Federal Rule of Civil Procedure 37. Kelsh, Exponent, and intervenor Chevron Corporation oppose the motion under the authority of amended Federal Rule of Civil Procedure 26.

The issues presented here include whether Rule 26, as amended December 1, 2010, applies to these proceedings; whether Chevron is judicially estopped from taking a position contrary to that previously asserted regarding the application of work product to expert documents and communications; whether Kelsh is a “reporting” or “non-reporting” expert under Rule 26; and whether Respondents properly withheld documents based on claims of work product and attorney-client privilege. After considering the parties’ briefs and the arguments raised at hearing the Court finds as follows: amended Rule 26 applies to these proceedings; Chevron is not judicially estopped from asserting privileges under amended Rule 26; and Kelsh is a reporting expert for purposes of determining work product under the amended rule.

The Court previously ordered Respondents to produce for in camera review all documents listed in Respondents’ privilege log. Having reviewed the privilege log and related documents in camera, the Court orders that certain withheld documents, as specified [509]*509below, be produced. The Court finds the remaining documents privileged or otherwise protected and, therefore, properly withheld by Respondents. Accordingly, the Republic’s motion to compel is GRANTED IN PART AND DENIED IN PART.

I. BACKGROUND

On June 21, 2011, applicants the Republic of Ecuador and Dr. Diego Garcia Carrion, on behalf of the Republic of Ecuador in his capacity as Attorney General (collectively the Republic), filed an ex parte application for an order under 28 U.S.C. § 1782 to issue a subpoena to Dr. Michael Kelsh for taking of a deposition and the production of documents for use in a foreign proceeding, Chevron Corporation and Texaco Petroleum Corporation v. The Republic of Ecuador, PCA Case No. 2009-23, a Bilateral Investment Treaty Arbitration (BIT Arbitration). See Section 1782 Appl., Dkt. No. I.1 The Republic suggests that discovery from Kelsh will aid its defense of the validity of the Lago Agrio judgment at the BIT Arbitration. Id. at 4. The related document requests seek information regarding Kelsh/Exponent’s engagement and compensation received from Chevron for the Lago Agrio litigation; documents reviewed by Kelsh/Exponent in preparing expert reports for the litigation; drafts of any report authored by Kelsh/Exponent submitted in the litigation; Kelsh’s curriculum vitae; expert reports authored by Kelsh submitted in prior litigations; documents relating to site inspections and testings of soil, water, or other samples relating to the litigation; documents relating to environmental remediation activities; other studies or reports authored by Kelsh regarding health and environmental issues relating to petroleum exploration; and all communications between Kelsh/Exponent and Chevron or other Chevron retained experts. Id. at 17-18. The District Court granted the Republic’s § 1782 applications on September 23, 2011. Order Appl., Dkt. No. 36. The District Court then referred the Republic’s motion to compel, and all further discovery motions, to this Court under Civil Local Rule 72-1. Order Reference, Dkt. No. 44.

Chevron initiated the BIT Arbitration in 2009 to challenge an environmental litigation brought against it by indigenous peoples of Ecuador in the Provincial Court of Justice of Sucumbíos in Lago Agrio, Ecuador, Maria Aguinda et al. v. Chevron Corporation, No. 2002-0002 (the Lago Agrio litigation). Id. There, Ecuadorian plaintiffs sued Chevron for environmental and health-related effects allegedly caused by oil exploration operations of Texaco, acquired by Chevron in 2001, in the Amazonas region of the country. Id. at 3. Dr. Kelsh, an epidemiologist, served as an expert witness designated by Chevron in the Lago Agrio litigation. Dettmer Decl. ¶2, Dkt. No. 43. Kelsh submitted various expert reports to the Lago Agrio Court rebutting claims made in court appointed expert Richard Cabrera’s global damages assessment report. Section 1782 Appl. at 4. Kelsh’s rebuttal reports challenged Plaintiffs’ claims of excess cancer deaths, other health problems, and the need for additional health care infrastructure. Id. These reports, as well as others authored by Kelsh, were later submitted by Chevron in support of its position in the BIT Arbitration. Id.

Citing to these expert reports, Chevron has asked the BIT Arbitration tribunal to review and rule upon the underlying merits of the Lago Agrio action. Id. Alternatively, Chevron asks the tribunal for an order requiring the Republic to indemnify Chevron for any damages awarded against it arising out of the environmental litigation. Id.

The Republic filed the pending motion to compel asserting that Respondents have improperly withheld nearly 2,000 documents as privileged based on amended Rule 26. Mot. Compel at 5, Dkt. No. 40. The Republic contends that the old Rule 26 applies to these proceedings and, even if the amended rule were to apply, Respondents have still wrongfully withheld thousands of documents. Mot. Compel at 11. Respondents claim that amended Rule 26 applies to these proceed[510]*510ings. Opp’n Mot. Compel at 6, Dkt. No. 42. Respondents assert work product protection over all work Kelsh performed for trial or in anticipation of litigation under Rule 26(b)(3)(A) and work product protection under amended Rule 26(b)(4) for drafts of Kelsh’s expert report and communications between Kelsh and Chevron’s counsel, unless a defined exception applies. Id. Respondents also claim privilege over communications between Kelsh and other Exponent employees; between Kelsh and non-attorney Chevron employees; between Kelsh and so-called third party “agents” of Chevron; and between Kelsh and other experts that submitted reports in the Lago Agrio litigation. Id. at 12-13. Respondents further assert that the Republic has not shown “substantial need” for any of the withheld documents. Id. at 16-17.

On December 21, 2011, the Court conducted a hearing on the motion to compel at which it ordered Respondents to produce for in camera review Respondents’ first revised privilege log and all related documents, approximately 1900 in total. Order Mot. Compel, Dkt. No. 50. After the hearing, Respondents submitted their nearly 300-page privilege log and a CD containing the withheld documents. See id.

II. STANDARD OF REVIEW

A. Work Product under Federal Rule of Civil Procedure 26(b)(3)

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Cite This Page — Counsel Stack

Bluebook (online)
280 F.R.D. 506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-republic-of-ecuador-cand-2012.