In the Matter of the Complaint of SDS Lumber Co as owner or owner pro hac vice and operator of the tug DAUBY ON 641327 for Limitation of Liability

District Court, W.D. Washington·Decided July 12, 2021·No. 3:20-cv-05767·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE S.D.S. LUMBER CO., CASE NO. C20-5767 MJP Petitioner, ORDER GRANTING MOTION TO COMPEL v. Claimants. The matter before the Court is Petitioner’s motion to compel. Having considered the motion and all related papers, (Dkt. Nos. 43, 49, 50, 56, 57, 58), the Court GRANTS the motion to the extent set forth in this Order. Claimants are ORDERED to answer, without objection, Petitioner’s Interrogatories 2 and 3 and to produce all responsive documentation to Petitioner’s Requests for Production 21 and 22 within 10 days of this Order. (See Dkt. No. 43, Declaration of Matthew C. Crane (“Crane Decl.”), Exs. 1 & 2.) The period subject to discovery is five years before the collision at issue in this proceeding to now. The Court also GRANTS Claimants’ request for a protective order and ORDERS that the use of all medical- and mental health-related records and information is limited to this proceeding. SDS Lumber Co. commenced this action under the Limitation of Liability Act (“the Act”), 46 U.S.C. §§ 30501–30512, and Supplemental Admiralty and Maritime Claims Rule F, to limit any liability for damages caused by a collision between its tugboat and a recreational boat

owned and occupied by Claimants Kevin and Jacob Gregory. (Dkt. No. 1.) Additional background is contained in the Court’s previous orders. (See Dkt. Nos. 29, 60.) Claimants seek compensatory and punitive damages for physical pain and suffering and emotional distress caused by the collision. (Dkt. No. 57, Declaration of James P. Jacobsen (“Jacobsen Decl.”), Exs. A & B.) Claimants state they are limiting their claims to “garden variety” emotional distress and seek no compensation for physical injury, medical treatment, lost wages, or lost earning capacity. Id. Nevertheless, they have previously demanded Petitioner pay $2.9 million to settle their claims. (Crane Decl. at 1.) Petitioner moves to compel Claimants to produce medical, psychological, and pharmaceutical information and documents from before and after the incident. (Dkt. No. 49.) Specifically, Petitioner seeks answers to two interrogatories

and two requests for production. (See Crane Decl., Exs. 1 & 2; see also Jacobsen Decl., Exs. A & B.) Petitioner argues such discovery is relevant to determining the cause of any physical pain or emotional distress Claimants experienced and that Claimants have waived whatever privileges apply by putting their physical and mental condition at issue. (Dkt. Nos. 49, 58.) Claimants oppose on several grounds. (Dkt. Nos. 56, 57.) They argue Petitioner’s counsel did not meet and confer. They also argue that the discovery sought is not relevant because (a) they intend to pursue their claims in state court, not this proceeding, and (b) they do not seek damages for physical injury or diagnosable mental-health conditions and will not rely on any such records to

prove their claims. They also argue that the discovery is protected by federal or Washington privileges. In the event discovery is granted, they seek a protective order to limit the use of such records and information to this proceeding. Petitioner does not oppose such a protective order. (Dkt. No. 58.)

A. Meet and Confer The Parties have an obligation to meet and confer in good faith to resolve discovery disputes before moving to compel. Fed. R. Civ. P. 37(a)(1). It is undisputed that there were two phone calls between counsel concerning the discovery at issue. (Dkt. No. 50, Declaration of Meliha Jusupovic; Dkt. No. 56 at 2.) Nevertheless, Claimants argue Petitioner did not meet their Rule 37 obligations because the Parties exchanged a proposed stipulation that Claimants contend would have made this motion unnecessary. (Dkt. No. 56 at 2–3; Jacobsen Decl., Ex. C.) However, Claimants rejected material terms of Petitioner’s proposal, which would have limited Claimants’ claims and the evidence relied on to prove them but, in any case, would not have

addressed Petitioner’s discovery requests. (See Jacobsen Decl., Ex. C.) Claimants have maintained their position denying discovery and have not proposed any way to close the gap between the two sides. (See id., Exs. A & B.) Petitioner has met its obligations under Rule 37. B. Relevance A party “may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case,” among other considerations. Fed. R. Civ. P. 26(b)(1). Petitioner argues the discovery sought is relevant because Claimants have put their physical and mental health at issue and that they need the discovery to assess whether the injuries alleged were caused by the collision, or are due to other causes, as well as

the value of the claims. (Dkt. No. 49 at 5.) Claimants argue the discovery at issue is not relevant, for two reasons. Claimants first argue that this proceeding will not determine their claims, because they have the right to pursue their claims in state court. (Dkt. No. 56.) Federal courts have exclusive

jurisdiction over cases in admiralty or maritime jurisdiction. 28 U.S.C. § 1333(1). That includes determining whether a vessel owner is entitled to limitation of liability. 46 U.S.C. §§ 30501– 30512. Claimants do have the right to pursue “all other remedies to which they are otherwise entitled.” 28 U.S.C. § 1333(1). However, that right is subject to Petitioner’s right to seek limitation in federal court. See Lewis v. Lewis & Clark Marine, Inc., 531 U.S. 438, 453 (2001). Once a vessel owner has filed a petition and complied with the procedural requirements of the Act, “all claims and proceedings against the owner related to the matter in question shall cease.” 46 U.S.C. § 30507. Under the Act, if a court finds liability but grants limitation, it will apportion losses among claimants. 46 U.S.C. § 30507. None of the exceptions to this procedure have arisen at this stage. See Lewis, 531 U.S. at 454. The Gregorys’ claims are part of this

proceeding and subject to discovery. Second, Claimants argue that the discovery is not relevant because they seek only damages for “garden variety” emotional distress and not for physical injury or diagnosable mental illness. (Dkt. No. 56 at 3.) Damages totaling $2.9 million are not “garden variety.” See, e.g., Lore v. City of Syracuse, 670 F.3d 127, 177–80 (2d Cir. 2012) (upholding award of $150,000). C. Privilege While most of the briefing by the Parties on privilege is on federal law, Claimants also argue Washington law should govern because they intend to proceed on their claims in state

court. Whatever the merits of this argument, e.g., Hartford Fire Ins. Co. v. Garvey, 109 F.R.D. 323, 325 (N.D. Cal. 1985), the result is the same either way: they have waived whatever privileges apply. Washington protects psychotherapist-patient and physician-patient communications from

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In the Matter of the Complaint of SDS Lumber Co as owner or owner pro hac vice and operator of the tug DAUBY ON 641327 for Limitation of Liability, (W.D. Wash. 2021).

In the Matter of the Complaint of SDS Lumber Co as owner or owner pro hac vice and operator of the tug DAUBY ON 641327 for Limitation of Liability (In the Matter of the Complaint of SDS Lumber Co as owner or owner pro hac vice and operator of the tug DAUBY ON 641327 for Limitation of Liability) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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