Johnston Development Group, Inc. v. Carpenters Local Union No. 1578

130 F.R.D. 348, 16 Fed. R. Serv. 3d 357, 1990 U.S. Dist. LEXIS 3144, 1990 WL 34621
District Court, D. New Jersey·Decided February 23, 1990·No. Civ. A. No. 89-566(B)·Published·Cited by 39 cases

Opinion

OPINION

JEROME B. SIMANDLE, United States Magistrate:

This matter comes before the court upon motion of plaintiffs for a protective order quashing the deposition subpoenas served upon Jerald Cureton, Esquire (“Cureton”) and Hillary Peterson, Esquire (“Peterson”), and for a protective order precluding the taking of their depositions. The issue to be resolved is whether the plaintiffs are entitled to a protective order precluding the depositions of their litigation attorney (Mr. Cureton), and of the corporate counsel for plaintiff Johnston Development Group, Inc. (Ms. Peterson), pertaining to discussions in which these lawyers participated with various defendants prior to the institution of this lawsuit. For the following reasons, plaintiffs’ motion shall be denied in part, and these depositions may go forward subject to a partial protective order limiting the scope and duration of deposition questioning.

I. Factual Background

In this complex litigation involving claims arising under numerous federal statutes including, inter alia, the Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. § 1961 et seq.), plaintiffs contend that defendant unions and various union and non-union concrete supply houses conspired to deprive plaintiffs of concrete and concrete products in order to ensure the employment of union subcontractors on plaintiffs’ job sites. Plaintiffs are builders of residential developments. On December 19, 1989 Cureton, who is lead counsel for plaintiffs, and Peterson, who is vice-president and general counsel for plaintiff Johnston Development Group, Inc., were served with deposition subpoenas. The subpoenas were served on behalf of defendant Carpenters Local Union No. 1578. These subpoenas commanded Cureton and Peterson to appear for oral depositions on January 18 and 19, 1990, bringing with them any and all relevant notes and documents. Subsequent discussions between counsel revealed that these depositions were being convened to inquire into Mr. Cureton’s and Ms. Peterson’s involvement in several meetings, the contents of which are much in dispute in this lawsuit.

A. Cureton’s Involvement in the Subject Matter of this Litigation

Defendants seek to depose Mr. Cureton regarding four meetings he attended in or around October of 1988. At these meetings, various representatives of the present litigants met in the hope of negotiating a settlement that would have terminated the picketing of plaintiffs’ job sites by members of the defendant unions. The picketing purportedly occurred to protest the fact that substandard wages were allegedly being paid by plaintiffs’ contractors at these job sites. In attendance at the first meeting were Mr. Cureton, defendant Frank Spencer, and plaintiff Calton Homes Vice President Douglas Heppe. The second meeting was attended by Mr. Cureton, along with Mr. Heppe and defendant Anthony J. Latorre, Jr. In attendance at the third meeting were Thomas Ober (Business Manager for defendant Carpenters Local 393 and President of the Carpenters District Council), Pat Carey (Business Agent for Carpenters Union Local 393), Mr. Heppe and Mr. Cureton. The fourth meeting involved three non-party representatives of the Builders League of South Jer[351] sey, Mr. Ober, Mr. Spencer, and Mr. Cure-ton.1

The union defendants are also seeking to depose Mr. Cureton due to a statement made by Reginald Dryzga, Chairman of Johnston Development Group, during his deposition. Mr. Dryzga testified that he had asked Mr. Cureton whether or not it was proper to make a contribution to the union’s Political Action Committee. Dryzga stated that Mr. Cureton advised him that such a contribution was illegal, and that immediately after being advised of this fact, Dryzga contacted Frank Spencer and told him about the illegality of the contribution.

Plaintiffs state that Mr. Cureton will not be called as a witness in this action, while defendants have indicated that they may wish to call Mr. Cureton if his testimony is necessary at trial.

B. Ms. Peterson’s Involvement in the Subject Matter of this Litigation

The defendant unions seek to depose Ms. Peterson because as vice-president and general counsel for Johnston Development, Ms. Peterson frequently spoke with defendants and witnessed many of their picketing activities. Ms. Peterson allegedly possesses factual knowledge regarding the following allegations raised in plaintiffs’ complaint in this matter:

1) The alleged refusal by Eastern Transit Mix to deliver concrete to plaintiff Johnston Development Group’s Hidden Creek jobsite. Third Amended Complaint at 1139.
2) Defendants’ alleged interference with vehicles at plaintiff Johnston Development Group’s Hidden Creek jobsite. Third Amended Complaint at 1140.
3) Telephone conversations in which defendant LaTorre allegedly threatened to cut off concrete supplies to the Hidden Creek jobsite if union contractors were not hired. Third Amended Complaint at 1142.
4) Defendants’ alleged attempts to coerce the removal of non-union subcontractors from the Hidden Creek jobsite by disrupting supplies of building materials. Third Amended Complaint 1146.
5) Picketing in which defendants allegedly carried signs that unlawfully failed to mention any particular employer. Third Amended Complaint ¶ 98.

Plaintiffs have also admitted that Ms. Peterson attended meetings on January 29 and February 24, 1988, with Michael Morales, a Johnston Development Group Project Manager, and defendant Ronald Jernegan, and took notes during these meetings. According to defendants, Ms. Peterson’s testimony regarding these meetings, and any notes taken during these meetings, will allegedly show that the union defendants never used picketing to coerce the employment of union laborers.

Furthermore, plaintiffs have claimed as damages the time expended by Ms. Peterson allegedly as a result of defendants’ picketing and related activity, and plaintiffs seek to recover $13,508 in salary paid to Ms. Peterson. Plaintiffs have characterized this loss as “management time” allegedly lost as a result of picketing and related activity at the Hidden Creek site.

The subpoena to Ms. Peterson also seeks to compel her to produce notes which she took at the meetings with defendant Jernegan on January 29, 1988 and February 24, 1988. The defendants, Carpenters Local Union No. 1578, et al., have cross-moved to compel the production of Ms. Peterson’s notes when her deposition is taken. Plaintiffs’ reply brief states, subject to confirmation in Ms. Peterson’s affidavit, that these notes are no longer in her possession nor in the possession of plaintiffs, because they were apparently lost when her office was moved from a construction trailer to a model home site.

Like Mr. Cureton, plaintiffs do not expect to call Ms. Peterson as a witness at trial, but defendants may be seeking to do so if necessary for their defense.

[352] II. Discussion of Law

A. Depositions of Adversary Counsel

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Johnston Development Group, Inc. v. Carpenters Local Union No. 1578, 130 F.R.D. 348, 16 Fed. R. Serv. 3d 357, 1990 U.S. Dist. LEXIS 3144, 1990 WL 34621 (D.N.J. 1990).

130 F.R.D. 348 (Johnston Development Group, Inc. v. Carpenters Local Union No. 1578) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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