Jung Chul Park v. Cangen Corp.

7 A.3d 520, 416 Md. 505, 2010 Md. LEXIS 770
CourtCourt of Appeals of Maryland
DecidedOctober 27, 2010
Docket152, Sept. Term, 2008
StatusPublished
Cited by2 cases

This text of 7 A.3d 520 (Jung Chul Park v. Cangen Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jung Chul Park v. Cangen Corp., 7 A.3d 520, 416 Md. 505, 2010 Md. LEXIS 770 (Md. 2010).

Opinions

BARBERA, J.

This case involves the privilege against compelled self-incrimination, based on the command of the Fifth Amendment that “[n]o person ... shall be compelled in any criminal case to be a witness against himself----” U.S. Const, amend. V. We are asked to determine whether a former employee of a corporation is entitled to invoke the privilege in response to a [509]*509subpoena duces tecum commanding him to produce corporate documents. We hold, by application of the “collective entity doctrine,” see, e.g., Braswell v. United States, 487 U.S. 99, 104-05, 108 S.Ct. 2284, 101 L.Ed.2d 98 (1988), that the former corporate employee is not entitled to invoke the privilege.

I.

This appeal has its genesis in a replevin action filed by Appellee Cangen Corporation (“Cangen”), in the Court of Common Pleas of Montgomery County, Pennsylvania. According to counsel’s description, Cangen “is a biotechnology] company located in Baltimore, but it does have offices and, significant, connections to Korea.” In the replevin action, Cangen sued Richard A. Silfen, the company’s former president and chief executive officer, whom Cangen fired in 2006. Cangen sought to replevy “thousands of [Cangen’s] documents, records, information, and materials, in electronic form or otherwise,” which Mr. Silfen allegedly “stole after his employment with Cangen was terminated.” Cangen stated at a later hearing before the Circuit Court for Howard County, Maryland, that “some of these documents were ... given to journalists and financial concerns in Korea, which is where [Cangen] gets a lot of its financing, we believe in an effort to discredit the company.”

As part of the replevin action, Cangen filed in the Montgomery County, Pennsylvania Court of Common Pleas a motion for issuance of a commission for a subpoena for a deposition of Appellant, Dr. Jung Chul Park, a former employee of Cangen who currently resides in Howard County, Maryland. The Court of Common Pleas granted Cangen’s motion and directed the Clerk of the Circuit Court for Howard County to issue the subpoena. Pursuant to the Maryland Uniform Interstate Depositions and Discovery Act, Maryland Code (1973, 2006 Repl. Vol.), §§ 9-401 to 9-407 of the Courts and Judicial Proceedings Article, Cangen filed the commission and an application for a subpoena duces tecum with the Clerk of the Circuit Court for Howard County. The Clerk of the Circuit Court issued a Subpoena and Notice of Deposition Duces [510]*510Tecum De Bene Esse (“the Subpoena”), which were duly-served on Dr. Park.

The Subpoena commanded Dr. Park to appear at a deposition in Howard County and bring documents fitting the requests attached to the Subpoena. Of the twenty-two document demands, most referred to documents that Dr. Park allegedly had received, provided, or sent to various individuals or entities, including Mr. Silfen, “relating to or concerning Cangen Corporation.” Other demands referred to “transcripts, recordings, videotapes, notes, memos, etc., concerning [a] meeting that took place on October 12, 2007,” which Dr. Park allegedly attended, and documents that were “provided, exchanged or made available at the meeting.” The remaining demands sought production of “[a]U documents” in Dr. Park’s possession “relating to Cangen Corporation, including any personal notes, memoranda, or other similar documents,” and “[a]ll Cangen Corporation documents” in Dr. Park’s possession.

Dr. Park appeared at the deposition but did not produce any of the documents that were the subject of the Subpoena. Instead, he asserted a Fifth Amendment privilege in connection with the act of producing those documents. Dr. Park also invoked the privilege in response to nearly every question posed by Cangen’s counsel during the deposition.

Cangen filed in the Circuit Court for Howard County a motion to compel Dr. Park to produce “documents responsive to Cangen’s subpoena duces tecum” in his “custody, control and possession.” Cangen limited the motion, however, to corporate documents in Dr. Park’s possession. Cangen alleged in the motion that, “through its own fact investigation, [Cangen] has determined that Dr. Park is in possession of certain business records for [sic] which Dr. Park does not own and has no right to possess.” ,

Cangen argued that Dr. Park’s “broad assertion of the Fifth Amendment privilege is wholly inappropriate.” In support, Cangen argued: “[T]here is no privilege in the contents of documents”; “[f]urther, there is no Fifth Amendment protec[511]*511tion in the production of corporate records” because “artificial entities are not protected by the Fifth Amendment”; a “custodian of corporate records cannot object to the production of business documents on self-incrimination grounds even if the records may personally incriminate the custodian”; and “[t]his holds true for former employees as well.” Cangen did not argue in that motion or file a separate motion arguing that Dr. Park should be compelled to produce non-corporate documents that were the subject of Cangen’s original document demand. Nor did Cangen ask that Dr. Park be made to respond to one or more of the questions he refused to answer at the deposition.

Dr. Park filed an answer in opposition to the motion to compel the corporate documents, arguing that the “so-called collective entity doctrine” relied upon by Cangen “has no application where the individual [from whom the corporate documents are sought] is acting only in his personal capacity[,]” and a former employee holds corporate documents in a purely personal capacity. Thus, Dr. Park asserted, he is entitled to invoke the Fifth Amendment privilege because the compelled act of producing the corporate documents, under the circumstances presented, would be testimonial and incriminating.

The Circuit Court held a hearing on the motion to compel Dr. Park’s compliance with the portion of the Subpoena that commanded production of “Cangen documents that are in Dr. Park’s possession.” In the words of Cangen’s counsel, “we’re seeking Cangen documents and [Dr. Park], certainly, had no right to retain them after leaving Cangen.” Dr. Park denied that he was the custodian of any corporate records, and “he wasn’t deposed in any kind of custodial capacity, ‘cause (sic) he couldn’t have been.” Cangen, through counsel, responded that Dr. Park “holds [the corporate documents sought] in a representational capacity,” and he “would never have had those documents had he not been our employee[.]”

The Circuit Court held the matter sub curia and, shortly after the hearing, entered an order granting the motion to [512]*512compel. The order was not accompanied by a memorandum opinion setting forth the court’s findings of fact and conclusions of law.

Dr. Park noted an appeal to the Court of Special Appeals. On our own initiative we issued a writ of certiorari to address the following issue:

Whether the Circuit Court erred in granting Cangen Corporation’s Motion to Compel Production of Documents over Dr. Park’s invocation of the Fifth Amendment privilege against self-incrimination; in other words, does the “collective entity doctrine” apply to a former employee such as Dr. Park, even in the case in which it is the corporation itself seeking the production of documents.

II.

The language of the Fifth Amendment, “No person ...

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Jung Chul Park v. Cangen Corp.
7 A.3d 520 (Court of Appeals of Maryland, 2010)

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Bluebook (online)
7 A.3d 520, 416 Md. 505, 2010 Md. LEXIS 770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jung-chul-park-v-cangen-corp-md-2010.