Kalinauskas v. Wong

151 F.R.D. 363, 28 Fed. R. Serv. 3d 472, 1993 U.S. Dist. LEXIS 14526, 1993 WL 413150
CourtDistrict Court, D. Nevada
DecidedSeptember 8, 1993
DocketNo. CV-S-92-689-PMP-(RJJ)
StatusPublished
Cited by18 cases

This text of 151 F.R.D. 363 (Kalinauskas v. Wong) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kalinauskas v. Wong, 151 F.R.D. 363, 28 Fed. R. Serv. 3d 472, 1993 U.S. Dist. LEXIS 14526, 1993 WL 413150 (D. Nev. 1993).

Opinion

ORDER

[Defendant’s Motion for Protective Order (# 39)]

JOHNSTON, United States Magistrate Judge.

This matter was submitted to the undersigned Magistrate Judge on a Motion for a Protective Order (#39) filed by defendant Desert Palace, Inc., doing business as Caesars Palace Hotel & Casino (Caesars), to prevent the plaintiff from deposing Ms. Donna R. Thomas. Caesars has submitted documents to the court in camera to support the motion. The plaintiff filed an opposition (#49) to Caesars’s motion, prompting Caesars to file a reply (# 55).

[365]*365 BACKGROUND

The plaintiff, Ms. Lin T. Kalinauskas (Kalinauskas), a former employee of Caesars, has sued Caesars for sexual discrimination in the instant case. As part of discovery Kalinauskas seeks to depose Donna R. Thomas, a former Caesars employee who filed a sexual harassment suit against Caesars last year. Donna R. Thomas v. Desert Palace, Inc., dba Caesars Palace Hotel & Casino, CV-S-92-100-HDM-(RJJ) (D.Nev.1992). Ms. Thomas’s suit settled without trial pursuant to a confidential settlement agreement which the court sealed upon the stipulated agreement of the parties.

This court has examined, in camera, sealed materials relating to Ms. Thomas’s case and settlement. The in camera submission included: Stipulation for & Order for Dismissal, Protective Order and Confidentiality Order, Stipulation for Protective Order and Confidentiality Order, and Settlement Agreement. The Stipulation for Protective Order and Confidentiality Order states in paragraph 3 on page 2 that the plaintiff “shall not discuss any aspect of plaintiffs employment at Caesars other than to state the dates of her employment and her job title.” Identical language appears in the Protective Order and Confidentiality Order as paragraph 3 on pages 1-2, and in the Settlement Agreement as paragraph 7 on page 3.

DISCUSSION

In general, the scope of discovery is very broad. “Parties may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action.... It is not ground for objection that the information sought will be inadmissible at the trial if the information sought appears reasonably calculated to lead to the discovery of admissible evidence.” Fed.R.Civ.P. 26(b)(1) (emphasis added). The primary goal of the court and discovery is “to secure the just, speedy, and inexpensive determination of every action.” Fed.R.Civ.P. 1.

The public interest favors judicial policies which promote the completion of litigation. Public interest also seeks to protect the finality of prior suits and the secrecy of settlements when desired by the settling parties. However, the courts also serve society by providing a public forum for issues of general concern. The case at bar presents a direct conflict between these crucial public and private interests.

To allow full discovery into all aspects of Ms. Thomas’s case could discourage similar settlements. Confidential settlements benefit society and the parties involved by resolving disputes relatively quickly, with slight judicial intervention, and presumably result in greater satisfaction to the parties. Sound judicial policy fosters and protects this form of alternative dispute resolution. See, e.g., Fed.R.Evid. 408 which protects compromises and offers to compromise by rendering them inadmissible to prove liability. The secrecy of a settlement agreement and the contractual rights of the parties thereunder deserve court protection. Flynn v. Portland Gen. Elec. Corp., 1989 WL 112802, 58 U.S.L.W. 2243, 50 Fair Empl. Prac.Cas. (BNA) 1497 (D.Or.1989) (party seeking discovery about previously settled case must identify specific information sought and why such information cannot be obtained another way; “the strong public policy favoring settlement of disputed claims dictates that confidentiality agreements regarding such settlements not be lightly abrogated”).

On the other hand, to prevent any discovery into Ms. Thomas’s case based upon the settlement agreement results in disturbing consequences. First, as pointed out by Kali-nauskas, preventing the deposition of Ms. Thomas would condone the practice of “buy[ing] the silence of a witness with a settlement agreement.” Response (#49) at 2. This court harbors little doubt that preventing the dissemination of the underlying facts which prompted Ms. Thomas to file suit is in Caesars’s interest, and formed an important part of the agreement to Caesars. Caesars avers that without the confidentiality order the Thomas case would not have settled. Reply (#55) at 2. Yet despite this freedom to contract, the courts must carefully police the circumstances under which litigants seek to protect their interests while concealing legitimate areas of public concern. [366]*366This concern grows more pressing as additional individuals are harmed by identical or similar action.

Second, the deposition of Ms. Thomas is likely to lead to relevant evidence. Preventing the deposition of Ms. Thomas or the discovery of documents created in her case, could lead to wasteful efforts to generate discovery already in existence.

The court finds the wisdom of Wilk v. American Medical Association, 635 F.2d 1295 (7th Cir.1980), especially persuasive in this matter. In Wilk, five chiropractors sued the American Medical Association, as well as other national medical societies, and certain individuals, under the federal antitrust laws, alleging a nationwide conspiracy aimed at eliminating the chiropractic profession. These plaintiffs filed suit in the Northern District of Illinois. Subsequently, several very similar actions arose in other districts throughout the country. In particular, a suit arose in the Eastern District of New York, against many of the same medical associations, in which “the operative charges of wrongdoing” in the complaint were “almost word for word the same” as the complaint in the Wilk case. Wilk, 635 F.2d at 1296. By the time the New York case was filed, massive discovery had taken place in Wilk. However, nearly all this discovery remained unavailable to the intervening New York plaintiffs due to a protective order issued by the district court in Wilk. Nevertheless, on appeal, the New York plaintiffs were allowed access to all of the Wilk discovery. Wilk, 635 F.2d at 1301.

As in Wilk, this court faces two very similar lawsuits. Factually, and legally, Kalinauskas’s case nearly duplicates Ms. Thomas’s. Also, Kalinauskas is a bona fide litigant seeking access for legitimate litigation purposes. Wilk, 635 F.2d at 1300. While Wilk examined the issue on a much larger scale because it involved prior massive discovery of an alleged nationwide conspiracy, the underlying concern about the wastefulness of repetitive discovery applies equally to Kalinauskas. Thus this court adopts the holding in Wilk

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Bluebook (online)
151 F.R.D. 363, 28 Fed. R. Serv. 3d 472, 1993 U.S. Dist. LEXIS 14526, 1993 WL 413150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kalinauskas-v-wong-nvd-1993.