Liberty Folder v. Curtiss Anthony Corp.

90 F.R.D. 80, 31 Fed. R. Serv. 2d 1525, 1981 U.S. Dist. LEXIS 11799
CourtDistrict Court, S.D. Ohio
DecidedApril 2, 1981
DocketNo. C-3-80-024
StatusPublished
Cited by8 cases

This text of 90 F.R.D. 80 (Liberty Folder v. Curtiss Anthony Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liberty Folder v. Curtiss Anthony Corp., 90 F.R.D. 80, 31 Fed. R. Serv. 2d 1525, 1981 U.S. Dist. LEXIS 11799 (S.D. Ohio 1981).

Opinion

DECISION AND ENTRY SUSTAINING PLAINTIFFS’ MOTION SEEKING AN ORDER OF THE COURT COMPELLING DISCOVERY; DISCOVERY ORDERED WITHIN STATED PERIOD OF TIME; DECISION AND ENTRY SUSTAINING DEFENDANTS’ MOTION SEEKING LEAVE TO FILE A THIRD PARTY COMPLAINT; ENTRY OF CONTINUANCE; NEW TRIAL DATE AND OTHER DATES SET

RICE, District Judge.

The captioned cause came to be heard upon two motions, to wit:

(1) The Plaintiffs’ motion seeking an Order of the Court compelling the Defendants to produce certain information, pursuant to Fed.R.Civ.P. 37(a); and
(2) the Defendants’ motion seeking leave of Court to file and serve a third-party complaint, pursuant to Fed.R.Civ.P. 14(a).

The corporate Plaintiffs and the corporate Defendant are competitors in the paper folding machine industry. The individual Defendant is an employee of the corporate Defendant and a former employee of one of the corporate Plaintiffs. The proposed Third-Party Defendant appears to be an employee of one of the corporate Plaintiffs and a former employee of the corporate Defendant.

[82]*82Plaintiffs’ complaint against the Defendants alleges trademark infringement, false designation of origin, unfair competition, misappropriation of trade secrets, breach of employment confidences, contract interference, unfair business practices, and fraud. Defendants’ counterclaim alleges violations of federal antitrust law on Plaintiffs’ part. Defendants’ proposed third-party complaint alleges that the Third-Party Defendant is liable to Defendants for any liability Defendants have to Plaintiffs.

Plaintiffs discovery motion originally sought an Order compelling Defendants to produce information in the following four categories:

(1) identification of requested documents which Defendants claim are protected from disclosure by attorney-client privilege;
(2) identification of Defendants’ distributors arid dealers, and identification of related documents;
(3) identification of vendors who manufacture products sold by Defendants, and identification of related documents; and
(4) identification of Defendants’ customers, including specifics regarding the initiation of the customer relationship, the volume of sales, and identification of related documents.

It appears that the first category of information, i. e., identification of documents which Defendants claim are protected by the attorney-client privilege, is no longer at issue. In a memorandum contra Plaintiffs’ motion, Defendants represented that they would provide Plaintiffs with that information within a time certain. Plaintiffs have not advised the Court that said representation has not been fulfilled.

The contours of Defendants’ opposition to production of the distributor, vendor, and customer lists, and their consequent opposition to Plaintiffs’ motion to compel discovery of same, are not clearly articulated. Defendants admit that the information is “relevant” at least in the broad sense in which that term is used in Fed.R.Civ.P. 26(b)(1), and Defendants do not otherwise contend that the information is privileged. Rather, Defendants say (and Plaintiffs do not dispute) that the information at issue constitutes “confidential commercial information” which the Court is empowered to protect against broad disclosure under Fed. R.Civ.P. 26(c).

But exactly how or exactly why this Court should provide protection against disclosure of the information at issue, in this case, is not certain. Defendants say that the Court should either. (1) foreclose discovery altogether; (2) allow the information to be filed, herein, under seal; (3) order that disclosure only be allowed at the time of trial; (4) order that the determination on whether disclosure should be allowed be made at the time of trial; (5) order that disclosure not be allowed until Plaintiffs have made a prima facie showing of Defendants’ liability; or (6) delay the decision on Plaintiffs’ motion until Plaintiffs answer certain document demands concerning Defendants’ confidential information, which Plaintiffs obtained through the proposed Third-Party Defendant.

In general support of an order adopting one or more of these protective measures, Defendants point out that the parties are competitors; that disclosure of the information to Plaintiffs would irreparably damage Defendants’ competitive position by enabling Plaintiffs to undertake “predatory” practices with respect to identified customers; and that such a scenario is consistent with Plaintiffs alleged past practices in abusing confidential information, regarding Defendants’ distribution network, as obtained from a former employee of Defendants (i. e., the proposed Third-Party Defendant).

The Court does not believe that these factors justify any of the various, extraordinary protective measures which Defendants seek. On the contrary, the Court concludes that Plaintiffs’ proposed protective order adequately guards against unnecessary and potentially injurious disclosure of the kind of sensitive information at issue. Specifically, the Plaintiffs’ proposed order would: (1) limit access to the request[83]*83ed information to Plaintiffs’ counsel, and counsel’s associates and employees (and thereby preclude disclosure to any of Defendants’ competitors, including Plaintiffs); (2) would limit the number of copies of said information which might be circulated among counsel; and (3) limit the use of said information only for purposes of the present litigation (and thereby preclude its use in any anti-competitive fashion, including its use to facilitate “predatory” practices).

The authorities cited by Defendants do support the proposition that a District Court may delay or preclude a plaintiffs’ discovery of defendants’ “confidential information” until trial, or until the plaintiff establishes a prima facie case of defendants’ liability. However, the cited authorities do not establish an unalterable rule in that regard, but only indicate that such course was warranted under the facts presented in each particular ease. Ray v. Allied Chemical Corp., 34 F.R.D. 456, 457 (S.D.N.Y.1964); Int’l Nickel Co. v. Ford Motor Co., 15 F.R.D. 392, 394 (S.D.N.Y.1954); Lever Bros. Co. v. Proctor & Gamble Mfg. Co., 38 F.Supp. 680, 683-84 (D.Mich.1941).

Thus, in Ray, supra, the Court examined evidence on the record which indicated that the defendant did not have the specific confidential information which formed the basis of plaintiffs’ claim of misappropriation. Since broad pretrial discovery of defendants’ secret research might ultimately prove unnecessary and injurious, the question of compelled discovery of such information was properly deferred until trial. The Court noted that there was no possibility of prejudicial delay in this course, since that case (unlike the case, herein) was to be tried to the Court.

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Bluebook (online)
90 F.R.D. 80, 31 Fed. R. Serv. 2d 1525, 1981 U.S. Dist. LEXIS 11799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liberty-folder-v-curtiss-anthony-corp-ohsd-1981.