Matter of Interco Inc.

146 B.R. 447, 1992 Bankr. LEXIS 1633, 1992 WL 297064
United States Bankruptcy Court, E.D. Missouri·Decided October 20, 1992·No. 19-40503·Published·Cited by 3 cases

Opinion

ORDER

JAMES J. BARTA, Bankruptcy Judge.

On June 29, 1992, General Electric Company (“Claimant”) filed a motion requesting that this Court order “that the deposition of Goldberg-Zoino and Associates, Inc. (“GZA”) not take place.” General Electric Company’s Motion for Protective Order, filed June 29, 1992, p. 1. Claimant asserts “GZA is a non-testifying expert retained by [Claimant] in anticipation of litigation with [Debtor] and, as such, neither facts known nor opinions held by it may be discovered without the showing required” under Rule 26(b)(4)(B) of the Federal Rules of Civil Procedure, as made applicable by Rule 7026 of the Federal Rules of Bankruptcy Procedure. Id. at 2. Claimant also requests that this Court “order the debtor to pay [Claimant’s] fees and expenses in connection with bringing this Motion.” Id. Alternatively, Claimant requests that the Court order Debtor “to pay GZA its fees for its time in preparing for and giving the deposition; and ... to pay [Claimant] one-half of the $18,230.00 in GZA fees and expenses paid by [Claimant] to obtain the facts and opinions of GZA on this matter.” Id.

Debtor argues that it is entitled to depose GZA because “GZA was not hired in anticipation of litigation within the meaning of Rule 26(b)(4)(B).” Memorandum in Opposition to General Electric Company’s Motion for Protective Order, filed July 9, 1992, p. 1. Debtor also asserts that Claimant “has waived any right to shield GZA from deposition discovery because its testifying experts have relied heavily on GZA’s work as the basis for their opinions.” Id. Finally, Debtor argues that “even if GZA were considered an expert hired in anticipation of litigation, GZA’s unique role in gathering facts pertaining to the site at issue is an ‘exceptional circumstance’ which requires that its deposition be allowed to go forward.” Id.

I. Factual Background

Goldberg-Zoino and Associates, Inc. (“GZA”) is an environmental consulting firm. In 1986, Claimant contracted with GZA to perform a “preliminary site investigation” at “50 Fordham Road Property Wilmington/North Reading, Massachusetts.” See Phase II Report 50 Fordham Road Property Wilmington/North Reading, Massachusetts, attached as Exhibit A to Memorandum in Opposition to General Electric Company’s Motion for Protective Order, filed July 9, 1992. Debtor asserts *449 that Claimant hired GZA to perform the preliminary site investigation as part of a “response action” after the Massachusetts Department of Environmental Protection issued a Notice of Responsibility to Claimant “in response to contamination detected in the Stickney Well, the water source for the Town of North Reading, Massachusetts, which adjoined the GE plant at 50 Fordham Road ...” See Memorandum in Opposition, 1-2. According to Debtor, GZA’s investigation involved compliance with the Massachusetts Superfund Act, M.G.L. c. 21E and its implementing regulations, the Massachusetts Contingency Plan 310 C.M.R. Part 40. In particular, Debtor asserts Claimant hired GZA to perform a “Phase II — Comprehensive Site Assessment.” Id.

Debtor contends that as part of GZA’s Comprehensive Site Assessment investigation, GZA “performed an historical investigation and gathered data” regarding alleged petroleum contamination at 55 Ford-ham Road, which Converse and the Converse Rubber Co. leased from Claimant during the period 1972-1985. Id. In connection with the investigation at 55 Ford-ham Road, “GZA focused its investigation on one underground tank, which is now characterized as ‘Tank K’, and concluded that Tank K was the source of the alleged petroleum contamination.” Id. at 2-3.

Claimant agrees that GZA was originally hired by GE “in connection with contamination at 50 Fordham Road, Wilmington Massachusetts ...” Affidavit of Stephen A. Jonas, filed June 29, 1992, at 2. However, Claimant contends that “[i]n 1989, GE and Hale and Dorr [counsel to GE] specifically retained GZA to investigate contamination around the former Tank K, in anticipation of litigation with Converse over paying the costs of cleaning up the contamination.” Id.

Claimant asserts that “GZA will not testify in this case.” Id. Rather, Claimant intends to use Wehran Engineering Corporation as its testifying expert. Id. The parties agree that Claimant has given Debtor “full and unconditional access to the reports issued by GZA.” Memorandum in Opposition, 5-6. 1 In addition, Claimant has provided Debtor with a copy of the report generated by the testifying expert, Wehran Engineering.

II. Application of Rule 26(b)(4)(B)

Rule 26(b)(4)(B) of the Federal Rules of Civil Procedure provides for discovery of an expert who has been retained or specially employed by the party in anticipation of litigation or preparation for trial. “Under its provisions, a party may discover facts known or opinions held by such an expert only on a showing of exceptional circumstances under which it is impracticable for the party seeking discovery to obtain facts or opinions on the same subject by other means.” Fed.R.Civ.P. 26(b)(4)(B) notes of the advisory committee on the 1970 amendment. The purpose of Rule 26(b)(4)(B) is to prohibit a party from building its own case through the use of an opponent’s financial resources and diligence. Cox v. Piper, Jaffray & Hopwood, Inc., 848 F.2d 842, 845 (8th Cir.1988) (citing Ager v. Jane C. Stormont Hosp. and Training School for Nurses, 622 F.2d 496, 502 (10th Cir.1980)).

The Debtor has argued here that the testifying expert, Wehran Engineering has “relied extensively on the historical investigation of the site performed by GZA and on data compiled by GZA.” Memorandum in Opposition, p. 3. According to the report of Wehran Engineering:

Wehran has used data as they were presented [by GZA]. No validation of the data presented or referenced in the Phase II report or the methods used to collect them has been conducted as part of this supplemental investigation.... There are potential limitations arising from integration of data that have been collected over a period of years with respect to a description of current site conditions. Potential limitations may include varying sampling and analytical methods, reporting techniques, differ- *450

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Matter of Interco Inc., 146 B.R. 447, 1992 Bankr. LEXIS 1633, 1992 WL 297064 (Mo. 1992).

146 B.R. 447 (Matter of Interco Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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