McCallum v. CSX Transportation, Inc.

149 F.R.D. 104, 1993 U.S. Dist. LEXIS 8837, 1993 WL 212863
CourtDistrict Court, M.D. North Carolina
DecidedMay 4, 1993
DocketNo. 3:90CV00262
StatusPublished
Cited by25 cases

This text of 149 F.R.D. 104 (McCallum v. CSX Transportation, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCallum v. CSX Transportation, Inc., 149 F.R.D. 104, 1993 U.S. Dist. LEXIS 8837, 1993 WL 212863 (M.D.N.C. 1993).

Opinion

ORDER

ELIASON, United States Magistrate Judge.

This matter comes before the Court on defendant CSX Transportation, Inc.’s (“CSX”) motion for a protective order and sanctions against plaintiffs’ out-of-state counsel. The motion arises from the alleged unethical conduct engaged in by plaintiffs’ counsel during discovery in this action. Defendant CSX says that plaintiffs’, counsel and investigator made improper ex parte contacts with its employees after this lawsuit was filed. As a result, it seeks an order disqualifying plaintiffs’ out-of-state attorney and law firm from further representation in this action, a protective order preventing plaintiffs from using at trial any statement given by a CSX employee, an order prohibiting further ex parte contacts by plaintiffs’ counsel and/or their investigators, and an order granting CSX reasonable expenses and attorney’s fees for bringing this motion.

A brief history will set the stage for further discussion. The complaint alleges negligence under state law and jurisdiction arises from 28 U.S.C. § 1332—diversity of citizenship. It is alleged that a minor plaintiff was struck by a steel band which was hanging from a CSX rail car as it passed over a trestle in Scotland County, North Carolina, [106]*106under which the boy was playing. The car was being transported by MidSouth Rail Corporation (“MidSouth”). Plaintiffs have alleged, among other things, that CSX, by and through its agents, servants and employees, was negligent in failing to inspect, maintain and operate the train properly and in failing to warn plaintiffs, to observe its own operating rules, and to eliminate the risk caused by dragging steel bands.

Returning to the motion, similar alleged misconduct has been previously before the Court in a motion filed by co-defendant Mid-South. In April of 1992, MidSouth filed a motion for a protective order and sanctions as a result of plaintiffs’ out-of-state law firm, Moody, Strople & Kloeppel, Ltd. (“Moody”), having had contact with defendant Mid-South’s employees after the institution of this lawsuit. On June 17, 1992, the Court held a hearing on that matter and announced its decision orally in open court with a minute entry being made on the docket. The Court found that the Moody firm, through its investigator, had violated the appropriate rules on professional conduct by interviewing some of the defendant’s employees after this lawsuit was filed and after defendant MidSouth was represented by counsel. The Court further found that the investigator may have misled some of the employees concerning whom he represented, his role in the process, and the nature of the situation between the plaintiffs and the defendants by minimizing the fact that the investigator was trying to find evidence which would prove the interviewees’ employer was negligent.

As a result of these findings, the Court, among other things, directed that (1) the investigator be removed and not further participate in the case, (2) plaintiffs were required to identify all interviewed employees and produce copies of all interview notes, (3) plaintiffs’ counsel and investigators were forbidden to contact any other MidSouth employee except through counsel of defendant, and (4) the Court assessed reasonable attorney’s fees against plaintiffs’ law firm for defendant’s having had to bring the motion. (Pleading 157)

On June 27, 1992, the Court rejected defendant MidSouth’s further request that the Court impose more severe sanctions. It found that plaintiffs’ counsel had not acted in bad faith. First, this is a multi-jurisdictional situation. The lawsuit was brought in North Carolina, the principal law firm is from Virginia, and the employees were interviewed in other states. A legitimate question arose as to whose code of conduct governed. Furthermore, once the matter became an issue, plaintiffs’ counsel had been candid with the Court about his contacts and cooperative by ceasing further contacts and himself suggested some of the terms in the Court’s subsequent remedial order. Consequently, defendant was unable to show any prejudice as a result of plaintiffs’ counsel’s actions. In addition, plaintiffs’ counsel voluntarily gave defendant CSX the benefit of the Court’s ruling even though defendant CSX declined to join in defendant MidSouth’s motion, but rather decided to hold back its claim for sanctions until later.

Pursuant to the voluntary extension of the Court’s Order to include CSX, plaintiffs’ counsel disclosed all contacts between him or his investigator and CSX employees and the interview notes. From this, defendant CSX determined there were the following contacts. One of the persons interviewed was the brakeman on the train in question. He was interviewed both before and after the lawsuit was filed. A person from a train yard through which the train traveled was also interviewed after the lawsuit was filed. Three persons who rebanded the train car were interviewed. Also, two members of a train crew which immediately followed the train allegedly causing plaintiffs injury were interviewed prior to the lawsuit. The others are car inspectors or employees who were asked if they had seen the trains drag metal bands.

In all, thirteen rank and file employees were interviewed in March or April of 1992. All but three of these contacts took place after suit had been filed and plaintiffs’ counsel knew that defendant CSX was represented by counsel. Defendant also emphasizes the improper behavior of plaintiffs’ investigator with respect to MidSouth employees when he allegedly attempted to get the witnesses to talk by implying that plaintiffs [107]*107were not contending MidSouth did anything wrong and misrepresenting his identity and interests.

Defendant CSX contends that plaintiffs’ counsel violated clear ethical rules by interviewing people who had a direct connection with the events of the accident. This includes the member of the train crew whose train car allegedly caused the accident and the employee at the train yard through which the train traveled, which was the last point wherein the train could have been inspected with respect to loose band problems.1 Both made statements with respect to banding indicating that it was a problem and such testimony may be harmful to defendant CSX’s case. CSX complains that the three people responsible for rebanding were also directly connected with the accident. Finally, defendant asserts that plaintiffs’ interviews with the other employees were improper because such interviews could constitute admissions pursuant to Fed.R.Evid. 801(d)(2)(D) as being statements made by a party’s agent or servant concerning a matter within the scope of the agency or employment. 1

Plaintiffs defend against the motion for a protective order and sanctions in two ways. First, they claim that these types of contacts with defendant’s employees were necessary because defendant has failed to answer interrogatories requesting CSX to name employees who have knowledge about the breaking of metal bands on lumber loads or the dragging of metal bands by trains. Defendant CSX apparently has said that such questions are burdensome. Plaintiffs say the only way they can obtain the information is by interviewing defendant’s employees, who would know if metal bands often dragged from the trains.

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Cite This Page — Counsel Stack

Bluebook (online)
149 F.R.D. 104, 1993 U.S. Dist. LEXIS 8837, 1993 WL 212863, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccallum-v-csx-transportation-inc-ncmd-1993.