McCarty v. Bankers Insurance

195 F.R.D. 39, 27 Media L. Rep. (BNA) 1051, 1998 U.S. Dist. LEXIS 23078, 1998 WL 1285304
CourtDistrict Court, N.D. Florida
DecidedJune 9, 1998
DocketNo. 4:96-CV-420-MMP
StatusPublished
Cited by4 cases

This text of 195 F.R.D. 39 (McCarty v. Bankers Insurance) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCarty v. Bankers Insurance, 195 F.R.D. 39, 27 Media L. Rep. (BNA) 1051, 1998 U.S. Dist. LEXIS 23078, 1998 WL 1285304 (N.D. Fla. 1998).

Opinion

ORDER

PAUL, Senior District Judge.

The Court has received the parties’ mediation report noting an impasse, and this matter is now before the Court for re-consideration of the propriety, vel non, of the consented protective order which was entered in this case by the magistrate judge on June 19, 1997 (doc. 203). The following motions, which this Court has held in abeyance pending resolution of the propriety of the protective order, will also be addressed below:

Doc. 237 Plaintiff McCarty’s motion to seal his supplemental Rule 26(a)(2) disclosures.

Doc. 257 Parties’ joint motion for an order setting dates for pre-trial conference, trial and to reset pre-trial deadlines accordingly.

Doc. 277 Movants Times and Morgan’s motion to quash subpoena for deposition and for protective order.

Doc. 288 Defendant Blanton’s motion for summary judgment.

Doc. 291 Defendants Bankers, Meehan, and Delano’s motion for the court to take judicial notice.

Doc. 308 Defendant Blanton’s motion for sanctions.

Doc. 311 Defendants Bankers, Meehan, and Delano’s motion for summary judgment.

Doc. 343 Plaintiff McCarty’s motion to seal response to motion to compel Plaintiff to answer deposition questions.

BACKGROUND:

Plaintiff McCarty originally filed this action against Defendant Bankers Insurance Company and its officers, Meehan and Delano, and against two private investigators, Raynor and Matthews. McCarty later amended his complaint to include claims against an attorney, Blanton, who allegedly served as an intermediary between Bankers and the private investigators. McCarty’s claims arose from the private investigation of him undertaken by Bankers which ultimately resulted in an illegal wiretap being placed on McCarty’s phone. Investigator Raynor pleaded guilty to federal wiretapping charges as a result of his involvement in the investigation of McCarty. As a result of these events, the Florida Department of Insurance and Treasurer (the “DOI”) launched an investigation, pursuant to its authority under the Florida Insurance Code, to ascertain whether Defendant Bankers “has taken ac[41]*41tion to intimidate insurance regulators or otherwise undermine, manipulate or subvert the regulatory process.” (Doc. 225, p. 2). In June 1996, the DOI issued investigative subpoenas and a notice and order of investigatory hearing regarding the Bankers’ private investigation of its employee, McCarty. As a result of Bankers’ and others’ refusal to comply, the DOI sought enforcement of the investigative process from Judge Clark of the Leon County Circuit Court, whose denial of the petition was ultimately reversed by the First District Court of Appeal on April 16, 1997, thus permitting the DOI to proceed with its investigation of Bankers. A mandate in accordance with the court’s opinion was issued on June 12,1997.

Six days following entry of the First District’s mandate, this Court entered an unopposed protective order (doc. 203) which permitted the disclosure of allegedly confidential and private materials for the purposes of discovery among the parties.1 The protective order allowed discovery of these materials while reserving for the parties, any claims of privilege and admissibility, which if asserted at subsequent stages of the litigation would be determined by the Court. Three days following entry of the protective order, the DOI re-issued and served the investigative subpoenas for disclosure and production by August of 1997. The parties so served, including among others Defendant Blanton, refused to comply with the demands for disclosure and production, citing this Court’s protective order as a basis for their failure to comply therewith. Specifically, Blanton’s attorney advised the DOI that Bankers had instructed his client not to respond to the investigative subpoena based upon the attorney/client privilege and the protective order. The DOI requested that Bankers seek clarification or modification of the protective order from this Court to confirm that it is not intended to preclude the DOI from having access to the protected materials as defined thereby. Bankers refused to do so.

The Propriety, vel non, of the Protective Order A.

The Florida Department of Insurance, as a non-party, subsequently sought to appear in this action itself, for the limited purpose of seeking clarification or modification of the unopposed protective order. See DOI motion for permission to seek clarification/modification (doc. 225). This Court granted the DOI limited standing for the purpose of seeking clarification of the protective order. See Transcript of November 14,1997 hearing at p. 36. At the core of the DOI’s motion is its desire to have this Court clarify that the protective order does not preclude it from having access to the protected materials for its investigation. The DOI has since argued that it only desires modification to the extent that the protective order be read so as not to shield the parties thereto from producing materials which came into their possession either prior to the current litigation, or by way of discovery disclosure made pursuant to the protective order. Specifically, the DOI has proposed the following modification language:

Notwithstanding any other provision of this Protective Order, this Protective Order applies only to information or copies of documents (“materials”) obtained by and thus in the possession of a party by virtue of the discovery process in this proceeding. The protective Order does not apply to materials in the possession of any person or entity, whether or not a party, prior to litigation being initiated in this proceeding or not obtained or possessed as a result of discovery in this proceeding. Accordingly, the Protective Order does not prevent any person or entity from disclosing materials which were in the person or entity’s possession prior to this litigation or not obtained or possessed by that person or entity as a result of discovery in this case. If a person or entity wishes to claim any privilege with respect to any such material, such person or entity should do so in the appropriate court or proceeding. The assembly of protected materials authorized by this Protective Order does not apply to [42]*42materials falling outside the scope of the Protective Order as herein described, because such materials are not protected materials.

Proposed Protective Order Modification, (doc. 320).

The parties, and more ardently, Bankers, have opposed any modification of the protective order. Discovery in this matter had all but ground to a halt prior to entry of the protective order, and Bankers was unwilling to produce many documents absent an order compelling it to do so. Bankers was, however, willing to produce these documents during discovery under a protective order which preserved its right to assert any appropriate privileges should any allegedly privileged information be later introduced at trial. Once the protective order was entered, the parties were able to engage in a more meaningful exchange of information, and discovery has proceeded with much less friction since that time. Bankers’ original unwillingness to produce certain information absent a protective order was based upon its contention that most of the now-disclosed materials were protected by the attorney/client privilege.

Pursuant to 28 U.S.C. § 636

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195 F.R.D. 39, 27 Media L. Rep. (BNA) 1051, 1998 U.S. Dist. LEXIS 23078, 1998 WL 1285304, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccarty-v-bankers-insurance-flnd-1998.