Ohio Fresh Eggs, LLC v. Smith & Kramer, PC

CourtDistrict Court, S.D. Ohio
DecidedSeptember 2, 2022
Docket2:20-cv-05267
StatusUnknown

This text of Ohio Fresh Eggs, LLC v. Smith & Kramer, PC (Ohio Fresh Eggs, LLC v. Smith & Kramer, PC) 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
Ohio Fresh Eggs, LLC v. Smith & Kramer, PC, (S.D. Ohio 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

OHIO FRESH EGGS, LLC, et al.,

Plaintiffs,

v. Civil Action 2:20-cv-5267 Judge James L. Graham Magistrate Judge Jolson

SMITH & KRAMER, PC, et al.,

Defendants.

OPINION AND ORDER

This matter is before the Court on Defendants’ Motion to Compel (Doc. 52). For the reasons that follow, the Motion is GRANTED in part and DENIED in part. The subpoena is modified so as not to require the production of communications involving the 2018 investigation by the EPA. Plaintiffs are ORDERED to review the documents collected by KMK and produce any non-privileged documents, as well as a privilege log for any withheld documents, to Defendants within thirty (30) days of the date of this Opinion and Order. Plaintiffs’ requests for sanctions and additional modification of the subpoena are DENIED. Additionally, the parties identified several other discovery matters in a recent status report and, with regard to one dispute, requested leave to file additional discovery motions. (Doc. 65). Those requests are DENIED without prejudice. I. BACKGROUND Previously, the District Judge thoroughly described the background giving rise to this action. (Doc. 24 at 1–4). Still, the Undersigned briefly notes Plaintiffs’ key allegations. Plaintiffs Ohio Fresh Eggs, LLC and Ohio Investments Co., LLC purchased Ohio egg farm facilities in 2004. (Doc. 1, ¶ 8). The facilities were not purchased unencumbered—they were acquired subject to a Consent Decree entered by the prior owner with the Environmental Protection Agency (“EPA”) and Department of Justice (“DOJ”). (Id., ¶ 9). The Consent Decree required the development and implementation of emission control plans (id.) and its obligations were to be imposed on any subsequent transferees (Doc. 9-5 at 4). Throughout the 2004 purchase, Defendants Smith &

Kramer, P.C., William Sidney Smith, and Jan Mohrfeld Kramer represented Plaintiffs. (Doc. 1, ¶ 10). Then, roughly seven years later, when Plaintiffs decided to lease the facilities to Trillium Holdings, LLC (“Trillium”), Defendants drafted the lease agreements. (Id., ¶¶ 13–14). The lease agreements drafted in 2011 failed to address the Consent Decree. (Id., ¶¶ 16, 19). By 2018, Trillium found itself under investigation by the EPA for violating the Consent Decree. (Id., ¶ 17). Trillium, claiming it had no notice of the Consent Decree and did not agree to assume its obligations, notified Plaintiffs of a potential claim for indemnification. (Id., ¶¶ 17– 19). Plaintiffs claim that Defendants’ failure to advise them properly about whether to provide notice of the lease to the EPA and DOJ, or to address the Consent Decree in the lease agreement,

constitutes malpractice. (See id., ¶¶ 16, 27–38; Doc. 24 at 5–6). Recently the parties advised the Court of various discovery disputes. (Doc. 47). One dispute concerns a subpoena duces tecum served on the law firm Keating, Muething & Klekamp, PLL (“KMK”) in December 2021. (Id. at 7–8). Plaintiffs are former clients of KMK, which they retained to assist them in compliance with the Consent Decree from 2004 to 2011. (Doc. 61 at 5). KMK initially represented that responsive, non-privileged documents would be produced to Defendants. (Doc. 47 at 7–8). But a subsequent letter from Plaintiffs, describing their position that the materials requested by the subpoena were irrelevant or privileged, brought production to a standstill. (Id.). The Court granted Defendants leave to file a motion to compel the production (Doc. 50), which they did (Doc. 52). KMK filed a response to clarify the procedural history surrounding the subpoena, and Defendants replied. (Docs. 54, 56). Particularly, KMK advised that it received the subpoena in mid-December 2021, and when it served its responses and objections to the subpoena upon counsel on January 4, 2022, began

collecting responsive documents and information. (Doc. 54 at 1). On January 6, Plaintiffs’ counsel notified KMK and Defendants that he would undertake a privilege review of the discovery before it could be produced to Defendants. (Id. at 1–2). By January 18, KMK notified Plaintiffs’ counsel that the responsive documents, comprising approximately 100 file folders of paper documents and 2 GB of electronic information, were ready for his inspection at KMK’s office. (Id. at 2). Thereafter, on January 28, “[t]o move matters along,” KMK sent the electronic information to Plaintiffs’ counsel directly. (Id.). Plaintiffs’ counsel came once to KMK’s office to inspect the paper files, on February 22, but he did not complete his review. (Id.). In the intervening months, though the parties engaged in some conferral efforts regarding the subpoena, Plaintiffs did not produce any of the documents collected by KMK, nor did they prepare a privilege log asserting

their basis for withholding the documents. (Doc. 56 at 2–3; Doc. 61 at 2). Plaintiffs failed to file a timely opposition to the present Motion. Yet, when they later requested leave of Court to do so (Doc. 57), that request was granted in the interest of having a fully developed record on the merits of the Motion (Doc. 60). Plaintiffs then filed their opposition (Doc. 61), and Defendants filed an additional reply (Doc. 63). The matter is now fully briefed and ripe for consideration. II. DISCUSSION Defendants move the Court to compel the production of the responsive materials collected by KMK. (Doc. 52 at 1–2). And KMK, for its part, “remains ready” to produce those documents upon agreement by the parties or the Court’s order. (Doc. 54 at 2). It has withheld the documents consistent with Plaintiffs’ counsel’s representation that he would need to conduct a privilege review before anything was produced. (Id. at 2). And given that “[t]he attorney-client privilege is the client’s to assert and here the client has not waived it[,]” it waits for either permission from

Plaintiffs or compulsion from the Court. (Id. at 3). Defendants say compelling the production is appropriate given that: the materials sought in the subpoena are relevant to the claims and defenses of this case (Doc. 52 at 10–14); none of the requested material is privileged, due in part to Ohio’s self-protection exception to privilege (id. at 14–20); and the subpoena is not unduly burdensome given the needs of the case (id. at 20–21). Plaintiffs say the subpoena seeks irrelevant information and is not proportional to the needs of the case. (Doc. 61 at 4–8). Still more, they say the information sought is privileged (id. at 8– 14) and Defendants should be sanctioned for failing to comply with Rule 45(d)(1) (id. at 14–17). Finally, they ask that if the subpoena is enforced, it be narrowed to only the production of records relating to the 2011 lease negotiations. (Id. at 17–18).

A. Relevance and Proportionality Rule 26(b) of the Federal Rules of Civil Procedure provides that “[p]arties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case.” Fed. R. Civ. P. 26(b)(1). Rule 45, for its part, provides that when a subpoena has been objected to, “the serving party may move the court for the district where compliance is required for an order compelling production or inspection.” Fed. R. Civ. P. 45(d)(2)(B)(i). “The proponent of a motion to compel discovery bears the initial burden of proving that the information sought is relevant.” Gruenbaum v. Werner Enters., Inc., 270 F.R.D. 298, 302 (S.D. Ohio 2010) (citation omitted).

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Ohio Fresh Eggs, LLC v. Smith & Kramer, PC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-fresh-eggs-llc-v-smith-kramer-pc-ohsd-2022.