Palltronics, Inc. v. PALIoT Solutions, Inc.

District Court, E.D. Michigan·Decided September 30, 2025·No. 2:22-cv-12854·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

PALLTRONICS, INC., Case No. 22-12854

Plaintiff, Denise Page Hood v. United States District Judge

PALIoT SOLUTIONS, INC., Curtis Ivy, Jr. United States Magistrate Judge Defendant. __________________________/

ORDER DENYING DEFENDANT’S MOTION TO QUASH SUBPOENAS (ECF No. 97)

Presently before the Court is Defendant’s motion to quash Document Request No. 3 of the subpoenas that Plaintiff served on non-party entities Ultimate Linings, LLC (“UL”), Air and Liquid Systems, Inc. (“ALSI”), FANUC America Corporation (“FANUC”), ATS Assembly and Test, Inc. (“ATS”), Microban International, Ltd. (“Microban”), and BASF Corporation (“BASF”) (collectively, “non-parties”). (ECF No. 97). The motion is fully briefed. (ECF Nos. 98, 99). For the following reasons, Defendant’s motion is DENIED. I. BACKGROUND Though Plaintiff’s subpoenas contained the same six document requests, Defendant only takes issue with Document Request No. 3. This request reads as follows: Produce Documents and Communications that refer or relate to the PALIoT Pallet, including but not limited to documents that refer to or relate to the features, benefits, or usage of the PALIoT Pallet, or the research, conception, design, specifications, development, manufacture, assembly, use, or business application of the PALIoT Pallet.

(See, e.g., ECF No. 97-1, PageID.4588). Defendant seeks an order from the Court quashing this document request. The subpoenaed non-parties are all vendors from which Defendant purchases products or services used to manufacture its pallet. (ECF No. 97, PageID.4564-66 (describing Defendant’s relationships with the non-parties)). Defendant asserts that it considers its business information in the non-parties’ possession to be confidential and proprietary; Defendant also asserts that disclosure of that information would harm its business, especially if disclosed to a competitor. (Id.). Defendant provided a sworn declaration from Star Smith, Defendant’s former Director of Quality, averring to the same. (ECF No. 97-1).

Defendant contends that it has standing to move to quash Document Request No. 3 because of its personal interest in its confidential and proprietary business information. (ECF No. 97, PageID.4567-68). In doing so, Defendant emphasizes its non-disclosure agreements (“NDAs”) with UL, ALSI, BASF, and ATS.

Defendant did not, however, include copies of the NDAs with its motion. (Id. at PageID.4564-66, PageID.4568). From there, Defendant objects to Document Request No. 3 as (1) irrelevant, (2) overbroad and therefore unduly burdensome on the non-parties, (3) seeking confidential information, and (4) premature considering the then-pending motion for a protective order.1 (Id. at PageID.4568-

72). Plaintiff opposes Defendant’s motion, arguing that Defendant’s confidentiality interest does not confer standing to move to quash the subpoenas.

(ECF No. 98, PageID.4657-59). Plaintiff also maintains that its then-proposed protective order adequately protected any confidentiality concerns. (Id. at PageID.4657-59). It also posits that because Defendant is a party before the Court, it lacks the standing to challenge Plaintiff’s subpoenas on relevance or undue

burden grounds. (Id. at PageID.4657-58). And Plaintiff argues that Defendant’s relevancy objection is meritless. (Id. at PageID.4659-60). Plaintiff did not address any further Defendant’s undue burden, confidentiality, or prematurity arguments.

In its reply brief, Defendant argues that Plaintiff is mistaken regarding standing, affirms the legitimacy of its relevance objection, points out Plaintiff’s failure to address some of its arguments, urges the Court to consider those unaddressed issues conceded, and asks the Court to grant its motion. (ECF No. 99,

PageID.4665-68). Defendant also states that any production in response to

1 The Court granted Plaintiff’s motion for a two-tiered protective order and entered such an order on May 20, 2025. (ECF Nos. 100, 101). Document Request No. 3 should “occur only pursuant to the protective order.” (Id. at PageID.4668).

II. ANALYSIS A. Governing Standards As this Court has said elsewhere:

Generally, a party has “‘no standing to seek to quash a subpoena directed to a non-party.’” Underwood v. Riverview of Ann Arbor, No. 08-CV-11024-DT, 2008 WL 5235992, at *1 (E.D. Mich. Dec. 15, 2008) (quoting United States v. Wells, No. 06-10589, 2006 WL 3203905, at *2 (E.D. Mich. Nov. 3, 2006)). But if the moving party shows that the third-party subpoena would violate their privilege or personal right, they may have standing. Mann v. Univ. of Cincinnati, 114 F.3d 1188 (6th Cir. 1997). The party seeking to quash a third-party subpoena must meet a heavy burden of proof. Wells, 2006 WL 3203905, at *2. For example, a party who makes no claim of privilege or personal right considering the heavy burden lacks standing to quash a third-party subpoena. Underwood, 2008 WL 5235992, at *1.

Williams v. Eastpointe Cmty. Schs., No. 2:23-cv-12155, 2025 WL 1118579, at *1 (E.D. Mich. Apr. 15, 2025). See Ajuba Int’l, LLC v. Saharia, No. 11-cv-12936, 2014 WL 4793846 (E.D. Mich. Sept. 25, 2014) (adding that a party may have standing to quash a subpoena directed at a non-party if that party asserts a “proprietary interest”). To satisfy its “heavy burden,” a party-movant cannot rely on conclusory assertions of a protectable interest or privilege. See Swisher v. Apex Mktg. Mgmt. Inc., No. 2:25-cv-00434, 2025 WL 2450700, at *4 (S.D. Ohio Aug. 26, 2025) (“Defendants must make more than conclusory assertions of an interest or privilege.”) (internal quotation and citations omitted); Carty v. Metro. Life Ins. Co., No. 3:15-cv-01186. 2018 WL 3861827, at *3 (M.D. Tenn. Aug. 14, 2018)

(holding that “Rule 45 requires more than bald statements that the material demanded is sufficient to confer standing”) (internal quotations omitted). All that said, a subpoena served on a non-party under Rule 45 “is subject to

the same discovery limitations as those set out in Rule 26.” State Farm Mut. Auto. Ins. Co. v. Warren Chiropractic & Rehab Clinic, P.C., 315 F.R.D. 220, 224 (E.D. Mich. 2016) (internal quotation and citation omitted). Under Rule 26, parties may obtain discovery related to any nonprivileged

matter relevant to any party’s claim or defense and proportional to the needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’

resources, the importance of discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit. Information within this scope of discovery need not be admissible in evidence to be discoverable. Fed. R. Civ. P. 26. “Although a [party] should not be denied

access to information necessary to establish her claim, neither may a [party] be permitted to ‘go fishing,’ and a trial court retains discretion to determine that a discovery request is too broad and oppressive.” Superior Prod. P’ship v. Gordon

Auto Body Parts Co., 784 F.3d 311, 320-21 (6th Cir. 2015) (citing Surles ex rel. Johnson v. Greyhound Lines, Inc., 474 F.3d 288, 305 (6th Cir. 2007)). A party seeking discovery may move for an order compelling an answer, designation,

production, or inspection. Fed. R. Civ. P. 37. B.

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Palltronics, Inc. v. PALIoT Solutions, Inc., (E.D. Mich. 2025).

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