Peralta v. Cendant Corp.

190 F.R.D. 38, 1999 U.S. Dist. LEXIS 18951, 81 Fair Empl. Prac. Cas. (BNA) 1328, 1999 WL 1133704
CourtDistrict Court, D. Connecticut
DecidedOctober 22, 1999
DocketNo. 3:98cv01452 (JBA)
StatusPublished
Cited by22 cases

This text of 190 F.R.D. 38 (Peralta v. Cendant Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peralta v. Cendant Corp., 190 F.R.D. 38, 1999 U.S. Dist. LEXIS 18951, 81 Fair Empl. Prac. Cas. (BNA) 1328, 1999 WL 1133704 (D. Conn. 1999).

Opinion

MEMORANDUM ORDER

ARTERTON, District Judge.

A. BACKGROUND

This dispute involves the assertion of attorney-client privilege by defendant during a deposition of a former employee of the defen[39]*39dant. Plaintiffs counsel subpoenaed Randi Klaber, plaintiffs former immediate supervisor and allegedly the decision-maker with regard to plaintiffs claims of employment discrimination. Klaber no longer is employed by defendant Cendant Corporation, though apparently her deposition was scheduled through the Cendant Human Resources office. Early in the deposition, plaintiffs counsel asked Ms. Klaber if she had spoken with anyone regarding the deposition. Ms. Klaber indicated that she had spoken to her husband and to Ms. Maureen Bresnan, attorney for Cendant who was present at the deposition representing defendant (but not Ms. Klaber). When plaintiffs counsel asked Ms. Klaber about her conversation with Ms. Bresnan, Ms. Bresnan objected, and instructed the deponent not to answer the question. Later in the deposition, subsequent to a break requested by the deponent, plaintiffs counsel asked Ms. Klaber what, if anything, she had discussed with Ms. Bresnan during the break. Defendant’s counsel again objected, and instructed her not to answer.

Plaintiffs counsel then contacted the Court regarding the privilege dispute. A short argument regarding the assertion of the attorney-client privilege was then held, on the record. Ms. Bresnan indicated at this point that her conversation with Ms. Klaber was a “two-way discussion,” Dep. at 103, in that the witness spoke to her about “the underlying facts in this case,” and Ms. Bresnan, in turn, spoke to the witness about “the defendant’s position.” Their conversation during the break, according to Ms. Klaber, involved a request for “guidance on how to answer a line of inquiry that she perceived may cause her problems or may be unclear.” Id. Ms. Klaber’s deposition was continued, and the parties submitted letter briefs.

B. Discussion

In Upjohn Co. v. United States, the Supreme Court held that a corporation’s attorneys’ conversations with corporate employees could be covered by the attorney-client privilege. 449 U.S. 383,101 S.Ct. 677, 66 L.Ed.2d 584 (1981). This privilege was found applicable by the Supreme Court to communications which: 1) were made to the corporate eoun-sel, acting as such; 2) were made at the direction of corporate superiors, for the purpose of securing legal advice from counsel; 3) concerned matters within the scope of the employees’ corporate duties; and 4) the employees were sufficiently aware that they were being questioned in order that the corporation could obtain legal advice. Id. at 394-95, 101 S.Ct. 677. If Ms. Klaber were still employed by Cendant, it is clear that her conversations with Ms. Bresnan about matters within Ms. Klaber’s corporate duties would be privileged. The Supreme Court’s decision, however, left open the question of whether communications between counsel and former employees were included within the privilege. Id. at 395, n. 3, 101 S.Ct. 677. Chief Justice Burger’s concurrence outlined his view of the boundaries of the privilege as including former employees:

A communication is privileged when, as here, an employee or former employee speaks at the direction of the management with an attorney regarding conduct or proposed conduct within the scope of employment.

449 U.S. at 403, 101 S.Ct. 677 (Burger, C.J., concurring). Defendant urges this Court to adopt Burger’s extension of the privilege to communications with former employee Kla-ber.

Several federal courts have addressed this issue, and determined that Upjohn’s rationale applies to former employees. In In re Coordinated Pretrial Proceedings in Petroleum Products Antitrust, the Ninth Circuit noted, in a footnote, that the attorney-client privilege covers communications with former employees because “former employees, as well as current employees, may possess the relevant information needed by corporate counsel to advise the client with respect to actual or potential difficulties,” and because “the attorney-client privilege is served by the certainty that conversations between the attorney and client will remain privileged after the employee leaves.” 658 F.2d 1355,1361 n. 7 (9th Cir.1981). In Amarin Plastics, Inc. v. Maryland Cup Corp., the court concluded that communications between a former employee and a corporate party’s counsel may be privileged, when the purpose of the com[40]*40munications was to give the former employer legal advice. 116 F.R.D. 36 (D.Mass.1987). The Fourth Circuit has also extended Upjohn’s analysis to former employees. Better Government Bureau, Inc. v. McGraw, 106 F.3d 582, 606 (4th Cir.1997) (finding that privilege precluded inquiry into interview conducted by investigatory attorney with former employee of agency).

The Second Circuit has not yet ruled on this issue, but several District Courts have considered the question in the context of deciding whether ex parte communications by opposing counsel with a former employee of a corporate party violated Model Rule 4.2. In Dubois v. Gradeo Systems, 136 F.R.D. 341 (D.Conn.1991), the court concluded that former employees of the defendant corporation were not “adverse parties” for the purposes of the Rule, with several caveats:

[S]ome former employees continue to personify the organization even after they have terminated their employment relationship. An example would be a managerial level employee involved in the underlying transaction, who is also conferring with the organization’s lawyer in marshaling the evidence on its behalf____ This kind of former employee is undoubtedly privy to privileged information, including work product, and an opposing lawyer is not entitled to reap a harvest of such information without a valid waiver by the organi-zation____

Id. at 346, quoting G. Hazard and W. Hodes, the Law of Lawyering: A Handbook on the Model Rules of Professional Conduct 436-436.1. Because the defendant in Dubois had not identified any specific privileged information to which the former employees were privy, a protective order was not justified. Id. See also Polycast Technology Corp. v. Uniroyal, Inc., 129 F.R.D. 621 (S.D.N.Y. 1990) (since defendant had not demonstrated that former employee was privy to specific privileged information, privilege did not attach); United States v. Housing Authority of the Town, of Milford, 179 F.R.D. 69, 72-73 (D.Conn.1997) (allowing ex parte contact with former employee; party asserting privilege had not met burden of demonstrating that former employee was acting as trial consultant).

Other courts have reached different conclusions. In Clark Equipment Co. v. Lift Parts Mfg. Co., No. 82C4585, 1985 WL 2917 (N.D.Ill, Oct. 1,1985), corporate counsel had asserted the attorney client privilege to preclude inquiry into predeposition, postemployment conversations with a former employee. The court concluded that Upjohn did not support an extension of the privilege in the situation presented:

Former employees are not the client. They share no identity of interest in the outcome of the litigation.

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190 F.R.D. 38, 1999 U.S. Dist. LEXIS 18951, 81 Fair Empl. Prac. Cas. (BNA) 1328, 1999 WL 1133704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peralta-v-cendant-corp-ctd-1999.