Rainbow Investors Group, Inc. v. Fuji Trucolor Missouri, Inc.

168 F.R.D. 34, 1996 U.S. Dist. LEXIS 14029, 1996 WL 410017
CourtDistrict Court, W.D. Louisiana
DecidedMay 13, 1996
DocketCivil Action No. 94-1860
StatusPublished
Cited by7 cases

This text of 168 F.R.D. 34 (Rainbow Investors Group, Inc. v. Fuji Trucolor Missouri, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rainbow Investors Group, Inc. v. Fuji Trucolor Missouri, Inc., 168 F.R.D. 34, 1996 U.S. Dist. LEXIS 14029, 1996 WL 410017 (W.D. La. 1996).

Opinion

RULING ON MOTION FOR RULE 26(c) PROTECTIVE ORDER

METHVIN, United States Magistrate Judge.

Before the court is a motion for Rule 26(c) protective order filed by plaintiff Rainbow Investors Group, Inc. d/b/a Dixie Color (“Dixie Color”) on April 12, 1996. The motion seeks to quash the scheduled deposition of plaintiffs counsel, Gerald C. Delaunay, set for May 31, 1996. Oral argument scheduled for April 24, 1996, was postponed at the request of defendants (collectively referred to as “Fuji”) in order for defendants to file a response to plaintiffs motion. Defendants filed an opposition on April 26, 1996. Plaintiff filed a supplemental memorandum in support of the motion for protective order entitled “Response Memorandum,” without leave of court, on May 2,1996.

In this lawsuit, plaintiff alleges breach of contract claims against the defendants. In response, defendants raised counterclaims against the plaintiff for breach of contract, tortious interference with contract and plaintiffs breach of duty of good faith and fair dealing. Central to the defendants’ claims and defenses is plaintiffs sale of assets to Qualex, Inc., a subsidiary of Kodak and competitor of the defendants, during the effective term of the contracts between the parties. [36]*36The sale of Qualex was handled on behalf of the plaintiff by Gerald C. Delaunay, now counsel of record in this case. According to the defendants, Delaunay negotiated, drafted and insisted on certain provisions in the Qualex sale specifically addressing defendants’ photofinishing contracts with plaintiff. Defendants contend that Delaunay was involved in plaintiffs efforts to sell its assets from as early as May 1993 when he drafted confidentiality agreements for use in plaintiffs sale negotiations with Qualex. Defendants further argue that Delaunay was the only person responsible for plaintiffs negotiations with and agreements reached between plaintiff and Qualex. Thus, it is defendants’ position that Delaunay has information pertaining to the Qualex-Dixie Color transaction which is otherwise unavailable and critical to the defendants’ defenses and counterclaims.

Federal Rule of Civil Procedure 26(b)(1) allows for discovery “regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action ...” Moreover, the Federal Rules of Civil Procedure do not specifically prohibit taking the deposition of counsel. See Fed. R.Civ.P. 30(a) (“any party may take the testimony of any person”). Thus, the party seeking the protective order to preclude their attorney’s deposition bears the burden under Rule 26(c) of demonstrating good cause to preclude or limit the testimony. . The party seeking to block its attorney’s deposition concerning relevant information will succeed if it establishes undue burden or oppression measured by (1) the quality of information in the attorney’s knowledge, that is, whether the deposition would be disproportional to the discovering party’s needs; (2) the availability of the information from other sources that are less intrusive into the adversarial process; and (3) the harm to the party’s representational rights of its attorney if called upon to give deposition testimony. Johnston Dev. Group v. Carpenters Local 1578, 130 F.R.D. 348, 353 (D.N.J.1990).

Taking the deposition of opposing counsel is a practice that has long been discouraged as disruptive of the adversarial system and one which should be employed only in limited circumstances. Shelton v. American Motors Corp., 805 F.2d 1323, 1327 (8th Cir.1986). See also In re Taxable Municipal Bonds Litigation, Civ. A. No. MDL 863, 1993 WL 45156, at *2 (E.D.La. Feb. 12, 1993). Nevertheless, the Supreme Court has made clear that when appropriate, an attorney may be forced to disclose those facts in his possession that are relevant to a lawsuit. In re: Taxable Municipal Bonds Litigation, supra. (citing Hickman v. Taylor, 329 U.S. 495, 511, 67 S.Ct. 385, 393-94, 91 L.Ed. 451 (1947)). The deposition of an attorney may be “both necessary and appropriate” where the attorney may be a fact witness, such as an “actor or viewer,” rather than one who “was not a party to any of the underlying transactions giving rise to the action,” or whose role in a transaction was “speculative and not central to the dispute.” Johnston, 130 F.R.D. at 352 (citations omitted).

Plaintiff argues that the burden is on the defendants to show that: (1) the facts sought to be discovered are not otherwise available through other discovery techniques; (2) the information sought is relevant and non-privileged; and, (3) the information is crucial to the preparation of the case. Shelton, 805 F.2d at 1323. However, I find that it is plaintiff who bears the burden of persuasion under Rule 26(c) as discussed above. Plaintiff further contends that even if the deposition of Delaunay were allowed to go forward, Delaunay should not be required to testify regarding information covered by the attorney-client privilege. However, while this proposition seems reasonable in theory, plaintiff offers nothing in either of his briefs to establish the privilege. The burden of proving the attorney-client privilege rests on the party claiming the privilege. A general allegation by plaintiff is insufficient.

For the attorney client privilege to apply, it must be shown that the communication was made confidentially, to the attorney in his professional capacity, and in order to obtain legal advice. United States v. Kelly, 569 F.2d 928, 938 (5th Cir.1978), cert. denied, 439 U.S. 829, 99 S.Ct. 105, 58 L.Ed.2d 123 (1978). More specifically, it must be proved that the asserted holder of the privilege made the communications as to which the [37]*37privilege is asserted to one acting as a lawyer, and that the communications were made “for the purpose of securing primarily either (i) an opinion on law or (ii) legal services or (iii) assistance in some legal proceeding.” United States v. Harrelson, 754 F.2d 1153, 1166 (5th Cir.1985) (citing In re Grand Jury Proceedings, 517 F.2d 666, 670 (5th Cir.1975)). A clear showing must be made that sets forth the items or categories objected to and the reasons for that objection. Peat, Marwick, Mitchell and Co. v. West, 748 F.2d 540 (10th Cir.1984); cert. denied, 469 U.S. 1199, 105 S.Ct. 983, 83 L.Ed.2d 984 (1985); United States v. Bump, 605 F.2d 548 (10th Cir.1979). Plaintiff has not carried his burden.

Defendants seek information concerning Delaunay’s knowledge of the facts underlying the Qualex sale. At the time that Qualex sale negotiations commenced (approximately May, 1993), the instant litigation was not pending, nor was litigation presumably anticipated by the parties.1 Thus, Delaunay’s role was primarily as negotiator of a business transaction on behalf of Dixie Color.

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168 F.R.D. 34, 1996 U.S. Dist. LEXIS 14029, 1996 WL 410017, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rainbow-investors-group-inc-v-fuji-trucolor-missouri-inc-lawd-1996.