Smith v. BIC Corp.

121 F.R.D. 235, 1988 WL 58941, 1988 U.S. Dist. LEXIS 5240
CourtDistrict Court, E.D. Pennsylvania
DecidedMay 31, 1988
DocketCiv. A. No. 87-795
StatusPublished
Cited by2 cases

This text of 121 F.R.D. 235 (Smith v. BIC Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. BIC Corp., 121 F.R.D. 235, 1988 WL 58941, 1988 U.S. Dist. LEXIS 5240 (E.D. Pa. 1988).

Opinion

MEMORANDUM AND ORDER

TROUTMAN, Senior District Judge.

Presently before us in the above-captioned action are three (3) “appeals” from Orders entered by United States Magistrate Richard A. Powers, III, to whom this Court had referred the involved discovery disputes for resolution. This action arose out of a fatal fire which, according to plaintiff’s Complaint, occured on July 13, 1985. The plaintiff, Francis H. Smith, and his wife, Ethel E. Smith, suffered severe burns in the fire which resulted in the death of Mrs. Smith. The plaintiff brought this action as administrator of his wife’s estate and on his own behalf under Section 402A of the Restatement (Second) of Torts, common law negligence principles and for breach of warranty alleging that the fire resulted from the explosion of a disposable, non-refillable butane lighter designed, manufactured and/or sold by the defendants, BIC Corporation (hereinafter “BIC USA”) and Societe BIC, S.A. (hereinafter “BIC France”).

The initial discovery dispute resulted from defendant BIC USA’s refusal to answer certain of the plaintiff’s requests for discovery on the ground that the plaintiff’s interrogatories and requests for production of documents required it to disclose “confidential information” which, if publicly disclosed, would damage its competitive and financial standing in the marketplace. In response to the plaintiff’s motion to overrule its objections to his requests for discovery, BIC USA requested that this Court sustain its objections and/or enter a protective order pursuant to Fed.R.Civ.P. 26(c) which would preclude public disclosure of the information it seeks to maintain as confidential. As noted by Magistrate Powers, this information falls within three (3) general categories: (1) design information; [237]*237(2) information regarding other complaints and accidents; and (3) the results of safety tests performed on the lighter involved, a BIC “MOD II”.

In a Memorandum-Order dated September 24,1987, Doc. # 28, Magistrate Powers, in an exhaustive and well-reasoned opinion, denied BIC USA’s Motion For A Protective Order, overruled its objections to the plaintiff’s discovery requests and directed BIC USA to respond to the plaintiff’s outstanding interrogatories and requests for production of documents. The Magistrate found that BIC USA had failed to demonstrate that any of the “design information” that it claimed as “confidential” constituted “trade secrets”. He based his decision on: (1) the affidavit of John 0. Geremia, Ph.D., an engineer, in which Dr. Geremia stated that the design of the BIC MOD II could be divined through the process of “reverse engineering”; (2) evidence in the record that several major newspapers have published articles describing, in detail, the lighter’s design; (3) the fact that certain of the information was publicly disclosed by patents; and (4) defendant BIC USA’s admission that one of its competitors has already obtained the design information* which it claims as trade secrets. To the extent that BIC USA argued that it was entitled to a protective order as to “safety testing information” because disclosure of this information would reveal “design information”, the Magistrate denied BIC USA’s Motion for the reasons just stated, viz., that BIC USA had failed to demonstrate that the “design information” involved protectible trade secrets. As to information pertaining to other accidents and complaints involving the BIC MOD II, the Magistrate concluded that BIC USA had failed to demonstrate that public disclosure of this data would work a “clearly defined and serious injury” upon it, and therefore, that BIC USA had failed to establish “good cause” for the issuance of a protective order as required by Fed.R.Civ.P. 26(c).

In response to the Magistrate’s Memorandum-Order of September 24, 1987, Doc. #28, BIC USA “appealed” said Order to this Court pursuant to 28 U.S.C. § 636(b)(1)(A), Fed.R.Civ.P. 72(a) and Rule 7(IV)(a) of the Local Rules of Civil Procedure for the Eastern District of Pennsylvania. (See Doc. # 33.) BIC USA also asked the Magistrate to reconsider his decision. (See Doc. # 32.) At the same time, BIC USA sought to depose The Philadelphia Inquirer, one of the Inquirer’s reporters, Richard Burke, and John Geremia, the engineering expert who had “spoken” on the plaintiff’s behalf, by way of affidavit, in opposition to BIC USA’s request for a protective order.

The Philadelphia Inquirer had published an article, written by Burke, pertaining to the defendants’ manufacture of allegedly defective lighters. The Inquirer reported in the article that it had obtained numerous confidential internal documents belonging to BIC USA regarding the allegedly defective product. (See plaintiff's Memorandum of Law in support of its Motion to Overrule BIC USA’s Objections to its requests for discovery, Doc. # 14, Ex. A attached thereto.) Dr. Geremia, in his affidavit countering BIC USA’s claim that the design information sought by the plaintiff involved trade secrets, cited the Inquirer article as support for his claim that the allegedly confidential information was already in the public domain. (See plaintiff’s Answer to BIC USA’s Motion For Protective Order, Doc. # 23, Ex. A attached thereto.)

The Inquirer, Burke and Geremia, in response to the deposition subpoenaes served upon them by BIC USA, filed Motions to Quash the subpoenaes and requested that a protective order be entered precluding BIC USA from deposing them. (See Doc. ##31 and 38.) These Motions were also referred to Magistrate Powers for disposition.

On October 19, 1987, the Magistrate, in two, separate Memoranda-Orders, Doc. # # 42 and 43, again exhaustive and detailed in their analysis, granted the Motions of the Inquirer, Burke and Geremia to quash the subpoenaes BIC USA had served upon them, precluded BIC USA from deposing the three (3) and awarded the Inquirer, Burke and the plaintiff counsel fees and costs.

[238]*238As to the Inquirer and Burke, the Magistrate concluded, with regard to BIC USA’s attempt to force them to produce the internal BIC USA memoranda they claim to have and to disclose the source from which they obtained the documents, that BIC USA was not entitled to production of this information because: (1) the documents and their source are not relevant to this action since they are BIC USA’s own, internal documents, and thus, BIC USA already has access to the information contained therein and (2) the documents, as well as the identity of the informant who provided them, are privileged information within the scope of Pennsylvania’s Shield Law, 42 Pa.C.S.A. § 5942. With regard to BIC USA’s desire to learn the identity of the Inquirer’s and Burke’s “confidential informant”, the Magistrate further reasoned that BIC USA had not demonstrated that any interest it had in obtaining the identity of the source outweighed the Inquirer’s and Burke’s qualified privilege under the First Amendment to the United States Constitution not to divulge the identity of a confidential informant.

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Related

Smith v. Bic Corporation
869 F.2d 194 (Third Circuit, 1989)
Smith v. BIC Corp.
869 F.2d 194 (Third Circuit, 1989)

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Bluebook (online)
121 F.R.D. 235, 1988 WL 58941, 1988 U.S. Dist. LEXIS 5240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-bic-corp-paed-1988.