State ex rel. Blue Cross & Blue Shield of Missouri

897 S.W.2d 167, 1995 Mo. App. LEXIS 742, 1995 WL 225187
CourtMissouri Court of Appeals
DecidedApril 12, 1995
DocketNo. 19482
StatusPublished
Cited by7 cases

This text of 897 S.W.2d 167 (State ex rel. Blue Cross & Blue Shield of Missouri) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Blue Cross & Blue Shield of Missouri, 897 S.W.2d 167, 1995 Mo. App. LEXIS 742, 1995 WL 225187 (Mo. Ct. App. 1995).

Opinion

PREWITT, Judge.

There are two consolidated underlying actions. St. John’s Medical Center vs. Blue Cross Hospital Services, Inc. of Missouri, was filed October 4, 1974, seeking monetary damages and an injunction. The action consolidated with it was filed against Relator September 17, 1976, by West Plains Memorial Hospital, Cardwell Memorial Hospital, Inc., Dexter Memorial Hospital, Dunklin County Memorial Hospital, St. Francis Hospital and Southeast Hospital seeking relief similar to that in the initial action. The delay in concluding these matters is not explained in the record before us.

Relator is a not-for-profit health care services corporation operating pursuant to Chapter 354 RSMo 1994. It enters into contracts to furnish specified health care benefits to persons it refers to as “members”. Those contracts have a provision purporting to prohibit members from assigning the benefits to health care providers. Relator also contracts with certain health care providers for them to provide services to those members. Apparently the contracts with the health care providers cover various health care services with a specified amount payable to the provider directly from Relator.

St. John’s Medical Center does not have a contract with Relator. When it furnishes services to a person who has a contract with Relator, it does not receive payment from Relator. It has received assignments from Relator’s members, but Relator has refused to honor the assignments. St. John’s instituted the first underlying lawsuit seeking damages when Relator failed to pay pursuant to various assignments and for an injunction requiring Relator to pay assigned benefits directly to it in the future. On October 18, 1974, a temporary injunction was issued requiring Relator to include St. John’s name on checks issued to its members for benefits provided by St. John’s. St. John’s and the other plaintiffs in the underlying actions have [169]*169dismissed their counts seeking monetary damages.

On February 28, 1994, St. John’s served a subpoena duces tecum upon an officer of Relator seeking to have produced at a deposition certain documents, including those that created this action. After various filings, hearings, and motions, the trial court entered a protective order which limited disclosure of certain documents to counsel and certain specified officials of Plaintiffs. Before producing the documents, Relator filed a Motion for Reconsideration. On April 5, 1994, Respondent denied that Motion and ordered production, but deferred the effect of the order for ten days to allow Relator to file a Petition for Writ of Prohibition. Following that filing, this Court granted a preliminary order on April 25, 1994.

Here, Relator seeks to prevent the trial court from allowing St. John’s Medical Center access to three documents: (1) the current pricing arrangements between Relator and hospitals in a thirteen-county area in Southwest Missouri; (2) studies of the relative costs of health care at hospitals in that area; and (3) a provision of a 1994 contract between Relator and Lester E. Cox Medical Center.

Relator contends, and apparently there is little, if any dispute, that officials at St. John’s who might have access to the disclosed documents have formed a corporation to establish a competitive network of health care providers in Southwest Missouri which would compete with Relator. Relator argues that the requested documents contain confidential and proprietary business information, the disclosure of which would cause irreparable harm to it. Cox Medical Center has also protested the disclosure of this information.

Prohibition can lie where irreparable harm may come to a litigant due to discovery, and appeal is not adequate to rectify the harm. See State ex rel. Douglas Toyota III v. Keeter, 804 S.W.2d 750, 752 (Mo. banc 1991); State ex rel. Faith Hospital v. Enright, 706 S.W.2d 852, 855 (Mo. banc 1986); State ex rel. Noranda Aluminum, Inc. v. Rains, 706 S.W.2d 861, 862-863 (Mo. banc 1986); State ex rel. Less v. O’Brien, 814 S.W.2d 2, 4 (Mo.App.1991); see also Note, The Writ of Prohibition in Missouri, Wash. U.L.Q. 511, 522 and 524 (1972) (prohibition often issued in discovery matters when appeal an inadequate remedy).

In State ex rel. Anheuser v. Nolan, 692 S.W.2d 325, 328 (Mo.App.1985), the Eastern District of this Court stated:

Determination of the appropriate boundaries of discovery requests involves “the pragmatic task of weighing the conflicting interests of the interrogator and the respondent.” [State ex rel. Hoffman v. Campbell, 428 S.W.2d 904, 906 (Mo.App.1968).] Therefore, in ruling upon objections to discovery requests, trial judges must consider not only questions of privilege, work product, relevance and tendency to lead to the discovery of admissible evidence, but they should also balance the need of the interrogator to obtain the information against the respondent’s burden in furnishing it. Included in this burden may well be the extent of an invasion of privacy, particularly the privacy of a non-party. See State ex rel. Boswell v. Curtis, 334 S.W.2d [757,] 763 [ (Mo.App.1960) ]. Thus, even though the information sought is properly discoverable, upon objection the trial court should consider whether the information can be adequately furnished in a manner less intrusive, less burdensome, or less expensive than that designated by the requesting party. See State ex rel. Albert v. Adams, 540 S.W.2d 26, 30-31 (Mo. banc 1976).

Each matter dealing with protective orders in discovery matters must be considered on its own facts and circumstances. State ex rel. Charterbank Springfield, N.A. v. Donegan, 658 S.W.2d 919, 923 (Mo.App.1983). “Prohibition has been the vehicle for granting relief from an excessively broad protective order.” Id. at 924.

Rule 56.01(c)(7) provides in part that:

For good cause shown, the court ... may make any order which justice requires to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense, including ... (7) that a trade secret or other confidential research, development, or commercial information [170]*170not be disclosed or be disclosed only in a designated way.

As this Rule is identical to Rule 26(c), Fed.R.Civ.P., and apparently came from it, federal law, in interpreting its rule, is strong, persuasive authority as to the meaning of the Missouri rule. Butler v. Hurlbut, 826 S.W.2d 90, 94 (Mo.App.1992).

In applying the federal rule the courts have generally adopted the following criteria for determining whether information is a trade secret:

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897 S.W.2d 167, 1995 Mo. App. LEXIS 742, 1995 WL 225187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-blue-cross-blue-shield-of-missouri-moctapp-1995.