State Ex Rel. Humphrey v. Philip Morris Inc.

606 N.W.2d 676, 2000 Minn. App. LEXIS 168, 2000 WL 198336
CourtCourt of Appeals of Minnesota
DecidedFebruary 22, 2000
DocketC2-99-885, C4-99-886 and C6-99-887
StatusPublished
Cited by16 cases

This text of 606 N.W.2d 676 (State Ex Rel. Humphrey v. Philip Morris Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Humphrey v. Philip Morris Inc., 606 N.W.2d 676, 2000 Minn. App. LEXIS 168, 2000 WL 198336 (Mich. Ct. App. 2000).

Opinion

OPINION

TOUSSAINT, Chief Judge

Appellants, domestic and British tobacco companies and tobacco organizations, challenge the district court’s decision to lift its earlier protective orders after the completion of litigation and allow public access to certain documents produced during discovery. They argue that the court failed to use the proper standard in reaching its decision to modify the protective orders. Even if the proper standard was used, appellants contend that the district court committed other legal errors bearing on whether disclosure was warranted, including a failure to conduct a document-by-document review of the material subject to claims of attorney-client privilege or work-product doctrine. In any event, they claim that the district court erred as a matter of law in ruling that the disclosure was authorized under the consent judgment. Finally, they contend that the disclosure order constituted a taking of property without just compensation. We affirm, holding that the district court did not abuse its discretion in lifting the protective orders or in deciding discovery disputes and that the disclosure order did not cause a taking without just compensation.

FACTS

In 1994, the State of Minnesota and Blue Cross and Blue Shield of Minnesota sued domestic and British tobacco companies and tobacco organizations on various theories, seeking injunctive relief and damages for health-care costs related to smoking. 1 On June 16, 1995, the district court issued a protective order allowing the par *681 ties to designate discovery documents as confidential based on a good-faith determination that they constituted “a trade secret or * * * confidential, private, or similarly protected information under applicable statutory or common law.” It ordered the parties to maintain a document depository, into which all documents produced in the action would be placed. The court warned that the protective order did not create a presumption that the designated documents were confidential and also stated that the order could be modified by the court sua sponte or on motion by the parties for good cause shown. Finally, the order stated that these provisions would remain in effect after the conclusion of the action, and that the court would issue an order addressing the use of confidential materials at trial or at the conclusion of the case.

1. M Indices

Throughout the pretrial period and during trial, there were numerous hearings, orders, and appeals related to discovery. Respondents sought discovery from the domestic appellants of the 4A indices (named after a paragraph in one of the district court orders), which are litigation databases designed and prepared by appellant’s lawyers in preparation for and in response to lawsuits. Domestic appellants describe them as “custom-designed computerized indices, which have cost millions of dollars to create and maintain” and which “contain records of millions of documents culled by lawyers from their clients’ files,” with “both objective identifying information and subjective analysis and commentary.” They asserted that these indices were protected by the work-product doctrine.

In a March 29, 1995, case-management order, the district court ordered all parties to produce any existing indices of documents, along with the documents. It specified that only objective information from the indices need be provided and indicated that any such information arguably protected by the attorney-client privilege or work-product doctrine need not be included. On July 17, 1995, the court again ordered production of indices and, to the extent there were claims of attorney-client privilege or work-product doctrine, ordered an in camera inspection. It issued a similar order for in camera review on August 10, 1995. The domestic appellants made a motion for permission to present exemplar discs providing samples for review, which the court granted on August 17,1995.

On November 1, 1995, the court addressed the domestic appellant’s claim that the 4A indices constituted protectable work product. First, it found that respondents had demonstrated “substantial need and inability to obtain the equivalent without undue hardship.” It ordered objective portions of the indices disclosed, ruling that the “mere selection of documents” would not reveal “counsel’s mental impressions, strategies, [or] thought processes” because “[u]nlike identifying a few significant documents out of thousands, the sheer number of documents identified in the indexes at issue provides protection.” The court allowed appellants to redact any subjective portions that might reveal protected opinion work product.

The domestic appellants then sought review of the decision by petitioning this court for a writ of prohibition or mandamus. After reviewing material submitted for an in camera review, this court denied the petition, ruling that the district court was “authorized to order discovery of work-product materials under certain circumstances.” State, by Humphrey v. Philip Morris, Inc., No. CX-95-2536, 1995 WL 862582, at *1 (Minn.App. Dec.26, 1995). This court also noted that the district court had made specific findings that the “computerized databases include fields containing objective information,” whose release would not reveal protected information. Id. This court noted that the district court found unpersuasive the argument that “the mere selection of docu *682 ments for inclusion in the databases would reveal attorney strategies.” Id. The Minnesota Supreme Court denied appellants’ petition for further review, and the United States Supreme Court denied their petition for a writ of certiorari. State, by Humphrey v. Philip Morris Inc., No. CX-95-2536 (Minn. Feb. 27, 1996), cert. denied, 517 U.S. 1222, 116 S.Ct. 1852, 134 L.Ed.2d 952 (1996).

After exhausting appellate remedies, appellants filed another motion in the district court, requesting clarification or modification of the November 1, 1995, order, in an attempt to exclude certain indices or portions of indices from production. On Juné 7, 1996, the district court issued an order, entitled “Eighth Order Regarding Indi-ces,” denying appellants’ motion and again ordering them to produce the indices in redacted form. The district court also specified that the indices would be confidential and protected from general dissemination pursuant to the earlier protective order until the court ordered otherwise for good cause shown. In June 1996, domestic appellants produced the 4A indices to respondents.

2. Categorization Documents

According to domestic appellants, respondents sought discovery of more than 33,000,000 pages of documents. Appellants asserted attorney-client and work-product privilege 2 as to some 230,000 documents, which are estimated to contain more than 1,000,000 pages.

Briefly, the district court found that respondents had made a prima facie showing that the crime-fraud exception applied, based on appellants’ intentional public denial and minimization of health risks connected to smoking.

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Bluebook (online)
606 N.W.2d 676, 2000 Minn. App. LEXIS 168, 2000 WL 198336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-humphrey-v-philip-morris-inc-minnctapp-2000.