State v. American Pipe & Construction Co.

41 F.R.D. 59, 1966 U.S. Dist. LEXIS 10194, 1966 Trade Cas. (CCH) 71,883
CourtDistrict Court, D. Hawaii
DecidedAugust 22, 1966
DocketCiv. A. No. 3157, W. D. Wash., S. D.; Civ. A. No. 6568, W. D. Wash., N. D.; Civ. A. No. 65-266, D. Or.; Civ. A. No. 2360, D. Hawaii.; Civ. A. No. 9160, N. D. Cal., N. D.; Civ. A. No. 42929, N. D. Cal., S. D.; Civ. A. No. 64-832, S. D. Cal., C. D.; Civ. A. No. 3398, S. D. Cal., S. D.
StatusPublished
Cited by10 cases

This text of 41 F.R.D. 59 (State v. American Pipe & Construction Co.) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. American Pipe & Construction Co., 41 F.R.D. 59, 1966 U.S. Dist. LEXIS 10194, 1966 Trade Cas. (CCH) 71,883 (D. Haw. 1966).

Opinion

PENCE, Chief Judge.

The government and all other plaintiffs in the above actions have brought [61]*61civil antitrust suits against the defendants for money damages. In the course of the extensive but consolidated pre-trial discovery hearings found necessary for the expeditious handling of the multitude of cases here involved, the recurring problem of such civil antitrust litigation, viz., the determination of the propriety of release of grand jury testimony for deposition discovery purposes, is again presented to this court for resolution.

After hearings beginning in September 1962, indictments against most of the present defendants were returned on March 10, 1964 by a grand jury in the Southern District of California, charging them with violations of the Sherman Antitrust Act in the manufacture and sale of their several concrete and steel pipe product lines. On March 30, 1964, the defendants named in those indictments plead nolo contendere. The judge before whom the pleas were made directed counsel for both the defendants and the government to submit confidential reports to the probation officer for use in preparing a presentence investigation report. Pursuant to those directions, the government prepared and turned over to the probation officer a “Memorandum of Government Relating to the Imposition of Sentences and Fines.”

The government admits that the document contained information coming within the purview of the grand jury secrecy provision of Rule 6(e) of the Federal Rules of Criminal Procedure. The sentencing judge, in exercise of his discretion, permitted defense counsel to inspect the Memorandum before their clients were sentenced.

Before the termination of the criminal proceedings, six competitor private treble damage suits had been commenced against the corporate defendants who had been indicted,1 and subsequent to the imposition of sentences, the plaintiffs in those civil actions sought access to the government Memorandum. The judge hearing those suits, on October 6, 1964, ruled that the sealing order on the Memorandum should be vacated and ordered disclosure of the same to the civil plaintiffs as part of discovery proceedings.

On appeal from that ruling,2 the court sustained (with certain modifications) the district court’s order unsealing the Memorandum.

Since the conclusion of the criminal proceedings, the government as well as some 400 “end-user” plaintiffs have filed treble damage actions against the present defendants in all districts in the states of Hawaii, Washington, Oregon and California.

In December 1965, this judge was assigned to sit in all those districts and handle all of the “pipe” cases, both “competitor” and “end-user” wherever filed in the Ninth Circuit, and all “pipe” cases then and thereafter filed in any district have been transferred to my calendar.

On February 28, 1966, over the government’s objections, this court by PreTrial Order No. 3 (End-User), consolidated all discovery in all end-user cases and as a part of such consolidation ordered the government to cooperate and work in concert with all other end-user plaintiffs in all discovery proceedings.

On June 30, 1966, over strong opposition of defense counsel, this court ordered that in the taking of depositions, counsel for the United States was authorized to (1) suggest to other plaintiffs’ counsel subject matters of inquiry for particular witnesses and (2) discuss with other plaintiffs’ counsel matters into which the government desired inquiry to be made (including, by inference, authority to apprise counsel interrogating for plaintiffs at any deposition that the testimony of a [62]*62witness is or may be inconsistent with his grand jury testimony). The order expressly provided, however, that counsel for the government should not refer or otherwise make available to counsel for any other plaintiff a copy of the grand jury transcript or any portion thereof, or extracts or summaries thereof, or reveal to non-government counsel the specific testimony of any witness except to the witness himself.

Defendants have now moved (1) the court for reconsideration of that order on the ground that the order permits disclosure of matters occurring before the grand jury to persons other than attorneys for the government in the performance of their duties, claiming that such disclosure would be in violation of Rule 6(e) of the Federal Rules of Criminal Procedure, or (2), in the alternative, that the court certify the order as appealable pursuant to 28 U.S.C. § 1292(b).

Rule 6(e) specifically authorizes government attorneys to use matters occurring before the grand jury (other than its deliberations and votes) in the performance of their duties. This, of course, includes the use by the government of grand jury transcripts in preparing civil cases for trial.3

Under the Publicity in Taking Depositions Act, 15 U.S.C. § 30, all depositions taken on behalf of the government in a private antitrust action are required to be open to the public. As indicated above, this court by Section III-B of PreTrial Order No. 3 (End User) ordered that all

“depositions shall be taken by the plaintiffs on a joint basis. Insofar as possible, plaintiffs shall select one counsel to conduct the interrogation of each deponent; provided, however, that counsel for other plaintiffs may also examine any such deponent on any subject on which examination is permitted under this order peculiar to a case or cases in which that counsel is of record. No duplicative examination will be permitted by such other counsel.”

By virtue of that order it is conceivably possible that government attorneys could act as interrogating counsel in taking all depositions and, if so, the grand jury transcripts would be available for use by them, and the information in the depositions elicited as a result thereof would become open for use by all plaintiffs. However, it was never the intention of the court that the government counsel would be saddled with the burden of examining all deponents, and it is not necessary that they should carry such a burden.

One of the reasons for this court’s order in Section III-B was to limit the number of times a witness could be deposed. Most if not all of the depositions contemplated by the plaintiffs will be of employees, past and present, of the Defendants, including in that term, of course, many of the top administrative officials of the defendant corporations. The tightly timed series of some 50 depositions has already been scheduled and if there is not close cooperation between government and other plaintiffs’ counsel in the taking of those depositions, this court’s discovery program aimed at bringing the government case to trial in October 1967 and making all other plaintiffs’ cases ready for trial within a very short period thereafter, will fail. These are compelling reasons for permitting the government to make suggestions and disclosures to other plaintiffs’ counsel within the limits of the June 30, 1966 order.

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41 F.R.D. 59, 1966 U.S. Dist. LEXIS 10194, 1966 Trade Cas. (CCH) 71,883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-american-pipe-construction-co-hid-1966.