Subasic v. State of Oregon

CourtDistrict Court, D. Oregon
DecidedFebruary 28, 2025
Docket3:24-cv-00553
StatusUnknown

This text of Subasic v. State of Oregon (Subasic v. State of Oregon) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Subasic v. State of Oregon, (D. Or. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON

SLOBODAN SUBASIC, Case No. 3:24-cv-00553-SB

Plaintiff, OPINION AND ORDER

v.

THE STATE OF OREGON by and through the OREGON LIQUOR AND CANNABIS COMMISSION, OREGON DEPARTMENT OF ADMINISTRATIVE SERVICES, and RICH EVANS, TRAVIS HAMPTON, LAURA GOMEZ, BERRI LESLIE, BRIAN LIGHT, NATHAN RIX, DANICA FOSTER, and CRAIG PRINS, as individuals,

Defendants.

BECKERMAN, U.S. Magistrate Judge. Plaintiff Slobodan Subasic (“Subasic”) filed this action against the State of Oregon, by and through the Oregon Liquor and Cannabis Commission (“OLCC”), the Oregon Department of Administrative Services (“DAS”), and several individually-named OLCC and DAS employees (together, “Defendants”). Subasic alleges violations of his constitutional rights and state law relating to OLCC’s termination of his employment. (First Am. Compl. (“FAC”), ECF No. 10.) The Court has jurisdiction over Subasic’s claims under 28 U.S.C. §§ 1331, 1343(3), and 1367. Defendants filed a motion to quash a subpoena that Subasic served on the Oregon Department of Justice (“DOJ”), seeking documents relating to DOJ’s criminal investigation into

Subasic’s alleged misconduct at OLCC (the “Subpoena”). (Defs.’ Mot. Quash (“Defs.’ Mot.”) at 1-9, ECF No. 20.) Defendants move to quash the Subpoena on the grounds that, inter alia, Subasic seeks the production of documents protected by the attorney work product doctrine. (See id. at 2-5.) For the reasons that follow, the Court grants Defendants’ motion to quash. BACKGROUND On June 3, 2022, OLCC’s human resources (“HR”) staff began investigating reports that OLCC employees were diverting rare and specialty liquor to themselves through “employee customer service requests.” (FAC ¶¶ 29-30.) Subasic was identified as an individual of interest in the investigation between late July and mid-August of 2022, and an HR employee interviewed him on August 22, 2022. (Id. ¶¶ 38, 42.) On January 12, 2023, Subasic received notice that the allegations against him relating to the diversion of specialty liquor had been “sustained.” (Id. ¶¶

44-45.) Subasic received an “oral reprimand” for his alleged misconduct. (Id. ¶ 46.) On February 8, 2023, OLCC released records relating to the HR investigation to a news organization in response to a public records request. (Id. ¶ 59.) On February 10, 2023, Oregon’s attorney general announced that she, along with DOJ, were initiating a criminal investigation into “ethics violations related to the purchase of liquor by certain staff members of the [OLCC].”1 (Id. ¶ 66.) ///

1 See OR. REV. STAT. § 180.070(1) (“The Attorney General may, when directed to do so by the Governor, take full charge of any investigation or prosecution of violation of law[.]”). On March 9, 2023, the OLCC terminated Subasic as a result of the HR investigation. (Id. ¶ 71.) On May 13, 2024, DOJ announced that its criminal investigation had concluded, and that no criminal charges would be filed. (Decl. Shawn O’Neil Supp. Pl.’s Resp. Defs.’ Mot. Quash (“O’Neil Decl.”) ¶¶ 14-15, ECF No. 27.) On the same date, DOJ publicly released an eleven-

page memorandum entitled “Summary of OLCC Investigation.” (Id. Ex. 2, ECF No. 27-2.) Subasic filed this action in state court on February 5, 2024, and Defendants removed the case to federal court on April 1, 2024. (Defs.’ Notice Removal, ECF No. 1.) Thereafter, Subasic served the Subpoena (dated August 26, 2024) on a DOJ records custodian. (O’Neil Decl., Ex. 3, ECF No. 27-3.) The Subpoena seeks the production of “[a] complete copy of your entire file pertaining to the criminal investigation launched by the Oregon Department of Justice Criminal Division arising from the February 10, 2023 announcement by Attorney General Ellen Rosenblum pertaining to alleged ‘ethics violations related to the purchase of liquor by certain staff members of the Oregon Liquor and Cannabis Commission and potentially others.’” (Id. at 4.) The Subpoena further seeks, inter alia, “[a]ll investigation reports, . . . file notes and

memorandum concerning the OLCC Investigation”; “all audio and video recordings that exist that were conducted by DOJ as part of the OLCC Investigation”; and “all reports, audio or video recordings that memorialize interviews taken as part of the OLCC Investigation of all witnesses” (listing the names of forty-one witnesses). (Id. at 4-5.) The Subpoena included a September 12, 2024, return date. (Id. at 1.) Defendants filed their motion to quash the Subpoena on October 11, 2024 (see Defs.’ Mot.), and Subasic responded on November 1, 2024 (see Pl.’s Resp. Defs.’ Mot. Quash (“Pl.’s Resp.”), ECF No. 26). The Court ordered supplemental briefing on February 7, 2025 (ECF No. 34), which the parties filed on February 21, 2025 (ECF Nos. 35-36), and the Court took the motion under advisement on February 24, 2025 (ECF No. 38). DISCUSSION Defendants move to quash the Subpoena on several grounds, including that it requires the disclosure of protected attorney work product. (Defs.’ Mot. at 3-4.) The Court agrees that DOJ’s

investigation file is protected work product, and therefore does not reach Defendants’ other arguments. I. LEGAL STANDARDS Under Federal Rule of Civil Procedure (“Rule”) 45, courts “must” quash or modify a subpoena if it requires “disclosure of privileged or other protected matter, if no exception or waiver applies[.]” FED. R. CIV. P. 45(d)(3)(A)(iii). “Pursuant to Federal Rule of Evidence 501, federal common law generally governs claims of privilege.” In re TFT-LCD (Flat Panel) Antitrust Litig., 835 F.3d 1155, 1158 (9th Cir. 2016). “Where there are federal question claims and pendent state law claims present, the federal law of privilege applies.” Id. (quoting Agster v. Maricopa County, 422 F.3d 836, 839 (9th Cir. 2005)); McKenzie L. Firm, P.A. v. Ruby

Receptionists, Inc., 333 F.R.D. 638, 641 (D. Or. 2019) (“In federal court, the work-product doctrine is governed by federal law, even in diversity cases.” (citing Kandel v. Brother Int’l Corp., 683 F. Supp. 2d 1076, 1083 (C.D. Cal. 2010))). The attorney work product doctrine is codified in Rule 26: “a party may not discover documents and tangible things that are prepared in anticipation of litigation or for trial by or for another party or its representative” unless the materials are otherwise discoverable and “the party shows that it has substantial need for the materials to prepare its case and cannot, without undue hardship, obtain their substantial equivalent by other means.” FED. R. CIV. P. 26(b)(3)(A). “If the court orders discovery of those materials, it must protect against disclosure of the mental impressions, conclusions, opinions, or legal theories of a party’s attorney or other representative concerning the litigation.” FED. R. CIV. P. 26(b)(3)(B); see also United States v. Nobles, 422 U.S. 225, 238 (1975) (“At its core the work-product doctrine shelters the mental processes of the attorney, providing a privileged area within which he can analyze and prepare his client’s

case.”); Hickman v.

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Subasic v. State of Oregon, Counsel Stack Legal Research, https://law.counselstack.com/opinion/subasic-v-state-of-oregon-ord-2025.