TeleCommunication Systems Inc v. Houserman

District Court, W.D. Washington·Decided September 11, 2020·No. 2:19-cv-00336·Unknown

Opinion

FOR THE WESTERN DISTRICT OF WASHINGTON

Plaintiff,

v. Case Nos. 2:19-cv-00336-RAJ-BAT 2:19-cv-00644-RAJ-BAT LYNNE HOUSERMAN and MOTOROLA SOLUTIONS, INC.,

ORDER REGARDING LCR 37(a)(2) EXPEDITED JOINT SUBMISSION Defendants. ______________________________________ REGARDING COMTECH’S OUTSTANDING DISCOVERY

Plaintiff, v. COMTECH TELECOMMUNICATIONS MICHAEL D. PORCELAIN, Defendants.

This matter comes before the Court on the parties’ joint submission pursuant to Western District of Washington Local Civil Rule 37(a)(2). Telecommunication Systems, Inc (“TSYS”) Dkt. 68; Houserman Dkt. 84. Motorola Solutions, Inc. (“MSI”) and Lynne Houserman (collectively, “MSI/Houserman”) seek an order from the Court requiring Telecommunication Systems, Inc., Comtech Telecommunications Corp., Fred Kornberg, and Michael Porcelain (collectively, “Comtech”) to produce outstanding information and documents requested by MSI and Ms. Houserman in Telecommunication Systems, Inc. v. Houserman et al. (Case No. 2:19-cv- 00336-RAJ-BAT) (“TSYS Case”) and Houserman v. Comtech et al. (Case No. 2:19-cv-00644- RAJ-BAT) (“Houserman Case”). These cases have been consolidated for discovery. TSYS Dkt. 32; Houserman Dkt. 30.

Having considered the parties’ briefing and relevant record, the Court finds oral argument unnecessary and hereby GRANTS the requests of MSI/Houserman as set forth herein. In the TSYS Case, Comtech alleges that MSI/Houserman breached restrictive covenants and tortiously interfered with two Comtech customers—South Dakota (“Client A”) and General Dynamics Information Technology (“GDIT”) (“Client B”). TSYS Dkt. 1. MSI/Houserman contend that it was Comtech’s performance failures under its contract with South Dakota that caused South Dakota not to renew and to seek bids for a new contract (which neither Comtech nor MSI won). As to GDIT, MSI/Houserman contend there cannot possibly be any interference

with or interruption of the Comtech and GDIT relationship because Comtech acquired GDIT. In the Houserman Case, Ms. Houserman, a former president at Comtech, alleges, inter alia, that Comtech discriminated against her based on her gender and improperly terminated her for cause. Houserman Dkt. 76. In one of her gender discrimination claims, Ms. Houserman alleges that Comtech made her bonus more difficult to achieve when compared to Comtech’s other (all male) presidents. Specifically, Ms. Houserman alleges that Comtech substantially increased her pre-tax profit bonus goal over her projected pre-tax profit, while it appears it only slightly increased other presidents’ pre-tax profit bonus goals over their pre-tax profit projections. Comtech contends that it terminated Ms. Houserman’s employment because she manipulated corporate financial records to enlarge her own bonus. The parties agreed to ESI parameters and terms – each side agreed to search fifteen custodians’ email data and, in some cases, computers and phones, with dozens of search terms over a multi-year period. Three of the 15 Comtech custodians chosen by MSI were Comtech

board members. The remaining custodians were current and former Comtech employees (including its president, Fred Kornberg and COO, Mike Porcelain). TSYS Dkt. 72, Declaration of Kathryn S. Rosen, ¶ 4. Using search terms chosen by MSI, Comtech searched the ESI of the employee custodians, including using search terms related to South Dakota and GDIT. Id., ¶ 5. Comtech produced 2,321 documents that have the terms “South Dakota” or “GDIT “in them. Id. Both parties also sent comprehensive subpoenas to South Dakota’s 911 Board, which has responded to the subpoenas. Id. at ¶ 8. Discovery closes on October 22, 2020. See March 24, 2020 Minute Order in TSYS Case and Houserman Case. The parties stipulated to, and the Court entered Orders regarding ESI

discovery and the production of confidential, proprietary, or private information. See TSYS Dkt. 24 and Dkt. 38; Houserman Dkt. 21 and Dkt. 40. The parties previously stipulated to use the expedited discovery submission procedures under LCR 37(a)(2) for all discovery disputes. TSYS Dkt. 54 at 4; Houserman Dkt. 65 at 4. Discovery motions are strongly disfavored. The Court has broad discretion in controlling discovery. See Little v. City of Seattle, 863 F.2d 681, 685 (9th Cir. 1988). “Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case.” Fed. R. Civ. P. 26(b)(1). Under Rule 26, the concept of relevance “has been construed broadly to encompass any matter that bears on, or that reasonably could lead to other matter that could bear on, any issue that is or may be in the case.” Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 351 (1978). If the parties are unable to resolve their discovery issues, the requesting party may move for an order to compel. Fed. R. Civ. P. 37(a)(1). The parties indicate that they have met and

conferred and have been unable to resolve their disputes regarding: (1) supplemental responses to Houserman Interrogatory Nos. 4 and 6, and (2) the production of documents responsive to Houserman RFP Nos. 45, 46, 51, 54, 58, and 62 and MSI/Houserman RFP No. 18; and (3) the production of documents related to other complaints against Comtech (Interrogatory Nos. 6 and 7; RFP Nos. 46, 51, and 54). A. Interrogatory No. 4 -- Comtech Presidents’ Pre-Tax Profit Forecasts & Bonus Goals Houserman’s Interrogatory No. 4: Identify the differences between the board approved budgets and their performance goals for each Comtech or TSYS officer or executive from 2015-FY 2019 and the amount of their potential variable compensation, including in your answer the following information: a) The amount of profit specified in the board approved budget; b) The amount of profit specified in the particular officer or executives’ performance goals; c) The difference between the two; d) Any explanations as to explain the particular budget amount or performance goals. Comtech’s Answer: Defendants object to Interrogatory No. 4 to the extent it seeks documents concerning trade secret or other commercially sensitive, confidential information relating to Comtech. Defendants further object to Interrogatory No. 4 on the grounds that it seeks confidential, sensitive, personal information, disclosure of which would invade the privacy rights of employees or former employees of Defendants who are not parties to this action. Defendants further object to Interrogatory No. 4 as overly broad because it seeks information relating to every Comtech and TSYS officer and executive, without limitation. Defendants further object to Interrogatory No. 4 to the extent it seeks information protected by the attorney-client privilege and/or the work-product doctrine. Subject to and without waiving the General Objections or the foregoing specific objections, see documents produced [Eichberger00020-26].

According to MSI/Houserman, Comtech’s response to Interrogatory No. 4 cited four documents—two of Ms. Houserman’s Goal Sheets, and two Goal Sheets for one other president. Id., ¶ 3. (Comtech documents indicate that it had six division presidents in Fiscal Year 2018.) TSYS Dkt. 69; Houserman Dkt. 85, ¶ 4. However, these documents represent only two years’ worth of goal sheets for only two of Comtech’s presidents and Comtech provided no information

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