The Duplan Corporation v. Moulinage Et Retorderie De Chavanoz, Deering Milliken, Inc.

509 F.2d 730
CourtCourt of Appeals for the Fourth Circuit
DecidedMarch 24, 1975
Docket74--1221
StatusPublished
Cited by98 cases

This text of 509 F.2d 730 (The Duplan Corporation v. Moulinage Et Retorderie De Chavanoz, Deering Milliken, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Duplan Corporation v. Moulinage Et Retorderie De Chavanoz, Deering Milliken, Inc., 509 F.2d 730 (4th Cir. 1975).

Opinion

WIDENER, Circuit Judge:

This case presents the question whether an attorney’s opinion work product material developed in prior terminated litigation may properly become the subject of discovery in connection with subsequent litigation. The issue involves the work product doctrine of Hickman v. Taylor, 329 U.S. 495, 67 S.Ct. 385, 91 L. Ed. 451 (1947), and the scope of the protection afforded a lawyer’s “mental impressions, conclusions, opinions, or legal theories” by Rule 26(b)(3) of the Federal Rules of Civil Procedure. 1

*732 We hold that such opinion work product material, as distinguished from material, not containing mental impressions, conclusions, opinions, or legal theories, is immune from discovery although the litigation in which it was developed has been terminated. Thus, for reasons which follow, we vacate the judgment of the district court and remand.

This patent-antitrust litigation presently consists of 37 cases which have been consolidated in the district court. Duplan Corporation (the throwsters) brought this suit charging Moulinage et Retourderie de Chavanoz (Chavanoz) and others with violating Sections 1 and 2 of the Sherman Act by denying the throwsters a free and open market for the purchase of unlicensed royalty-free false twist machines. Claiming patent misuse and inequitable conduct on the part of Chavanoz in dealing with the United States Patent Office, the throwsters also seek a declaratory judgment that 21 patents owned by Chavanoz are invalid, unenforceable, and not infringed.

In this context, the throwsters seek discovery of work product material developed by Chavano'z’s attorneys and others relating to 1964 settlement agreements with Leesona Corporation, 2 and also relating to knowledge by Chavanoz of the state of the prior art involved in its patented process. 3

In an earlier appeal, Duplan Corp. v. Moulinage et Retourderie de Chavanoz, 487 F.2d 480 (4th Cir. 1973), we held, “upon the narrow question whether upon the termination of litigation the work product documents prepared incident thereto lose the qualified immunity extended to them under Rule 26(b)(3), Federal Rules of Civil Procedure,” they do not automatically “become freely discoverable in subsequent and unrelated litigation.” 4 S.Because we were not then *733 confronted with any claim relating to opinion work product, we dealt solely with the first sentence of Rule 26(b)(3) as applied to factual materials contained in an attorney’s files.

Upon remand, the district court separately reviewed the documents in question, and in an order dated December 21, 1973 directed Chavanoz to produce 105 of them. Fifty-eight of these 105 documents have been produced; the remaining 47 were the subject of a motion for reconsideration by Chavanoz. As to these, Chavanoz claimed they were protected from discovery under Rule 26(b)(3) since they contained mental impressions, conclusions, opinions, and legal theories of attorneys and other representatives of Chavanoz prepared in anticipation of litigation or for trial. Nevertheless, on February 5, 1974, the district court ordered production of 22 of the 47 documents, finding that as to each of these the throwsters had demonstrated “substantial need” and “undue hardship.” And although it acknowledged that Rule 26(b)(3) accords an absolute privilege during pending litigation to opinion work product materials prepared incident thereto, the court held that immunity ceases and the protection becomes only “qualified” once the litigation for which they were prepared terminates.

Certainly, the most controversial problem in the discovery area is the extent to which a party may require divulgence of facts, legal contentions, or trial tactics gathered or ..devised by his adversary in preparation for litigation. 5 The Supreme Court in Hickman v. Taylor, 329 U.S. 495, 67 S.Ct. 385, 91 L.Ed. 451 (1947), granted certain of these materials a qualified immunity. There the defendant’s counsel had personally secured oral and written statements from witnesses in preparation for pending litigation. The plaintiff’s counsel, in order to prepare for his own examination of these witnesses, sought copies of these signed written statements and detailed resumes of the oral statements. Characterizing these materials as the “work product” of the lawyer, the court held that without a showing of special need they were privileged from discovery.

In the federal courts from 1946 to 1970, the scope of Hickman and the work product doctrine was left to adjudication on a case by case basis. The decisions were often conflicting, and we ' have previously quoted one court’s remark that Hickman v. Taylor had opened a Pandora’s Box. 6 After numerous abortive attempts to reconcile the Rules with Hickman, the Advisory Committee on Civil Rules, finally agreed upon a draft of Rule 26(b)(3) of the Federal Rules of Civil Procedure. As adopted by the Supreme Court in 1970, Rule 26(b)(3) contains these special provisions for trial preparation materials:

“Subject to the provisions of subdivision (b) (4) of this rule, a party may obtain discovery of documents and tangible things otherwise discoverable under subdivision (b)(1) of this rule and prepared in anticipation of litigation or for trial by or for another party or by or for that other party’s representative (including his attorney, *734 consultant, surety, indemnitor, insurer, or agent) only upon a showing that the party seeking discovery has substantial need of the materials in the preparation of his case and that he is unable without undue hardship to obtain the substantial equivalent of the materials by other means. In ordering discovery of such materials when the required showing has been made, the court shall protect against disclosure of the mental impressions, conclusions, opinions, or legal theories of an attorney or other representative of a party concerning the litigation.”

The first sentence grants a qualified immunity to “documents and tangible things . . . prepared in anticipation of litigation.” The second sentence, however, provides “[i]n ordering discovery of such materials . . . the court shall protect against disclosure of the mental impressions. . . . ” [Emphasis added] By their terms, the two sentences are complementary. Thus, it is apparent that the clear command of the second sentence to “protect against disclosure” applies to all the materials referred to in the first sentence.

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Bluebook (online)
509 F.2d 730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-duplan-corporation-v-moulinage-et-retorderie-de-chavanoz-deering-ca4-1975.