The State of Illinois v. F.E. Moran, Inc., and Owen A. Moran

740 F.2d 533
Court of Appeals for the Seventh Circuit·Decided September 12, 1984·No. 83-1594·Published·Cited by 18 cases

Opinions

POSNER, Circuit Judge.

Two defendants in this antitrust damage action (actually a consolidation of several actions, but we shall treat them as one) ask us to reverse an order by the district court made under Rule 6(e)(3)(C)(i) of the Federal Rules of Criminal Procedure. The order directed the Justice Department to turn over to the plaintiffs the transcript of the testimony of two witnesses before the grand jury that had indicted the corporate defendant for criminally violating the antitrust laws. We must consider the appealability of the order, the defendants’ standing to contest it, and if those hurdles are cleared the merits of the order.

Rule 6(e)(3)(D) authorizes the filing, in the federal district where the grand jury was convened, of a petition for disclosure of matters occurring before the grand jury. If the petition is filed in the federal criminal proceeding that follows indictment by the grand jury, the order granting or denying the petition is an interlocutory order respecting discovery and cannot be appealed under 28 U.S.C. § 1291, which makes “final decisions” of district courts appealable to the courts of appeals. See In re Grand Jury Proceedings, Miller Brewing Co., 687 F.2d 1079, 1085 (7th Cir.1982), modified on other grounds, 717 F.2d 1136 (1983); United States v. Carney, 665 F.2d 1064, 1065 (D.C.Cir.1981) (per curiam); 9 Moore’s Federal Practice H 110.18[11], at p. 193 (2d ed. 1983). But if instead the petitioner is asking the court in which the grand jury was convened to give him access to the grand jury transcript for use in a civil suit, the order disposing of it is a final decision under section 1291. E.g., Illinois v. Abbott & Associates, Inc., 460 U.S. 557, 103 S.Ct. 1356, 1360 n. 9, 75 L.Ed.2d 281 (1983); Illinois v. Sarbaugh, 552 F.2d 768, 773-74 (7th Cir.1977); In re Grand Jury Matter Impounded, 703 F.2d 56, 59-62 (3d Cir.1983); In re Sells, 719 F.2d 985, 988 (9th Cir.1983); In re Corrugated Container Antitrust Litigation, 687 F.2d 52, 53-54 (5th Cir.1982). The latter is, at least approximately, the situation here. The plaintiffs in this antitrust case — who of course were not parties to the criminal proceeding — settled the case with some of the defendants, and the settlement agreements contained provisions requiring the individual (as distinct from corporate) settling defendants to testify in the civil action. The plaintiffs later filed in the civil action this petition seeking access to the transcripts of the testimony that two of the settling and one of the nonsettling defendants had given before the grand jury. The nonsettling defendants who are the appellants in this court objected to disclosure. The petition was heard by the district judge presiding over the antitrust case (Judge Shadur), and he granted it as to the settling defendants. The district in which the civil case is pending and the district where the grand jury had been convened are the same. The criminal proceeding is long since over.

What makes this case different from the standard Rule 6(e)(3)(C)(i) case, illustrated by Abbott, is that here the petition was filed with the judge presiding in the civil case in which the grand jury transcript was to be used as an aid in discovery. In Abbott, the petition (filed, though on different grounds, by a plaintiff in the same antitrust suit in which the petition before us was filed) had been denied by the chief judge of the district where the grand jury had been convened — that is, by the judge supervising the grand jury, see N.D. Ill.Crim.R. 1.04(A) — rather than by the judge presiding over the civil suit. See also Douglas Oil Co. v. Petrol Stops Northwest, 441 U.S. 211, 216, 99 S.Ct. 1667, 1671, 60 L.Ed.2d 156 (1979); id. at 233, 99 S.Ct. at 1680 (concurring opinion). The Supreme Court in Abbott noted noncommittally that “further disclosure requests would be filed with the district judges presiding [536] over the state’s civil antitrust actions____” 103 S.Ct. at 1360 n. 9. The chief judge then transferred his responsibilities as supervisor of the grand jury proceedings to Judge Shadur to facilitate Judge Shadur’s acting on such requests. This appeal grows out of one of those requests. Judge Shadur’s order is therefore most naturally viewed as a discovery order in the antitrust civil action, and discovery orders as a general rule are not appealable. See Wright, The Law of Federal Courts 550-51 (4th ed. 1983).

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The State of Illinois v. F.E. Moran, Inc., and Owen A. Moran, 740 F.2d 533 (7th Cir. 1984).

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