UFCW Local 1776 v. Eli Lilly & Co.

242 F.R.D. 29, 2007 U.S. Dist. LEXIS 23782, 2007 WL 959031
CourtDistrict Court, E.D. New York
DecidedMarch 30, 2007
DocketNos. 04-MD-1596, 05-CV-4115, 05-CV-2948
StatusPublished

This text of 242 F.R.D. 29 (UFCW Local 1776 v. Eli Lilly & Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UFCW Local 1776 v. Eli Lilly & Co., 242 F.R.D. 29, 2007 U.S. Dist. LEXIS 23782, 2007 WL 959031 (E.D.N.Y. 2007).

Opinion

WEINSTEIN, Senior District Judge.

A motion for the declassification of certain documents produced by defendant Eli Lilly & Company (“Lilly”) in discovery has been filed by plaintiffs. The motion has been referred to the Special Master for Discovery Peter Woodin for resolution, with a right of appeal to this court. See Order of March 1, 2006, No. 04-MD-1596, Document 419. The Special Master recommended that the motion be deferred “while Lilly’s application for an injunction against the further dissemination” of certain confidential documents by individuals unrelated to the instant action was pending. See Letter of Peter H. Woodin (February 7, 2007). That recommendation was adopted by the court. See Order of February 7, 2007, No. 05-CV-4115, Document 85.

A judgment was issued in the injunction proceeding on February 13, 2007. See In re Zyprexa Litigation, 474 F.Supp.2d 385 (E.D.N.Y.2007). That order is currently being appealed to the Court of Appeals for the Second Circuit. The questions presented by the instant parties are whether plaintiffs’ declassification motion can proceed at this time, and what criteria should govern Special Master Woodin’s resolution of the motion.

I. History

A The Litigation

Litigation against Eli Lilly & Co. for injuries allegedly caused by the use of the anti-psychotic drug Zyprexa was initiated in this court in March 2004. See Benjamin v. Eli Lily & Co., Docket No. 04-CV-00893. Many thousands of other cases were then transferred to this court from federal district courts throughout the United States pursuant to an order of the Judicial Panel on Multidistrict Litigation. See Letter from Multidistrict Litigation Panel to Clerk of the Eastern District of New York, No. 04-MD-1596 (Apr. 14, 2004). In addition, there are pending in state courts a considerable number of related cases. See In re Zyprexa Prods. Liab. Litig., No. 04-MD-1596, 2007 WL 160921 (E.D.N.Y. Jan. 18, 2007) (“Memorandum on Cooperation Between Federal and State Judges”).

On June 20, 2005, Mid-West National Life Insurance Company of Tennessee, insurers of various individuals who were prescribed Zyprexa, filed a class action suit against Lilly seeking economic damages. A decision on certification has not been made. Similar suits were initiated by UFCW Local 1776 and Participating Employers Health and Welfare Fund in August of 2005, Local 28 Sheet Metal Workers in January of 2006, and Sergeants Benevolent Association Health and Welfare Fund in November of 2006.

B. Case Management Order No. S

To facilitate prompt discovery in these cases, a protective order agreed to and submitted by the parties was issued in August 2004 pursuant to Rule 26(c) of the Federal Rules of Civil Procedure. See In re Zyprexa Prods. Liab. Litig., No. 04-MD-1596, 2004 WL 3520247, *1 (E.D.N.Y. Aug. 9, 2004) (stating purposes of protective order are “[t]o expedite the flow of discovery material, facilitate the prompt resolution of disputes over confidentiality, adequately protect confidential material, and ensure that protection [31]*31is afforded only to material so entitled ... ”) (hereinafter “CMO-3”). Preventing disclosures of documents served the added purpose of protecting a vulnerable plaintiff patient population and avoiding prejudice of potential jurors in any jury trial. See Tr. of Hr’g on Application to Issue CMO-3 (July 2, 2004) (magistrate judge Chrein: “material that might be misunderstood by the lay reader ... might do some harm or prejudge a ease that is still pending”). CMO-3 was signed by both the district judge and magistrate judge.

The protective order permits parties to designate as “confidential” materials produced in discovery that the producing party believes in good faith are properly protected under Rule 26(c)(7) of the Federal Rules of Civil Procedure, which extends to “a trade secret or other confidential research, development, or commercial information.” Fed. R.Civ.P. 26(c)(7); see CMO-3 at ¶ 3. All confidential documents are required to be stamped, “Zyprexa MDL 1596: Confidential-Subject to Protective Order.” Id. at ¶ 4(b). Once a document is so marked, it “shall be used by the receiving party solely for the prosecution or defense of this Litigation, to the extent reasonably necessary to accomplish the purpose for which disclosure is made.” Id. at ¶ 2.

The designation of particular discovery material as confidential does not require that it permanently remain subject to the protections of CMO-3. Rather, any party or aggrieved entity (even if not a party) can petition the court for declassification of confidential discovery materials at any time.

If at any time a party (or aggrieved entity permitted by the Court to intervene for such purpose) wishes for any reason to dispute a designation of discovery materials as Confidential made hereunder, such person shall notify the designating party of such dispute in writing, specifying by exact Bates number(s) the discovery materials in dispute. The designating party shall respond within 20 days of receiving this notification.
If the parties are unable to amicably resolve the dispute, the proponent of confidentiality may apply by motion to the Court for a ruling that discovery materials stamped as Confidential are entitled to such status and protection under Rule 26 of the Federal Rules of Civil Procedure and this Order, provided that such motion is made within forty five (45) days from the date the challenger of the confidential designation challenges the designation or such other time period as the parties may agree. The designating party shall have the burden of proof on such motion to establish the propriety of its Confidential designation.
If the time for filing a motion ... has expired without the filing of any such motion, or ten (10) business days (or such longer time as ordered by this Court) have elapsed after the appeal period for an order of this Court that the discovery material shall not be entitled to Confidential status, the Confidential Discovery Material shall lose its designation.

CMO-3 at H9(b)-9(d).

Millions of documents produced by Lilly in discovery were designated confidential pursuant to CMO-3. Recently, Lilly has declassified a number of documents.

C. Documents Leak and Injunction

In November and December of 2006, a conspiracy was entered into among a plaintiffs’ expert, a New York Times reporter, and an attorney in Alaska to subpoena confidential documents under false pretenses and widely disseminate them. See In re Zyprexa Injunction, 2007 WL at *12-*13. Documents subpoenaed by Alaska attorney James Gottstein were provided to plaintiffs’ expert Dr. David Egliman on December 11, 2006; Lilly was not given an adequate opportunity to object to the subpoena. Id. at *13-*15.

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Related

In Re Zyprexa Injunction
474 F. Supp. 2d 385 (E.D. New York, 2007)
In re "Agent Orange" Product Liability Litigation
104 F.R.D. 559 (E.D. New York, 1985)

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Bluebook (online)
242 F.R.D. 29, 2007 U.S. Dist. LEXIS 23782, 2007 WL 959031, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ufcw-local-1776-v-eli-lilly-co-nyed-2007.