United States ex rel. Falsetti v. Southern Bell Telephone & Telegraph Co.

915 F. Supp. 308, 40 Cont. Cas. Fed. 76,930, 43 Fed. R. Serv. 994, 1996 U.S. Dist. LEXIS 4421
CourtDistrict Court, N.D. Florida
DecidedJanuary 25, 1996
DocketNo. TCA 91-40267-WS
StatusPublished
Cited by2 cases

This text of 915 F. Supp. 308 (United States ex rel. Falsetti v. Southern Bell Telephone & Telegraph Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States ex rel. Falsetti v. Southern Bell Telephone & Telegraph Co., 915 F. Supp. 308, 40 Cont. Cas. Fed. 76,930, 43 Fed. R. Serv. 994, 1996 U.S. Dist. LEXIS 4421 (N.D. Fla. 1996).

Opinion

ORDER

SHERRILL, United States Magistrate Judge.

This qui tam1 suit is brought by Plaintiffs on their own behalf and on behalf of the United States pursuant to the False Claims Act, 31 U.S.C. § 3729, et seq. Plaintiffs also bring separate actions for retaliation pursuant to 31 U.S.C. § 3730(h). Plaintiffs allege that Defendant knowingly billed the United States for telephone access lines which it knew were out of service, failed to provide refunds as required by law and contract, and knowingly billed the United States for service not provided. In part the relief sought is a civil penalty ranging from a minimum of $5,000 to $10,000 for each instance in which a false claim was billed to the United States. Doc. 1.

Pending is Plaintiffs’ motion to compel, doc. 125, and related memoranda and motions, docs. 126, 140, 149, 150, and 152, and Defendant has filed a reply memorandum, doc. 135, and supplemental memoranda and motions, docs. 146, 157, 158, 159, 160, 168, and 170.

By this motion to compel Plaintiffs seek production of all documents relating to any internal investigation Defendant conducted related to the Florida Public Service Commission docket no. 910163-TL, In re: Investigation into the Integrity of Southern Bell’s Repair Service Activities and Reports. In particular, the motion seeks production of (1) written statements taken primarily in 1991 from 650 of Defendant’s managers and craft personnel in Florida, (2) five repair service audits conducted in 1991 and two reaudits conducted in 1993, and (3) disciplinary recommendations made by a panel concerning 207 employees, worknotes of Defendant’s Human Resources personnel, and notes of Defendant’s managers Cuthbertson and Mower. Doc. 126, pp. 4-8.2

Defendant objects, asserting three privileges: self-critical analysis, attorney work product, and attorney-client. Id., p. 2. There is little dispute by the parties that these documents would otherwise be relevant to the claims in this case and discoverable absent privilege.

I. The self-critical analysis privilege

A self-critical analysis privilege has been recognized by various district courts for the past 25 years beginning with Bredice v. Doctors Hospital, Inc., 50 F.R.D. 249 (D.D.C.1970), aff'd without opinion, 479 F.2d 920 (D.C.Cir.1973). Acknowledging that the privilege has not been universally accepted or applied,3 Judge Vinson of this district [310]*310recently recognized and applied a self-critical analysis privilege for retrospective self-assessment of compliance with environmental regulations. Reichhold Chemicals, Inc. v. Textron, Inc., 157 F.R.D. 522, 525-526 (N.D.Fla.1994) (tab G, attachment to doc. 135).

The privilege was recognized in Reichhold pursuant to Fed.R.Evid. 501. 157 F.R.D. at 526. Citing University of Pennsylvania v. E.E.O.C., 493 U.S. 182, 189, 110 S.Ct. 577, 582, 107 L.Ed.2d 571, 582 (1990), Judge Vinson noted that the power to recognize a new common law privilege

... is not to be exercised expansively. Id. A court should recognize a privilege when it “promotes sufficiently important interests to outweigh the need for probative evidence.” Id. (quoting Trammel v. United States, 445 U.S. 40, 51, 100 S.Ct. 906, 912, 63 L.Ed.2d 186, 195 (1980).

Id. The court observed, however:

The privilege protects an organization or individual from the Hobson’s choice of aggressively investigating accidents or possible regulatory violations, ascertaining the causes and results, and correcting any violations or dangerous conditions, but thereby creating a self-incriminating record that may be evidence of liability, or deliberately avoiding making a record on the subject (and possibly leaving the public exposed to danger) in order to lessen the risk of civil liability.

157 F.R.D. at 524. The court further reasoned:

The fact that an actor had actual prior knowledge of the harm that would or could result from a course of action, and, nevertheless, deliberately chose to act is highly relevant in a negligence action and should ordinarily be discoverable. However, retrospective analysis is generally not relevant.

157 F.R.D. at 527.4

University of Pennsylvania v. E.E.O.C. is especially important for it sets forth the rules for determining generally whether a new privilege exists under Rule 501. There, plaintiff claimed discrimination due to her race, sex, and national origin in violation of Title VII. 493 U.S. at 185, 110 S.Ct. at 580. Plaintiff, an associate professor at the Wharton School of Business, alleged that her department chairman had sexually harassed her, and that when she had rebuffed him, had submitted a negative letter to the tenure committee. She had been denied tenure. In discovery, she sought documents produced by those who had denied tenure: confidential letters written by her evaluators, the chairman’s letter of evaluation, and documents reflecting the internal deliberations of the tenure committee on her application and the applications of competitors. 493 U.S. at 186, 110 S.Ct. at 580. The University objected to the discovery, arguing that the materials were protected by a common law “academic peer review” privilege.

The Court held that while there is authority under Rule 501 to develop a new rule of privilege on a ease-by-case basis, that authority must not be exercised expansively. 493 U.S. at 189, 110 S.Ct. at 582.5 With particular pertinence to the case at bar, the Court held:

We are especially reluctant to recognize a privilege in an area where it appears that Congress has considered the relevant competing concerns but has not provided the privilege itself. Cf. Branzburg v. Hayes, 408 U.S. 665, 706, 92 S.Ct. 2646 [2669], 33 L.Ed.2d 626 (1972). The balancing of con[311]*311flicting interests of this type is particularly a legislative function.

i

The Court then reviewed the history of Title VII, noting that Congress had opportunities to consider the privilege asserted when it amended the statute to subject tenure decisions to Title VII, but had declined to do so. It found that Congress had created a limited sort of confidentiality, forbidding the disclosure of the materials except to the charging party prior to institution of a “proceeding” under the Act. While this protection was admittedly “less than complete,” the Court found that “this, if anything, weakens petitioner’s argument. Congress apparently considered the issue of confidentiality, and it provided a modicum of protection.” 493 U.S. at 193, 110 S.Ct. at 584.

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US Ex Rel. Falsetti v. SOUTHERN BELL TELEPHONE
915 F. Supp. 308 (N.D. Florida, 1996)

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Bluebook (online)
915 F. Supp. 308, 40 Cont. Cas. Fed. 76,930, 43 Fed. R. Serv. 994, 1996 U.S. Dist. LEXIS 4421, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-falsetti-v-southern-bell-telephone-telegraph-co-flnd-1996.