United States v. Deere & Co.

9 F.R.D. 523, 1949 U.S. Dist. LEXIS 3261
CourtDistrict Court, D. Minnesota
DecidedNovember 9, 1949
DocketCiv. Nos. 2832-2834
StatusPublished
Cited by13 cases

This text of 9 F.R.D. 523 (United States v. Deere & Co.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Deere & Co., 9 F.R.D. 523, 1949 U.S. Dist. LEXIS 3261 (mnd 1949).

Opinion

NORDBYE, Chief Judge.

These are separate anti-trust cases. Generally speaking, plaintiff charges in each case that defendant tried to compel dealers in its implements to handle only that particular defendant’s line of farm machinery and cancelled the dealership contract of dealers who refused to accede to such demands. Plaintiff seeks an injunction enjoining these practices. No conspiracy is charged.

Preliminary motions have been made 'by both sides in these cases. And pursuant to an interrogatory submitted by plaintiff in each case to the defendant, each defendant was required to furnish plaintiff with [525]*525the names of dealers whose dealership had been cancelled or not renewed during a specified period. Plaintiff’s counsel sent a five-page questionnaire to each of these former dealers with a letter requesting answers to the questions. The questions concerned the circumstances under which the dealer’s contract had ended, and his dealing with the defendant involved. Answers were received by plaintiff from many ■of those former dealers, and plaintiff now states that some of the answers are helpful to its alleged causes of action. Some of them are not helpful, plaintiff admits. The defendant in each case now moves the Court under Rule 34 of the Federal Rules ■of Civil Procedure, 28 U.S.C.A., to compel plaintiff to permit defendant to inspect and ■copy all the answers which plaintiff received from that defendant’s former dealers as a result of the questionnaire. Each defendant also seeks to inspect and copy answers which certain dealers made in response to a letter which plaintiff’s counsel sent such dealers inquiring about the handling of competitive lines and concerning his business dealings with a specified defendant.

Plaintiff objects to producing the answers to either the questionnaire or the letter upon two grounds: (1) the answers are privileged; (2) the answers are not subject to production because (a) they resulted from the work product of plaintiff’s lawyers and (b) defendants have not shown the “unusual circumstances” necessary to require production of such documents.

Rule 34 provides: “Upon motion of any party showing good cause therefor and upon notice to all other parties, and subject to the provisions of Rule 30(b), the court in which an action, is pending máy (1) order any party to produce and permit the inspection and copying or photographing, by or on behalf of the moving party, of any designated documents, papers, books, accounts, letters, photographs, objects, or tangible things, not privileged, which'constitute or contain evidence relating to any of the matters within the scope of the examination permitted by Rule 26(b) and which are in his possession, custody, or control; * *

Rule 26(b) provides: “ * * * the deponent may be examined regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action, whether it relates to the claim or defense of the examining party or to the claim or defense of any other party, including the existence, description, nature, custody, condition and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of relevant facts. It is not ground for objection that the testimony will be inadmissible at the trial if the testimony sought appears reasonably calculated to lead to the discovery of admissible evidence.”

Plaintiff contends that the answers involved are privileged because the information was given the Government in its investigation. The United States Supreme Court has declared in Re Quarles, 1895, 158 U.S. 532,. 15 S.Ct. 959, 961, 39 L.Ed. 1080: “It is the right, as well as the duty, of every citizen, when called upon by the proper officer, to act as part of the posse comitatus in upholding the laws of his country. It is likewise his right and his duty to communicate to the executive officers any information which he has of the commission of an offense against those laws; and such information, given by a private citizen, is a privileged and confidential communication, * * * the disclosure of which cannot be compelled without the assent of the government. Vogel v. Gruaz, 110 U.S. 311, 4 S.Ct. 12, [28 L. Ed. 158]; U. S. v. Moses, 4 Wash.C.C. 726, Fed.Cas.No. 15,825; Worthington v. Scribner, 109 Mass. 487, [12 Am.Rep. 736].”

And in Arnstein v. United States, 54 App.D.C. 199, 296 F. 946, at page 950, the Court of Appeals for the District of Columbia held: “The principle laid down in that case * * * was that is it the duty of every citizen to communicate to his government any information which he has of the commission of an offense against its laws, and that a court of justice will not compel or allow such information to be disclosed, either by the subordinate officer [526]*526to whom it is given, by the informer himself, or by any other person, without the permission of the government, the evidence being excluded, not for the protection of the witness or of the party in the particular case, but upon general grounds of public policy, because of the confidential nature of such communications.” (Citing cases.)

There is no doubt that this rule would not apply to many cases involving the Government where the latter seeks to protect no public interest as such. Actions under the Anti-Trust Acts, however, are clearly actions based upon the public interest. This is apparent from the very nature of the laws. For they are designed to protect the commerce of the Nation, and their violation in many instances constitutes criminal activity. Although the instant action is not a criminal action, the basis of the privilege is one of public policy for protection of the public interest, not the criminal nature of the case. It is not for the protection of any person. The considerations which require the withholding of information and its source from the accused by the Government in criminal cases are present also in civil anti-trust actions brought for the public interest by the Government. Without the anti-trust laws and resulting actions to enforce them, monopoly would strangle competition and threaten the Nation’s economic well-being. Encouraging such information from the citizenry on such matters is just as important and emphatic as encouraging information of violations of the criminal laws of the Nation. The public interest and welfare is the object of protection. The civil anti-trust case of United States v. Kohler Co., D.C.E.D.Pa., 1949, 9 F.R. D. 289, recognized the rule of privilege and held that defendant there could not obtain from the Government the answers given to the Government by persons not parties to the action in the course of the investigation.

If defendants here were given the answers they seek, they would be able to know what each dealer told the Government. They would be infringing upon the confidential relationship which necessarily must exist between the Government and its source of information. It is that relationship which creates the privilege, as noted in the Arnstein case, supra. To ignore that privilege here would place defendants in that same confidential relationship with the Government’s source of information, and would be allowing the defendants to take advantage of matters which public policy has determined should be protected for the benefit of the Government.

Defendants cite numerous cases in opposition to plaintiff’s authorities. But none of them are controlling herein. In United States v.

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9 F.R.D. 523, 1949 U.S. Dist. LEXIS 3261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-deere-co-mnd-1949.