United States v. Grinnell Corp.

30 F.R.D. 358, 5 Fed. R. Serv. 2d 564, 1962 U.S. Dist. LEXIS 5821, 1962 Trade Cas. (CCH) 70,251
CourtDistrict Court, D. Rhode Island
DecidedJanuary 23, 1962
DocketCiv. A. No. 2785
StatusPublished
Cited by12 cases

This text of 30 F.R.D. 358 (United States v. Grinnell Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Grinnell Corp., 30 F.R.D. 358, 5 Fed. R. Serv. 2d 564, 1962 U.S. Dist. LEXIS 5821, 1962 Trade Cas. (CCH) 70,251 (D.R.I. 1962).

Opinion

SWEENEY, Chief Judge.

In this civil antitrust action brought by the United States against Grinnell Corporation, American District Telegraph Company, Holmes Electric Protective Company and Automatic Fire Alarm Company of Delaware, argument has been heard upon the following, which have been extensively briefed:

I. the government’s motion for the production of documents,

II. the defendants’ objections to the government’s interrogatories,

III. the government’s objections to the defendants’ interrogatories, and

IV. the defendants’ motions for further answers to interrogatories.

I. GOVERNMENT’S MOTION FOR THE PRODUCTION OF DOCUMENTS

The government has in some instances in the past convened grand juries in antitrust actions for the apparent sole purpose of obtaining documents from defendants’ files for use in civil suits. In this ease the government has avoided this cumbersome, expensive and questionable procedure and is relying on the liberal discovery provisions of the Federal Rules of Civil Procedure, 28 U.S.C.A.

Rule 34 of those Rules provides that upon a showing of good cause the Court may order any party to produce and permit the inspection of designated documents, papers, et cetera, which constitute or contain evidence relating to the matters within the scope of the examination permitted by Rule 26(b). The latter Rule provides for the examination of any matter, not privileged, which is relevant to the subject matter involved in a pending action. This is a broad Rule and includes a provision that [360]*360“it is not ground for objection” to the inspection that the testimony would be inadmissible at the trial if the testimony sought appears reasonably calculated to lead to the discovery of admissible evidence. The defendants object that under the provision of Rule 34 the plaintiff has not shown good cause and have filed affidavits in support of this contention. Accompanying the motion of the plaintiff is an affidavit of counsel for the plaintiff which satisfies the “good cause” requirement. “Good cause” is a matter that is hard to define and is addressed to the discretion of the Court. The plaintiff is not in a position to designate with great particularity documents that it wants because it does not as yet know what the documents contain or how relevant they may be to its case. The designation of the documents by categories has received the approval of the Courts. See United States v. United States Alkali Exporting Association, 7 F.R.D. 256 (S.D.N.Y.1946) and United States v. United Shoe Machinery Corporation, 76 F.Supp. 315 (D.C.Mass.1948).

Another ground for objection by the defendants is that the government seeks to go back too far in point of time in the inspection of documents. There is a demand for an agreement executed in 1907 between some of the defendants and competitors; and while a search into such a remote period would not ordinarily be justified, the government does allege that the 1907 and subsequent agreements were still in operation as late as 1955. The agreement is covered by item 19, et seq., of the demand for the production of documents addressed to A.D.T. Since this and subsequent agreements named in the motion for the production of documents may be the basis for the alleged violation of the antitrust laws, the motion as to all agreements entered into between the defendants, either amongst themselves or with competitors, since 1907 is allowed. This allowance, however, is only to the production of the agreements themselves and amendments thereto. Other objections to the plaintiff’s demands are addressed to inter-company correspondence, papers and records which the defendants allege go back too far in point of time to be the subject for a demand for production and that some of the other demands cover relations with corporations in foreign countries and not named in the bill of complaint. The Court adopts the following rule of this case which is to govern its trial henceforth: Production of all documents that pertain to relations between these defendants, either amongst themselves or with competitors, is to be limited territorially to the United States and Canada. Discovery is to be limited to a period of ten years prior to the filing of this action, which would start the period for which the defendants are liable to produce on April 13, 1951.

Further objection to another review of records furnished to the government by some of these defendants in 1953 and 1955 is overruled. This will be discussed later in conjunction with the defendants’ motions for further answers to interrogatories 134-160.

The defendants also object to re-examination of documents which they allege were furnished to the Federal Bureau of Investigation in 1957 to the extent of some 4200 contracts and which documents they allege that the government now has. Of course, there is no reason for a re-production of the same instruments ; and in complying with this order where the defendants know that the government is already in possession of such material or data on a subject, whether it be in the form of bulletins or pamphlets, or otherwise, it will be sufficient compliance to so state.

I am satisfied that the plaintiff has shown good cause for the production by the defendants of the documents enumerated in its motion. The motion is, therefore, allowed within the time and territorial limitations prescribed. The defendant Grinnell has submitted a memorandum in opposition to the gov[361]*361ernment’s motion for production which has been noted, but it does not persuade the Court that the motion for production as to the other defendants should not be granted.

II. DEFENDANTS’ OBJECTIONS TO GOVERNMENT’S INTERROGATORIES

The interrogatories filed by the plaintiff in this case have been extremely burdensome to the Court because identical questions to each of the defendants have not maintained the same numerical sequence. Henceforth, it is ordered that when interrogatories are filed against several defendants those questions which are common to each defendant are to be listed first amongst the interrogatories and designated as “common questions”; thereafter, such interrogatories as are not common to all the defendants interrogated may be added and designated as “individual interrogatories applying only to the named defendant.”

American District Telegraph Company

Subject to the geographical and time limitations set forth above, the following disposition is made of the objections of A.D.T.:

The objection to the government’s request preceding question No. 1 is sustained.

The following objections are sustained: 7, 10, 12, 15, 17, 23, 25, 26, 32, 40 and 48.

The following objections are overruled: 1, 4, 5, 6, 8, 9, 11, 20, 22, 36, 37, 38, 39, 41, 42, 43, 44, 46 and 47.

Holmes Electric Protective Company

Subject to the geographical and time limitations set forth above, the following disposition is made of the objections of Holmes Electric Protective Company:

The objection to the government’s request preceding question No. 1 is sustained.

The following objections are sustained: 7, 8, 14, 16, 17, 19, 23 and 25.

The following objections are overruled: 5, 9, 10, 15, 24, 26 and 29.

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Bluebook (online)
30 F.R.D. 358, 5 Fed. R. Serv. 2d 564, 1962 U.S. Dist. LEXIS 5821, 1962 Trade Cas. (CCH) 70,251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-grinnell-corp-rid-1962.