United States v. Hooker Chemicals & Plastics Corp.

90 F.R.D. 421, 16 ERC 1268, 11 Envtl. L. Rep. (Envtl. Law Inst.) 20883, 31 Fed. R. Serv. 2d 1598, 16 ERC (BNA) 1268, 1981 U.S. Dist. LEXIS 12613
CourtDistrict Court, W.D. New York
DecidedJune 9, 1981
DocketCiv-79-990C
StatusPublished
Cited by34 cases

This text of 90 F.R.D. 421 (United States v. Hooker Chemicals & Plastics Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Hooker Chemicals & Plastics Corp., 90 F.R.D. 421, 16 ERC 1268, 11 Envtl. L. Rep. (Envtl. Law Inst.) 20883, 31 Fed. R. Serv. 2d 1598, 16 ERC (BNA) 1268, 1981 U.S. Dist. LEXIS 12613 (W.D.N.Y. 1981).

Opinion

CURTIN, Chief Judge.

This is a motion for a protective order in the so-called “Love Canal” lawsuit, a massive environmental pollution action commenced by the United States in December 1979, in which plaintiffs seek in excess of $45 million in damages for violations of various anti-pollution laws and for common law nuisance in the City of Niagara Falls, New York. Plaintiff State of New York has served three sets of interrogatories and requests for documents on “Hooker.”1 Defendant Hooker petitions for a protective order pursuant to Rule 26(c) of the Federal Rules of Civil Procedure. Hooker submits a proposed order which is set out in the margin 2 and which would require that, prior to [424]*424disclosure to a non-party of any material obtained through discovery, Hooker would be given 10 days’ notice. In addition, paragraph 3 of the proposed order would not allow disclosure of documents which Hooker labels “confidential” until after there is a court order permitting disclosure.

Hooker states that such an order is a “common protective device” often employed in complex litigation and not really a protective order but a procedure for dispute resolution. It maintains that the information sought, if disclosed, could hinder its business and prejudice Hooker as it prepares to defend in parallel-state litigation.3 Hooker also notes that a “volatile atmosphere” has developed in which a “fair and objective disposition of these cases will be difficult to achieve.” Finally, Hooker argues that the State’s opposition to a protective order “lacks foundation” because it has agreed to modify earlier subpoenas duces tecum so as to provide Hooker notice of any requests for information it has obtained through discovery.

The State vigorously opposes the motion on numerous grounds. Primarily, it takes the position that under Rules 26(c) and 34(b) Hooker may assert privilege and refuse to divulge certain information even to plaintiffs or seek a protective order for the particular documents which it believes properly should be withheld from public scrutiny. However, the State argues, a blanket order in the absence of any specific showing of privilege, trade secret material, or the like is not authorized by the rules. In support of its position, the State relies on the strong public policy, expressed both in the Federal Rules of Civil Procedure and in the State’s own Freedom of Information Law, in favor of full, public disclosure of court business.

The New York Civil Liberties Union, appearing in this action as amicus curiae, joins [425]*425the State’s opposition to Hooker’s motion. They draw the court’s attention to the fact that it is the public’s business which we do. They argue that issues of great public import, having consequences beyond the mere litigants to the action, are often resolved by the courts in this country, and that this is another reason for maintaining full public scrutiny of the administration of justice. Finally, they note that enforcement of a protective order such as the one sought here raises many of the dangers of a prior restraint. In Re Halkin, 598 F.2d 176 (D.C.Cir.1979).

The United States, the original plaintiff in this action, sided generally with the State in this proceeding, taking the position that Hooker’s application for a protective order is premature and over-broad.

The Law

Rule 26(c) of the Federal Rules of Civil Procedure provides that:

Upon motion by á party ... and for good cause shown, the court ... may make any order which justice requires to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense .... (Emphasis added.)

I believe this language makes clear that there is a burden on the party seeking a protective order. The burden on the moving party constitutes a requirement for a threshold showing that there is “good cause” that the order issue. General Dynamics Corp. v. Self Manufacturing Co., 481 F.2d 1204, 1212 (8th Cir. 1973), cert. denied 414 U.S. 1162, 94 S.Ct. 926, 39 L.Ed.2d 116 (1974). It is not a mere balancing of equities. Once such a preliminary showing has been made, the court may then consider the countervailing considerations in determining whether to issue a protective order in the particular case and, if so, how broad it is to be. See generally, Note, Nonparty Access to Discovery Materials In the Federal Courts, 94(5) Harv.L.Rev. 1085 (March 1981).4

In many complex pieces of litigation, particularly those involving large corporate parties, the parties agree to the issuance of a broad protective order at the outset for their mutual protection, both from their competitors and waiting predatory third parties. In those cases, the issues which are present in the instant dispute are not generally addressed by the court. In those cases it is generally conceded that either party could demonstrate the needed “good cause” if put to the test. However, the fact that something may be the general practice does not mean that the practice must be adopted by an unwilling party. The State is certainly within its rights to demand that Hooker make the requisite showing if it believes the confidentiality claim would be used haphazardly like a “rubber stamp.”

In this case, movant Hooker has alleged in a most conclusory fashion that it will suffer certain injuries. No specific instances are cited where trade secrets will be disclosed or where Hooker will be put at a competitive disadvantage. Parsons v. General Motors Corp., 85 F.R.D. 724 (N.D.Ga.1980); United States v. IBM, 67 F.R.D. 40, 46 (S.D.N.Y.1975). On this record, the court cannot evaluate these claims of particularized need, and the order cannot issue on this basis. Schlagenhauf v. Holder, 379 U.S. 104, 118, 85 S.Ct. 234, 242, 13 L.Ed.2d 152 (1964).

[426]*426Hooker also argues that the disclosure of information garnered through discovery will be detrimental to its position in parallel lawsuits. This is unquestionably true. However, this is not a reason for a court to impose a protective order. Use of the discovery fruits disclosed in one lawsuit in connection with other litigation, and even in collaboration among plaintiffs’ attorneys, comes squarely within the purposes of the Federal Rules of Civil Procedure. Accord, Parsons v. General Motors Corporation, supra; Patterson v. Ford Motor Co., 85 F.R.D. 152 (W.D.Tex.1980); Williams v. Johnson & Johnson, 50 F.R.D. 31, 32 (S.D.N.Y.1970). Such cooperation among litigants promotes the speedy and inexpensive determination of every action as well as conservation of judicial resources. Williams v. Johnson & Johnson, supra, at 32. This is particularly the case in lawsuits where the resources available to the parties are uneven.

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90 F.R.D. 421, 16 ERC 1268, 11 Envtl. L. Rep. (Envtl. Law Inst.) 20883, 31 Fed. R. Serv. 2d 1598, 16 ERC (BNA) 1268, 1981 U.S. Dist. LEXIS 12613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-hooker-chemicals-plastics-corp-nywd-1981.