United States v. Hugo Key and Son, Inc.

672 F. Supp. 656, 18 Envtl. L. Rep. (Envtl. Law Inst.) 20, 1987 U.S. Dist. LEXIS 10621
CourtDistrict Court, D. Rhode Island
DecidedOctober 29, 1987
DocketCiv. A. 87-0214 P
StatusPublished
Cited by4 cases

This text of 672 F. Supp. 656 (United States v. Hugo Key and Son, Inc.) 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. Hugo Key and Son, Inc., 672 F. Supp. 656, 18 Envtl. L. Rep. (Envtl. Law Inst.) 20, 1987 U.S. Dist. LEXIS 10621 (D.R.I. 1987).

Opinion

MEMORANDUM AND ORDER

PETTINE, Senior District Judge.

Whereas in accordance with D.R.I.Loc.R. 12 and pursuant to Fed.R.Civ.P. 26(c) plaintiff has moved for a protective order staying civil proceedings until disposition of a current criminal investigation and any criminal proceedings that may result therefrom, and whereas defendant has objected to said motion, this court now considers and rules upon plaintiffs motion and defendant’s objection to it.

BACKGROUND

On April 20, 1987, the Environmental Enforcement Section of the Land and Natural Resources Division of the United States Department of Justice filed a complaint against defendant. On May 4, 1987, defendant filed an answer as well as interrogatories to plaintiff and a request for production. For the purpose of responding to defendant’s discovery requests, counsel for the United States conducted a review of documents and held interviews with witnesses at the Newport Naval Base in the State of Rhode Island during the last week of May. Soon thereafter the Environmental Enforcement Section forwarded information culled from the documents and imparted by the witnesses to the Environmental Crimes Section of the Land and Natural Resources Division of the United States Department of Justice.

On May 27, 1987, this court entered a pre-trial order terminating the period for discovery on September 1, 1987. Five days later plaintiff filed responses to plaintiff’s discovery requests. Taking steps to complete discovery by September 1,1987, plaintiff noticed for depositions thirteen officials and employees of the United States Navy, its asbestos subcontractor ARCON, the Rhode Island Department of Environmental Management and the Environmental Protection Agency. While the Notices scheduled all of the depositions for dates between August 21 and August 28, defendant informed plaintiff that if plaintiff would agree to requesting an extension of the discovery period to October 1, 1987 and if the court granted this request, then defendant would reschedule the depositions to more convenient dates during the month of September. Plaintiff agreed and on August 6, 1987, this court granted their request.

At this time the Environmental Crimes Section of the Land and Natural Resources Division of the United States Department of Justice notified the Environmental Enforcement Section that they were initiating a criminal investigation of defendant. Counsel for the United States informed counsel for defendant of this development and asked counsel for defendant if he would agree to the present motion to stay. After some consideration of the matter defendant refused to agree and when plaintiff filed the present Motion, defendant objected.

DISCUSSION AND RULING

There can be no doubt that this court has the power to stay proceedings. As the Supreme Court has noted in Landis v. North Am. Co., 299 U.S. 248, 57 S.Ct. 163, 166, 81 L.Ed. 153 (1936), “[t]he power to stay proceedings is incidental to the power inherent in every court to control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants.” It is clear, moreover, that this power is properly exercised when the ends of justice are threatened by the concurrent development of related criminal and civil proceedings. “Judicial *658 discretion and procedural flexibility should be utilized ... to prevent the rules and policies applicable to one suit from doing violence to those pertaining to the other.” Campbell v. Eastland, 307 F.2d 478, 487 (5th Cir.1962). “The very fact that there is a clear distinction between civil and criminal actions requires a government policy determination of priority: which case should be tried first.” Id. The Supreme Court has observed that making such a determination “calls for the exercise of judgment, which must weigh competing interests and maintain an even balance.” Landis v. North Am. Co., 57 S.Ct. at 166. In particular, the myriad differences “between private interests in civil litigation and the public interest in a criminal prosecution, between a civil trial and a criminal trial, and between the Federal Rules of Civil Procedure and the Federal Rules of Criminal Procedure ...do not mean that a civil action and a criminal action involving the same parties and some of the same issues are so unrelated that ... the trial judge in the civil proceeding should ignore the effect discovery would have on a criminal proceeding that is pending or just about to be brought.” Campbell v. Eastland, 307 F.2d at 487 (emphasis added).

In the past, this court has recognized that “a stay of proceedings should be granted only where the need for the stay clearly outweighs the harm to the plaintiff.” Driver v. Helms, 402 F.Supp. 683, 686 (D.R.I.1975). On the peculiar facts of this case, however, it is the defendant who objects to the stay.. Accordingly, this court must determine whether the need for the stay clearly outweighs the harm to the defendant. While it is not the role of this court to speculate on the motives of defendant for objecting to a stay, it is clear that this court can take cognizance of only the legitimate interests of defendant that a stay might impair. Certainly, it cannot be controverted that every defendant has a strong interest in the expeditious determination of his civil liabilities. Nonetheless, this court cannot discern and.defendant has not articulated any other interest that would be impaired.

In contrast, the plaintiff has presented many interests that would be threatened by the denial of a stay. The broad scope and liberal interpretation of the Federal Rules of Civil Procedure would undermine the traditionally narrow scope of discovery in a criminal action. It is obvious that counsel for the United States fears that such liberal discovery rules would expose the strategy of the prosecution and possibly result in defendant’s perjury and manufacturing of evidence. Either of these results would harm an important governmental interest. Moreover, it cannot be doubted that the discovery of the identity of confidential government informants would provide an opportunity for the intimidation of prospective witnesses. This possible result would not only harm the interests of the United States in the present case, but might also discourage individuals from providing information to the government in the future. Finally, the liberal discovery policies of the Federal Rules of Civil Procedure, while permitting defendant broad scope would not be available to the government should defendant be charged and the corporate veil pierced because defendant could then assert his privilege against self-incrimination.

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Bluebook (online)
672 F. Supp. 656, 18 Envtl. L. Rep. (Envtl. Law Inst.) 20, 1987 U.S. Dist. LEXIS 10621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-hugo-key-and-son-inc-rid-1987.