United States v. Kelsey-Hayes Wheel Co.

15 F.R.D. 461, 1954 U.S. Dist. LEXIS 4101, 1954 Trade Cas. (CCH) 67,744
CourtDistrict Court, E.D. Michigan
DecidedApril 16, 1954
DocketCiv. A. No. 10655
StatusPublished
Cited by39 cases

This text of 15 F.R.D. 461 (United States v. Kelsey-Hayes Wheel Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Kelsey-Hayes Wheel Co., 15 F.R.D. 461, 1954 U.S. Dist. LEXIS 4101, 1954 Trade Cas. (CCH) 67,744 (E.D. Mich. 1954).

Opinion

LEVIN, District Judge.

There are two motions before the Court in this civil antitrust action. First, there is a motion by the defendant, Kelsey-Hayes Wheel Company, joined in by the other defendants, seeking the production of statements of witnesses, reports of investigations and other communications which were prepared by the Federal Bureau of Investigation, under the direction of the Government attorneys and in anticipation of a prosecution for violations of the antitrust laws. These materials are now a part of the work files used by the Government attorneys in the trial of this lawsuit.

Under the doctrine of Hickman v. Taylor, 329 U.S. 495, 67 S.Ct. 385, 91 L. Ed. 451, such work files of an attorney, assembled in preparation for a lawsuit, are protected against the deposition-discovery provisions of the Federal Rules of Civil Procedure, 28 U.S.C.A. The functions which were here performed by the Federal Bureau of Investigation ih gathering these materials were no different than those that might be performed by the associate members of any large law firm. Just because departmentalization in the preparation of a lawsuit is required in the administrative operations of the Government, is no reason for denying to the Government’s attorneys their professional prerogatives. See Alltmont v. United States, 3 Cir., 177 F.2d 971, 976. These Federal Bureau of Investigation materials are to [463]*463be distinguished from the routine reports of both claim agents and inspectors, civilian or Government, which are made in the regular course of business operations and do not involve the inherent privilege of professional privacy with which we are here concerned.

This is not to say that all materials which find their way into an attorney’s work files are immune from disclosure. Attorneys’ files are not to be used as the burial ground for competent items of evidence which are relevant to the issues. In each case we must arrive at an accommodation which will make the proper material available on the showing of good cause and yet will preserve privacy for an attorney’s work files insofar as consistent with justice.

There are, I understand, signed statements of witnesses to be found among the documents whose disclosure the Government resists. In the conventional case in which the Government is asserting a proprietary or financial claim, such statements ought to be produced since they would be admissible either to impeach the Government’s witnesses or to corroborate movant’s witnesses. They are usually proximate in time to the events described, and they have an independent and objective quality which distinguishes them from memoranda and notes of what a witness said, which the Government attorneys or their assistants have made in the course of an interview. The latter material is subject to the usual infirmities of secondhand testimony and conceivably might require the Government attorneys and their assistants to testify as witnesses, a result not conducive to the orderly and dignified conduct of a lawsuit. The movant has a far more difficult burden in showing good cause for such material.

But the determination of what ought to be produced, made in an ordinary civil case, must be re-evaluated in an antitrust proceeding such as this. This is an action brought by the Govemment in the public interest to assist in the enforcement of laws of concern to the public welfare. Under such circumstances the public interest demands that the trust and confidence of those who have supplied information to Government investigators be protected. Whether one speaks favorably or unfavorably of defendants, the assumption underlying an informant’s communication is that he speaks to Government investigators in confidence. United States v. Kohler Co., D.C., 9 F.R.D. 289; United States v. Deere & Co., D.C., 9 F.R.D. 523. To require the Government to produce all the signed statements it has obtained would reveal the identities of those who have assisted the Government’s investigations. These informants, most of whom may have commercial relations with defendants, might then be vulnerable to commercial pressures, either by way of reprisal or to influence their testimony. Even if they will be called as witnesses and their identities ultimately revealed, the Government should not at this early date be required to commit itself or to disclose the names of its witnesses.

If at the time of trial the Government does seek to present any of such informants as witnesses, it will at such time voluntarily have lifted the cloak of confidence. Then, I shall require the Government to furnish to defendants, at least twenty-four hours in advance of the witness’ presentation, all signed statements of such witness. Furthermore, the usual consideration will be given to litigants who show that they have been surprised by the presentation or testimony of any witness and who require time to prepare counter testimony.

In effect, the defendants have failed to sustain the burden of showing that the present production of these documents will make a net contribution to the fair and expeditious trial of this lawsuit. Since defendants know better than anyone else those with whom they [464]*464had business dealings in the relevant period and,since the defendants are all corporations of substantial worth, they are as capable of interviewing such witnesses as were the Government representatives. They are well able to obtain on their own account such evidence as they now request without doing violence to the persuasive considerations which weigh against compelling the Government attorneys to give defendants access to their files. This motion is, therefore, denied.

Next, plaintiff has requested the defendant, The Budd Company, to admit, pursuant to Rule 36, Federal Rules Civil Procedure, the genuineness of some thousand documents. Budd has objected to this request as regards twenty-nine of these documents, citing that they are communications to and from its house patent counsel and are, therefore, entitled to the privilege arising out of the attorney-client relationship. I do not think this claim of privilege ought to be recognized.

Some time before the present suit against Budd and the other defendants was commenced, representatives of the antitrust division of the Department of Justice called upon the appropriate officials of Budd and requested permission to examine the company files. Budd was informed that the request was being made in connection with an investigation of alleged violations of the antitrust laws in the production and distribution of wheels and rims for motor vehicles. After a short delay, apparently while the matter was discussed with other officials of the corporation, the plaintiff was given access to Budd’s files both in Detroit and in Philadelphia, where its general offices are situated. In the course of this investigation of Budd’s voluminous files, the plaintiff lifted some thousand documents, photostatic copies of which were prepared either by plaintiff or by Budd, for plaintiff’s use. The twenty-nine documents claimed to be privileged were among those thousand.

The privilege against disclosure granted to certain communications between attorney and client is grounded upon the desire to promote freedom of consultation of legal advisers by clients.

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15 F.R.D. 461, 1954 U.S. Dist. LEXIS 4101, 1954 Trade Cas. (CCH) 67,744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-kelsey-hayes-wheel-co-mied-1954.