United States v. Miracle Recreation Equipment Co.

118 F.R.D. 100, 9 Fed. R. Serv. 3d 1191, 1987 U.S. Dist. LEXIS 12821, 1987 WL 23472
CourtDistrict Court, S.D. Iowa
DecidedSeptember 22, 1987
DocketCiv. No. 86-334-B
StatusPublished
Cited by9 cases

This text of 118 F.R.D. 100 (United States v. Miracle Recreation Equipment Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Miracle Recreation Equipment Co., 118 F.R.D. 100, 9 Fed. R. Serv. 3d 1191, 1987 U.S. Dist. LEXIS 12821, 1987 WL 23472 (S.D. Iowa 1987).

Opinion

ORDER

R.E. LONGSTAFF, United States Magistrate.

These matters are now before the Court on the parties’ cross-motions. On July 10, 1987, plaintiff, United States of America, filed a Motion for a Protective Order to cancel the depositions of David Schmeltzer, Terrence Scanlon, and Michael Gidding, which was resisted by defendant, Miracle Recreation Equipment Co., on July 28, 1987. On July 28, 1987, defendant filed a Motion to Compel Discovery of several documents and tape recordings which was resisted by plaintiff on August 13, 1987. On August 13, 1987, plaintiff filed a second Motion for a Protective Order to cancel the depositions of Robert Verhalen, Paul Rubin, James Bradley, and a witness or witnesses to be identified pursuant to Rule 30(b)(6) of the Federal Rules of Civil Procedure, which was resisted by defendant on August 26, 1987. Finally, plaintiff filed a Response to Defendant’s Reply to Plaintiff’s Opposition to Defendant’s Motion to Compel Discovery on September 8, 1987, and defendant filed a Response to New Factual Material Submitted by Plaintiff in Opposition to Defendant’s Motion to Compel Discovery on September 10, 1987. These matters are considered fully submitted on the record before the Court.

I. BACKGROUND

Plaintiff, United States of America (“United States”), filed this lawsuit against the defendant, Miracle Recreation Equipment Company (“Miracle”), on the behalf of the Consumer Product Safety Commission (“Commission”). The suit alleges certain violations of the Consumer Product Safety Act (“Act”) against Miracle in its production of playground equipment. As part of its complaint, the United States prays for $150,000.00 as the civil penalty authorized under the Act. The United States has not, however, specifically explained how it calculated this amount. Miracle, through its requests for discovery, endeavors to attain such an explanation. The dispute between the parties that is addressed by this order focuses on the discovery of materials and testimony relating to how the United States formulated the civil penalty it now seeks to impose upon Miracle.

In resisting Miracle’s present discovery request, the United States points out that the amount of discovery already completed in this case is voluminous and that further discovery at this juncture would be cumulative and would only result in “annoyance, embarrassment, oppression, and undue burden and expense.” Miracle disagrees and argues that there has not been “any discovery on what is one of the most important issues in this case, the amount of the civil penalty being sought by the plaintiff and the propriety of, and rationale for, such an amount.”

So far, the United States has limited its disclosure on the penalty issue to, one, a document setting forth the resolution adopted in a closed Commission meeting on November 14, 1985 and, two, answers to five interrogatories. The information provided by these materials simply states that, in determining the penalty fee, the Commission considered the following statutorily mandated factors: 1) the nature of the [103]*103product defect; 2) the severity of the risk of injury; 3) the occurrence or absence of injury; 4) the number of defective products distributed; and 5) the appropriateness of the penalty in relation to the size of the business of the person charged. 15 U.S.C. sec. 2069(c). The discovery responses provided by the United States did not indicate the effect each individual factor had on the Commission’s ultimate decision. Nor has the United States compared and contrasted the Commission’s decision in the Miracle proceeding with prior proceedings in which the Commission has assessed penalty fees.

Miracle’s request for discovery can be broken down generally into three categories of materials. First, it has filed notice for the depositions of seven Commission personnel: Terrence Scanlon, Chairman of the Consumer Product Safety Commission; David Schmeltzer, Associate Director of the Directorate for Compliance and Administrative Litigation; Michael Gidding, former staff attorney in the Commission’s Office of Administrative Litigation; Robert Verhalen, Associate Executive Director of the Commission’s Directorate for Epidemiology; Paul Rubin, Associate Executive Director of the Commission’s Directorate for Economic Analysis; James Bradley, Director of the Division of Human Factors within the Directorate for Epidemiology; and a witness or witnesses to be designated pursuant to Rule 30(b)(6) knowledgeable in forecasting products remaining in use after recalls and after various time periods of use.

The United States seeks to cancel the Scanlon, Schmeltzer, and Gidding depositions on the grounds that these men have no personal knowledge of relevant information which either has not already been obtained or which can be obtained through other, less burdensome means. However, based on the deposition taken of David Thome, Director of the Commission’s Corrective Actions Division, Miracle disputes that representation and contends that Terrence Scanlon has personal knowledge of how the Commission arrived at the amount of the penalty fee it seeks to enforce against Miracle. According to Thome and according to records released by the United States, Scanlon attended and participated in the meeting at which the Commission determined the penalty fee. Miracle further contends, again citing the Thome deposition, that David Schmeltzer “has personal knowledge regarding the process by which the amount of the penalty to be sought from Miracle was to be determined, supervises discussions with outside parties about penalty fees and would be knowledgable about any documents comparing various penalty fee assessments.” Defendant’s Brief at 11. Miracle seeks Michael Gid-ding’s deposition because he signed and verified the interrogatory answers submitted by the United States and identified himself as the custodian of documents at the time documents were produced in this case.

The United States also moves to cancel the Verhalen, Rubin, and Bradley depositions, as well as the deposition(s) of the unidentified witnesses) knowledgeable in forecasting products, on the ground that the information sought from these individuals is irrelevant to this case. In urging the necessity of these depositions, Miracle argues that inquiry into the Commission’s decision-making process is essential to the preparation of their case.

In his deposition, Carl Blechschmidt, an engineer and former Director of the Commission’s Office of Product Defect Identification, stated that Robert Verhalen directed investigations and studies of accidents and injuries arising from the use of playground equipment. Blechschmidt Dep. at 49-51, 97-99. Paul Rubin, as Associate Executive Director of the Directorate for Economic Analysis, is familiar with the use of cost-benefit analysis by the Commission in its proceedings. Defendant’s Brief, Exhibit “I” at 2. The Division of Human Factors within the Directorate for Epidemiology, under James Bradley’s directorship, “looks at the ‘how’ and ‘why’ of accidental injuries in terms of how the human characteristics interface with the product characteristics—the ‘man-machine interface.’ ” Defendant’s Brief Exhibit “J” at 4. Lastly, in determining whether the product at issue in this case contained a [104]*104defect that could create a substantial product hazard, the Commission used detailed mathematical models to estimate the number of products remaining in use after various time periods of use and product recalls.

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Cite This Page — Counsel Stack

Bluebook (online)
118 F.R.D. 100, 9 Fed. R. Serv. 3d 1191, 1987 U.S. Dist. LEXIS 12821, 1987 WL 23472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-miracle-recreation-equipment-co-iasd-1987.