United States v. Philip Morris Inc.

212 F.R.D. 421, 2002 U.S. Dist. LEXIS 9174, 2002 WL 31956100
CourtDistrict Court, District of Columbia
DecidedMay 17, 2002
DocketCivil Action No. 99-2496(GK)
StatusPublished
Cited by9 cases

This text of 212 F.R.D. 421 (United States v. Philip Morris Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Philip Morris Inc., 212 F.R.D. 421, 2002 U.S. Dist. LEXIS 9174, 2002 WL 31956100 (D.D.C. 2002).

Opinion

[422]*422 MEMORANDUM OPINION

KESSLER, District Judge.

Plaintiff United States has moved this Court for a ruling that all Defendants waived any claims of attorney-client privilege and work product protection over approximately 39,000 documents, known as the “Bliley documents.” The Government contends that the waiver resulted from two actions taken by the Defendants: (1) their production of the Bliley documents to the Commerce Committee of the House of Representatives (“Committee”) without having taken all reasonable measures to safeguard the confidentiality of those documents, and (2) their consent to the public release of the documents pursuant to the settlement provisions in State of Minnesota v. Philip Morris, Inc., et al, No. Cl-94-8565 (2nd Jud. Dist., Minn.) (the “Minnesota litigation”). The Government further argues that public policy considerations weigh in favor of overriding Defendants’ assertions of privilege.

Despite the trial court’s findings in the Minnesota litigation that the documents were not entitled to protection, publication of the documents by the House Committee on its internet website in April 1998, the documents’ availability for purchase on CD-ROM from the U.S. Government Printing Office, and the documents’ availability for public review and copying at the Minnesota document depository since July 2000, Defendants1 strongly oppose the use of such documents in this lawsuit.

The Court grants Plaintiffs motion because Defendants have failed to demonstrate that they did not waive their attorney-client privilege and work product protection by virtue of their production of the Bliley documents to the House Commerce Committee and their consent to the public disclosure provisions in the Minnesota settlement. In addition, public policy considerations strongly support use of these documents in this litigation.

I. Background

The documents at issue first became relevant, for purposes of the present motion, when the State of Minnesota and Blue Cross and Blue Shield of Minnesota sued Defendants in 1994, seeking injunctive relief and monetary damages for expenditures for medical treatment of smoking-related diseases. State of Minnesota v. Philip Morris, Inc., et al, No. Cl-94-8565 (2nd Jud. Dist., Minn.); see also State of Minnesota v. Philip Morris, Inc., 606 N.W.2d 676, 680-85 (Minn.Ct.App. 2000) (detailed history of Minnesota litigation). During the pendency of this lawsuit, while many others were pending in both state and federal courts, Congress became involved in the process of negotiating a nationwide tobacco settlement.

In early 1997, a Minnesota defendant (who is a Defendant in this case), the Liggett Group, Inc. (“Liggett”), entered into a settlement with several states in their suits against the tobacco industry. Pursuant to that agreement, Liggett agreed to produce certain tobacco industry documents. The non-Liggett defendants objected strenuously to the production of such documents, claiming they were privileged or otherwise protected from disclosure.

On September 10, 1997, a Special Master appointed by the Minnesota trial court de[423]*423termined that 864 documents were not privileged or were subject to the crime-fraud exception to the attorney-client privilege. See Report and Recommendations of September 10, 1997 (Pl.Ex. 3). The Report was adopted by the Minnesota trial court on December 16,1997, over the objections of the non-Liggett defendants. See Iron Workers Local Union No. 17 Ins. Fund v. Philip Morris, Inc., et al, 35 F.Supp.2d 582, 587 (N.D.Ohio 1999).

On November 13, 1997, Congressman Thomas Bliley, Chairman of the House Commerce Committee, wrote to certain defendants in the Minnesota litigation,2 requesting that they voluntarily produce the 864 documents identified in the Minnesota Special Master’s Report. See id. After being rebuffed, the Committee finally subpoenaed the 864 Liggett documents on December 4, 1997. Philip Morris produced the documents the following day. Two weeks later, on December 18, 1997, the Committee released the documents to the public and press via the internet. See id. Before producing the documents, Defendant Philip Morris did not obtain a ruling from Chairman Bliley on the privilege claims, nor did it ever obtain a Committee vote to enforce the subpoena.

On February 10,1998, the Minnesota Special Master made a further recommendation for release of additional documents. He determined that approximately 39,0003 of a total of 230,000 documents were not privileged or were subject to the crime-fraud exception. See Report and Recommendations of February 10, 1998 (Pl.Ex. 4); Minnesota, 606 N.W.2d at 682.

Nine days after issuance of the Special Master’s Report, Chairman Bliley again issued subpoenas to certain tobacco companies involved in the Minnesota litigation. The subpoenas required production by March 12, 1998, of all documents for which the Special Master had “recommended that the claim of privilege should not be maintained.”4 Pl.Ex. 6.

On March 7, 1998, the Minnesota trial court adopted the Special Master’s Report and Recommendations, ordered that the documents be produced within forty-eight hours, and denied defendants’ request for a stay pending appeal. State of Minnesota v. Philip Morris, Inc., No. C1-94-8565, 1998 WL 257214 (Minn.Dist.Ct. Mar.7, 1998). On March 12, 1998, the return date of the Committee subpoenas, the subpoenaed companies jointly submitted a letter to Chairman Bliley informing him that they had appealed the trial court’s ruling and that the appellate court had stayed the trial court’s order of production pending defendants’ appeals (the “March 12 letter”). See Pl.Ex. 7 (Letter of March 12, 1998 from Meyer Koplow to Chairman Bliley). In their March 12 letter, the companies outlined alleged procedural deficiencies in the way the Minnesota court handled the privilege claims, appended copies of their briefs to the Minnesota appellate court, and requested that the Committee refrain from issuing any ruling with respect to their privilege claims until conclusion of the appellate process in Minnesota. See id.

The companies’ efforts to overturn the Minnesota order were unsuccessful. On March 17, 1998, the Minnesota Court of Appeals denied their petitions, and on March 27, 1998, the Minnesota Supreme Court denied the petitions for further review. See State of Minnesota v. Philip Morris, Inc., Nos. CX-98414, -98431, 1998 WL 154543 (Minn. Mar.27, 1998). On April 6, 1998, the U.S. Supreme Court denied the companies’ final application for a stay of the Minnesota order. See Philip Morris, Inc. v. Minnesota, 523 U.S. 1056, 118 S.Ct. 1384, 140 L.Ed.2d 643 (1998).

On the same day the Supreme Court ruled, Chairman Bliley requested immediate production of the documents and announced that privilege assertions over them would not be [424]*424recognized. See Pl.Ex. 9 (Letter of April 6, 1998, from Chairman Bliley to Meyer Ko-plow). Later that day, the domestic defendants in the Minnesota

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Colella v. Androus
District of Columbia, 2024
Doe 1 v. George Washington University
District of Columbia, 2020
District Title v. Warren
265 F. Supp. 3d 17 (D.C. Circuit, 2017)
District Title v. Warren
District of Columbia, 2017
Smith v. Ergo Solutions, LLC
District of Columbia, 2017
Banneker Ventures, LLC v. Graham
253 F. Supp. 3d 64 (District of Columbia, 2017)
Bowles v. National Ass'n of Home Builders
224 F.R.D. 246 (District of Columbia, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
212 F.R.D. 421, 2002 U.S. Dist. LEXIS 9174, 2002 WL 31956100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-philip-morris-inc-dcd-2002.