Victor Stanley, Inc. v. Creative Pipe, Inc.

250 F.R.D. 251, 70 Fed. R. Serv. 3d 1052, 2008 U.S. Dist. LEXIS 42025, 2008 WL 2221841
CourtDistrict Court, D. Maryland
DecidedMay 29, 2008
DocketCivil Action No. MJG-06-2662
StatusPublished
Cited by56 cases

This text of 250 F.R.D. 251 (Victor Stanley, Inc. v. Creative Pipe, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Victor Stanley, Inc. v. Creative Pipe, Inc., 250 F.R.D. 251, 70 Fed. R. Serv. 3d 1052, 2008 U.S. Dist. LEXIS 42025, 2008 WL 2221841 (D. Md. 2008).

Opinion

MEMORANDUM AND ORDER

PAUL W. GRIMM, United States Magistrate Judge.

The plaintiff, Victor Stanley, Inc. (“VSI” or “Plaintiff’) filed a motion seeking a ruling that five categories of electronically stored documents produced by defendants Creative Pipe, Inc. (“CPI”) and Mark and Stephanie Pappas (“M. Pappas”, “S. Pappas” or “The Pappasses”) (collectively, “Defendants”) in October, 2007, are not exempt from discovery because they are within the protection of the attorney-client privilege and work-produet doctrine, as claimed by the Defendants. VSI argues that the electronic records at issue, which total 165 documents, are not privileged because their production by Defendants occurred under circumstances that waived any privilege or protected status. Alternatively, as for a subset of nine email communications from M. Pappas to a computer forensics expert Defendants retained to assist them with producing electronically stored information (“ESI”), VSI contends that the attorney-client privilege is inapplicable, and with regard to another two email communications (one draft, the other actually sent) from M. Pappas to one of his attorneys, VSI contends that they are neither privileged nor protected. Finally, as for two email communications from M. Pappas to two of his attorneys, VSI argues that they are beyond the scope of the attorney-client privilege because they fall within the erime/fraud/tort exception. Defendants acknowledge that they produced all 165 electronic documents at issue to VSI during Rule 34 discovery, but argue that the production was inadvertent, and therefore that privilege/protection has not been waived. As to the various email communications, Defendants argue that they are within the scope of the attorney-client privilege and work-product protection, and that the erime/fraud/tort exception is not applicable. The motion has been fully briefed, Paper Nos. 212, 221, 225, and 230, and I find that a hearing is not necessary. Local Rules of the United States District Court for the District of Maryland, Rule 105.6. For the reasons that follow, I find that all 165 electronic documents are beyond the scope of the attorney-client privilege and work-product protection because assuming, arguendo, that they qualified as privileged/protected in the [254]*254first instance,1 and assuming further that Defendants properly complied with their obligation to particularize any claims of privilege/protection imposed by Fed.R.Civ.P. 26(b)(5), Local Rules of the United States District Court for the District of Maryland, Appendix B, Discovery Guideline 9.c (“Discovery Guideline”), and the orders of this court detailing how such assertions must be demonstrated once they were challenged by VSI,2 the privilege/protection was waived by the voluntary production of the documents to VSI by Defendants.

Background Facts

The following facts are not subject to dispute. The Defendants’ first Rule 34 response was a “paper production,” not ESI, made in May 2007. Pl.’s Supp’l Mem. 3, Paper No. 221. Plaintiff objected to its sufficiency, and following a hearing, the court ordered the parties’ computer forensic experts to meet and confer in an effort to identify a joint protocol to search and retrieve relevant ESI responsive to Plaintiffs Rule 34 requests. Id. This was done and the joint protocol prepared. Pl.’s Supp’l Mem. Ex. 9, Paper No. 221. The protocol contained detailed search and information retrieval instructions, including nearly five pages of keyword/phrase search terms. It is noteworthy that these search terms were aimed at locating responsive ESI, rather than identifying privileged or work-product protected documents within the population of responsive ESI. After the protocol was used to retrieve responsive ESI, Defendants reviewed it to locate documents that were beyond the scope of discovery because of privilege or work-product protection. Counsel for Defendants had previously notified the court on March 29, 2007, that individualized privilege review of the responsive documents “would delay production unnecessarily and cause undue expense.” Pl.’s Letter of Mar. 29, 2007, Paper No. 79. To address this concern, Defendants gave their computer forensics expert a list of keywords to be used [255]*255to search and retrieve privileged and protected documents from the population of documents that were to be produced to Plaintiff. Id. However, Defendants’ counsel also acknowledged the possibility of inadvertent disclosure of privileged/protected documents, given the volume of documents that were to be produced, and requested that the court approve a “clawback agreement” fashioned to address the concerns noted by this court in Hopson v. Mayor of Baltimore, 232 F.R.D. 228 (D.Md.2005).3 In response, the court held a telephone conference to discuss the proposed clawback agreement, and thereafter issued a letter order requesting additional briefing by the parties “regarding the burdens associated with conducting a privileged [sic] review of the information to be produced in the time frame required by [the] discovery [schedule] in this case.” Letter Order, Apr. 24, 2007, Paper No. 92. However, on April 27, 2007, Defendants’ counsel notified the court that because Judge Garbis recently had extended the discovery deadline by four months, Defendants would be able to conduct a document-by-doeument privilege review, thereby making a clawback agreement unnecessary. Defs.’ Letter of Apr. 27, 2007, Paper No. 93. Accordingly, Defendants abandoned their efforts to obtain a clawback agreement and committed to undertaking an individualized document review.

Following their privilege review, Defendants made their ESI production to Plaintiff in September 2007. Pl.’s Supp’l Mem. 5, Paper No. 221. It is noteworthy that by the time of this production, Defendants had discharged their local attorneys, Messrs. Mohr and Ludwig from Meyer, Klipper & Mohr, and brought in new counsel.4

After receiving Defendants’ ESI production in September, 2007, Plaintiffs counsel began their review of the materials. They soon discovered documents that potentially were privileged or work-product protected and immediately segregated this information and notified counsel for Defendants of its production, following this same procedure each time they identified potentially privileged/protected information. Pl.’s Supp’l Mem. Exs. 11-15, Paper No. 221. Defendants’ Counsel, Mr. Schmid, responded by asserting that the production of any privileged or protected information had been inadvertent. Pl.’s Supp’l Mem. Ex. 17, Paper No. 221. Defendants also belatedly provided Plaintiff with a series of privilege logs, purportedly identifying the documents that had been withheld from production pursuant to Fed.R.Civ.P. 26(b)(5). Defs.’ Opp’n Mem. Exs. 4, 6, and 9, Paper No. 225.

The parties disagree substantially in their characterization of how Defendants conducted their review for privileged and protected documents before the ESI productions were made to Plaintiff. Defendants contend that after the joint ESI search protocol was implemented and the responsive ESI identified, their computer forensics expert, Ms. Gene-[256]*256vive Turner, “conducted a privilege search using approximately seventy different keyword search terms ... [that] had been decided upon previously by Mr.

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250 F.R.D. 251, 70 Fed. R. Serv. 3d 1052, 2008 U.S. Dist. LEXIS 42025, 2008 WL 2221841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/victor-stanley-inc-v-creative-pipe-inc-mdd-2008.