Volkswagen of America, Inc. v. Superior Court

43 Cal. Rptr. 3d 723, 139 Cal. App. 4th 1481, 2006 Daily Journal DAR 6572, 2006 Cal. Daily Op. Serv. 4552, 2006 Cal. App. LEXIS 803
CourtCalifornia Court of Appeal
DecidedMay 26, 2006
DocketA112934
StatusPublished
Cited by22 cases

This text of 43 Cal. Rptr. 3d 723 (Volkswagen of America, Inc. v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Volkswagen of America, Inc. v. Superior Court, 43 Cal. Rptr. 3d 723, 139 Cal. App. 4th 1481, 2006 Daily Journal DAR 6572, 2006 Cal. Daily Op. Serv. 4552, 2006 Cal. App. LEXIS 803 (Cal. Ct. App. 2006).

Opinion

Opinion

POLLAK, J.

Are documents submitted to bankruptcy trusts by a plaintiff’s attorney in support of claims for compensation for alleged asbestos-related injuries discoverable in similar litigation against another entity? We conclude that most such documents normally are, and shall issue a writ of mandate to correct an overly restrictive discovery order entered in the trial court.

FACTUAL AND PROCEDURAL BACKGROUND

On December 10, 2003, real party in interest Buddy Rusk, Sr., filed suit against 67 named defendants, including petitioner Volkswagen of America, *1486 Inc. (Volkswagen), for injuries he allegedly suffered as a result of asbestos exposure. In April 2005 Volkswagen requested the production of “all documents^[ 1 ] *3 [Rusk] submitted to a bankruptcy trust administering assets of’ any of 72 designated companies. Rusk objected on multiple grounds including that the requests invaded protected privacy interests. He produced no responsive documents. Volkswagen learned, however, that Rusk’s attorneys had submitted documents in the chapter 11 bankruptcy proceedings of Kaiser Aluminum & Chemical Company (Kaiser) and to a bankruptcy trust established to handle asbestos claims against Johns-Manville Corporation. Rusk subsequently acknowledged that he had filed a claim with a bankruptcy trust established to handle asbestos claims against Western MacArthur Co., but refused to produce any of those documents.

Petitioner brought a motion to compel the production of the Kaiser, Johns-Manville Corporation and Western MacArthur Co. documents, “and to produce any and all documents related to plaintiff’s submissions to bankruptcy trusts for his alleged asbestos-related disease.” Reasoning in part that the standard for discovery is affected by the ultimate admissibility of the information requested, the court ordered the disclosure of amounts Rusk had received in settlement from any of the trusts and the production of declarations submitted to the trusts signed by Rusk, but not of any documents signed by Rusk’s attorneys. The trial court order, dated December 9, 2005, states in pertinent part: “1. Documents submitted by or on behalf of plaintiff Buddy Rusk, Sr. to asbestos bankruptcy trusts are not privileged. However, other than documents signed by plaintiff under penalty of perjury, the court finds that these documents are confidential settlement documents which are not relevant, not admissible, and therefore not discoverable, except as follows: [f] 2. Plaintiff is ordered to produce all documents which he signed under penalty of perjury that are responsive to [Volkswagen’s] request for production of documents. ...[][] 3. Plaintiff is ordered to supplement his responses to [Volkswagen’s] request for production of documents to plaintiff [Set One], request Nos. 42, 44, and 72 in accordance with Code of Civil Procedure § 2031. Plaintiff is ordered to identify any documents which he has signed under penalty of perjury. Plaintiff is further ordered to identify any documents he has previously produced in this matter that are responsive to [Volkswagen’s] request for production of documents. Plaintiff is not required to produce a privilege log [or] to identify documents which he has not signed under penalty of perjury.”

*1487 Volkswagen filed a petition for a writ of mandate, requesting this court to direct the trial court “to order plaintiff to produce all Proofs of Claim, including those that were signed by plaintiff’s attorneys.” After requesting informal opposition, we issued an order to show cause.

Volkswagen argues that the requested documents are discoverable because they are relevant, admissible, reasonably calculated to lead to the discovery of admissible evidence and not confidential settlement documents, and argues further that even if they were confidential, they would still be discoverable. Rusk maintains that this discovery dispute does not warrant writ relief, that Volkswagen has an adequate remedy at law, that the trial court ruled correctly, and also suggests that the issue is moot because there are no additional documents to be produced.

DISCUSSION

I. The Petition Warrants Writ Review

Generally, discovery orders are not reviewable by extraordinary writ. (Sav-On Drugs, Inc. v. Superior Court (1975) 15 Cal.3d 1, 5 [123 Cal.Rptr. 283, 538 P.2d 739].) Writ review may be appropriate, however, to prevent an unjustifiable denial of discovery. (Lehman v. Superior Court (1986) 179 Cal.App.3d 558, 562 [224 Cal.Rptr. 572]; see also Wagner v. Superior Court (1993) 12 Cal.App.4th 1314, 1317 [16 Cal.Rptr.2d 534].) Rusk asserts that Volkswagen has an adequate remedy at law here because discovery is still open and Volkswagen may “ask any proper questions of Mr. Rusk directly.” But questioning a party is rarely an adequate substitute for access to documents which ordinarily are more reliable, may be used for such purposes as refreshing recollection and impeachment, and may lead to the discovery of other admissible evidence. Volkswagen’s continuing ability to depose or submit interrogatories to Rusk does not provide an adequate remedy at law. We conclude that writ review is appropriate in this case to resolve what we are advised is a recurring question in other asbestos litigation.

II. Scope of the Dispute

In opposing issuance of a writ of mandate, Rusk has suggested that a writ “would not result in a further production of documents.” This suggestion appears to be based on an unduly narrow reading of Volkswagen’s request, generated in turn by some imprecision and inconsistency in the terminology in Volkswagen’s papers. As noted above, Volkswagen’s petition in this court seeks the production of “Proofs of Claim,” yet this term was not used in *1488 Volkswagen’s production request or in its motion to compel production. Moreover, to illustrate the type of information it is seeking, Volkswagen submitted a copy of the proof of claim form that Rusk filed in the Kaiser bankruptcy proceedings. 2 Rusk correctly points out that there is a difference between the bankruptcy court and a bankruptcy trust, and that the proof of claim form that a claimant must file with the bankruptcy court (Form BIO) is not necessarily the same as the claim form that is submitted to a bankruptcy trust, nor is the supporting documentation necessarily the same.

The record contains limited information concerning the operations of so-called “bankruptcy trusts.” The Manville Personal Injury Settlement Trust and the Western Asbestos Settlement Trust were each established by a bankruptcy court pursuant to plans of reorganization under chapter 11 of the Bankruptcy Code (11 U.S.C. § 101 et seq.), with limited funds to be used to settle asbestos exposure claims against the bankrupt company. 3

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43 Cal. Rptr. 3d 723, 139 Cal. App. 4th 1481, 2006 Daily Journal DAR 6572, 2006 Cal. Daily Op. Serv. 4552, 2006 Cal. App. LEXIS 803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/volkswagen-of-america-inc-v-superior-court-calctapp-2006.