Westchester Radiological Ass'n P.C. v. Blue Cross/Blue Shield of Greater New York, Inc.

138 F.R.D. 33, 1991 U.S. Dist. LEXIS 9216, 1991 WL 123153
CourtDistrict Court, S.D. New York
DecidedJuly 3, 1991
DocketNo. 85 CV 2733 (KMW)
StatusPublished
Cited by10 cases

This text of 138 F.R.D. 33 (Westchester Radiological Ass'n P.C. v. Blue Cross/Blue Shield of Greater New York, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westchester Radiological Ass'n P.C. v. Blue Cross/Blue Shield of Greater New York, Inc., 138 F.R.D. 33, 1991 U.S. Dist. LEXIS 9216, 1991 WL 123153 (S.D.N.Y. 1991).

Opinion

MEMORANDUM OPINION

KIMBA M. WOOD, District Judge.

In the course of an antitrust suit brought by radiologists against defendant complaining about the manner in which defendant compensated radiologists for their services, at least two radiologists testified to having taken actions that defendant contends may constitute Medicare fraud or abuse on the part of radiologists.- The testimony was given freely, without any confidentiality order being sought at the time. Similarly, documents relevant to these activities were produced without any claim for confidentiality being made at the time. Later, when non-parties sought a confidentiality order, a sweeping confidentiality order was entered by Magistrate Judge Francis (the “Protective Order”), and adopted without argument by Judge Kram, that permitted earlier discovery to be subjected to the confidentiality restrictions. Defendant has now moved to relax or rescind the order’s restrictions, pursuant to paragraph 16 of the order:

This order is entered without prejudice to the right of any party or non-party to apply to the Court at any time for additional protection, or to relax or rescind the restrictions of this Order, when convenience or necessity requires.

The modification defendant seeks is limited; defendant seeks (1) to disclose only documents and testimony given before any claim of confidentiality was made and before any protective order was in place, and (2) to make the disclosures only to the federal Health Care Financing Administration (“HCFA”) or to Blue Cross personnel involved in the performance of defendant’s Medicare functions. Defendant claims that it is unlike a private adversary who seeks to turn over to an enforcement agency “dirt” about its adversary for the purpose of extracting a settlement unwarranted by the merits, or for the purpose of gratuitously seeking to bring down the government’s wrath on its adversary. Here the antitrust action is completely concluded,1 [35]*35and defendant is thus not seeking a litigation advantage by disclosing this information to the HCFA. Unlike a private citizen gratuitously handing information over to the government, defendant is a “fiscal intermediary” between certain health care providers (who are respondents here) and Medicare, and has an express obligation to advise Medicare of information potentially constituting Medicare fraud when that information becomes known to defendant. See, e.g., Medicare Carriers Manual, Part 3, Ch. 11, § 11003. Indeed, the health care provider itself may be required by Medicare to advise defendant of information of the type that Blue Cross discovered for the first time in the course of this litigation and seeks now to have released from the constraints of the protective order. Medicare Health Ins. Manual 15 § 2108.6-B.

This motion presents an apparently unprecedented combination of factors. In the typical case, courts refuse to permit disclosure to enforcement agencies of discovery materials in private actions either because the case is ongoing and disclosure is being sought in a transparent attempt to gain litigation advantage by harassing one’s adversary, or because the court believes that the free flow of testimony given pursuant to a confidentiality order is likely to be choked off by later lifting of confidentiality orders, or both. Because litigation in this case is over, and the testimony at issue was given long before anyone sought to protect it by a confidentiality order, the concerns present in the typical case are not present here.

Courts, in considering whether to relax the terms of confidentiality orders, often consider the expectations of the producing parties, as evidenced by what protections were in place when the discovery was made, and the extent to which the court believes there is a public interest in disclosure either of discovery materials generally, or of the particular discovery materials in the case at hand. I will address these factors in turn.

Expectation of Privacy A.

1. Timing of Issuance of Confidentiality Order

The importance of taking into account the extent to which there was an expectation of privacy when testimony was given or when documents were turned over to an adversary is underscored by the Second Circuit decision in Martindell v. International Tel. & Tel. Corp., 594 F.2d 291 (2d Cir.1979). There, the court noted that preexisting documents may deserve less protection than testimony that would not have been given absent a protective order:

The reliance of a private party upon protection of pre-existing documents from disclosure to the Government would normally be more difficult to justify than that of a witness who would, absent the protective order, have invoked his privilege and given no testimony at all.

Id. 297 n. 8. By analogy, given that the testimony and documents at issue here were voluntarily given to respondents before any protective order had been sought or entered, the discovery material is entitled to less protection than it otherwise might deserve. See, Parkway Gallery Furniture v. Kittinger/Pa. House Group, Inc., 121 F.R.D. 264, 268 (M.D.N.C.1988). Compare Minpeco S.A. v. Conticommodity Servs., Inc., 832 F.2d 739, 743 (2d Cir. 1987) (modification of protective order denied because of prior reliance upon the protective order).

B. Public Interest in Disclosure of Discovery Materials

There is a dichotomy between judicial decisions that view discovery as a largely private activity, and those that view it as a public activity. Although discovery proceedings were not open to the public at common law, are generally conducted in private, and are not “a traditionally public source of information,” Seattle Times Co. v. Rhinehart, 467 U.S. 20, 104 S.Ct. 2199, 2208, 81 L.Ed.2d 17 (1984), the Second Cir[36]*36cuit has held that there is a statutory basis for affording the public access to discovery materials “whenever possible.” In re Agent Orange Product Liability Litigation, 821 F.2d 139, 146 (2d Cir.1987). The Second Circuit reviewed the Advisory Committee’s note accompanying Fed.R.Civ.P. 5(d), which requires the public filing of all discovery materials unless the court orders otherwise, and pointed out that the Advisory Committee had considered and rejected a rule that filing of discovery materials would be required only if the judge ordered their filing. The Advisory Committee’s rationale was that these materials “are sometimes of interest to those who may have no access to them except by a requirement of filing, such as members of a class, litigants similarly situated, or the public generally. Fed.R.Civ.P. 5(d) Advisory Committee note. The Second Circuit held that Rule 5(d) is not a mere housekeeping rule, but rather “embodies the Committee’s concern that class action litigants and the general public be afforded access to discovery materials whenever possible.” Id. at 146 (emphasis added). The Second Circuit assumes that discovery cannot be shielded from public view without a showing of good cause. Id. at 147-148.

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Bluebook (online)
138 F.R.D. 33, 1991 U.S. Dist. LEXIS 9216, 1991 WL 123153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westchester-radiological-assn-pc-v-blue-crossblue-shield-of-greater-nysd-1991.