Vertex Aerospace, LLC v. Womble Bond Dickinson, LLP
Vertex Aerospace, LLC v. Womble Bond Dickinson, LLP
2022 WL 1908911 (S.D. Miss. 2022)
April 26, 2022
Isaac, LaKeysha Greer, United States Magistrate Judge
Summary
The court denied the motion for protective order as to deposition topics related to ESI, finding that the information sought was relevant and proportional to the needs of the case. The court also ordered Womble to supplement its privilege log to address each element of the applicable privilege.
Additional Decisions
VERTEX AEROSPACE, LLC PLAINTIFF
v.
WOMBLE BOND DICKINSON, LLP and COURTNEY PAINE SNIDER DEFENDANTS
v.
WOMBLE BOND DICKINSON, LLP and COURTNEY PAINE SNIDER DEFENDANTS
CIVIL ACTION NO. 3:09-cv-00704-HTW-LGI
United States District Court, S.D. Mississippi, Northern Division
Filed April 26, 2022
Counsel
William T. Siler, Jr., Arthur Martin Edwards, IV, Fred L. Banks, Jr., Gregory Todd Butler, Jason T. Marsh, LaToya C. Merritt, Loden P. Walker, Phelps Dunbar, LLP, Jackson, MS, M. Nan Alessandra, Pro Hac Vice, Phelps Dunbar, LLP, New Orleans, LA, for Plaintiff.John M. Lassiter, Burr & Forman, LLP, Jackson, MS, for Defendant Courtney Paine Snider.
Hugh Ruston Comley, James J. Crongeyer, Jr., Watkins & Eager, PLLC, Jackson, MS, for Defendant Womble Bond Dickinson (US)LLP
Isaac, LaKeysha Greer, United States Magistrate Judge
ORDER GRANTING IN PART AND DENYING IN PART WOMBLE'S MOTION FOR PROTECTIVE ORDER
*1 Before the Court is Counter-Defendant Womble Bond Dickinson (US) LLP's Motion for Protective Order [367].[1] Counter-Plaintiff Vertex Aerospace, LLC filed a Response in Opposition to Womble's Motion for Protective Order [378], and Womble submitted a Reply in Support of its Motion for Protective Order [382]. The Court, having considered the submissions, the record, and relevant law, finds that the Motion for Protective Order [367] is GRANTED IN PART and DENIED IN PART as discussed below.
STANDARD
“Rule 30(b)(6) allows parties to obtain testimony from a corporation, provided the party describes with reasonable particularity the matters for examination.” Mike Hooks Dredging Co., Inc. v. Eckstein Marine Service, Inc., No. 08-3945, 2011 U.S. Dist. LEXIS 68989, 2011 WL 2559821, at *1 (E.D. La. June 28, 2011) (Berrigan, J.) (citing Fed. R. Civ. P. 30(b)(6)). Thereafter, the named organization “must then designate one or more officers, directors, or managing agents, or designate other persons who consent to testify on its behalf; and it may set out the matters on which each person designated will testify.” Fed. R. Civ. P. 30(b)(6); see also, Brazos River Auth. v. GE Ionics, Inc., 469 F.3d 416, 433 (5th Cir. 2006) (quoting 8A Charles A. Wright, Arthur R. Miller & Richard L. Marcus, Federal Practice and Procedure § 2103, at 33 (2d ed.1994)) (‘ “Obviously it is not literally possible to take the deposition of a corporation; instead ... the information sought must be obtained from natural persons who can speak for the corporation.’ ”). As the Fifth Circuit has explained:
the deponent must make a conscientious good-faith endeavor to designate the persons having knowledge of the matters sought by [the party noticing the deposition] and to prepare those persons in order that they can answer fully, completely, unevasively, the questions posed ... as to the relevant subject matters. [T]he duty to present and prepare a Rule 30(b)(6) designee goes beyond matters personally known to that designee or to matters in which that designee was personally involved. The deponent must prepare the designee to the extent matters are reasonably available, whether from documents, past employees, or other sources.
Brazos River Auth., 469 F.3d at 433 (internal quotations and citations omitted).
Federal Rule of Civil Procedure 26(b)(1) provides that “[p]arties may obtain discovery regarding any nonprivileged matter that is relevant to any party's claim or defense.” Fed. R. Civ. P. 26(b)(1). Rule 26(b)(1) specifies that “[i]nformation within this scope of discovery need not be admissible in evidence to be discovered.” Id. Rule 26(b)(1) also specifies that discovery must be “proportional to the needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties' relative access to relevant information, the parties' resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit.” Id.
*2 Under Rule 26(b)(2)(C), discovery may be limited if: (1) the discovery sought is unreasonably cumulative or duplicative, or is obtainable from another, more convenient, less burdensome, or less expensive source; (2) the party seeking discovery has had ample opportunity to obtain the discovery sought; or (3) the proposed discovery is outside of the scope permitted under Rule 26(b)(1). Fed. R. Civ. P. 26(b)(2)(C).
Finally, Rule 26(c) governs the issuance of Protective Orders in discovery. A Court may “for good cause, issue an order to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense.” Fed. R. Civ. P. 26(c)(1). The rule offers a variety of potential options that the Court may use to protect the moving party, including forbidding or limiting the scope of discovery into certain matters or requiring that a trade secret or other confidential commercial information not be revealed or be revealed in only a certain way. Id. “The party seeking the protective order bears the burden to show ‘the necessity of its issuance, which contemplates a particular and specific demonstration of fact[.]’ ” Cazaubon v. MR Precious Metals, LLC, 14-2241, 2015 U.S. Dist. LEXIS 107923, 2015 WL 4937888, at *2 (E.D. La. Aug. 17, 2015) (quoting In re Terra Int'l, 134 F.3d 302, 306 (5th Cir. 1998)). The trial court enjoys wide discretion in setting the parameters of a protective order. See Seattle Times Co. v. Rhinehart, 467 U.S. 20, 36, 104 S. Ct. 2199, 81 L. Ed. 2d 17 (1984) (“To be sure, Rule 26(c) confers broad discretion on the trial court to decide when a protective order is appropriate and what degree of protection is required.”). Finally, Rule 26(c)(1) requires a certification that the moving party has conferred or attempted to confer in good faith with the other affected party to attempt to resolve the issue without the court's interference. Fed. R. Civ. P. 26(c)(1).
ANALYSIS
Counter-Defendant Womble has filed the instant Motion for Protective Order seeking an order from the Court preventing the Plaintiff Vertex Aerospace from taking the deposition of Womble in relation to twenty-three (23) of the thirty-nine (39) topics included in Plaintiff Vertex Aerospace's notice of Rule 30(b)(6) Deposition [356].
Womble argues in its reply that its motion for protective order should be granted under the law of the case doctrine. “[T]he doctrine [of the law of the case] posits that when a court decides upon a rule of law, that decision should continue to govern the same issues in subsequent stages in the same case.” Christianson v. Colt Indus. Operating Corp., 486 U.S. 800, 815-16, 108 S. Ct. 2166, 100 L. Ed. 2d 811 (1988) (internal citation omitted); Bayou Steel Corp. v. Nat'l Union Fire Ins. Co. of Pittsburgh, Pennsylvania, 487 Fed. Appx. 933, 936 (5th Cir. 2012); Copeland v. Merrill Lynch & Co., 47 F.3d 1415, 1423 (5th Cir. 1995). This rule applies to decisions made by (1) the same court; (2) a coordinate court of equal rank in the same case; and (3) an appeals court that remands the case to the district court. Christianson, 486 U.S. at 816; Bayou Steel, 487 Fed. Appx. at 936.
While a court on remand must obey the decisions of the appeals court (known as the “mandate rule”), a court has discretion to revisit its own decisions or those of a coordinate court of equal rank. Christianson, 486 U.S. at 818 (“[T]he law-of-the-case doctrine ‘merely expresses the practice of courts generally to refuse to reopen what has been decided, not a limit to their power.”); Copeland, 47 F.3d at 1424 (“[T]he law of the case doctrine is a discretionary rule of practice which does not limit the power of the court to revisit a legal issue.”); Med. Ctr. Pharmacy v. Holder, 634 F.3d 830, 834 (5th Cir. 2011) (“[A]n issue of ... law decided on appeal may not be reexamined by the district court on remand or by the appellate court on a subsequent appeal.”) (internal citations omitted).
*3 Womble submits that “the only claim the Fifth Circuit has allowed to proceed is solely related to Edwards' assistance to Janice Wolf.” Doc. [369] at 2. Womble asserts that Vertex's deposition topics relate to the dismissed claims “that Edwards provided Paine Snider with legal assistance and that the Womble firm failed to disclose that legal assistance.” Id. Based on this, Womble argues that the remaining claims in this matter lack the causation and damages to support the scope of Vertex's deposition topics.
The Court's recognition that certain claims were dismissed and affirmed by the Fifth Circuit does not exclude the parties from discovering information relevant to the live claims. Cf. Sotello v. Allstate Fire & Cas. Ins. Co., No. 5-20-cv-01303-DAE, 2021 U.S. Dist. LEXIS 81436 at 13 (W.D. Tex. Apr. 6, 2021) (holding that “discovery should proceed as to all live claims”). As discussed below, Womble cannot wholly avoid Vertex's discovery requests based on the law-of-the-case doctrine. The Court now turns to Vertex's specific deposition topics in dispute.
A. Deposition Topic No. 3
Deposition Topic No. 3:
Womble's involvement in any civil litigation on behalf of Raytheon Aerospace, LLC, L-3 Communications Vertex Aerospace, LLC and/or any of its predecessor names, as either plaintiff or defendant from 2006 through 2021.
Womble's Objection:
This topic is neither relevant nor proportional to the needs of the case considering: (1) the only remaining claims must relate only to Edward's assistance to Wolf as made clear by the Fifth Circuit, which involved a handful of communications with her and Maxey; (2) Maxey never represented Wolf or filed any action on her behalf; and, (3) Watson, the attorney who represented Wolf in an EEOC claim more than two years later that never turned into a lawsuit, had no communications or interaction with either Edwards or Maxey. Thus, there was no harm or injury to Vertex flowing from Edwards improper communications to wolf [sic] and Maxey. At the time Edwards wrote the improper emails to Maxey, he had stopped being retained to represent Vertex. However, other Womble attorneys were representing Vertex or related entities in other litigation at that time, but mostly in aviation cases. Vertex has the knowledge of who represented it and does not need that information from Womble. More importantly, Vertex has made no allegation that these other unrelated matters by other Womble attorneys were in any way affected by Edwards' improper emails to Maxey about Wolf. Moreover, the primary attorney (Jack Strauch) involved in the aviation representations left Womble in March 2009. Thus, it is also extremely burdensome for Womble to prepare a corporate witness on these aviation litigation matters which have been closed for more than a decade, especially when they were unrelated and unaffected by Edwards' email to Maxey and Wolf.
Doc. [369] at 10.
Vertex's Response:
Womble objects that the third topic is irrelevant and disproportionate to the needs of the case. Under Federal Rules of Civil Procedure 26 and 30, Vertex may obtain discovery, or testimony, regarding any nonprivileged matter that is relevant to any party's claim or defense. Demonstrating relevance is “not difficult for a party seeking discovery,” Bituminous Cas. Corp. v. Smith Bros. Inc., No. 2:07-CV-354-KS-MTP, 2009 WL 10676928, at *3 (S.D. Miss. Jan. 7, 2009), because “[c]ourts have traditionally construed relevance broadly: information is relevant if it encompasses any matter that bears on, or that reasonably could lead to other matter that could bear on, any issue that is or may be in the case.” Coughlin v. Lee, 446 F.2d 1152, 1159 (5th Cir. 1991) (cleaned up). Furthermore, discovery is not “limited to the merits of a case, for a variety of fact-oriented issues may arise during litigation that are not related to the merits.” Oppenheimer Fund, Inc., 437 U.S. at 351.
*4 That's the gist here. Not only is Womble's representation of Vertex in prior litigation relevant for impeachment purposes, but Vertex seeks disgorgement of any and all legal fees paid to Womble during its breach of the fiduciary relationship and the fiduciary breach of its partner, Charlie Edwards, which Vertex believes occurred between 2006 through present. To date, Womble has never self-reported its nor Edwards' breach in relation to Janice Wolf. According to the Second Restatement of Agency (the same treatise cited by Womble's expert, Benjamin Cooper (Expert Report at 11)), “[a]n agent is entitled to no compensation for conduct which is disobedient, or which is a breach of his duty of loyalty; if such conduct constitutes a willful and deliberate breach of his contract of service, he is not entitled to compensation even for properly performed services for which no compensation is apportioned.” Burrow v. Arce, 997 S.W.2d 229, 237 (1999) (emphasis added) (applying Section 469 the RESTATEMENT (SECOND) OF AGENCY). Moreover, “[t]o limit forfeiture of compensation to instances in which the principal sustains actual damages would conflict with both justifications for the rule. It is the agent's disloyalty, not any resulting harm that violates the fiduciary relationship and thus impairs the basis for compensation. An agent's compensation is not only for specific results but also for loyalty.” Id. at 238. Accordingly, information related to Womble's involvement in litigation on behalf of Vertex is not only highly relevant but needed for impeachment-related purposes and damages sought by Vertex.
Doc. [378] at 7.
Ruling:
Womble objects to deposition topic number 3 on the basis that it is irrelevant, disproportionate to the needs of the case, and that providing a response is unduly burdensome, if not impossible. Vertex argues that Womble's involvement in civil litigation on behalf of Vertex is relevant during Charlie Edwards' employment from 2006 through 2021.
Although deposition topic no. 3 is relevant, it is disproportionate to the needs of the case as currently written. To determine whether the information sought in deposition topic no. 3 is proportional to the needs of the case, the Court considers the factors set forth in Rule 26(1): (1) importance of the issues at stake in the action, (2) the amount in controversy, (3) the parties' relative access to relevant information, (4) the parties' resources, (5) the importance of the discovery in resolving the issues, and (6) whether the burden or expense of the proposed discovery outweighs its likely benefit. See Fed. R. Civ. P. 26(b)(1). After review of the six factors set forth in Rule 26(b)(1), the Court finds that all six factors weigh in favor of a finding that deposition topic no. 3 is disproportionate to the needs of the case. Specifically, the burden of producing the requested information for a fifteen (15) year period outweighs its likely benefit. Vertex filed its Second Amended Answer and Affirmative Defenses and Counterclaim on February 15, 2012. See [127]. The Court observes that the operative time period for discovery spans from the time that the alleged relationship between Paine-Snider and Edwards began in 2006 to the time that Vertex filed counterclaims against Womble in February 2012. Therefore, the Court shall limit the time for inquiry to six (6) years, spanning from January 2006 to February 2012. Accordingly, the motion for protective order is granted in part and denied in part as to deposition topic no. 3.
B. Deposition Topic. No. 4
Deposition Topic. No. 4:
Womble's former and current finances, net worth, and assets (i.e., personal or real), from 2006 to 2021.
Womble's Objection:
This topic seeks highly confidential and proprietary financial information from a privately held law firm, as opposed to a publicly traded company, that is harassing and disproportionate to the claims and any conceivable amount in controversy or legal damages. Except for net worth, the financial information sought is also irrelevant, and only current net worth information would be relevant if/when Vertex were to win a compensatory verdict and proceed to a punitive damages phase of trial. Miss. Code Ann. § 11-1-65 is clear that only Womble's net worth at the time of trial is relevant to punitive damages. Womble has agreed to provide its net worth and the accounting principles applied one month before trial. Applying this Court's balanced approach in Regions Ins., Inc. v. Alliant Ins. Servs., Inc., 2015 WL 1886852 at *3–*7, No. 3:13-CV-667-HTW-LRA (S.D. Miss. Apr. 24, 2015) to this case demonstrates that the provision of a certified statement of net worth in advance of trial is proper and adequate.
*5 To the extent the topic seeks information on financial assets, it is completely disproportionate to the needs of the case and amount in controversy considering Womble has produced a copy of its insurance which provides for $50 million in coverage for this claim. Edwards' handful of communications with Maxey and Wolf in 2006 when Maxey never represented Wolf, Wolf waited 2 years and 4 months to make any EEOC Compliant in 2009 with a completely different lawyer (Watson), and Wolf never filed any lawsuit against Vertex, cannot justify a legal judgment against Womble exceeding $50 million. This is the case even with punitive damages, especially considering Vertex has refused to describe any harm or list any damages after having 15 years to determine if there is any. It would also be burdensome and harassing to require a Womble witness to prepare to provide historical financial information going back 15 years that has no relevance to either the ability to pay a judgment ($50 million in insurance) or to any assessment of punitive damages under the law.
Doc. [369] at 11.
Vertex's Response:
Womble moves to protect the discovery of its finances, net worth, and assets, asserting the information is highly confidential, proprietary, disproportionate to the needs of the case, and burdensome to Womble. It further maintains that the matter constitutes harassment and then pre- judges the case sub judice by alleging that the actions and inactions undergirding Vertex's claims “cannot justify a legal judgment against Womble exceeding” its insurance coverage. Lastly, in an attempt to circumvent the fourth matter, Womble states that it will provide Vertex with its net worth information one month before trial, citing to Mississippi Code Annotated § 11-1-65.
Former and current finances are discoverable at the discovery stage. In fact, the majority of rulings made by magistrate judges and district judges in the Fifth Circuit “allow net worth discovery during the discovery period.” Regions Ins., Inc. v. Alliant Ins. Servs., Inc., No. 3:13-CV-667, 2015 WL 1886852, at *5 (S.D. Miss. Apr. 24, 2015) (collecting cases); accord Mid Continent Cabinetry, Inc. v. George Koch Sons, Inc., 130 F.R.D. 149, 161 (D. Kan. 1990) (“[A] majority of federal courts permit pretrial discovery of financial information of the defendant[.]” (internal quotation marks and citation omitted)). The same is true in Mississippi state courts. E.g., Indep. Life & Accident Ins. Co. v. Peavy, 528 So. 2d 1112, 1117 (Miss. 1988).
Regarding its net worth, Womble seeks to invoke the eight-factor test delineated in Regions Insurance, Inc. to justify its disclosure of net-worth discovery one month before trial. But Regions Insurance, Inc.'s eight-factor test “established a split in this District regarding the discoverability of net worth, [and] it does not constitute controlling law ....” Dear v. Crown Castle S., LLC, No. 3:13-CV-212-WHB-RHW, 2016 WL 7985436, at *7 (S.D. Miss. June 9, 2016). Stalling discovery until one month before trial, as Womble suggests, would unfairly prejudice Vertex's ability to disprove, dispute, or impeach Womble's calculated figures.
As to its financial assets, Womble's categorical contention—that any discovery is inappropriate—holds no water. In Dear, this Court found that the magistrate's ruling that required the defendant to disclose information “regarding its assets, liabilities, and net worth” was “neither clearly erroneous nor contrary to the law.” Id. at *6. Likewise, because the facts of this case date back to 2000 (i.e., the central timeframe is between 2004 and 2012), Vertex needs to depose Womble's designee to adequately assess the value of its claims. This Court should require Womble to disclose relevant discovery related to its net worth and financial assets now, not at the time of trial.
Doc. [378] at 8-9.
Ruling:
Womble contends that its former and current finances, net worth, and assets from 2006 to 2021 are irrelevant. Womble also argues that deposition topic no. 4 is disproportionate to the needs of the case considering Womble's $50 million insurance policy and that it is burdensome for Womble to prepare a witness to address fifteen (15) years of company finances. However, Womble agrees to submit its current net worth one month before trial in this matter.
(A) Net Worth
*6 Many courts in this district have considered the issue of producing a company's net worth during discovery. In 2015, District Judge Wingate employed a balancing approach:
Whether discovery is allowed regarding a private company's net worth, for punitive damages purposes, has been considered by numerous courts with conflicting holdings. The parties' submissions reflect the diverging opinions, and there is law supporting each parties' view.
...
Each side has valid arguments for its position, and the rulings have been inconsistent throughout the courts. A review of the rulings by magistrate judges and district judges throughout the Fifth Circuit reveals that the majority of those opinions allow net worth discovery during the discovery period. See Amin-Akbari v. City of Austin, Texas, et al, Civil Action No. A-13cv472, 2014 U.S. Dist. LEXIS 129119, 2014 WL 4657491 (W.D. Tex. Sept. 16, 2014), citing Mid Continent Cabinetry, Inc. v. George Koch Sons, Inc., 130 F.R.D. 149, 151 (D. Kan. 1990) (when punitive damages claim asserted “...a majority of federal courts permit ‘pretrial discovery of financial information of the defendant without requiring plaintiff to establish a prima facie case on the issue of punitive damages’ ”); Smith v. Detar Hospital, LLC, No. V-10-83, 2011 U.S. Dist. LEXIS 144003, 2011 WL 6217497, *8 (S.D. Tex., Dec. 14, 2011) (parties may discover defendant's net worth where punitive or exemplary damages may be awarded, reviewing Texas state law as well as federal cases in Texas); Hunter v. Copeland, No. 03-2584, 2004 U.S. Dist. LEXIS 12992, 2004 WL 1562832, *3-4 (E.D. La. July 12, 2004) (distinguishing an Alabama ruling and allowing discovery relevant to punitive damages during discovery period).
...
The undersigned finds that a balancing approach should be utilized regarding net worth discovery, balancing the needs of a plaintiff to prove their entitlement to punitive damages versus the consideration of the sensitive and proprietary nature of a defendant's financial information.... In doing so, the following factors will be considered before allowing net worth discovery during the initial discovery period:
1. The strength of plaintiff's claim for punitive damages. Although the undersigned will not attempt to “pre-judge” a plaintiff's case or its claim for punitive damages, the Court will require that plaintiff set forth in particularity the facts it contends establish a basis for punitive damages, i.e., a prima facie claim. No discovery (during the normal discovery period) will be allowed when there is utterly no factual basis for punitive damages or the claim is clearly frivolous.
2. Whether or not the company is public or private. The concerns for the privacy of a publicly held company are not as significant, as the information requested is normally available. Therefore, a public company should produce, if requested, at least a certified statement of its net worth during discovery and supporting documentation.
3. The burden and expense of the discovery. The undersigned will consider the difficulty and expense regarding net worth discovery and/or other punitive damage discovery. It may be that only a certified net worth statement (by an independent auditor) will be allowed, rather than a multitude of supporting documents. The Court will consider requiring plaintiff to pay costs of production if many documents are to be produced.
*7 4. Whether or not the defendant files a dispositive motion regarding punitive damages. If the defendant intends to file (and files) a motion requesting the district judge to dismiss the claim for punitive damages prior to the end of the discovery period, discovery regarding net worth and punitive damages may be disallowed until a decision is made or delayed until after the normal discovery period.
5. Whether or not the district judge will delay the trial on punitive damages for a period of time following a verdict for compensatory damages. There may be district judges who will continue the trial upon motion of the plaintiff to allow for net worth and punitive damage discovery following a favorable verdict for compensatory damages. If so, the balancing inquiry will weigh in favor of not allowing the discovery until and unless a punitive damage hearing is set.
6. Whether a protective order or “attorneys' eyes only” protective order will allay the privacy concerns of defendant. Particularly when the discovery is by one competitor to another, such as the case herein, the undersigned will consider requiring an “attorneys' eyes” only protective order.
7. Whether or not the defendant attests to its ability to produce a current certified net worth statement within a short period of time.
8. The relationship of the parties. The Court will be more apt to protect financial information from being produced to competitors.
In this case, the undersigned has utilized this “balancing approach” and finds that Regions is entitled to net worth discovery at this stage.
Regions Ins., Inc. v. Alliant Ins. Servs., Inc., No. 3:13-CV-667-HTW-LRA, 2015 WL 1886852, at *8-17 (S.D. Miss. Apr. 24, 2015) (J. Wingate). As noted in Vertex's submission, “although Regions has established a split in this District regarding the discoverability of net worth, it does not constitute controlling law that this Court is obligated to follow.” Dear v. Crown Castle S., LLC, No. 3:13-CV-212-WHB-RHW, 2016 WL 7985436, at *7 (S.D. Miss. June 9, 2016). While not obligated to do so, the undersigned shall consider the factors set forth in Regions to determine whether net worth discovery is appropriate at this stage.
First, the Court considers the strength of plaintiff's claim for punitive damages. Without “pre-judging” the case, the Court finds Vertex has set forth enough of a factual basis for punitive damages as to entitle it to net worth discovery at this stage. The first factor weighs slightly in favor of denying the protective order as to deposition topic no. 4.
Second, the Court considers whether the company is public or private. Womble is a privately held law firm. The second factor weighs in favor of granting the protective order as to deposition topic no. 4.
Third, the Court considers the burden and expense of the discovery. Womble submits the burden of the fifteen (15) year time period for net worth discovery is burdensome and agreed to submit Womble's current net worth one month before the trial. Vertex argues the Court should require Womble to disclose relevant discovery related to Womble's net worth during the discovery period, not at the time of trial, because the delay will unfairly prejudice Vertex. Doc. [378] at 9. While the Court acknowledges that some level of burden and expense will be involved, Womble has not detailed the burden and expense involved, beyond its bare assertions regarding preparation of its designee. The third factor weighs equally in favor of both parties as to deposition topic no. 4.
*8 Fourth, the Court considers whether the defendant filed a dispositive motion regarding punitive damages. No such motion has been filed at this time. The fourth factor does not weigh in favor of either conclusion.
Fifth, the Court considers whether the district judge will delay the trial on punitive damages for a period of time following a verdict for compensatory damages. At present, the fifth factor does not weigh in favor of either conclusion.
Sixth, the Court considers whether a protective order or “attorneys' eyes only” protective order will allay the privacy concerns of defendant. Womble asserts that a protective order is insufficient to allay its concerns. The sixth factor weighs slightly in favor of granting the protective order as to deposition topic no. 4.
Seventh, the Court considers whether the defendant attests to its ability to produce a current certified net worth statement within a short period of time. Womble submits it can provide the net worth discovery one month before trial. The seventh factor weighs slightly in favor of granting the protective order as to deposition topic no. 4.
Eighth, the Court considers the relationship of the parties. Womble previously served as counsel to Vertex. The eighth factor weighs in favor of denying the protective order as to deposition topic no. 4.
After review of the eight factors set forth in Regions, the Court finds that Vertex is entitled to net worth discovery at this stage. However, said net worth discovery shall be limited to a certified statement of current net worth of Womble. Accordingly, the motion for protective order is granted in part and denied in part as to the net worth sub-part of deposition topic no. 4.
(B) Former and Current Finances and Assets
Vertex seeks former and current finances and assets (i.e., personal and real property) from 2006 to 2021. Womble objects on the grounds that the deposition topic request is irrelevant, burdensome, and disproportionate given Womble's proof of its insurance which provides $50 million of available insurance coverage for this case. The Court is not persuaded that a damages award in this matter will exceed $50 million.
The Court, therefore, holds that Vertex's request to depose Womble's designee on the topic of former and current finances and assets (i.e., personal and real property) from 2006 to 2021 is disproportionate to the needs of the case, given Womble's available insurance coverage of $50 million. Accordingly, the motion for protective order is granted as to the former and current finances and assets sub-part of deposition topic no. 4.
C. Deposition Topic No. 5 and 6
Deposition Topic. No. 5:
Womble's administrative policies, in effect from 2006 through 2012 with respect to partners.
Deposition Topic. No. 6:
Womble's handbooks from 2006 through 2012 addressing its partner professional conduct with clients.
Womble's Objection:
Womble's only objection to these topics is their improper breadth. Womble intends to have a representative prepared to testify as to relevant policies or portions of any handbooks which relate to the claims—i.e., Edwards' improper actions with respect to writing Maxey on Behalf of Wolf—including policies and any guidance on conflicts checks and opening new matters, which have been provided in discovery.
*9 Doc. [369] at 12.
Vertex's Response:
Womble appears to “only” object to the allegedly improper breadth of the fifth and sixth topics. Womble argues that it need only prepare its designee for “policies or portions of any handbook” that are strictly related to “Edwards' improper actions with respect to writing Maxey on behalf of Wolf.” Stated differently, Womble (intentionally and) improperly attempts to limit the parties' scope of discovery. Recall, Vertex asserts seven claims [sic] against Womble: (1) breach of fiduciary duty of care, (2) breach of fiduciary duty of loyalty, (3) civil conspiracy, (4) unjust enrichment, (5) conversion, (6) negligence, and (7) negligent supervision and training. Fatally, discovery is not “limited to the merits of a case”; rather, “a variety of fact-oriented issues may arise during litigation that are not related to the merits.” Oppenheimer Fund, Inc., 437 U.S. at 351. Because Womble's preparation of its designee on matters related to its own administrative policies, and because such preparation will neither be overburdensome nor prejudicial, absent a compelling reason otherwise, Vertex should be permitted to depose the designee on Womble's entire handbook, and the policies within it.
Doc. [378] at 10.
Ruling:
The narrow question at issue pertaining to deposition topics no. 5 and 6 is whether the breadth of the topic is proportional to the needs of the case. To determine whether the information sought in deposition topic no. 5 and 6 is proportional to the needs of the case, the Court considers the factors set forth in Rule 26(1): (1) importance of the issues at stake in the action, (2) the amount in controversy, (3) the parties' relative access to relevant information, (4) the parties' resources, (5) the importance of the discovery in resolving the issues, and (6) whether the burden or expense of the proposed discovery outweighs its likely benefit. See Fed. R. Civ. P. 26(b)(1).
After review of the six factors set forth in Rule 26(b)(1), the Court finds that all six factors weigh in favor of a finding that deposition topics no. 5 and 6 are proportional for the needs of the case. Womble submits that it does not object to testifying about relevant policies or portions of any handbooks which relate to “Edwards' improper actions with respect to writing Maxey on behalf of Wolf—including policies and any guidance on conflicts checks and opening new matters.” Doc. [369] at 12. However, Womble does not specifically assert which policies or handbook provisions that Womble believes to be overbroad. The motion for protective order is denied without prejudice as to Womble's right to seek protection regarding specifically delineated portions of the handbook and administrative policies.
D. Deposition Topic. No. 9:
Deposition Topic. No. 9:
All billable hours [sic] requirements for Womble attorneys from 2006 through 2012.
Womble's Objection:
This information can only be described as harassing as it is irrelevant to the claim Edwards' assistance of Wolf, especially considering Edwards did not run a conflict check or open up a new matter with respect to his assistance to Wolf. In other words, Edwards billed no hours for his assistance to Wolf in late 2006. The time frame and scope of this request are also extremely burdensome and disproportional to the claims at issue considering it seeks the information as to all Womble attorneys. Womble has produced Edwards' personnel file which contains information on his performance expectations which speak for itself. While irrelevant, Womble will seek to provide any information available about Edwards' billable hour requirements during the relevant time.
*10 Doc. [369] at 12.
Vertex's Response:
Womble objects to the relevancy of the ninth topic. The firm asserts that “Edwards billed no hours for his assistance to Wolf in late 2006.” Womble also takes issue with the request's “time frame and scope.” Contrary to Womble's assertions, other attorneys, including Edwards' associates, could have billed time for assisting Wolf under Edwards' direction. What's worse, Edwards could have billed other clients for his time spent helping Vertex's employees develop employment claims against Vertex. Information obtained to date reveals that Edwards' annual billable hours substantially dropped during the instant case's relevant time period. Communications between Edward and Snider evince their plot to have Vertex's (then) General Counsel, Steve Sinquefield, removed based on the allegations of discrimination and/or retaliation by Snider, Wolf and other employees, and then have him replaced with Snider. At bottom, the information requested is germane to Edwards' motivation to breach his fiduciary duties to Vertex by assisting Vertex's employees, i.e., Wolf and Snider.
Womble also disregards the pertinent timeframe in this case, which extends well-beyond “late 2006.” Providing this type of information is a simple task for Womble. Absent a compelling reason, Womble fails to meet its burden to protect such discovery, and the ninth topic is relevant, reasonable, and not overly burdensome.
Doc. [378] at 11.
Ruling:
Womble agreed to provide any information available about Edwards' billable hour requirements during 2006. Womble seeks protection from producing all billable hour's requirements for all attorneys from 2006 to 2012 on the basis that it is irrelevant, disproportionate to the needs of the case and burdensome. The Court finds the inquiry sought in deposition topic no. 9 is relevant, but disproportionate to the needs of the case. To determine whether the information sought in deposition topic no. 9 is proportional to the needs of the case, the Court considers the factors set forth in Rule 26(1): (1) importance of the issues at stake in the action, (2) the amount in controversy, (3) the parties' relative access to relevant information, (4) the parties' resources, (5) the importance of the discovery in resolving the issues, and (6) whether the burden or expense of the proposed discovery outweighs its likely benefit. See Fed. R. Civ. P. 26(b)(1).
Vertex contends producing the requested billable hours information is a “simple task for Womble.” The Court disagrees. The time and scope shall be limited in proportion with the needs of the case. Womble shall submit all billable hour requirements for Edwards as well as for Womble attorneys that worked directly with Edwards from January 2006 through December 2009. Accordingly, the motion for protective order is granted in part and denied in part as to deposition topic no. 9.
E. Deposition Topic No. 14, 16, 17, 18, 19, 20, 21, 22, 24, 28, 29, 30, 31, 32, 33, 34, 35, and 38
Womble grouped its objections for deposition topic no. 14, 16, 17, 18, 19, 20, 21, 22, and 24. Womble also grouped its objections for deposition topic no. 28, 29, 30, 31, 32, 33, 34, and 35. Womble addressed deposition topic no. 38 separately. The above referenced deposition topics and Womble's objections are incorporated below. Vertex responded to all of the above referenced deposition topics together “for purposes of brevity.” Doc. [378] at 14, fn. 2. The Court shall address the final three groups of deposition topic objections after fully considering Womble's grouped objections and Vertex's response.
1. Deposition Topic No. 14, 16, 17, 18, 19, 20, 21, 22, and 24
*11 Deposition Topic. No. 14: Womble's discovery, actual and/or constructive, of Edwards's communications, including oral or written, to Snider, from 2004 through 2012.
Deposition Topic. No. 16: All communications and correspondence pertaining to Edwards' assistance to Wolf's and Snider's discrimination claims and/or charges against Vertex.
Deposition Topic. No. 17: Any emails predating 2007 concerning Edwards, Wolf, and Snider's involvement in the EEOC charges filed against Vertex by Wolf and/or Snider.
Deposition Topic. No. 18: Any emails predating 2007 concerning Edwards' personal relationship with Snider.
Deposition Topic. No. 19: Womble's knowledge of Edwards' and Snider's personal relationship.
Deposition Topic. No. 20: Edwards' assistance with any EEOC charge filed by any of Vertex's employees and/or personnel against Vertex from 2006 through 2012.
Deposition Topic. No. 21: Womble's internal investigations of Edwards, Wolf, and/or Snider from 2007 to present.
Deposition Topic. No. 22: All of Womble's communications and disclosures to Vertex, after obtaining notice of Edwards' involvement with Wolf and/or Snider.
Deposition Topic. No. 24: When and how Womble decided to disclose to Vertex its knowledge of Edwards' involvement with Wolf and/or Snider.
Womble's Objection:
Womble's objections applicable to all of these topics is that they seek irrelevant information related to Edwards' assistance to Paine Snider (not Wolf)—claims this Court dismissed and the Fifth Circuit affirmed. The Fifth Circuit's holding [Doc #312 at 32] that “[t]he district court did not err in granting summary judgment on statute of limitations grounds on L-3's claims that Edwards provided Paine Snider with legal assistance and that the Womble firm failed to disclose that legal assistance” makes clear that discovery of Edwards' communications to Paine Snider are no longer relevant to the claims in the case. In other words, the topics are over broad and disproportional to the needs of the case considering the only claims that remain must relate to Edwards' assistance to Wolf.
With respect to topics 16, 17, 20, 21, 22, and 24, Womble must also object because all of the communications, knowledge, and information about Wolf, which are of course relevant, involved its General Counsel's office and are protected by the attorney-client privilege and work product doctrine. As reflected in Womble's privilege log, all such communications occurred after Vertex served Womble with two subpoenas and filed its legal malpractice counterclaim against Womble and were therefor in anticipation of litigation.
Doc. [369] at 13.
2. Deposition Topic No. 28, 29, 30, 31, 32, 33, 34, and 35
Deposition Topic. No. 28: Raper's, Quick's, Bost's, Rainey's, and Vaughn's scope of work in relation to and involvement in investigating Edwards' assistance to Wolf and Snider concerning the discrimination charges against Vertex from 2006 through 2012.
Deposition Topic. No. 29: Raper's communications, including oral or written, to Quick, Bost, Rainey, Vaughn, and/or Edwards, concerning Womble's knowledge of Edwards's assistance to Wolf and Snider in relation to discrimination charges filed against Vertex, from 2006 through 2012.
*12 Deposition Topic. No. 30: Quick's communications, including oral or written, to Raper, Bost, Rainey, Vaughn, and/or Edwards, concerning Womble's knowledge of Edwards's assistance to Wolf and Snider in relation to discrimination charges filed against Vertex, from 2006 through 2012.
Deposition Topic. No. 31: Bost's communications, including oral or written, to Raper, Quick, Rainey, Vaughn, and/or Edwards, concerning Womble's knowledge of Edwards's assistance to Wolf and Snider in relation to discrimination charges filed against Vertex, from 2006 through 2012.
Deposition Topic. No. 32: Rainey's communications, including oral or written, to Raper, Quick, Bost, Vaughn, and/or Edwards, concerning Womble's knowledge of Edwards's assistance to Wolf and Snider in relation to discrimination charges filed against Vertex, from 2006 through 2012.
Deposition Topic. No. 33: Vaughn's communications, including oral or written, to Raper, Quick, Bost, Rainey, and/or Edwards, concerning Womble's knowledge of Edwards's assistance to Wolf and Snider in relation to discrimination charges filed against Vertex, from 2006 through 2012.
Deposition Topic. No. 34: Edwards's communications, including oral or written, to Raper, Quick, Bost, Rainey, and/or Quick, concerning Womble's knowledge of Edwards's assistance to Wolf and Snider in relation to discrimination charges filed against Vertex, from 2006 through 2012.
Deposition Topic. No. 35: The identities of, and all communications of Womble with its former and/or current partners regarding Edwards's assistance to Wolf's and Snider's discrimination charges filed against Vertex from 2006 through 2012.
Womble's Objection:
The topics all seek irrelevant information contrary to this Court's ruling dismissing all claims related to Edwards' assistance to Paine Snider, not Wolf. They are also overbroad and disproportional to the needs of the case because the only claims that remain must relate to Edwards' assistance to Wolf.
Womble must also object on the basis that these topics invade Womble's attorney-client privilege and seek the work product of its General Counsel's office. The investigations, communications, and knowledge the topic seeks were all conducted, made, or gained by Womble's General Counsel's office in anticipation of litigation after Vertex served Womble with two subpoenas and filed its legal malpractice counterclaim against Womble.
For reference, Bill Raper was Womble's General Counsel during the time period specified, Alison Bost was Womble's Assistant General Counsel, and Richard Rainey acted on behalf of the General Counsel's office with respect to firm employment issues, such as those taken with respect to Edwards. Communications made by Womble's then Chair, Keith Vaugh, or then partners, Betty Quick and Edwards, are of course protected by attorney-client privilege, especially considering the investigation and communications with respect to Edwards' involvement with Wolf occurred after Vertex filed its counterclaim. Any such written communications are contained on Womble's privilege log.
Doc. [369] at 14-15.
3. Deposition Topic. No. 38
Deposition Topic. No. 38: The factual allegations of the Counterclaim filed by Vertex against Womble, Edwards, and Snider.
Womble's Objection:
The overwhelming majority of the factual allegations in Vertex's counterclaim relate to Edwards' assistance to Paine Snider, which are no longer at issue in the case in accordance with this Court's ruling affirmed by the Fifth Circuit. As a result, this topic is overbroad and disproportional to the needs of the case because the only claims that remain must relate to Edwards' assistance to Wolf.
*13 Doc. [369] at 15.
Vertex's Response to Deposition Topic No. 14, 16, 17, 18, 19, 20, 21, 22, 24, 28, 29, 30, 31, 32, 33, 34, 35, and 38:
Womble's objections to these topics are the most surprising. Womble broadly contends that, because the Fifth Circuit dismissed certain claims on appeal, “Womble's discovery of Edwards' communications to Paine Snider are no longer relevant to the claims in the case.”
“Relevancy is broadly construed, and a request for discovery should be considered relevant if there is any possibility that the information sought may be relevant to the claim or defense of any party.” Camoco, LLC v. Leyva, 333 F.R.D. 603, 606 (W.D. Tex. 2019) (cleaned up). To hold Womble liable, Vertex must prove that Womble is vicariously liable for Edwards' actions. A component of vicarious liability is whether the employee deviated or departed from his employment. It follows that Womble's knowledge of Edwards's communications with Snider could lend strength to a finding of vicarious liability, especially considering that Womble took steps to keep its breaches and Edwards' breaches a secret from Vertex.
Even the Fifth Circuit's opinion in this case supports this line of thought. The panel explained that discovery produced by Wolf “cast doubt on her deposition testimony” that she “never discussed her claims or Paine Snider's with Edwards.” Instead, “reasonable minds could differ” that Edwards, Snider, and Womble were heavily involved in Wolf's discriminatory allegations. Womble's knowledge of Edwards' communications with Snider, and timing, are relevant to the instant case.
On an aside, but relevant here, Womble improperly sets forth summary judgment-type arguments in its “Factual & Procedural Background” section of its supporting brief, including citations to Baker Donelson Bearman Caldwell & Berkowitz, P.C. v. Seay and Singleton v. Stegall. Again, Womble seeks to mislead this Court by pre-judging this case in the discovery stage. That said, Vertex firmly counters that those cases are distinguishable and inapposite to the case sub judice; but, at this juncture, Vertex reserves any arguments against Womble related to those cases—to be proffered at the appropriate time (i.e., at the summary-judgment stage).
Notwithstanding, Womble's continuous failure to provide Vertex with information related to its investigation of Edwards' unethical behavior is astounding. While Womble has stated that it did not become aware of Edwards' assistance to Wolf until 2012, a letter written by William Raper, Womble's General Counsel, to the North Carolina Bar in 2012, reveals that an investigation of Edwards' misconduct was conducted by Womble in 2007—four years before any litigation began. Had the firm conducted a thorough investigation in 2007, as Raper alleged, Womble would have known then (in 2007) of the unethical assistance and breach of fiduciary duties that its employment practice group leader, Edwards, had provided to Wolf in 2006. Emails, communications, and documents related to Edwards' assistance to Snider could reveal Womble's knowledge of Edwards' assistance to Wolf. Plainly restated, if so, Womble is vicariously liable for Edwards' breaches and perfidious conduct. At the time, Vertex was one of the firm's largest clients. Womble's unwillingness to provide its then-client, Vertex, with its investigative file regarding the actions of one of its partners (and practice chair) in unethically advising Vertex's employees while Womble simultaneously served as outside counsel to Vertex is beyond belief.
*14 Womble has instead decided to play hide-and-seek regarding the findings of its investigation. To this day, Womble has never advised, disclosed, nor produced its findings concerning Edwards' assistance to Wolf. Ironically, while Womble has stated that it did not begin its investigation of Edwards' misconduct until May 2007, after it was alerted to the same by Vertex, its privilege log tells a different story. The privilege log contains an entry dated April 14, 2007 regarding Snider, a month before it was contacted by Vertex. What Womble already knew about Edwards' communications with Vertex's employees before Vertex contacted Womble firm management is critical to Vertex's remaining claims and does not represent any privileges or protections.
Discovery is not a guessing game. Regarding Womble's privileges, protections, and privilege log, Womble again vaguely explains—(first instance) Womble's interrogatory responses; (second instance) Womble's supplemented responses to its inadequate interrogatory responses; (third instance) Allegedly good faith discussions between counsel; (fourth instance) Womble's informal briefing to this Court before the informal discovery hearing; (fifth instance) Womble's oral argument at the informal discovery hearing; and (sixth instance) Instant motion for protective order—why it's asserting the work product doctrine and the attorney-client privilege to protect communications concerning Edwards, Snider, and its internal investigations. See, e.g., Heller v. City of Dallas, 303 F.R.D. 466, 483 (N.D. Tex. 2014) (“So-called boilerplate or unsupported objections—even when asserted in response to a specific discovery request and not as part of a general list of generic objections preceding any response to specific discovery requests—are likewise improper and ineffective and may rise (or fall) to the level of what the Fifth Circuit has described as ‘an all-too-common example’ of the sort of ‘Rambo tactics’ that have brought disrepute upon attorneys and the legal system.’ ” (quoting McLeod, Alexander, Powel & Apffel, P.C. v. Quarles, 894 F.2d 1482, 1484–86 (5th Cir. 1990)).
Womble hinges its blanket privilege-and-protection assertions on the fact that the internal investigations occurred after subpoenas were noticed. It doesn't matter. Any communications discovered between Edwards, Snider, Wolf, and/or Womble attorneys, including administrators, about Edwards's assistance to Snider, Edwards's relationship with Snider, Wolf, and Womble's internal investigations are discoverable. See, e.g., Liberty Mut. Ins. Co. v. Tedford, 644 F. Supp. 2d 753, 764 (N.D. Miss. 2009) (“Where a party puts in issue an attorney's opinion or work product ... both the attorney-client privilege and protections afforded by the work product doctrine are waived.”); Mir v. L-3 Commc'ns Integrated Sys., L.P., 315 F.R.D. 460, 471 (N.D. Tex. 2016) (“More generally, the Fifth Circuit has suggested that waiver may occur where ‘a party has asserted a claim or defense that explicitly relies on the existence or absence of the very communications for which he claims a privilege.’ ” (quoting In re Burlington N., Inc., 822 F.2d 518, 533 (5th Cir. 1987))). Plus, Womble's liability for the professionally deviant acts of Edwards is established by statute. See MISS. CODE ANN. § 79-29-920. Furthermore, just like the privilege-and-protection assertions in its brief, Womble's privilege log fails to include each requisite element of the privilege or protection asserted. See United Investors Life Ins. Co. v. Nationwide Life Ins. Co., 233 F.R.D. 483, 486 (N.D. Miss. 2006) (“Blanket assertions of a privilege are unacceptable ... the court and other parties must be able to test the merits of a privilege claim.”). Perhaps Womble overlooks black letter law. The burden of proving any privileges or protections applicability always rests on the party seeking to shield evidence from disclosure. Fisher v. United States, 425 U.S. 391, 403 (1976); Hickman v. Taylor, 329 U.S. 495, 512 (1947); Hodges, Grant & Kaufmann, 768 F.2d at 722 (work product protection); E.E.O.C., 876 F.3d at 695 (5th Cir. 2017) (attorney-client privilege). Consequently, Womble fails to meet its burden, and its assertions of work product protection and attorney-client privilege must fail. See, e.g., Bess v. Cate, 422 F. App'x 569, 572 (9th Cir. 2011) (finding that “well-established law that parties seeking to invoke privileges are not permitted to provide mere blanket objections to discovery requests” supported a magistrate judge's order to sanction parties who “lodged blanket objections and [thereby] failed to provide sufficient information to enable other parties to evaluate the applicability of the claimed privilege or protection”); Burlington N. & Santa Fe Ry. v. Kapsner, 408 F.3d 1142, 1148 (9th Cir. 2005) (quoting FED. R. CIV. P. 26(b)(5) advisory committee note); MMAR Grp. Inc. v. Dow Jones & Co. Inc., 187 F.R.D. 282, 292 n.6 (S.D. Tex. 1999) (concluding that a party's five general objections, including the attorney-client, work-product, and investigative privileges, were pure boilerplate that impermissibly hampered its opponent's ability to prosecute its own case); Athridge v. Aetna Cas. & Surety Co., 184 F.R.D. 181, 194 (D.D.C. 1998) (finding that assertions of the attorney-client privilege and work-product doctrine were too general to satisfy Rules 33 and 34); Miller v. Pancucci, 141 F.R.D. 292, 302 (C.D. Cal. 1992) (“Objections, in such boilerplate terms as those stated by [d]efendants, are improper and therefore no claim of privilege at all.” (internal quotation marks omitted) (quoting Int'l Paper Co. v. Fireboard Corp., 63 F.R.D. 88, 94 (D. Del. 1974))).
*15 At minimum, before the Rule 30(b)(6) deposition, this Court should conduct an in camera review of all of the documents referenced on Womble's privilege log and conduct a formal inquiry regarding any documents that Womble has failed to even disclose the existence of by not even putting them on the log. Vertex does not believe all germane documents are included on the log. For instance, there is not a single document that is identified as an “investigative report” or an “investigative file” or that in any way appears to outline or disclose the findings of Raper's completed investigation of the issues reported by the General Counsel of L-3 Communications in May 2007. Here, Vertex reported its belief of Edwards' inappropriate conduct with Snider through communications on May 8, 2007. In his letter to the North Carolina Bar, Womble's GC, Raper, stated, “I had completed my initial investigation of the issues reported by the General Counsel of L-3 Communications by mid-May 2007.” However, the privilege log does not include a single entry for mid-May 2007 or any other date in 2007 after May 8, 2007—the day that Vertex contacted Womble regarding Charlie's actions. Where are those documents and why were they not included on the privilege log? Womble contends that it conducted a full-scale investigation but where are the documents evincing that such an investigation occurred? Any thorough investigation conducted by Womble in mid-May 2007 should have revealed the emails located on Womble's server and exchanged in November 2006 between Edwards and Wolf, as well as, other attorneys that Edwards was actively soliciting to represent Wolf against the interest of Womble's and Edwards' client, Vertex.
Additionally, while Womble asserts that it conducted a thorough investigation in mid-May 2007, and that it concluded that “Charlie represented Ms. Snider and Janice Wolf in matters directly adverse to the firm's client , L-3,” Womble failed to report Edwards' actions to the North Carolina bar until July 2012. Why the delay in reporting the findings of a purported 2007 investigation? Information related to Womble's investigation—What documents were reviewed?-Who was interviewed? What did interviewees say at the time? Who reviewed Edwards' emails? and What time period did that review cover?—are all relevant inquiries ripe for discovery in this matter.
Doc. [378] at 14-20.
Ruling:
Womble objects to deposition topic no. 14, 16, 17, 18, 19, 20, 21, 22, and 24 and deposition topic no. 28, 29, 30, 31, 32, 33, 34, and 35 on the basis that they are irrelevant, disproportionate to the needs of the case, and violate the attorney client privilege and work product doctrine. The Court finds that deposition topic no. 14, 16, 17, 18, 19, 20, 21, 22, and 24 and deposition topic no. 28, 29, 30, 31, 32, 33, 34, and 35 are relevant. To determine whether the relevant information sought in deposition topic no. 14, 16, 17, 18, 19, 20, 21, 22, 24, 28, 29, 30, 31, 32, 33, 34, and 35 is proportional to the needs of the case, the Court considers the factors set forth in Rule 26(1): (1) importance of the issues at stake in the action, (2) the amount in controversy, (3) the parties' relative access to relevant information, (4) the parties' resources, (5) the importance of the discovery in resolving the issues, and (6) whether the burden or expense of the proposed discovery outweighs its likely benefit. See Fed. R. Civ. P. 26(b)(1). Womble's knowledge of any communication outlined in the deposition topic requests is critically important to the issues to be resolved in this matter. The Court finds that deposition topic no. 14, 16, 17, 18, 19, 20, 21, 22, 24, 28, 29, 30, 31, 32, 33, 34, and 35 are proportional to the needs of the case after considering the review of the six factors set forth in Rule 26(b)(1).
Next, the Court addresses the applicability of the attorney client privilege and work product doctrine. In order to invoke the attorney-client privilege, Womble must establish, that the communication in question was made for the purpose of seeking or rendering legal advice. See Buford v. Holladay, 133 F.R.D 487, 491 (S.D. Miss. 1990). “[T]he protection of the privilege extends only to communications and not to facts.” Upjohn Co. v. United States, 449 U.S. 383, 395, 101 S. Ct. 677, 66 L. Ed. 2d 584 (1981).
The attorney-client privilege “was intended as a shield, not a sword.” Conkling v. Turner, 883 F.2d 431, 434 (5th Cir. 1989) (quoting Pitney-Bowes, Inc. v. Mestre, 86 F.R.D. 444, 446 (S.D. Fla. 1980)). “[W]hen confidential communications are made a material issue in a judicial proceeding, fairness demands treating the defense as a waiver of the privilege.” Conkling, 883 F.2d at 434 (quoting United States v. Mierzwicki, 500 F. Supp. 1331, 1335 (D. Md. 1980)). The privilege is waived when a litigant “place[s] information protected by it in issue through some affirmative act for his own benefit, and to allow the privilege to protect against disclosure of such information would be manifestly unfair to the opposing party.” Conkling, 883 F.2d at 434 (quoting Hearn v. Rhay, 68 F.R.D. 574, 581 (E.D. Wash.1975)).
*16 “Ordinarily, a party may not discover documents and tangible things that are prepared in anticipation of litigation or for trial by or for another party or its representative (including the other party's attorney, consultant, surety, indemnitor, insurer, or agent).” Fed. R. Civ. P. 26(b)(3)(A). In order for a document to be protected by the work-product doctrine, “litigation need not necessarily be imminent ... as long as the primary motivating purpose behind the creation of the document was to aid in possible future litigation.” United States v. Davis, 636 F.2d 1028, 1040 (5th Cir. 1981). However, the work-product doctrine does not apply to documents prepared in the ordinary course of business. See United States v. El Paso Co., 682 F.2d 530, 542 (5th Cir. 1982). Moreover, materials protected by the work-product doctrine “may be discovered if: (i) they are otherwise discoverable under Rule 26(b)(1); and (ii) the party shows that it has substantial need for the materials to prepare its case and cannot, without undue hardship, obtain their substantial equivalent by other means.” Id.
Vertex claims that Womble's privilege log is incomplete because if fails to “include each requisite element of the privilege or protection asserted.” Doc. [378] at 18. Vertex requests the Court “conduct an in camera review of all of the documents referenced on Womble's privilege log and conduct a formal inquiry regarding any documents that Womble has failed to even disclose the existence of by not even putting them on the log.” Id. at 19. The undersigned orders that Womble shall supplement its privilege log to address each element of the applicable privilege within twenty (20) days of this Order. The ruling on Womble's request for a protective order as to these topics is held in abeyance pending Womble's supplemental privilege log as to deposition topic no. 14, 16, 17, 18, 19, 20, 21, 22, and 24 and deposition topic no. 28, 29, 30, 31, 32, 33, 34, and 35.
Regarding deposition topic no. 38, Womble objects to the proportionality of Vertex's request to discuss the factual allegations of the Vertex's counterclaims against Womble, Edwards, and Snider. To determine whether the information sought in deposition topic no. 38 is proportional to the needs of the case, the Court considers the factors set forth in Rule 26(1): (1) importance of the issues at stake in the action, (2) the amount in controversy, (3) the parties' relative access to relevant information, (4) the parties' resources, (5) the importance of the discovery in resolving the issues, and (6) whether the burden or expense of the proposed discovery outweighs its likely benefit. See Fed. R. Civ. P. 26(b)(1). After review of the six factors set forth in Rule 26(b)(1), the Court finds that all six factors weigh in favor of a finding that deposition topic no. 38 is proportional for the needs of the case. The factual underpinnings of the dismissed counterclaims are relevant and important to the live claims in this matter. Accordingly, the motion for protective order is denied as to deposition topic no. 38.
CONCLUSION
IT IS THEREFORE ORDERED AND ADJUDGED that Defendant Womble Bond Dickinson (US) LLP's Motion for Protective Order [367] is granted in part and denied in part. The Court ORDERS the following relief:
(1) the motion for protective order is granted in part and denied in part as to deposition topic no. 3;
(2) the motion for protective order is granted in part and denied in part as to the net worth sub-part of deposition topic no. 4;
(3) the motion for protective order is granted as to the former and current finances and assets sub-part of deposition topic no. 4;
(4) the motion for protective order is denied without prejudice as to Womble's right to seek protection regarding specifically delineated portions of the handbook and administrative policies';
(5) the motion for protective order is granted in part and denied in part as to deposition topic no. 9;
*17 (6) the motion for protective order is held in abeyance as to deposition topic no. 14, 16, 17, 18, 19, 20, 21, 22, and 24;
(7) the motion for protective order is held in abeyance as to deposition topic no. 28, 29, 30, 31, 32, 33, 34, and 35; and
(8) the motion for protective order is denied as to deposition topic no. 38.
IT IS FURTHER ORDERED that Womble shall supplement its privilege log within twenty (20) days of this Order.
SO ORDERED this the 26th day of April, 2022.
Footnotes
The Court held a Telephonic Discovery Conference with the parties on December 16, 2021, at which point, the Court invited the parties to file formal discovery motions.