Daycab Co. v. Praire Tech., LLC
Daycab Co. v. Praire Tech., LLC
2022 WL 1787113 (E.D. Tenn. 2022)
April 7, 2022
Poplin, Debra C., United States Magistrate Judge
Summary
Plaintiff requested financial statements and trial balances from 2010 to the present, but the Court denied the motion and found that company-wide financial statements and trial balances were not relevant or proportional to the needs of the case. Defendants had already produced all invoices, total compiled sales figures, and federal tax returns for the four products at issue.
Additional Decisions
DAYCAB COMPANY, INC., Plaintiff,
v.
PRAIRE TECHNOLOGY, LLC, et al., Defendants
v.
PRAIRE TECHNOLOGY, LLC, et al., Defendants
No. 3:20-CV-63-TRM-DCP
United States District Court, E.D. Tennessee, Northern Division
Filed April 07, 2022
Counsel
Donald K. Vowell, Vowell and Associates, Knoxville, TN, for Plaintiff.James R. McKoon, McLean A. Stohler, McKoon, Williams, Atchley & Stanley, PLLC, Chattanooga, TN, Stephen C. Landon, Cadwell Sanford Deibert & Garry LLP, Sioux Falls, SD, for Defendants William R. Osman, Wanda Osman.
James R. McKoon, McLean A. Stohler, McKoon, Williams, Atchley & Stanley, PLLC, Chattanooga, TN, Stephen C. Landon, Cadwell Sanford Deibert & Garry LLP, Sioux Falls, SD, Seth Lee Hudson, Nexsen Pruet, PLLC, Charlotte, NC, for Defendants Big Truck Parts, LLC, Prairie Technology, LLC.
Donald K. Vowell, Vowell and Associates, Knoxville, TN, for Defendant DayCab Company, Inc.
Poplin, Debra C., United States Magistrate Judge
MEMORANDUM AND ORDER
*1 This case is before the undersigned pursuant to 28 U.S.C. § 636, the Rules of this Court, and Standing Order 13-02.
Now before the Court is Plaintiff's Fifth Motion to Compel [Doc. 154]. Because the parties had not participated in a meet and confer to address the issues raised in the motion, the Court ordered [Doc. 155] the parties to meet and confer and file a joint status report regarding the results thereof. The parties participated in several meet and confer meetings and were able to resolve the issues raised in the motion, except Plaintiff's request for financial statements and trial balances.
Specifically, at dispute is Plaintiff's Request for Production (“RFP”) No. 3, and Defendants' response thereto, which state as follows:
RFP No. 3. Your detailed financial statements and detailed trial balances from 2010 to the present, including all details and attachments and product codes or account numbers.
Response: Objection, this request is overbroad in both substance and time. Objection, this request is outside the scope of permissible discovery in that it seeks information that is not probative on any material issue in dispute and is not reasonably calculated to lead to the discovery of admissible evidence.
Plaintiff has agreed to modify RFP No. 3 to the four (4) years prior to the filing of the Complaint. Plaintiff also states that RFP No. 3 is limited to the financial statements and trial balances for Defendants that were operating the business during 2016 to the present—that is, Prairie Technology, LLC, and Big Truck Parts, LLC. Plaintiff asserts that these documents are relevant to damages, which includes Defendants' sales, expenses, and profits.
Defendants respond [Doc. 181] that they objected to RFP No. 3 because the Complaint alleges trade dress infringement with respect to four (4) discrete products, all of which are day cab conversion kits. Defendants state, however, that they manufacture, sale, and distribute over six hundred (600) different products. Defendants state some of the products are completely separate from day cab conversion kits or components.
Defendants explain that they have produced all invoices for every single sale for the four (4) specific conversion cab products at issue in this case for the years 2008 through 2021, and they have also produced total compiled sales figures for those products at issue for the period of January 8, 2017, through January 21, 2022. Defendants state that Plaintiff has every single sales record for each and every sale Defendants have made of the specific products involved in this lawsuit since 2008. Defendants state that this information was produced to Plaintiff on or about January 13, 2022. Defendants assert that they have also produced all federal tax returns for Defendant Big Truck Parts, LLC, from 2016 to 2020, pursuant to the Court's Order [Doc. 167]. Defendants argue that RFP No. 3 seeks company-wide information, which is not relevant given that there are only four (4) products at issue.
In addition, Defendants state that they do not have profit and loss financial statements specific to the individual products at issue or trial balances with respect to the manufacturing and production of the specific products. Defendants explain that all accounting is on a company-wide basis, encompassing the entire catalogue of products that are manufactured, produced, and sold by Defendants.[1] Defendants argue that Plaintiff's request should be denied.
*2 Federal Rule of Civil Procedure 26(b)(1) provides as follows:
Unless otherwise limited by court order, the scope of discovery is as follows: Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party's claim or defense and 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.
Courts have explained that the “scope of discovery under the Federal Rules of Civil Procedure is traditionally quite broad.” Meredith v. United Collection Bureau, Inc., 319 F.R.D. 240, 242 (N.D. Ohio 2017) (quoting Lewis v. ACB Bus. Serv., Inc., 135 F.3d 389, 402 (6th Cir. 1998)). Courts have cautioned, however, that “[d]iscovery requests are not limitless, and parties must be prohibited from taking ‘fishing expeditions’ in hopes of developing meritorious claims.” Bentley v. Paul B. Hall Reg'l Med. Ctr., No. 7:15-CV-97-ART-EBA, 2016 WL 7976040, at *1 (E.D. Ky. Apr. 14, 2016). “[T]he [C]ourt retains the final discretion to determine whether a discovery request is broad or oppressive.” Id. (citing Surles v. Greyhound Lines, Inc., 474 F.3d 288, 305 (6th Cir. 2007)).
The Court finds that Defendants' company-wide financial statements and trial balances are not relevant or proportional to the needs of this case. See Fed. R. Civ. P. 26(b). Plaintiff submits that the information is relevant because it goes to damages. In the instant lawsuit, Plaintiff has alleged violations of the Lanham Act and the Tennessee Consumer Protection Act. Under the Lanham Act, a prevailing plaintiff is entitled to recover (1) defendant's profits, (2) any damages sustained by the plaintiff, and (3) the costs of the action. 15 U.S.C. § 1117(a). “In assessing profits the plaintiff shall be required to prove defendant's sales only; defendant must prove all elements of cost or deduction claimed.” 15 U.S.C. § 1117. Similarly, under the Tennessee Consumer Protection Act, a plaintiff is entitled to recover actual damages if a violation is found. Tenn. Ann. Code § 47-18-109(a)(1). Defendants' company-wide financial information will not establish Defendants' profits on the four (4) products at issue or establish Plaintiff's actual damages, and therefore, the Court finds RFP No. 3 seeks irrelevant information that is not proportional to the needs to this case. Fed. R. Civ. P. 26(b). Accordingly, the Court finds Defendants' production is sufficient, and the Court DENIES Plaintiff's Motion to Compel [Doc. 154].
IT IS SO ORDERED.
Footnotes
The Court notes that in another filing, [Doc. 173], Defendants explain that the manufacturing costs of the products at issue are not separated by Prairie, Technology, LLC, according to product, but rather all expenses are maintained company wide. Defendants state that a cost accountant is required to determine the actual costs by year by product.