Smithfield Packaged Meats Sales Corp. v. Dietz & Watson, Inc.
Smithfield Packaged Meats Sales Corp. v. Dietz & Watson, Inc.
2020 WL 13644654 (S.D. Iowa 2020)
December 2, 2020

Bremer, Celeste F.,  United States Magistrate Judge

Sanctions
Cost-shifting
Scope of Preservation
Cloud Computing
Metadata
Special Master
Protective Order
Failure to Produce
Privilege Log
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Summary
The court ordered Dietz to produce complete images of 12 Dietz-issued corporate computers and any other electronic device that received, stored, or transmitted Smithfield information, as well as metadata for 17 Smithfield documents. The court also ordered Smithfield to reimburse Dietz up to $24,000 for the imaging of the hard drives. The court set a Status Conference for December 17, 2020 and the Discovery Deadline remains set for June 1, 2021.
Additional Decisions
SMITHFIELD PACKAGED MEATS SALES CORP., Plaintiff,
v.
DIETZ & WATSON, INC. and Chris Conrad, Defendants
Case No. 1:20-cv-00005-RGE-CFB
United States District Court, S.D. Iowa, Western Division
Signed December 02, 2020

Counsel

Randall D. Armentrout, Nyemaster Goode PC, Des Moines, IA, Jason P. Brown, Pro Hac Vice, Ryan M. Bates, Pro Hac Vice, Hunton Andrews Kurth LLP, Washington, DC, for Plaintiff.
Gary Dean Dickey, Jr., Dickey & Campbell Law Firm PLC, Des Moines, IA, Aliza R. Karetnick, Pro Hac Vice, Ballard Spahr LLP, Philadelphia, PA, for Defendant.
Bremer, Celeste F., United States Magistrate Judge

ORDER GRANTING IN PART AND DENYING IN PART MOTION TO COMPEL AND TO APPOINT A SPECIAL MASTER

*1 This matter came before the Court on November 24, 2020, for a hearing on Plaintiff Smithfield Packaged Meats Sales Corp.'s, (“Smithfield”) Motion to Compel and Appoint Special Master (ECF 104), filed on November 9, 2020. Defendant Dietz & Watson, Inc. (“Dietz”) filed their Response (ECF 120) on November 23, 2020. Defendant Chris Conrad did not file a Response.
Smithfield alleges Dietz has not complied with the Court's Expedited Discovery Order (ECF 96) regarding the production and return of confidential Smithfield information allegedly stolen by its former employee, Chris Conrad, when he transitioned to employment with Dietz. Smithfield also alleges Dietz has failed to take the reasonable steps necessary to fully identify every Dietz employee who received or shared confidential information and recover the information and files that were shared.
Smithfield requests Dietz be compelled to produce complete images of 12 Dietz-issued corporate computers assigned to Dietz employees who received or possessed confidential Smithfield documents and information, complete images of any other computer or electronic device—including cloud-based accounts—which received, stored, or transmitted Smithfield information, Metadata for 17 Smithfield documents that were produced by Dietz, a declaration or affidavit providing in detail Deitz's preservations efforts in attempting to identify the scope of dissemination of Smithfield's confidential material, appointment of a Special Master to oversee remaining discovery production, and reimbursement of fees and costs for bringing this Motion to Compel.
Dietz resists the Motion to Compel arguing that Smithfield's pursuit of confidential information is not in good faith, that Dietz has taken reasonable steps to comply with the Court's Discovery orders, no statutory or other basis exists supporting the appointment of a Special Master to oversee the parties discovery, and that discovery sanctions are not warranted by Dietz's conduct. Dietz also seeks reasonable costs and fees it incurred resisting the Motion to Compel.
The Court finds Dietz has not completely complied with paragraphs 1A and 1B of the Expedited Discovery Order (ECF 96). Dietz's delay in producing this material, which it asserts will be eventually produced in the “regular” course of discovery, is remedied by the requirement that it produce the material by December 10, 2020. Dietz shall electronically image the hard drives of the Dietz-issued computers for: Rich Wright, Brett Lopp, Nick Kauffman, Tim Kelley, Chris Yingling, Jerry Calvert, Drew Brandstetter, David Krueger, Tom Grassie, Drew Krohnert, Jody Mason, and Brooke Martin and produce the copied hard drives to Smithfield by December 10, 2020. Smithfield is responsible for reimbursing Dietz the costs of expediting the imaging of these hard drives up to $2,000 per hard drive, up to a maximum of $24,000 for all 12 hard drives. Whether this cost-shifting is necessary should be discussed by the parties once they determine whether or not any “rush” charge was incurred. Any additional cost, including the cost to review the material in order to protect Dietz's own confidential or proprietary information, shall be borne by Dietz. The protection of proprietary or confidential information contained on the Dietz computers shall be governed by the Stipulated Protective Order (ECF 27) already entered in this case, unless the parties determine additional measures are necessary through either a Joint Protective Order addressing these hard drives, a Privilege Log identifying information being withheld, and claimed as protected by a relevant privilege, or any other discovery process. If a Privilege Log is necessary, it shall be produced by December 10, 2020, using simple and clear descriptions of the material being withheld.
*2 Any Response or further Motion related to the production ordered herein shall be filed by December 18, 2020. The Court determines that a Special Master is not currently necessary or appropriate for the circumstances of this case. A Status Conference is set for 9:00 a.m. on December 17, 2020, via telephone. Counsel shall call 866-590-5055 and dial 7013731. The parties shall file a Joint Agenda by 4:00 p.m. on December 11, 2020. The Discovery Deadline remains set for June 1, 2021. The Dispositive Motion Deadline remains set for July 1, 2021. The Final Pretrial Conference remains scheduled for 11:00 a.m. on November 2, 2021, before the Honorable Rebecca Goodgame Ebinger at the United States Courthouse in Council Bluffs, Iowa. A 10-day jury trial is scheduled to begin at the United States Courthouse in Council Bluffs, Iowa before the Honorable Rebecca Goodgame Ebinger on December 6, 2021.
IT IS SO ORDERED.