Med. Mut. of Ohio v. Abbvie Inc. (In re Testosterone Replacement Therapy Prods. Liab. Litig.)
Med. Mut. of Ohio v. Abbvie Inc. (In re Testosterone Replacement Therapy Prods. Liab. Litig.)
Opinion of the Court
The defendants in this civil RICO case-AbbVie Inc. and other manufacturers of testosterone replacement therapy drugs-have moved for an order barring plaintiff Medical Mutual of Ohio (MMO) from clawing back six documents it produced to defendants. Defendants argue that the attorney-client privilege does not protect the documents and that even if it does, MMO has waived the privilege. Defendants alternatively ask the Court to order MMO to produce redacted versions of the documents, leaving visible the unprivileged facts they contain. For the following reasons, the Court denies defendants' motion.
Background
Between March 2017 and September 29, 2017, MMO produced to defendants approximately 180,000 documents totaling more than 1.4 million pages. MMO produced the documents pursuant to the parties' agreed protective order, which the Court entered on January 18, 2017. The protective order's purpose is to "facilitat[e] the exchange of information between the Parties to this Action without involving the Court unnecessarily in this process." D.E. 194 ¶ 4.
Paragraphs Seventeen and Eighteen of the protective order contain what the parties describe as claw-back procedures for inadvertent production of confidential or privileged material. Paragraph Seventeen states:
If a Producing Party inadvertently or unintentionally produces a document or information without marking it as Designated Confidential or Highly Confidential Information or marking it with the incorrect Confidentiality designation, the Producing Party shall, within twenty (20) business days of discovering the inadvertent production, give notice to the Receiving Party in writing, and thereafter the Receiving Party shall treat the document according to its new designation. Inadvertent or unintentional disclosure shall not be deemed a waiver in whole or in part of the Producing Party's claim of restriction either as to specific documents and information disclosed or on the same or related subject matter.
Id. ¶ 17.
Paragraph Eighteen states that if a producing party inadvertently or unintentionally produces any document(s) or information *921that it determines is protected from discovery by, among other things, the attorney-client privilege, the producing party must notify the receiving party and the MDL plaintiffs' co-lead counsel in writing within twenty business days of discovering the inadvertent production. Id. ¶ 18. Paragraph Eighteen sets forth the procedures that the receiving party and plaintiffs' co-lead counsel must follow to sequester the document(s), determine whether to challenge the producing party's claim of privilege or protection from discovery, and, if applicable, destroy the document(s). Id. Paragraph Eighteen also states:
Inadvertent or unintentional production may not be deemed a waiver in whole or in part of the Producing Party's claim of privilege or immunity from discovery either as to specific documents and information disclosed or on the same or related subject matter based on the facts constituting the inadvertent production. This provision is, and shall be construed as, an Order under Rule 502(d) of the Federal Rules of Evidence. Accordingly, as is explicitly set forth in Rule 502(d), a Party's production of documents, whether inadvertent or intentional, is not a waiver of any privilege or protection "in any other federal or state proceeding." Fed. R. Evid. 502(d).
Id. ¶ 18.
Paragraph Four of the protective order likewise contains a non-waiver provision. It states that "[n]othing in this Protective Order, nor the production of any documents or disclosure of any information pursuant to this Order, shall be deemed to have the effect of (a) an admission or waiver, including waiver under the Federal Rules of Evidence or applicable Local Rules." Id. ¶ 4.
The present dispute arose when MMO invoked the protective order to claw back six documents that MMO claims it produced inadvertently. MMO represents that it discovered the inadvertent productions in a piecemeal fashion. First, on October 3, 2017, MMO discovered that it had produced six privileged documents, including three of the documents (e-mails) at issue here. The e-mails contain an inquiry from one of MMO's in-house attorneys, Timothy Kibler, to three non-attorney employees of MMO. The inquiry seeks information about an AbbVie account manager that Kibler and Brien Shanahan, another of MMO's in-house attorneys, believe is relevant to this litigation. The e-mails also contain the employees' responses to the inquiry. Goroff Decl., Exs. B, C, D ("Goroff Ex(s)."). On the day it discovered the disclosures, MMO wrote to defendants and the MDL plaintiffs' co-lead counsel to ask defendants to destroy the documents.
MMO states that it did a quality check of its production after discovering the above disclosures. On October 20, 2017, while doing the quality check and preparing for depositions, MMO discovered that it had inadvertently produced another e-mail chain, which is the fourth document in dispute. In the e-mail chain, Kibler sends questions from Shanahan to three non-attorney MMO employees. The questions relate to Shanahan's work with outside counsel on the present litigation. One of the employees replies to Kibler, Shanahan, and the others with responses to the questions. Goroff Ex. A. On October 25, 2017, MMO notified defendants and the MDL plaintiffs' co-lead counsel of the disclosure and asked defendants to destroy the document.
The fifth document in dispute is an e-mail chain between two non-attorney MMO employees, Dr. Kathryn Canaday and Dr. Marko Blagojevic. In the first e-mail, Dr. Blagojevic relays statements and an inquiry from attorney Kibler regarding a defense in this litigation. Dr. Blagojevic also requests information from Dr. Canaday for Kibler's inquiry. The second e-mail *922contains Dr. Canaday's response. Goroff Ex. E.
Defendants used Goroff Exhibit E in questioning Dr. Canaday during her deposition on November 29, 2017. Defense counsel questioned Dr. Canaday about the document for approximately ten minutes without objection by MMO's counsel. Several days later, an attorney for MMO who had not attended the deposition identified the document as privileged and inadvertently produced. On December 6, 2017, MMO notified defendants and the MDL plaintiffs' co-lead counsel of the disclosure and asked defendants to destroy the document.
The sixth document in dispute is an e-mail from Dr. Blagojevic to Dr. Canaday that appears in Goroff Exhibit E, but that MMO produced under a different Bates number. Goroff Ex. F. MMO learned that it had produced this document when defendants used it (along with Goroff Exhibit E) during Dr. Blagojevic's deposition on December 7, 2017. MMO's counsel objected during the deposition on the basis of privilege and invoked the protective order's claw-back provisions, but allowed questioning subject to this alleged reservation of rights. On December 15, 2017, MMO contacted defendants and the MDL plaintiffs' co-lead counsel in writing and asked defendants to destroy the document.
Defendants state that in addition to Goroff Exhibits A through F, MMO has produced hundreds of other documents "that contain or describe exchanges with MMO's inside and outside counsel," some of which are marked "TRT MDL Lawsuit-Attorney Client Privileged Communication." Defs.' Mot. at 1-2. Defendants attach several such documents as exhibits to their reply. Second Goroff Decl., Exs. 1-6.
Based on these facts, defendants argue that none of the documents at issue are protected by the attorney-client privilege.
Discussion
1. Attorney-Client Privilege
The purpose of the attorney-client privilege is " 'to encourage clients to make full disclosure to their attorneys.' " United States v. Leonard-Allen ,
Defendants argue that the disputed e-mails are not privileged because they merely contain attorneys' names, discuss only business concerns, discuss underlying facts that MMO has stated are not privileged, and/or do not otherwise reflect legal advice. The Court disagrees and finds that MMO has met its burden of proving that all six documents at issue are protected by the attorney-client privilege.
Goroff Exhibit A contains communications between MMO's employees and MMO's in-house attorneys who, along with outside counsel, were conducting an investigation relating to this litigation. The attorneys request information; the request reveals their legal thinking; and one of the employees provides information in response. This document is privileged. See Leonard-Allen ,
Despite defendants' position that the underlying facts in Goroff Exhibits A through F are not privileged, the Court finds that the facts and the privileged information *924are "too intertwined to make redaction possible." Cont'l Cas. Co. v. Marsh , No.
2. Applicability of Federal Rule of Evidence 502(b)
Because the Court has found that the attorney-client privilege protects all six documents in dispute, it must determine whether MMO waived the privilege, an inquiry that begins with determination of what standard governs the determination of waiver.
In general, Federal Rule of Evidence 502(b) governs whether a party inadvertently disclosed a document and whether the disclosure waived privilege. See Excel Golf Prods. v. MacNeill Eng'g Co. , No.
Rule 502(d), however, allows a federal court to enter an order that the attorney-client or work product privilege "is not waived by disclosure connected with the litigation pending before the court-in which event the disclosure is also not a waiver in any other federal or state proceeding." Fed. R. Evid. 502(d). In this case, the parties' agreed, court-entered protective order provides that the claw-back and non-waiver provisions for inadvertent disclosures are and "shall be construed as, an Order under Rule 502(d)." D.E. 194 ¶ 18. MMO argues that because the parties obtained a Rule 502(d) order to govern inadvertent production of privileged material, the Court should not apply Rule 502(b) to analyze waiver.
Defendants argue that the protective order does not override Rule 502(b). They cite a litany of out-of-circuit cases to argue that "[a]lthough Rule 502 recognizes that the default test set forth in subsection (b) may be superseded by court order or agreement of parties, see Fed. R. Evid. 502(d), (e), such an order or agreement must provide concrete directives" that correspond to each element of Rule 502(b). Defs.' Reply at 5 (quoting Maxtena, Inc. v. Marks ,
The Seventh Circuit has not addressed this issue. Nor have courts in the Northern *925District of Illinois taken a uniform approach. For example, in DeGeer v. Gillis , No.
The Court concludes that the parties' protective order governs inadvertent disclosures; Rule 502(b) does not. Paragraph 18 of the protective order states that it "is, and shall be construed as, an Order under Rule 502(d)." D.E. 194 ¶ 18. It also reiterates the non-waiver language from Rule 502(d) and quotes from the Rule.
Defendants argue that this result "allow[s] parties to act negligently in their privilege review as long as the governing protective order contains the most generic claw-back provision." Defs.' Reply at 6. Similarly, defendants argue that in Excel , which MMO cites to argue that the parties' claw-back agreement displaces Rule 502(b), the court "require[d] the producing party to prove reasonable efforts were taken to protect privileged information before invoking a claw back provision." Id. at 6 n.1 (citing Excel ,
*926Because the Court concludes that the protective order governs, it does not address defendants' arguments under Rule 502(b). This includes defendants' appeal to fairness, which is not a factor under the protective order. The Court observes, however, that the proposition that one or more of the privileged documents at issue is arguably damaging, even highly damaging, to MMO's case does not provide a basis to disregard the attorney-client privilege. The Court notes in this regard that defendants do not invoke any exception to the attorney-client privilege.
3. Inadvertent Disclosure
Because the Court has held that the parties' protective order governs the issue of waiver for inadvertently produced privileged documents, the Court must decide whether MMO's production was inadvertent. The protective order does not define "inadvertent," so the Court follows its plain meaning. See In re Sulfuric Acid ,
Defendants argue that MMO's "conduct in this case goes far beyond mere inadvertence" because MMO has produced-without seeking to claw back-approximately 360 documents that are marked privileged or confidential, that refer to MMO's attorneys by name, or that contain exchanges with MMO's in-house and outside counsel. Defs.' Mot. at 1-2, 5; see also Goroff Exs. 1-6. The Court rejects this argument because it conflates the inadvertence inquiry with the logically distinct question whether, under Rule 502(b)(2), the party took reasonable steps to prevent disclosure. See, e.g. , Thorncreek Apartments III, LLC v. Vill. of Park Forest , Nos.
Defendants also argue that MMO's disclosures were not inadvertent because MMO waited until a week after Dr. Canaday's deposition to claw back Exhibit E. The Court similarly rejects this argument because it conflates the inadvertence inquiry with the question whether, under Rule 502(b)(3), the party took prompt steps to rectify the error. See, e.g. , Kmart Corp. v. Footstar, Inc. , No.
MMO's attorney has filed a sworn declaration describing the circumstances and timeline of MMO's discovery of the disclosures.
*927The Court is satisfied that MMO did not make a knowing choice to produce the documents and that the disclosures were inadvertent. Excel ,
4. Compliance With Protective Order
Defendants suggest that even if MMO's disclosures were inadvertent, MMO did not comply with the "timing provision of the Protective Order's claw back clause" because MMO had discovered the first inadvertent disclosures by October 3, 2017 but did not make made its last claw-back request until December 15, 2017. Defs.' Mot. at 13 n.14. The protective order, however, does not state that once the producing party discovers an inadvertent production, it has only twenty business days to give notice of every subsequent inadvertent production. Rather, it simply requires that the producing party give notice "within twenty (20) business days of discovering the inadvertent production." D.E. 194 ¶¶ 17, 18. MMO made a claw-back request for each disputed document within twenty business days of discovering that document's disclosure. It complied with the timing provision in the protective order.
Defendants also suggest that MMO did not comply with the protective order because it failed to timely serve a privilege log. But nothing in the protective order suggests that failure to serve a privilege log-or late service of a log-waives privilege.
The Court finds that MMO complied with the protective order's provisions governing inadvertent disclosure. Therefore, MMO did not waive privilege for Goroff Exhibits A through F.
5. Waiver During Deposition
Defendants argue that even if the parties' protective order supersedes Rule 502(b), MMO separately waived the privilege for Exhibit E (and by extension Exhibit F) by failing to object when defendants used Exhibit E during Dr. Canaday's deposition, allowing Dr. Canaday to testify about it for approximately ten minutes, and waiting seven days to claw it back. Defendants support their argument with a district court decision holding that "failure to timely object to the introduction of an exhibit [during deposition] waives any privilege, regardless of the presence of a claw-back provision" that is "intended to override the common law as to inadvertent disclosure." Hologram USA, Inc. v. Pulse Evolution Corp. , No. 2:14-v-00772-GMN-NJK,
The Court finds the decision in In re Sulfuric Acid Antitrust Litigation more convincing. There, much like in the present case, the protective order contained a claw-back provision for inadvertently produced documents and information and gave the disclosing party thirty days to exercise it. In re Sulfuric Acid Antitrust Litig. ,
Furthermore, the Court believes that assessing defendants' separate waiver argument would amount to performing a Rule 502(b)(3) analysis under a different name. Doing so would be inconsistent with the Court's determination that the parties intended for their protective order to override Rule 502(b). The Court therefore rejects defendants' separate waiver argument for Goroff Exhibits E and F.
Conclusion
For the foregoing reasons, the Court denies defendants' motion seeking an order that MMO may not claw back certain produced documents [dkt. no. 303].
Defendants also argue that the documents are not work product, and that even if they are, defendants have demonstrated a substantial need for the documents. MMO has stated that it "is not asserting work-product protection" over these documents. Pl.'s Opp. at 10 n.9. Accordingly, this Court need not address defendants' work product arguments.
"When applying federal law ... the transferee court in an MDL proceeding applies the law of the circuit in which it sits." In re Testosterone Replacement Therapy Prod. Liab. Litig. Coordinated Pretrial Proceedings , No.
MMO's attorney declaration indicates that MMO might have provided a redacted version of Goroff Exhibit A to defendants. Hilton Decl. ¶¶ 28-30. Neither party, however, provided a redacted version of Exhibit A to the Court. Accordingly, the Court's order denying defendants' redaction request applies to all six documents in dispute.
Maxtena and the other out-of-circuit cases that defendants cite are unpersuasive given the protective order's language in the present case, as further discussed below. Finally, in one of the cases that defendants rely upon heavily, the parties did not have a court-entered protective order pursuant to Rule 502(d), and the claw-back agreement they made among themselves did not demonstrate an intent to replace the Rule 502(b) analysis. See Irth Solutions LLC v. Windstream Commc'ns LLC , No. 2:16-cv-219,
Furthermore, in Excel , the parties' protective order stated that inadvertent disclosures should be handled "consistent with Fed. R. Evid. 502" generally , and the defendant rejected the plaintiff's request for a specific claw-back agreement that would "assure that such production would not result in waiver." Excel ,
Reference
- Full Case Name
- IN RE: TESTOSTERONE REPLACEMENT THERAPY PRODUCTS LIABILITY LITIGATION This document relates to: Medical Mutual of Ohio v. AbbVie Inc.
- Cited By
- 3 cases
- Status
- Published