Maderazo v. Vanguard Health Systems
Maderazo v. Vanguard Health Systems
Opinion of the Court
ORDER
Pending before the Court is Defendant’s Motion for a Protective Order (Dkt.# 67) and Plaintiffs’ Motion for Entry of a Protective Order (Dkt.# 68). Both sides have filed responses (Dkt.# 72, 74), and Plaintiffs have also filed a reply (Dkt.# 77). Having reviewed the motions and applicable law, the Court finds that Defendants’ motion should be denied, and Plaintiffs’ motion should be granted.
In this antitrust litigation, Plaintiffs allege that Defendants have conspired to set wages for registered nurses. The parties agree that a protective order is necessary to govern the designation and use of confidential information during the course of discovery and to ensure that such information is used only in the instant litigation.
As a general rule, the parties’ use of information disclosed during discovery is not limited or subject to any rules of restraint. Harris v. Amoco Prod. Co., 768 F.2d 669, 684 (5th Cir. 1985). . However, if a party makes a showing of good came to support the issuance of a protective order, the Court may exercise its discretion to restrict or limit access and use of certain information. Fed.R.Civ.P. 26(e) (emphasis added). “Rule 26(e)’s requirement of a showing of good cause ... indicates that the burden is upon the movant to show the necessity of its issuance, which contemplates a particular and specific demonstration of fact as distinguished from stereotyped and conclusory statements. ” In re Terra Int’l Inc., 134 F.3d 302, 306 (5th Cir. 1998) (emphasis added) (quoting United States v. Garrett, 571 F.2d 1323, 1326 n. 3 (5th Cir. 1978); also citing 8 Charles Alan Wright, Arthur R. Miller and Richard L. Marcus, Federal Practice and Procedure § 2035, at 483-86 (2d ed. 1994)). When determining whether legal counsel should be denied or permitted access, the Court should review the “factual circumstances surrounding each individual counsel’s activities, association, and relationship with a party” to determine whether the movant’s concern about inadvertent or accidental disclosure is genuine and real. U.S. Steel Corp. v. United States, 730 F.2d 1465, 1468 (Fed. Cir. 1984). In other words, the Court should engage in a counsel-by-counsel analysis, and avoid denying access to counsel simply because they are part of a group that brings a generalized feeling of anxiety or discomfort to the opposing party. Id. (could not deny access to counsel simply because they were classified as inhouse counsel). For this reason, the Court rejects Defendants’ blanket proposal to deny access to the entire law firm of James & Hoffman, and instead will focus on the individual attorneys whom they believe pose a threat of inadvertent disclosure. Those attorneys are Judith Scott, Mary Joyce Carlson and David Dean.
Plaintiffs represent that Ms. Scott, a partner with the law firm who also serves as SEIU’s full time general counsel, has been voluntarily walled off from all nurse wage litigation since January 2006, which was prior to the filing of this lawsuit. She has an office at SEIU headquarters in Washington, and does not work in the same physical location as the other James & Hoffman lawyers. Ms. Scott does not have access to any of the files or records relating to this litigation, and does not receive any confidential information about the case.
Mary Joyce Carlson, who has been involved in this litigation, has a one-year nonexclusive retainer with SEIU and she serves as special counsel to SEIU’s Health Care Division. Under the retainer agreement, her principal responsibility is to negotiate and maintain national agreements with Health Care systems such as HCA.
Mr. David Dean, another partner in the James & Hoffman law firm and lead co-
The Court also notes that SEIU is paying some expenses in this lawsuit, and this causes Defendants some concern. However, in Ms. Carlson’s sworn statement, she avers that “SEIU has agreed not to make any demands on J & H concerning the litigation, or otherwise interfere with J & H’s professional judgment about how best to serve the interests of [them clients]. The SEIU has played absolutely no role in the direction or management of this lawsuit.” (Dkt.# 68, Exh. D). Plaintiffs’ counsel understands that their duty is to their clients, not the entity paying some of the bills. Plaintiffs’ attorneys are officers of the court, and are bound to act accordingly.
The restrictions set forth in Plaintiffs’ proposed order, which incorporates the additional restrictions set forth in the Dean proposal, are sufficient to provide protection against the risk of inadvertent disclosure, as established by the facts in this case.
It is therefore ORDERED that Defendant’s Motion for a Protective Order (Dkt.# 67) is DENIED because they have failed to demonstrate good cause to deny access to the entire law firm of James & Hoffman. Plaintiffs’ Motion for Entry of a Protective Order (Dkt.# 68) is GRANTED, and Ms. Scott and Ms. Carlson will be denied access to any information that is designated “CONFIDENTIAL—NOT TO BE DISCLOSED TO UNION” or “HIGHLY CONFIDENTIAL—NOT TO BE DISCLOSED TO UNION.” The protective order is being entered simultaneously herewith.
. The parties contemplate that this may include information relating to RN compensation, turnover, recruiting, retention, and marketing.
. Methodist Healthcare System of San Antonio, Ltd., LLP, a party in this lawsuit, is a subsidiary of HCA.
Reference
- Full Case Name
- Marissa MADERAZO v. VANGUARD HEALTH SYSTEMS a/k/a Baptist Health Systems
- Cited By
- 1 case
- Status
- Published