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Estate of ROBERT FRANKL, SUPERIOR COURT OF NEW
deceased, by Administratrix of JERSEY LAW DIVISION:
the Estate, LORI FRANKL, and MERCER COUNTY
LORI FRANKL,
ERIC FRANKL,
ASHLEY FRANKL,
and BRIAN FRANKL
Individually, and Estate of
KAREN BUDIAN,
deceased, by :DOCKET
NO. MER-L-003052-99
Administrator of the Estate,
GEROLF O. BUDIAN, and GEROLF O.
BUDIAN,
Individually, GARRY E.
SITZE and TOMMYE
SITZE, his
wife,
Plaintiffs,
v.
GOODYEAR TIRE AND RUBBER
COMPANY, et
al,
Defendants.
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______________________________________________________________________________
BRIEF OF CONSUMERS FOR AUTO RELIABILITY AND SAFETY IN
SUPPORT OF MOTION TO INTERVENE, VACATE
OR MODIFY PROTECTIVE ORDER, AND SEEK PUBLIC ACCESS TO DOCUMENTS
______________________________________________________________________________
WILENTZ, GOLDMAN & SPITZER
90 Woodbridge Center Drive
P.O. Box 10
Woodbridge, New Jersey 07095
(908) 636-8000
TRIAL LAWYERS FOR
PUBLIC JUSTICE
1717 Massachusetts Ave., N.W., Ste. 800
Washington, D.C. 20036
(202) 797-8600
- and -
One Kaiser Plaza, Suite 275
Oakland, California
94612
(510) 622-8200
REBECCA E. EPSTEIN, ESQ.
ARTHUR H. BRYANT, ESQ. Attorneys
for Intervenors
ROBERT T. HAEFELE, ESQ.
On The Brief
TABLE OF AUTHORITIES . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ii
PRELIMINARY STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .1
THE PROPOSED INTERVENOR’S INTEREST . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .2
STATEMENT OF FACTS . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
I. CARS’S
MOTION TO INTERVENE SHOULD BE GRANTED
PURSUANT TO NEW JERSEY COURT RULE 4:33-2. . . . . . .
. . . . . . . . . . . . . . . . . . .7
II. THE
COURT SHOULD VACATE OR, IN THE ALTERNATIVE, MODIFY THE UMBRELLA PROTECTIVE
ORDER IN THIS CASE. . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.
Goodyear Did Not Make
the Required Showing of Good Cause
Necessary for the Entry of the Umbrella Protective Order. . . . . . . . . . . .10
2.
Goodyear Cannot Make the
Required Showing of “Good Cause”
Necessary for the Continuation of the Umbrella Protective Order. . . . . . 12
III. THE COURT SHOULD GRANT PUBLIC ACCESS TO THE
DEPOSITION TRANSCRIPT AND DOCUMENTS CURRENTLY CONTESTED IN THIS CASE AND REJECT
GOODYEAR’S EFFORTS TO KEEP THEM SECRET. . . . . . . . . . . . 17
CONCLUSION . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
PRELIMINARY STATEMENT
Consumers for Auto Reliability and Safety (“CARS”), a
national non-profit public interest organization, moves to intervene in this
case for the limited purpose of vacating or modifying the stipulated blanket
protective order and seeking public access to the pleadings, deposition
transcript, and other documents that Defendant Goodyear Tire and Rubber Company
(“Goodyear”) is attempting to keep secret.[1] CARS believes that Goodyear’s desire for
secrecy does not - and cannot - outweigh the public interest in access to the
pleadings and key documents in this case.
At this very moment, over six million
Firestone/Bridgestone tires are being recalled because of the grave danger they
pose to the motoring public. Before the
government ordered that recall, however, dozens of preventable deaths and
serious injuries took place for one simple reason: the truth about the tires’ tread separation dangers was hidden
from the government and the public by protective orders entered in cases filed
by crash victims who had already been injured.
CARS seeks to intervene in this case to make sure that
this gruesome scenario is not repeated here. The Goodyear tires at issue in this case are reportedly in use on
millions of vehicles throughout the world.
Plaintiffs’ counsel - who has seen the sealed pleadings and documents - sincerely believes that they do not
contain trade secrets, that “the public has a strong interest in disclosure
because of the public safety issues,” and that “this is a case that demands
action to prevent further injuries and death.” See
Certification of Rosemary Shahan (hereinafter “Shahan Cert.”) ¶ 16, Exhibit A,
at 2, 3. The Los Angeles Times
has reported that, five years ago, one of Goodyear’s engineers noted an
“alarming” problem with the tires and made a design change to make them
stronger - but did not recall the millions already out on the road. Shahan Cert. ¶ 11, 17(b), Exhibit C, at
1. And numerous newspaper articles report varying numbers of deaths and
injuries related to the tires. Shahan
Cert. ¶¶ 13-14, 17(a)-(e), Exhibits B-F.
Yet neither the public nor the government can determine the truth about
these tires, because the pleadings and discovery in this case are sealed by a
protective order.
CARS urges
this Court to remove this unjustified shield, which prevents public access to
these important documents. CARS
respectfully submits that Goodyear cannot make the required evidentiary showing
that its need for secrecy outweighs the public interest in access to the
contested pleadings and documents in this case.
THE
PROPOSED INTERVENOR’S INTEREST
CARS
is a national non-profit automobile and consumer safety organization that
advances the public interest by promoting automobile safety and preventing
motor vehicle-related deaths, injuries, and economic losses. See Shahan Cert. ¶ 4. CARS seeks to
intervene, vacate or modify the protective order, and obtain public access to
the key pleadings and documents in this case so CARS, the public, and the
government can determine whether the tires at issue here pose a danger to
drivers and passengers and, if so, take appropriate action.
CARS’s interest in both this case and the potential
danger of the Goodyear tires at issue here stems directly from CARS’s public
interest mission. The Board and
Advisory Board of CARS include victims of automobile-related injuries, as well
as some of the nation's leading consumer protection experts, including Jean Ann
Fox (Consumer Director of the Consumer Federation of America), Pamela Gilbert
(Executive Director of the Consumer Product Safety Commission), and Steven
Taterka (former Deputy Attorney General of Indiana and member of the National
Association of Attorneys General Task Force on Autos.). Shahan Cert. ¶¶ 4, 5. CARS regularly works to expose illegal
practices, improve auto safety technology, and ensure that unsafe and defective
automobile-related products are recalled and fixed before people are hurt. Shahan Cert. ¶ 6.
One of the means CARS uses to reduce the risk of
injury is to obtain information and make it available for the public to use to
make educated decisions about how to avoid risks of auto-related injury or
harm. For example, each year, thousands
of individual consumers contact CARS for auto safety information and assist
with auto sales and service problems.
Numerous government agencies and other consumer groups routinely refer
consumers to CARS to obtain information regarding auto safety information. Shahan Cert. ¶¶ 6, 7.
CARS seeks to intervene in this matter because the
protective order currently keeps secret important auto safety information. This information could have a great impact
on the public interest that CARS serves to foster and protect. CARS seeks public access to this interest to assist individuals in making
informed decisions about how to avoid risks of vehicular injury or harm. Shahan Cert. ¶¶ 8, 14. It strongly believes that the public has a
right to know whether these Goodyear tires are a threat to drivers, passengers,
and pedestrians.
STATEMENT
OF FACTS
CARS’s knowledge of the underlying facts
of this litigation is necessarily limited because key documents and pleadings
have been sealed. Nevertheless, certain
information about the case can be determined from the October 18, 2000
certification of Plaintiffs’ counsel, the complaint filed in the case, and
recent accounts in the media.
Plaintiffs filed suit against Defendant
Goodyear alleging injuries arising out of a July 1997 accident that occurred
when the tire tread on a Goodyear Wrangler light truck tire separated. The accident involved six Air Force officers
riding in a 1996 GM Suburban. The
vehicle rolled over, killing three and injuring the remaining occupants. Certification of Christine Spagnoli in Support
of Motion to Modify Confidentiality Order (hereinafter “Spagnoli Cert.”), at ¶
2.
In her certification to this Court,
Plaintiffs’ counsel, Christine Spagnoli, identified a number of similar
accidents that correlate with tread separation of the same type of Goodyear
tires. For example, Attorney Spagnoli
previously represented an individual in a suit, Mathews v. Goodyear Tire and
Rubber Co., Inc., Case No. PC018776 W (Cal. Sup. Ct. 1997), that involved
remarkably similar allegations about the same Goodyear tires. Attorney Spagnoli has also identified seven
other deadly or catastrophic accidents concerning the same Goodyear tires. According to the information in her
certification, the nine identified accidents that related to tread separation
on Goodyear tires involved a total of 28 occupants, seven deaths and several
other catastrophic injuries, including a three-year comatose farm worker and a
school teacher whose arm was amputated when the student-filled school van in
which he was traveling rolled over. See
Spagnoli Cert. ¶¶ 3, 9, 10.
The issue of Goodyear tire tread
separations has also been addressed recently by the media. See Shahan Cert. ¶¶ 17(a)-(e),
Exhibits B-F. According to newspaper
reports, the death and injury toll stemming from these tires is even larger
than that uncovered by Plaintiffs’ counsel’s independent investigation. The Wall Street Journal reported that
fifteen deaths and 120 injuries were linked to thirty accidents involving
Goodyear tires since 1994. See
Shahan Cert. ¶ 14, 17(d), Exhibit E. In
addition, the Asbury Park Press published an Associated Press article
reporting that NHTSA received 58 complaints involving the Goodyear tires at
issue in this case, and a report of one death.
Shahan Cert. ¶ 13, 17(c), Exhibit D.
According to Attorney Spagnoli’s
certification, the documents that Goodyear produced in the Mathews
litigation were kept under seal of secrecy in that case pursuant to a
stipulated protective order, which
required the documents to be returned at the conclusion of that
litigation. Attorney Spagnoli complied
with the order and returned the documents after Mathews was
settled. Spagnoli Cert. ¶ 5.
When the case in this Court was initiated
in New Jersey, Attorney Spagnoli again requested the documents and Goodyear
again sought and obtained an order keeping any information or document that
Goodyear labels “confidential” secret.
Spagnoli Cert. ¶ 7. The order provides that, if Plaintiffs’
counsel contests Goodyear’s designation of any document or information as
confidential, then Goodyear has an affirmative obligation to file an
application within a reasonable time to justify the protection. Stipulated Confidentiality Order, at 3, ¶
7. The order further requires that all
pretrial “writings submitted to or filed with the Court ... which contain, set
forth, summarize, or otherwise refer to” any information or document labeled
confidential by Goodyear must be filed under sealed and kept secret from the
public. Id. at 3, ¶ 5. As a result, the documents produced by
Goodyear in this case, as well as Goodyear’s pleadings relating to them, remain
under seal. Neither the public nor government
officials can currently see them, even though Plaintiffs’ counsel - who has
seen them - sincerely believes that
they do not contain trade secrets, that “the public has a strong interest in
disclosure because of the public safety issues,” and that “this is a case that
demands action to prevent further injuries and death.” Shahan Cert. ¶
16, Exhibit A, at 2, 3.
Media accounts provide strong support for
Attorney Spagnoli’s concern for the public safety issues presented by the
secrecy in this case. For example, the Los
Angeles Times has reported that one of Goodyear’s own engineers identified
an “alarming” rate of increase in liability claims against the company five
years ago, predominantly due to problems with the same tires. Shahan Cert. ¶ 11, 17(b), Exhibit C. Although Goodyear strengthened the design of
the tire, it never recalled the tire or warned safety regulators of the
hazards. Id. As a result, millions of the tires are
reported to remain in use on the road today.
Id.
In light of the multiple incidents
involving tread separation of Goodyear tires and the possibility of many more
incidents as yet unknown, there is a strong public interest in access to the
pleadings and key discovery documents in this case. Unless the protective order entered in this case is vacated or
modified and public access is granted, the public and the government will be
hindered in their efforts to determine whether the tires in this case pose a
serious danger to drivers and passengers throughout the nation and the world.
LEGAL
ARGUMENT
I.
CARS’S MOTION TO
INTERVENE SHOULD BE GRANTED PURSUANT TO NEW JERSEY COURT RULE 4:33-2.
New Jersey’s Court Rule 4:33-2 permits intervention
“[u]pon timely application . . . if the claim or defense and the main action have
a question of law or fact in common.”
R. 4:33-2. The rule also
requires the Court to “consider whether the intervention will unduly delay or
prejudice the adjudication of the rights of the original parties.” Id.
Given the important public health and safety issues raised in this
application, CARS’s limited motion to intervene should be granted pursuant to
Rule 4:33-2. The Supreme Court of New
Jersey has specifically recognized permissive intervention under Rule 4:33-2 as
an appropriate mechanism for a third party to challenge a protective order and
seek public access to sealed documents.
See Hammock by Hammock v. Hoffmann-LaRoche, 142 N.J. 356,
379 (1995) (“Independent of the interests of the parties ¼ there is a profound public interest when
matters of health, safety and consumer fraud are involved.”) [2]
In Hammock, 142 N.J. at 379, the Supreme Court
of New Jersey pointedly adopted a “broad standing rule affording the public
access to court files when health, safety and consumer fraud are
involved.” The Court made clear that
“[s]tanding should not be limited to the parties or their attorneys.” Id.
It noted that “the applicability and importance of the interests
favoring public access are not lessened because they are asserted” by nonparties
to the litigation. Id. (citing Leucadia,
Inc. v. Applied Extrusion Tech. Inc., 998 F.2d 157, 167-68 (1993)(brackets
deleted)).
This case involves the public health and safety , as
well as possible consumer fraud. Under Hammock’s
broad standing rule, CARS’s motion to intervene to seek public access should,
therefore, be granted.
CARS, it
should be noted, has been timely in submitting this application. The protective order only became effective months
ago and CARS was not aware of either the order or the documents it protects
until two weeks ago. Since learning of
the order and the existence of the documents it protects, CARS has used the
time to determine the proper procedure to request this Court to permit it to
intervene and request the Court to vacate or modify the order.
CARS’s limited intervention would, moreover, meet the
Rule’s requirement that it share common questions of law and fact with the main
action. The issue presented in both the
main action and CARS’s motion is whether Goodyear can and will demonstrate good
cause sufficient to defeat motions to dissolve or modify the existing
protective order. Similarly, in both
the main action and in this motion, the strength of Goodyear’s need for
confidentiality must be weighed against the interest of the public and other
litigants in disseminating the protected materials to protect health and safety
interests. Indeed, Plaintiffs have raised
these issues on their own behalf. See
Plaintiffs’ Motion to Vacate or Modify the Protective Order.
Finally, intervention will not prejudice the rights of
the original parties. Plaintiffs seek a
remedy similar to that sought by CARS and do not oppose CARS’s
intervention. Goodyear will not be
prejudiced by the intervention because it must, nonetheless, make similar
showings to oppose Plaintiffs’ Motion to Vacate or Modify the Protective
Order. Further, Goodyear will still
have to make a showing of good cause to resist the application from Plaintiffs
to dissolve the protective order at the conclusion of the case. For all of these reasons, CARS’s limited
motion to intervene should be granted.
II. THE
COURT SHOULD VACATE OR, IN THE ALTERNATIVE, MODIFY THE UMBRELLA PROTECTIVE
ORDER IN THIS CASE.
CARS’s motion to vacate the protective order should
also be granted. The umbrella protective order entered in this case should be
vacated in its entirety because Goodyear never made the showing of “good cause”
required for its entry and, in any event, cannot make such a showing now. If Goodyear believes there are documents
that are truly deserving of secrecy, it should be required to show good cause
for keeping those specific documents secret, not allowed to rely on an
overbroad umbrella protective order that allows Goodyear to unilaterally label
documents “confidential” and automatically file pleadings and documents under
seal. In the alternative, if the Court
finds that Goodyear has shown good cause for the entry of an umbrella
protective order, it should still modify the terms of the order to bar Goodyear
from routinely filing nondiscovery pleadings under seal, prohibit Goodyear from
sealing entire pleadings when redaction is possible, and order Goodyear to
preserve all documents that may be returned to it at the end of the case.
A.
The Court Should
Vacate the Umbrella Protective Order in its Entirety.
1.
Goodyear Did Not Make the Required Showing of Good Cause Necessary for
the Entry of the Umbrella Protective Order.
Rule 4:10-3 governs the issuance of a protective
order. The Rule provides:
Upon motion by a party or by the person from whom
discovery is sought, and for good cause shown, the court may make any
order which justice requires... including, but not limited to . . .
(g) That a trade secret or other confidential
research, development, or commercial information not be disclosed or be
disclosed only in a designated way. . . .
R. 4:10-3 (emphasis added). Thus, no protective order can be entered pursuant to Rule 4:10-3
unless there is “good cause shown”.
While New Jersey case law under Rule 4:10-3 is
limited, Federal Rule of Civil Procedure 26 (c) has similar wording. Thus, New Jersey Courts routinely turn to
the federal courts for assistance in interpreting the rule. Hammock, 142 N.J. at 369 (noting the
purposes of the federal and state rules are “substantially the same”); Kerr
v. Able Sanitary and Envtl. Servs., Inc., 295 N.J. Super. 147, 156 (N.J.
Super. Ct. App. Div. 1996) (“Because
Rule 4:10-3 follows the text of Fed. R. Civ. P. 26(c), federal decisions
construing the corresponding federal rule offer some insight into the issue.”)
(citing Hammock). And the
federal cases make clear that the “good cause” requirement applies fully to a
party seeking the entry of an umbrella protective order. See Pansy v. Borough of
Stroudsburg, 23 F.3d 772, 787 n.17 (3rd Cir. 1994) (citing Cipollone
v. Liggett Grp., 785 F.2d 1108, 1122 (3rd Cir. 1986), cert.
denied, 484 U.S. 976 (1987)).
This is not a casual requirement. The “good cause” standard requires a
particularized showing that disclosure of a given document will work a clearly
defined and serious injury to the party seeking closure. Pansy, 23 F.3d at 786-87 (citing Publicker
Indus., Inc. v. Cohen, 733 F.2d 1059, 1071 (3rd Cir 1984)). The party must articulate particularized
reasons that secrecy is justified for each document; the claims must be more
than “broad allegations of harm, unsubstantiated by specific examples or articulated
reasoning”. Cipollone, 785 F.2d
at 1121; accord Anderson v. Cryovac, 805 F.2d 1, 7 (1st
Cir. 1986); General Dynamics Corp. v. Selb Mfg. Co., 481 F.2d 1204, 1212
(8th Cir. 1973), cert. denied, 414 U.S. 1162 (1974); Cooper Hosp./Univ. Med. Ctr. v. Sullivan,
1998 U.S. Dist. LEXIS 22198, Civ No. 96-5416 (D.N.J. May 7, 1998). As a federal
district court in New Jersey stated in finding that a party failed to meet the
good cause burden:
While this Court recognizes that umbrella-type
protective orders, such as submitted by defendants here, are valid,
nonetheless, the movant still is required to make a threshold showing of good
cause. But as illustrated by the broad
and conclusory allegations in Aetna's brief, . . . there is a total absence of specificity from which this Court can
find that these documents are confidential and if so what harm will result from
their disclosure.
Nestle Foods Corp. v. Aetna Casualty and Surety Co., 129 F.R.D. 483, 486 (D.N.J. 1990) (internal
citations omitted); accord Glenmede Trust Co. v. Hutton, 56 F.3d
476, 484 (3rd Cir. 1995) (stating it is party’s burden to
demonstrate that it will sustain specific injury from public
dissemination).
In the instant case, Goodyear did not even attempt to
prove -- much less actually prove -- that there was good cause for the entry
of the umbrella protective order. See, e.g., Hammock, 142 N.J.
at 361 (noting lower court’s finding before entering umbrella protective
order). Instead, the parties simply
stipulated to the entry of an umbrella protective order at the Court’s urging,
apparently because Plaintiffs’ counsel had stipulated to the entry of a similar
order in an earlier case against Goodyear in another jurisdiction. Spagnoli Cert. ¶ 6. [3]
This is an insufficient
basis for the entry of such a sweeping protective order. See Glenmede,
56 F.3d at 485 (“[C]ourts should not provide a shield to potential claims by
entering broad protective orders that prevent public disclosure of relevant
information. The sharing of information
among current and potential litigants is furthered by open proceedings.”). Because Goodyear never made the required
threshold showing of good cause, the umbrella protective order was never legally
justified and should be vacated.
2. Goodyear Cannot Make the Required Showing of “Good
Cause” Necessary for the Continuation of the Umbrella Protective Order.
In New Jersey, even if a protective order was
justified when it was first entered, parties seeking to prevent public access
must show why secrecy is necessary at the time that public access is
sought. Hammock, 142 N.J. at 382
(“When a person intervenes in a case to inspect and copy documents that have
been sealed, a reassessment of whether documents should remain under seal must
be based on a current justification for privacy.”); see Public
Citizen v. Liggett Grp., Inc., 858 F.2d 775, 791 (1st Cir. 1988), cert.
denied, 488 U.S. 1030 (1989) (holding that a less restrictive standard is
appropriate where party seeking modification has pointed to some relevant
change in circumstances under which protective order was entered).[4] Goodyear cannot meet that burden here. Even if the umbrella order could have been
justified when it was first entered, it can no longer be justified now. [5]
Since the umbrella order was first entered, there have
been two dramatic changes in circumstances.
First, when Goodyear first sought secrecy, neither Plaintiffs’ counsel
nor this Court was aware of the numerous other crashes involving the same type
of tires at issue in this case. Pl.s’
Brief in Supp. of Cross-Mot. to Modify Confidentiality, at 6. Consequently, neither Plaintiffs’ counsel
nor the Court recognized the public safety implications of Goodyear’s desire
for secrecy. Since that time, however,
Plaintiffs’ counsel has discovered -- and informed the Court of -- numerous
other instances of similar crashes. See
id. In addition, new evidence
published in the media indicates that the problem may be more widespread than
even Plaintiffs recognize. Shahan Cert.
¶¶ 9-13. For example, according to the
Los Angeles Times, Goodyear
received an “alarming” increase in liability complaints five years ago
regarding the tires at issue in the case and changed the tire design to
strengthen it, but never recalled the tire or warned safety regulators or the
public of the hazards. Shahan Cert. ¶
11. As a result, millions of the tires
apparently remain in use on the road today.
Id. This newly-revealed
evidence alone justifies vacating the protective order. See In re Agent Orange Product
Liability Litigation, 821 F.2d 139, 146 (2d Cir.) (regarding filing requirement of Federal
Rule 5(d) and interpretation of Rule 26(c), citing letter to editor of New
York Times by Chairman of the Advisory Committee on Civil Rules, which
stated that “should the public importance of the material not appear until
after filing has been excused, it is expected that the judge, upon motion of
the press or other interested persons, would order the parties to file the documents
for inspection”), cert. denied, Dow Chemical Co. v. Ryan, 484
U.S. 953 (1987).
Second, after the protective order was entered, public
interest in the issue of tire tread separation exponentially increased -
primarily because the government and public learned of the danger of the Bridgestone/Firestone
tires. In August 2000,
Bridgestone/Firestone recalled over 6 million tires after reports of the tire
tread separations on tires used on sports utility vehicles. Van Etten v. Bridgestone/Firestone, Inc.,
No. CV-298-69, slip op. at 6 (S.D. Ga., Sept. 27, 2000) (unpublished opinion)
(Exhibit A) (attached). Many federal
class action and personal injury cases were filed against Bridgestone/Firestone
over the recalled tires. On September
27, 2000, one federal court lifted the seal on a case involving tread
separation of Bridgestone/Firestone tires, Van Etten, No. CV-298-69,
slip op. at 21, thereby further revealing to the public the extent to which
this problem affects Americans across the country. Significantly, the court cited recent media coverage and public
interest, as well as the recall of tires and the resulting congressional
hearings on the issue, in its opinion holding that the documents in that case
should be unsealed. Van Etten,
No. CV-298-69, slip op. at 5-6. It
stated: “Thus, the public and media interest in cases such as the Van Etten
case involving allegedly defective . . . tires . . . is substantial, and
deservedly so, because the use of defective automobile tires linked to numerous
deaths raises serious public health and safety concerns.” Id.
Partly in response to the Bridgestone/Firestone
debacle, the media has already expressed interest in the case at bar. It has published articles about the case and
sought to intervene to seek access to pleadings and documents, too. See Shahan Cert. ¶ 17(a)-(e), Exhibits B-F;
Los Angeles Daily Journal’s and Los Angeles Times’ Motion to Modify Protective
Order, filed Oct. 27, 2000. This Court
should not allow the potential dangers of the tires in this case to be hidden
any longer. In light of the new
evidence that reveals the extent of the potential impact of this case on the
public and future litigants, as well as the recent increase in the media and
public awareness and interest in the issue of tire tread separation, Goodyear
cannot prove current justification for the umbrella protective order.
For all of the foregoing reasons, the umbrella
protective order should be vacated. If
Goodyear believes secrecy is justified for specific documents, it should be
required to make a good cause showing in regard to those specific documents and
should not be allowed to rely on an umbrella protective order.
B.
If the Umbrella
Protective Order is Not Vacated in its Entirety, Paragraphs Five and Six of the
Order Need to be Modified.
Even if an umbrella protective order could somehow be
justified in this case, the order entered here must be modified. It is fatally overbroad in three respects.
First, paragraph five of the order, by its terms, bars public access to all
pretrial pleadings - even nondiscovery pleadings - that “contain, set forth,
summarize,” or just “refer to” any information or documents designated
confidential by Goodyear. This
provision is contrary to New Jersey law.
Hammock, 142 N.J. at 381 (holding presumptive right of public
access attaches to nondiscovery pleadings); Leucadia, Inc. v. Applied
Extrusion Techs., Inc., 998 F.2d 157, 164 (3rd Cir. 1993)
(same). and should be modified. Under Hammock, if a party seeks to
file a specific nondiscovery pleading under seal, it must prove that its
interest in secrecy substantially outweighs the strong presumption of access
separately “as to each document.” Second, paragraph five of the order also
violates New Jersey law because it requires each entire pleading to be filed
under seal, instead of allowing public access to as much of each pleading as
possible. “The need for secrecy should
extend no further than necessary to protect the confidentiality. Documents should be redacted when possible,
editing out any privileged or confidential subject matter.” Hammock, 142 N.J. at 382. Thus, even if the Court were to decide that
certain information within particular documents qualifies as a trade secret or
is otherwise privileged or confidential, and Goodyear’s interest in secrecy is
sufficient to overcome the public interest in disclosure, the Court must not
shield an entire document from scrutiny if it also contains non-confidential
information.[6]
Third, paragraph six of the protective order should be
modified because it provides that Plaintiffs’ counsel must return all documents
unilaterally designated by Goodyear as confidential after the litigation has
been resolved, without requiring Goodyear to preserve the documents. This provision runs the risk that the
designating party will destroy these documents after the current litigation has
concluded, thereby preventing future litigants from obtaining them.[7] The American Bar Association has formally
recommended that provisions requiring the return of documents should be
conditioned on prohibiting the producing party from destroying the documents
after they are returned.
Recommendations 10-12 of the American Bar Association Action Commission
to Improve the Tort Liability System (adopted by the House of Delegates,
February 1987) (recommending that the opposing party should be required not to
“destroy any such documents so that they will be available, under appropriate
circumstances, to government agencies or to other litigants in future
cases”). Because of the potential for
other similarly situated litigants to bring actions against Goodyear after this
case has been resolved, if the protective order is not vacated in its entirety,
paragraph six should be modified to prohibit the destruction of any documents
or information returned to Goodyear after the case is resolved.
III. THE COURT
SHOULD GRANT PUBLIC ACCESS TO THE DEPOSITION TRANSCRIPT AND DOCUMENTS CURRENTLY
CONTESTED IN THIS CASE AND REJECT GOODYEAR’S EFFORTS TO KEEP THEM SECRET.
Regardless of whether this Court vacates or modifies
the umbrella protective order, it should grant public access to the deposition
transcript and documents currently contested in this case and reject Goodyear’s
efforts to keep them secret. Under Rule
4:10-3, Goodyear cannot make a showing sufficient to overcome Plaintiffs’
challenge to the designation of deposition exhibits as confidential. See Shahan Cert. ¶ 16, Exhibit A, at
2 (regarding Attorney Spagnoli’s challenge to deposition exhibits). Similarly, Goodyear cannot argue that the
underlying deposition transcript should be protected. Under the terms of the protective order, consistent with Rule
4:10-3, Goodyear has the burden of proof concerning the validity of its
confidentiality designations. This
burden is governed by Rule 4:10-3, which mirrors Federal Rule 26(c) in placing
the burden of proof on the party seeking secrecy. As stated above, because of this similarity between the rules,
New Jersey courts turn to federal courts for guidance on this matter. Kerr v. Able Sanitary and Environmental
Servs., Inc., 295 N.J. Super. 147, 156 (N.J. Super. Ct. App. Div.
1996) (“Because R. 4:10-3 follows the
text of Fed. R. Civ. P. 26(c), federal
decisions construing the corresponding federal rule offer some insight into the
issue.”) (citing Hammock); Hammock,
142 N.J. at 369 (noting the purposes of the federal and state rules are
“substantially the same”).
The standard for a party to establish good cause under
Rule 26(c) is high.[8] Good cause is established when a party
shows -- and a court finds[9] --
that disclosure will work a clearly defined and serious injury to the
party seeking closure. Pansy, 23
F.3d at 786-87 (citing Publicker Indus., Inc. v. Cohen, 733 F.2d 1059,
1071 (3rd Cir 1984)). The
party must articulate particularized reasons that secrecy is justified for each
document; the claims must be more than “broad allegations of harm,
unsubstantiated by specific examples or articulated reasoning”. Cipollone, 785 F.2d at 1121; accord
Anderson v. Cryovac, 805 F.2d 1, 7 (1st Cir. 1986) (“A
finding of good cause must be based on a particular factual demonstration of
potential harm, not on conclusory statements.”) (citing 8 C. Wright &
A. Miller, Federal Practice and
Procedure § 2035, at 264-65 (1970)); General Dynamics Corp. v. Selb Mfg.
Co., 481 F.2d 1204, 1212 (8th Cir. 1973) (“The burden is . . . upon the movant to
show . . . a particular and specific demonstration of fact, as distinguished
from stereotyped and conclusory statements”) (quoting C. Wright & A.
Miller, Federal Practice and Procedure: Civil §§ 2035, at 264-65), cert.
denied, 414 U.S. 1162 (1974); Cooper
Hosp./Univ. Med. Ctr. v. Sullivan, 1998 U.S. Dist. LEXIS 22198, Civ No.
96-5416 (D.N.J. May 7, 1998) (holding party failed to show good cause under
Federal Rule 26(c)(7) where it failed to identify adequately what type of
information could be misappropriated by competitors). Goodyear cannot meet this heavy burden with generalized claims of
trade secrets or confidentiality.
Moreover, even if the Court determines that Goodyear
has cause to claim secrecy, this Court must then engage in a balancing process
to weigh the public interest in disclosure against Goodyear’s confidentiality
concerns. Id. at 787 (setting
forth balancing test under Federal Rule 26 weighing harm to party seeking
protection against importance of disclosure to public); see Payton,
148 N.J. at 545 (describing courts’ “exquisite weighing process” to determine
whether to order disclosure of sensitive documents and the “rare circumstances”
under which self-critical privilege applies) (citations omitted); Wylie,
195 N.J. Super. at 337 (for privilege to apply, party must show public need for confidentiality that outweighs
the public need for disclosure); see also, e.g., CPC Int’l Inc. v.
Hartford Accident and Indemnity Co., 262 N.J. Super. 191, 202 (1992)
(rejecting privilege and ordering disclosure to adverse party because the public
interest weighs heavily in favor of disclosure).
The public safety issue presented by this case tilts
the balance heavily in favor of public
disclosure of the contested documents.
“[A]ccess is particularly appropriate when the subject matter of the
litigation is of especial public interest . . . .” In re Agent Orange, 821 F.2d at 146. New Jersey courts have expressed particular
concern about public access in cases involving public safety. See Hammock, 142 N.J. at 378
(“Independent of the interests of the parties and their attorneys in the
litigation that comes before our courts, there is a profound public interest
when matters of health, safety and consumer fraud are involved.”); CPC Int’l,
262 N.J. Super. at 202 (holding information discoverable in light of public
interest in preventing and remediating environmental pollution). The Third Circuit, moreover, has expressly
held:
Circumstances weighing against confidentiality exist
when confidentiality is being sought over information important to public
health and safety . . . . [Trial
courts] should consider whether the case involves issues important to the
public. If an . . . agreement involves issues . . . of a public nature, and involves matters of
legitimate public concern, that should be a factor weighing against entering or
maintaining an order of confidentiality . . . .
Pansy, 23
F.3d at 787-88.
This case presents potential life-and-death public
safety issues that fall squarely within these articulated concerns. The safety of the Goodyear tires at issue
in this case, millions of which are reported still to be on the road, is of
legitimate concern to consumers, drivers, and passengers throughout the nation
and the world. In light of this
significant public interest, Goodyear cannot meet the standard of good cause
embodied in Rule 4:10-3. See also Van Etten, No. CV-298-69, slip
op. at 19 (“[I]t is far from clear how valuable the Bridgestone/Firestone
information could possibly be as it is already a few years old and mainly
concerns the manufacturing processes and standards of a tire that was later
found to be defective. A competitor
would not want to replicate the designs of processes used to make a tire that
has now been recalled . . . .”).[10]
It is important to note that CARS’s argument in regard
to the contested deposition transcript and discovery documents is grounded in
the requirements of Rule 4:10-3, rather than the common law right of
access. The First Circuit found this
distinction to be critical when it reviewed a decision concerning a similar
motion to modify a protective order under Rule 26(c): “[It is] very significant that [the intervenor] has not asserted
a common law or first amendment right of access. . . . Rather, . . . [the
intervenor] asks for no more than compliance with the legislative scheme
embodied in the federal rules.” Public
Citizen, 858 F.2d at 788. The First
Circuit distinguished cases in which courts rejected disclosure motions based
on the common law right of access. It
noted that, unlike common-law arguments regarding access, a rules-based
argument does not demand that the common law trump the application of the
federal rules. Instead, arguments based
on the rules of civil procedure merely ask that the courts comply with the
rules and the high good-cause standard they set for issuing protective
orders. Thus, because the access claim
in Public Citizen was based on the rules of civil procedure, the court
stated that “the merits of the claim must be judged by the text of the rules
and the applicable cases interpreting the rules.” Id. at 789.
The Third Circuit cited the same distinction when
deciding a similar motion to allow public access to discovery motions. Leucadia, 998 F.2d at 165. The motion before the Leucadia court,
unlike Public Citizen, was based on the common law. It strongly indicated that it would have
granted the motion, if it had been brought under the Rules:
[W]e see little need to extend the federal common law to
discovery motions at this time when there is in existence a source of law for
the normative rules governing public access to discovery materials, that is
Rules 5(d) and 26(c) of the Federal Rules of Civil Procedure. It is
significant that the First Circuit, . . . holding there is no common law of
access to discovery motions, held two years later . . . that Rules 5(d) and
26(c) . . . provide a basis pursuant to which a district court may lift its
protective order precluding a party from making public unfiled discovery
materials.
Id.
(emphasis added) (citations omitted).
In this case, as in Public Citizen, CARS merely asks the Court to
apply Rule 4:10-3 to the case at bar, and allow public access to the discovery
documents unless appropriate proof of good cause is shown. Because Goodyear cannot make such a
showing, the documents should not be kept secret.
CONCLUSION
For the foregoing reasons, the Proposed Intervenor,
CARS, respectfully submits that this Court should grant its motion in
full. CARS should be permitted to
intervene for the limited purpose of vacating or modifying the stipulated
blanket protective order entered in this case.
Furthermore, because Goodyear did not and cannot prove the necessary
good cause exists to warrant the blanket protective order, the order should be
vacated. In the alternative, the Court
should modify the protective order to allow public access to all nondiscovery
pleadings, permit sealing of only those portions of pleadings for which secrecy
is justified, and require Goodyear to preserve all information and documents
returned to it at the conclusion of this case.
Finally, the Court should grant public access to the deposition
transcript and discovery documents that
Plaintiffs have contested and deny Goodyear’s motion
to keep them secret.
Respectfully submitted,
Christopher Placitella
Robert Haefele
Wilentz, Goldman & Spitzer, P.C.
90 Woodbridge Center Drive
P.O. Box 10
Woodbridge, New Jersey 07095
(732) 636-8000
Rebecca Epstein
Trial Lawyers for Public Justice, P.C.
1717 Massachusetts Ave. N.W., Suite 800
Washington, D.C.
20036
(202) 797-8600
Arthur Bryant
Trial Lawyers for Public Justice, P.C.
One Kaiser Plaza, Suite 275
Oakland, California 94612
(510) 622-8150
Attorneys for Proposed Intervenor
[1] In conjunction with a motion to intervene, Court Rule
4:33-3 requires the service of a supplemental pleading setting forth the claim
or defense for which intervention is sought.
However, because CARS seeks to intervene for the limited purpose of
vacating or modifying the protective order and to seek access to certain
discovery materials, it appears that such a pleading is unnecessary. If the Court deems the additional pleading
necessary, CARS respectfully requests the opportunity to so file.
[2] Courts have widely recognized that the correct
procedure for a nonparty to challenge a protective order is through permissive
intervention for that purpose. See,
e.g., United Nuclear Corp. v. Cranford Ins. Co., 905 F.2d
1424, 1427 (10th Cir. 1990), cert. denied, 111 S. Ct. 799
(1991); Hammock, 142 N.J. at 359; see also Beckman
Indus., Inc. v. International Ins. Co., 966 F.2d 470 (9th
Cir. 1992), cert. denied, 113 S. Ct. 197 (1992); Public Citizen v.
Liggett Grp., Inc., 858 F.2d 775, 783-784 (1st
Cir. 1988), cert. denied, 109 S. Ct. 838 (1989); Meyer Goldberg v. Fisher Foods, 823
F.2d 159, 162 (6th Cir. 1987); Martindell v. International Tel.
& Tel. Corp., 594 F.2d 291, 294 (2nd Cir. 1979); In
re Beef Industry Antitrust Litigation, 589 F.2d 786, 789 (5th
Cir. 1979).
An
independent jurisdictional basis is not required to grant the motion to
intervene, because CARS does not seek to litigate a claim on the merits or to
become a party generally to the action.
CARS asks only that the Court exercise power that it already has,
namely, the power to modify the protective order. Beckman, 966 F.2d at 473; see Pansy v. Borough
of Stroudsburg, 23 F.3rd 772 (3rd Cir. 1994).
[3] Plaintiffs’ counsel entered into the agreement in the
earlier case before she learned that the tread on this model of tire had
separated in other incidents. Spagnoli
Cert. ¶ 8.
[4] Claims of
reliance on the protective order should not prevent the Court from modifying
the protective order. The Third Circuit
has expressly held that reliance does not insulate orders from subsequent
modification. Pansy, 23 F.3d at
790. More specifically, the Third
Circuit also stated that parties will be presumed to have relied less on a
protective order when it is blanket order, like the one issued in this case,
which are usually entered for the sake of expediency in a complex case. Id., 23 F.3d at 790 n.26, (citing Public
Citizen, 858 F.2d at 790). Similarly, parties cannot claim to have relied
on protective orders regarding pretrial stages of litigation because they are,
by virtue of their limited scope, impermanent documents. In re Agent Orange Product Liability
Litigation, 821 F.2d 139, 147 (2d Cir.), cert. denied, Dow
Chemical Co. v. Ryan, 484 U.S. 953 (1987).
[5] The burden of proof remains the same, regardless of
whether a party challenges a confidentiality designation or a non-party moves
to intervene for the limited purpose of modifying the order. Leucadia, 998 F.2d at 166.
[6] Redaction is particularly relevant if Goodyear has
asserted claims of privilege. The New
Jersey Supreme Court has prescribed a document-by-document approach to
determine the applicability of such claims.
Hammock, 142 N.J. at 382.
This analysis allows the portions of a given document that are not
privileged to be available to the public.
For example, if a document that contained self-evaluative analysis also
contained non-privileged factual information, the factual information should
not be protected. Payton v. New
Jersey Turnpike Authority, 148 N.J. 524, 545-48 (1997); see also Wylie
v. Mills, 195 N.J. Super. 332, 337 (1984).
[7] This case provides an instructive illustration of the
possibly narrow avoidance of just such a problem. Plaintiffs’ counsel was involved in previous litigation against
Goodyear, Mathews v. Goodyear Tire
and Rubber Co., Inc., Case No. PC018776 W (Cal. Super. Ct. 1997). Ultimately, that case was settled.
Plaintiffs’ counsel returned the documents pursuant to the protective
order in that case. At the time she
settled Mathews, however, she knew she was going to file the instant
case. Anticipating that lawsuit, she
specifically requested that Goodyear not destroy the documents that she had
just returned. Spagnoli Cert. at 2-3,
¶¶ 4-5. This circumstance, however, is
unusual. Without a provision
prohibiting destruction, future litigants who file suit against Goodyear after
the resolution of current litigation could risk Goodyear’s destroying the
documents that were produced -- and returned -
in this case. Instead, Goodyear
should be preventively required not to destroy the documents.
[8] One of the reasons for a high standard to establish
good cause for a protective order is that “such materials are sometimes of
interest to those who may have no access to them, such as members of a class,
litigants similarly situated, or the public generally”. Ex rel. Stinson, Lyons, Gerlin &
Bustamante v. The Prudential Ins. Co., 944 F.2d 1149, 1159 (3rd
Cir. 1991) (citing Fed. R. Civ. P. 5(d) advisory committee note to 1980
amendment); In re Agent Orange, 821 F.2d at 146.
Another reason for the high standard is the
presumptive statutory right of access to discovery materials. Federal courts have held that the obverse of
Rule 26(c)’s good cause requirement is that, when there is no showing of
good cause, there is a presumed right of access. In re Agent Orange, 821 F.2d at 146 (“Any other
conclusion effectively would negate the good cause requirement of rule 26(c): Unless the public has a presumptive right of
access to discovery materials, the party seeking to protect the materials would
have no need for a judicial order since the public would not be allowed to
examine the materials in any event.”); accord Public Citizen, 858
F.2d at 790 (“It is implicit in Rule 26(c)'s ‘good cause’ requirement that
ordinarily (in the absence of good cause) a party receiving discovery materials
might make them public.”); see also Leucadia, 998 F.2d at 165 (in
context of declining to extend common law to apply to discovery motions,
indicating that the Federal Rules would provide the relief sought).
[9] The Court must make specific findings of good cause
as to each document. Hammock,
142 N.J. at 382. This requirement is not
eviscerated by the need to preserve confidentiality: “Where the secrecy is sought based on trade secrets, privileges,
proprietary information or the like, the trial court must nonetheless state
with particularity the facts, without disclosing the secrets sought to be
protected that currently persuade the court to seal the document or continue it
under seal.” Id.
[10] Of course, due to the nature of the protective order
in this case, CARS has no access to Goodyear’s pleading in which it ostensibly
argues the basis for its confidentiality designation. CARS therefore cannot analyze Goodyear’s particular
arguments. If the Court finds it
necessary to address these arguments, CARS respectfully requests access to all
relevant pleadings so that it might do so.
E.g. Hammock, 142 N.J. at 384-85 (noting that intervenors
were permitted to examine documents to assist with preparation for motion to
modify protective order, suggesting all intervenors should have been allowed
equal access). CARS notes that the
protective order allows other litigants against Goodyear to have access to the
confidential documents at issue. This
provision indicates that Goodyear’s interest in secrecy is not so overwhelming
that it would be unduly prejudiced by CARS accessing the same documents.