Judge: Malcolm Mackey, Case: 21STCV19032, Date: 2023-02-28 Tentative Ruling



Case Number: 21STCV19032    Hearing Date: February 28, 2023    Dept: 55

MEZA v. FORD MOTOR COMPANY                                                     21STCV19032

Hearing Date:  2/28/23,  Dept. 55

#7:   

MOTION TO COMPEL FURTHER RESPONSES TO REQUEST FOR PRODUCTION FROM DEFENDANT FORD MOTOR COMPANY.

MOTION FOR ENTRY OF PROTECTIVE ORDER TO GOVERN PRODUCTION OF CONFIDENTIAL MATERIALS.

Notice:  Okay

Opposition

 

MP:  

Plaintiffs

Defendant

 

RP:  

Defendant

Plaintiffs

 

Summary

 

On 5/20/21, plaintiffs filed a Complaint alleging that Plaintiff purchased a 2018 Ford F-150 having engine and electrical defects, and the manufacturer failed to replace the vehicle or make restitution after a reasonable number of repair attempts.

The causes of action are:

1. VIOLATION OF SONG-BEVERLY ACT - BREACH OF EXPRESS WARRANTY.

2. VIOLATION OF SONG-BEVERLY ACT - BREACH OF IMPLIED WARRANTY.

 

 

Plaintiffs’ Positions

 

Plaintiffs request an order compelling Defendant’s further documents production, and denying the customized portions of the protective order, and awarding sanctions as to plaintiffs’ motion and opposition ($2,270.00 and $750), on grounds including the following:

 

·         The document requests at issue are requests seeking Ford’s policies, procedures, and parameters for determining what constitutes a repair presentation (RFP 25), a non-conformity to warranty (RFP 26), a substantial impairment to the vehicle’s use, value, or safety (RFP 27), and a reasonable number of repair attempts when determining eligibility for a vehicle repurchase under the Song-Beverly Act since 2019 (RFP 28).

·         A manufacturer’s policies—or lack of policies—related to how it deals with consumer complaints and its decision on whether to replace or repurchase are important in determining whether a manufacturer has committed a willful violation of the Act. (Jensen v. BMW of North America, Inc. (1995) 35 Cal.App.4th 112, 136.

·         Defendant’s policies, procedures, and parameters—are relevant because they would show whether they are meant to hinder consumers from seeking their statutory remedies, whether they comport with Defendant’s duties under the Song-Beverly Act including whether they seek to provide an inferior remedy, what criteria Defendant uses for determining whether a vehicle qualifies for repurchase or replacement, or whether Defendant has enacted any policies or procedures for dealing with its obligations.

·         This information would tend to prove whether Defendant has committed a willful violation.

·         Defendant’s discovery objections are boilerplate and unsupported.

·         Meeting and conferring was unsuccessful.

·         Ford is burdening the Court seeking the entry of a protective order that deviates from the model protective order without good reason.

·         Ford improperly seeks to limit the attorneys who are permitted access to the confidential documents to only those attorneys within the same firm. (Proposed protective order ¶ 7.) This limitation could conceivably prevent Plaintiffs’ counsel from disclosing the documents to any other attorneys that serve as Plaintiffs’ co-counsel.

·         Ford would require hundreds of employees sign the Exhibit A form, every time that the parties enter into a protective order in all cases litigated between Plaintiffs’ counsel and Ford.

·         The LASC model protective order differently would require that mock jury participants sign the Exhibit A attachment that requires them to provide their address and telephone number.

·         The model protective order already addresses Ford’s proposal to add that “such documents may not be posted on any website or internet accessible document repository that is accessible to anyone other than the persons noted in paragraph 7 above” and that one “shall not under any circumstance sell, offer for sale, advertise or publicize either the Confidential Materials or the information contained therein or the fact that such persons have obtained the Confidential Materials.” (Proposed protective order ¶ 8.)

·         Ford uselessly seeks to modify paragraph 21. The LASC model protective order provides that “counsel for each party may maintain in its files, in continuing compliance with the terms of this Stipulation and Protective Order, all work product, and one copy of each pleading filed with the Court.” (Proposed protective order ¶ 21.)

 

Defendant’s Positions

 

Defendant advocates denying an order compelling discovery, and granting a protective order, for reasons including the following:

 

·         Ford properly objected, then supplemented its responses to Request Nos. 25-28.

·         Ford agreed to produce its Warranty Policy and Procedure Manual, policies and procedures for Ford’s CRC, and its RAV Policy & Procedure Manual, for 2020.

·         Ford objected to producing these documents for other years because they are unrelated to Plaintiffs’ claims, their vehicle, or their request for repurchase.           

·         Ford filed a Motion for Entry of a Protective Order on December 27, 2022, so that Ford can produce the confidential documents identified in Ford’s supplemental responses to Request Nos. 25-28.

·         Request Nos. 25-28 are so broad that they potentially seek information protected by the attorney-client privilege and/or the work product doctrine.

·         Plaintiffs’ request for sanctions is improper and should be denied, because Ford’s Responses, Supplemental Responses, and objections to the Requests at issue are code-compliant, and its opposition is substantially justified.

·         Ford’s requested changes to the LASC Model Order affect three paragraphs—Nos. 7, 8 and 21  (see motion for protective order, ex. G).

·         Ford seeks to modify Paragraph 7 to clarify in sub-section (b) that the term “affiliated attorneys” mean attorneys in the same firm and that Plaintiffs’ counsel’s office personnel who have access to Ford’s confidential documents must sign Exhibit A; to include videographers and litigation support companies with court reporters in sub-section (d); to preclude mock jurors from accessing Ford’s confidential documents because Ford has no ability to identify such persons or ensure (or confirm) their compliance, as set forth in sub-section (f); and to include non-attorneys along with experts in paragraph (g), and confirm that Ford’s confidential documents may not be shown to competitors of Ford. Ford also seeks to modify Paragraph 8 to prohibit the receiving party from posting Ford’s confidential documents to any website or advertising Ford’s documents for sale.

·         Ford seeks to modify Paragraph 21 to clarify the process for Plaintiffs’ counsel to return or destroy Ford’s confidential documents at the conclusion of the case, and to require the return of all confidential documents.

 

Tentative Ruling

 

Plaintiffs’ motion to compel is granted as to the request to compel, and denied as to sanctions, with a condition of a protective order.

Defendant’s motion for protective order is granted in part, as set forth below:

The Court orders that every person involved in this litigation shall not disclose 1) the Warranty Policy and Procedure Manual, 2) the policies and procedures for Ford’s Customer Relationship Center, and 3) Ford’s Reacquired Policy & Procedure Manual, to Defendant’s competitors, and all such produced information produced (1) shall be used only for the prosecution, defense, or settlement of the action, (2) shall be disclosed only to attorneys for the parties, their employees, their expert or consulting witnesses, and court personnel, and (3) shall be returned to the producing party after the litigation was concluded.  

This ruling is without prejudice to moving and opposing parties also stipulating to the model protective order, or other protective order, if they so choose.

 

            Response Statutory Compliance

 

The responses fail to indicate the documents being withheld, such as purportedly irrelevant documents dated in 2021 through 2023, but only indicate production in part as to some described categories.

“Even where a party deems a demand to be objectionable, he [she, or it] still must identify those items which fall into the category of item in the demand to which an objection is being made.”  Standon Co. v. Sup. Ct. (1990) 225 Cal. App. 3d 898, 901 n.3.  A document response must consist of:  1) an agreement to comply, stating whether the productions or inspection will be allowed “in whole or in part,” and that all documents or things in the possession, custody or control of the respondent, as to which no objection is made, will be included, by the date set for inspection (unless informally extended in writing, or the designated timing is subject to objection);   2) a representation of inability to comply, with a specification of any person believed or known to have possession of documents;  or, 3) objections and specification of withheld documents.  CCP §§2031.210(a), 2031.220, 2031.270, 2031.280(b).    Compliance includes all documents or things in the demanded category that are in the “‘possession, custody, or control’” of the responding party, such as from other corporations.  Roche v. Hyde (2020) 51 Cal.App.5th 757, 813  (quoting CCP  § 2031.220).

 

            Trade Secrets

 

Opposing party met the burden to evidence trade secrets, as to narrow categories only— 1) Warranty Policy and Procedure Manual, 2) policies and procedures for Ford’s Customer Relationship Center, and 3) its Reacquired Policy & Procedure Manual  (e.g., , Jacob Doss decl., filed 12/27/22, ¶ 6).  Hence, no other information is shown to be protectable trade secrets.

Evidence Code Section 1061(b)(1) requires parties seeking protective orders in criminal and civil cases to submit an affidavit based on personal knowledge listing qualifications to opine, identifying alleged trade secrets and documents disclosing trade secrets, and showing qualifications of trade secrets.  Stadish v. Sup. Ct (1999) 71 Cal. App. 4th 1130, 1144-1145.

It is error to delegate to parties the task of determining which items contain trade secrets. Stadish v. Sup. Ct. (1999) 71 Cal. App. 4th 1130, 1144.  See also  Nativi v. Deutsche Bank Nat’l Trust Co. (2014) 223 Cal.App.4th 261, 318  (“assuming … courts may in appropriate circumstances issue an umbrella protective order that allows the parties to designate as confidential documents produced in discovery …, the declaration submitted in support of … motion for such a protective order was entirely conclusory ….”).

The party asserting trade-secret objections has the burden to establish their existence.   Bridgestone/Firestone, Inc. v. Sup. Ct. (1992) 7 Cal.App.4th 1384, 1390.  After the requesting party meets the shifted burden, the objecting party must show any disadvantages of a protective order.  Bridgestone/Firestone, Inc. v. Sup. Ct. (1992) 7 Cal.App.4th 1384, 1390.  

“A trade secret is “‘information, including a formula, pattern, compilation, program, device, method, technique, or process, that: [§] (1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and [§] (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.’”  Perlan Therapeutics, Inc. v. Sup. Ct. (2009) 178 Cal.App.4th 1333, 1342-43 (quoting Civ.C. §3426.1(d)(1), (2)).

Judges must act to protect trade secrets by reasonable means including protective orders, in camera hearings, sealing records and restricting disclosure.  CC §3426.5;  Hypertouch, Inc. v. Sup. Ct. (2005) 128 Cal. App. 4th 1527, 1555 n. 16.  A protective order to preserve the secrecy of an alleged trade secret may include orders in connection with discovery proceedings, ordering any person involved in litigation not to disclose alleged trade secrets without court approval, and, most commonly, to limit access to the information by barring the disclosure of the information to competitors.”  Hypertouch, Inc. v. Sup. Ct. (2005) 128 Cal.App.4th 1527, 1555 n. 16.  A court issued a protective order providing that all documents containing trade secrets (1) shall be used only for the prosecution, defense, or settlement of the action, (2) shall be disclosed only to attorneys for the parties, their employees, their expert or consulting witnesses, and court personnel, and (3) shall be returned to the producing party after the litigation was concluded.   See  McGinty v. Sup.Ct. (1994) 26 Cal.App.4th 204, 207.

The Court lacks authority to compel a stipulated protective order, because that is voluntary.  Unless courts order otherwise, parties may stipulate to modify discovery procedures.  CCP §2017.030;  Mercury Interactive Corp. v. Klein  (2007) 158 Cal.App.4th 60, 98 (parties often stipulate for protective orders limiting disclosure of information deemed by producing party to be confidential, and obviate the need for court unless the designation is challenged).  Parties often choose to enter into stipulated protective orders permitting limited use of discovered information deemed to contain confidential or proprietary information, to avoid the need for court rulings,  but  where parties are unable to stipulate, and must resort to the courts, parties seeking protective orders have the burden to show good cause.  Nativi v. Deutsche Bank Nat’l Trust Co. (2014) 223 Cal.App.4th 261, 317-18.  “The difference between a protective order issued by the trial court and a secrecy agreement between the parties is that the protective order balances the interests of the public, the plaintiff and the defendant by requiring the party seeking to restrict dissemination of discovered documents to demonstrate ‘good cause’ for the restriction.”  Westinghouse Elec. Corp. v. Newman & Holtzinger (1995) 39 Cal. App. 4th 1194, 1209.  “Unless it is clear from the record that both parties assented, there is no stipulation.”  Sarracino v. Sup. Ct. (1974) 13 Cal. 3d 1, 14.  “‘A stipulation is an agreement between counsel with respect to business before a court….’”  Harris v. Spinali Auto Sales, Inc. (1966) 240 Cal. App. 2d 447, 452.

 

            Privilege

 

The opposing evidence fails to evidence the attorney-client or work-product privileges which are instead only generally asserted.

The objecting party has the burden to file evidence of the preliminary facts establishing a privilege exists. HLC Properties, Limited v. Sup. Ct. (2005) 35 Cal. 4th 54, 59;  OXY Resources California LLC v. Sup. Ct. (2004) 115 Cal.App.4th 874, 894.  “[I]f documents responsive to a document request are withheld on privilege grounds, a privilege log or some equivalent specification of any asserted privilege objection ‘shall’ be supplied.”  Roche v. Hyde (2020) 51 Cal.App.5th 757, 813  (citing CCP § 2031.240).

 

            Overbreadth

 

The Court finds no impermissible overbreadth, in the subject requests specifying documents “since 2019.”

As to overbreadth objections involving no apparent privilege, courts determine whether the discovery is “ ‘reasonably calculated to lead to the discovery of admissible evidence’ ”, generally  resolving doubt in favor of permitting discovery.  Williams v. Sup. Ct. (2017) 3 Cal.5th 531, 542.  “When discovery requests are grossly overbroad on their face, and hence do not appear reasonably related to a legitimate discovery need, a reasonable inference can be drawn of an intent to harass and improperly burden.”  Obregon v. Sup. Ct. (1998) 67 Cal.App.4th 424, 431.  [Emphasis added.]

A document request shall designate documents or things "by specifically describing each individual item or by reasonably particularizing each category of item."  CCP §2031.030(c)(1).  An extreme request without any relationship to the manner in which records are kept may be too broad.  Calcor Space Facility, Inc. v. Sup. Ct. (1997) 53 Cal.App.4th 216, 222-23 (subpoena having six pages of definitions and instructions made 32 document requests complicated categories, effectively requesting everything in respondent's possession in any way related to a category).  

 

            Sanctions

 

Sanctions are denied entirely, the Court finding substantial justification for some positions of each side, including as analyzed above.

Generally, monetary sanctions are mandatory as to parties losing discovery motions, unless courts find substantial justification or other injustice.  E.g.,  Foothill Properties v. Lyon/Copley Corona Assocs., L.P. (1996) 46 Cal.App.4th 1542, 1557-58.  “ ‘[S]ubstantial justification” has been understood to mean that a justification is clearly reasonable because it is well-grounded in both law and fact.”  Doe v. U.S. Swimming, Inc. (2011) 200 Cal.App.4th 1424, 1434.

 

*IF PARTIES SUBMIT ON THE COURT’S TENTATIVE RULING; PLEASE CALL THE COURTROOM AT 213-633-0655*