Opinion

in Re E.I. Du Pont De Nemours and Company

Court
Texas Supreme Court
Filed
May 14, 2004
Status
Published
Cited by
0 cases
Authority
More cited than 40.0%

The opinion

IN THE SUPREME COURT OF TEXAS

IN THE SUPREME COURT OF

TEXAS

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No. 03-0464

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In re E.I.

DuPont de Nemours and Company

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On Petition for Writ of

Mandamus

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PER CURIAM

In

the suit underlying this petition for mandamus, nearly 400 plaintiffs sued E.I.

DuPont de Nemours ( A DuPont @ )

and over 100 other defendants for alleged asbestos-related injuries from 1935 to

the present. In response to the

plaintiffs =

discovery request, DuPont asserted claims of attorney-client and/or work product

privilege with respect to 607 documents.

On

May 12, 2003, the trial court issued an order requiring DuPont to turn over most

of the documents, ruling that DuPont had not made a prima facie showing of

privilege. A divided court of

appeals declined to grant mandamus relief. __S.W.3d__.

DuPont now seeks relief from this Court. DuPont contends that the trial court

abused its discretion by holding a hearing on the plaintiffs =

global challenge to all of the documents identified in its privilege log. DuPont further argues that the trial

court abused its discretion by finding that DuPont had not made a prime facie

showing of privilege for the documents at issue and refusing to conduct an in

camera inspection of the documents before rejecting its privilege claims.

The

court of appeals declined to grant DuPont mandamus relief. We agree with the court of appeals that

the trial court did not abuse its discretion in holding a hearing on the plaintiffs =

global challenge to DuPont = s

privilege claims. However, we

conditionally grant the writ insofar as we conclude that DuPont made a prima facie showing of privilege for many of the

approximately 530 documents that the trial court ordered produced without

conducting an in camera review.

In

response to plaintiffs =

requests for production, DuPont produced over 55,000 pages of documents that go

back more than 60 years. However,

DuPont stated that it was withholding 607 documents, citing the attorney-client

privilege found in Texas Rule of Evidence 503 and the work-product privilege set

forth in Texas Rule of Civil Procedure 192.5. After the plaintiffs requested a

privilege log, [1]

DuPont timely served the log describing the documents withheld. The plaintiffs then requested a hearing

challenging DuPont = s

privilege claims for all of the documents.

In response, DuPont filed an affidavit from its paralegal Walter Connor

in support of its privilege claims and tendered the documents listed on the

privilege log to the court for in camera inspection. In his affidavit, Connor stated, in

relevant part:

I

have reviewed all names listed on the DuPont- Brignac

privilege log that are identified as A DuPont

Legal. @ I compared each A DuPont

Legal @

name for each document on the privilege log with a DuPont human resources

database for the legal department.

Each name that is identified as A DuPont

Legal @

on the privilege log is a name of a person who was, at the time indicated on the

document, a DuPont attorney or DuPont paralegal as confirmed by the comparison

with the human resources database.

Connor

further averred:

I

have reviewed and am familiar with the definitions of client, representative of

client, lawyer, representative of a lawyer, and confidential as defined in Rule

503 of the Texas Rules of Evidence.

Based on my review of the DuPont human resources

database for the legal department, the documents listed on the DuPont- Brignac privilege log, and the definitions in Rule 503, all

the documents on the DuPont- Brignac privilege log with

A DuPont

Legal @

names associated with a claim of attorney-client privilege indicate a lawyer or

a representative of a lawyer engaging in confidential communications with a

client or a representative of a client regarding professional legal services, or

a lawyer or representative of a lawyer rendering professional legal services or

performing a requested task for a client or a representative of a client

involving the rendering of professional legal services.

Finally,

Connor also stated:

I have reviewed and am familiar with the definition of A work

product @

as defined in Rule 192.5 of the Texas Rules of Civil Procedure. Based on my review of

the DuPont human resources database for the legal department, the documents

listed on the DuPont- Brignac privilege log, and the

definitions in Rule 192.5, all the documents on the DuPont- Brignac privilege log with A DuPont

Legal @

names associated with a claim of work product indicate material prepared or

mental impressions developed in anticipation of litigation or for trial by or

for DuPont or its representatives, or a communication in anticipation of

litigation or for trial between DuPont and its representatives or among its

representatives.

On

April 29, 2003, the court conducted a hearing on DuPont = s

assertions of privilege. The court

overruled DuPont = s

claims of privilege except as to 76 documents, which were

ordered to be delivered for in camera review. The trial court excepted those 76 documents listed on the privilege log that

were associated exclusively with members of A DuPont

Legal, @

meaning that the author, recipient, and all parties that received copies of the

document were members of A DuPont

Legal." The trial court ordered

DuPont to produce the remainder of the documents, consisting of: 1) documents

with no "DuPont Legal" names associated, and 2) documents with both "DuPont

Legal" and non- A DuPont

Legal" names associated.

The

parties do not dispute that mandamus relief is generally available in this type

of case. Mandamus relief is

appropriate A to

correct a clear abuse of discretion or the violation of a duty imposed by law

when there is no other adequate remedy by law. @ Johnson v. Fourth

Court of Appeals , 700 S.W.2d 916, 917 (Tex. 1985). A [A]

clear failure by the trial court to analyze or apply

the law correctly will constitute an abuse of discretion and may result in

appellate reversal by extraordinary writ. @ Walker v. Packer,

827 S.W.2d 833, 839 (Tex. 1992). Mandamus is proper when the trial court

erroneously orders the disclosure of privileged information because the trial

court = s

error cannot be corrected on appeal. Id. at

843 . As DuPont would lose

the benefit of the privilege if the documents at issue are disclosed, even if its assertions of privilege were later

upheld on appeal, we conclude that this Court may provide mandamus relief in

this case.

The

party who seeks to limit discovery by asserting a privilege has the burden of

proof. Jordan v. Fourth Court of

Appeals , 701 S.W.2d 644 , 648‑649 (Tex. 1985) . However, if a party asserting privilege

claims makes a prima facie showing of privilege and tenders documents to the

trial court, the trial court must conduct an in camera inspection of those

documents before deciding to compel production. Arkla , Inc. v.

Harris , 846 S.W.2d 623, 631 (Tex. App. n

Houston [14th Dist.] 1993, orig. proceeding); Shell Western E & P, Inc.

v. Oliver, 751 S.W.2d 195, 196 (Tex. App . n Dallas

1988, orig. proceeding) . We have recognized:

Generally,

a trial court conducts an in camera inspection to determine if a document is in

fact privileged. If it is not privileged, then it may become evidence that the

factfinder may consider. If the document is privileged, it is not

subject to discovery and may not be considered by the

factfinder , even when the factfinder is the trial court.

Goode v. Shoukfeh , 943 S.W.2d 441,

448 (Tex. 1997). The trial

court abuses its discretion in refusing to conduct an in camera inspection when

such review is critical to the evaluation of a privilege claim. State v. Lowry , 802 S.W.2d 669 ,

673‑74 (Tex. 1991) ; Loftin v. Martin, 776

S.W.2d 145, 148 (Tex. 1989) ; Thibodeaux v. Spring Woods Bank, 757

S.W.2d 856, 860 (Tex. App . n Houston

[14th Dist.] 1988, no writ) ;

Shell Western E & P, 751 S.W.2d at 196 .

The

prima facie standard requires only the A minimum

quantum of evidence necessary to support a rational inference that the

allegation of fact is true. @ Tex. Tech Univ.

Health Scis . Ctr. v. Apodaca, 876

S.W.2d 402, 407 (Tex. App . n El

Paso 1994, writ denied). The

documents themselves may constitute sufficient evidence to make a prima facie

showing of attorney-client or work product privilege. Weisel Enters., Inc. v.

Curry , 718 S.W.2d 56, 58 (Tex. 1986). [2]

The

plaintiffs argue that Connor = s

affidavit is lacking in specificity.

However, an affidavit, even if it addresses groups of documents rather

than each document individually, has been held to be sufficient to make a prima

facie showing of attorney-client and/or work product privilege. See In re Toyota Motor Corp. , 94

S.W.3d 819 (Tex. App . n San

Antonio 2002, orig. proceeding); In re Monsanto Co., 998 S.W.2d 917 (Tex.

App. n Waco

1999, orig. proceeding); In re Valero Energy Corp., 973 S.W.2d 453 ( Tex.App . n Houston

[14th Dist.] 1998, orig. proceeding) ; Shell Western

E & P, 751 S.W.2d at 196 .

In

Monsanto, the affidavit of the corporate representative asserted that a

log of 117 documents involved A in-house

and/or outside attorneys for Monsanto, or other Monsanto employees,

representatives or agents. @ In re Monsanto

Co. , 998 S.W.2d at 927 .

The court of appeals held that this representation constituted a prima

facie showing of the attorney-client and work product privilege. Id. In Toyota, the affidavit

submitted by the defendant stated that one group of documents consisted of A [c] ommunications to Toyota counsel for the purpose of

requesting legal advice or facilitating the rendition of professional legal

service. @ In re Toyota Motor

Corp. , 94 S.W.3d at 821 .

This representation was also found to be

sufficient to establish a prima facie case of privilege. Id . at

823-24. In Shell Western

E & P, Shell established a prima facie case of attorney-client privilege

where a Shell affiant swore that the A documents

. . . were written by a lawyer to a client @

and A consist

of communications from a client to a Shell . . . lawyer . . . . @ Shell Western E & P ,

751 S.W.2d at 196 . However, an

affidavit is of no probative value if it merely presents global allegations that

documents come within the asserted privilege. Ryals v. Canales , 767 S.W.2d 226, 229

(Tex. App . n Dallas

1989, orig. proceeding). The

plaintiffs contend that the affidavit at issue here is not probative because it

is conclusory .

The plaintiffs maintain that Connor = s

affidavit is indistinguishable from the affidavit found insufficient to support

attorney-client privilege in In re

Temple-Inland, Inc. , 8 S.W.3d 459 (Tex. App. n Beaumont

2000, orig. proceeding). However,

the affidavit in Temple-Inland that was found to

be conclusory merely stated that production A would

violate the attorney-client privilege. @ Id. at

462 . Connor = s

affidavit more closely resembles the affidavits in Monsanto and

Toyota , as it sets forth the factual basis for the applicability of the

attorney-client and/or work product privileges to the documents at issue. Additionally, while Connor did not

attest to the specific contents of each of the 607 documents at issue, the

plaintiffs are unable to identify any such legal requirement and do not dispute

that the log submitted by DuPont contains a summary of each document. Thus, we find that the specificity of

Connor = s

affidavit and the log taken together are reasonably adequate to establish a

prima facie case of privilege given that the documents at issue go back more

than 60 years.

The

plaintiffs also contend that Connor = s

affidavit is not probative because it is not based on

personal knowledge. For an

affidavit to have probative value, an affiant must swear that the facts

presented in the affidavit reflect his personal knowledge. Humphreys v.

Caldwell , 888 S.W.2d 469, 470 (Tex. 1994). Connor swore that his statements were based on his A personal

knowledge of the facts stated in the affidavit. @ Even though Connor later explained that

his determinations were A [b] ased on [his] review of the DuPont human resources database

for the legal department, @

an affiant = s

acknowledgment of the sources from which he gathered his knowledge does not

violate the personal knowledge requirement. See Grotjohn Precise Connexiones Int'l v. JEM Fin., Inc. , 12 S.W.3d 859, 866

(Tex. App . n Texarkana

2000, no pet.). Therefore, we hold

that Connor = s

affidavit satisfies the personal knowledge requirement.

Three

discrete categories of documents are in dispute. First, there are the documents which have only A DuPont

Legal @

names associated with them. The

trial court ordered an in camera review of these 76 documents. Second, there are those documents that

have both A DuPont

Legal @

and other names associated with them.

The trial court denied DuPont = s

claim of privilege with respect to these documents without ordering an in camera

review. Finally, there are those

documents which do not have any A DuPont

Legal @

name associated with them. The

trial court also rejected DuPont = s

claim of privilege concerning these documents.

We conclude that

the trial court did not abuse its discretion in sustaining DuPont = s

privilege claims with respect to the first category of documents. The log submitted by DuPont combined

with Connor = s

affidavit clearly make a prima facie case that those documents with only A DuPont

Legal @

names associated with them are covered by the attorney-client and/or work

product privileges. Consequently,

the trial court correctly determined that DuPont was entitled to at least an in

camera review of those documents.

We

also conclude that DuPont established a prima facie case of privilege with

respect to the second category of documents, which contained both A DuPont

Legal @

and other names. Thus, we find that

the trial court erroneously rejected DuPont = s

privilege claim as applied to these documents without at least subjecting them

to an in camera review.

There

is no presumption that documents are privileged, and there is no presumption

that a party listed on the privilege log is an authorized person under the rule

governing the privilege. Cigna

Corp. v. Spears , 838 S.W.2d 561, 565-66 (Tex. App . n San

Antonio 1992, orig. proceeding).

Nevertheless, Connor provided sufficient indication of the relationship

between the A DuPont

Legal @

and the non- A DuPont

Legal @

persons on the privilege log to establish a prima facie case of privilege. In his description of the allegedly

privileged documents, Connor identified the non- A DuPont

Legal @

persons on the privilege log as authorized parties for purposes of

attorney-client and/or work product privilege. Connor swore that the documents

allegedly privileged as attorney-client materials A indicate

a lawyer or representative of a lawyer engaging in communication . . . or

performing a requested task . . . for a client or representative of a

client. @ The implication of this statement is

that, whatever the relationship between the A DuPont

Legal @

and the non- A Dupont Legal @

parties listed on the privilege log, it was a relationship within the scope of

the attorney-client and/or work product privilege. In light of the tests for demonstrating

attorney-client and work product privilege [3]

and the fact that the hundreds of documents at issue span more than 60 years,

this statement combined with the log summarizing each document is sufficient to

establish at least a prima facie case of privilege that is then subject to in

camera review. [4] Because DuPont has established a prima

facie case of privilege as to the second category of documents, which bear both

A DuPont

Legal @

and non- A DuPont

Legal @

designations, we conclude that it was entitled to an in camera review before

being required to produce these documents.

Finally,

we agree with the trial court that DuPont has not established a prima facie case

of privilege with respect to the third category of documents containing no A DuPont

Legal @

names. Connor = s

affidavit offers no evidence to justify privilege assertions concerning these

documents. Connor = s

affidavit attested to the privileged nature of A [a] ll the documents on the DuPont- Brignac privilege log with > DuPont

Legal =

names associated with a claim of attorney-client privilege @

and A [a] ll the documents on the DuPont- Brignac privilege log with > DuPont

Legal =

names associated with a claim of work product privilege. @ The affidavit was silent as to any claim

of privilege regarding the documents that do not bear a A Dupont Legal @

name. Accordingly, we agree with

the appeals court that the trial court did not abuse its discretion in ruling

that DuPont failed to make a prima facie case of privilege with respect to those

documents containing no A Dupont Legal @

names.

DuPont

also argues on appeal that the plaintiffs =

global challenge to their privilege claims was not sufficient to place those

claims at issue. DuPont contends

that the trial court abused its discretion by allowing a hearing based on the

plaintiffs =

global challenge to DuPont = s

entire privilege log. DuPont

maintains that, prior to the hearing, the plaintiffs

should have been required to particularize their objections to specific

documents in the privilege log.

DuPont

cites two cases in support of its argument. First, DuPont references In re Carbo Ceramics, Inc. , 81 S.W.3d 369 (Tex.

App . n Houston

[14th Dist.] 1988, orig. proceeding), but this case is inapposite. In Carbo , the court found that the plaintiff

A did

not challenge the privileged nature of all privileged documents, @

but instead placed only one letter at issue. Id. at

375 . Carbo is distinguishable because it is not disputed here that the plaintiffs challenged the

privileged nature of all documents in the log. DuPont also relies on Monsanto ,

which held in part:

When

the party asserting a privilege has made a prima facie case for its claim, the

requesting party has the burden to point out to the court which specific

documents or groups of documents it believes require inspection. Otherwise,

trial judges will be required to inspect untold numbers of documents. The

requesting party should be in a position to do so based upon (1) the contents of

the privilege log, (2) other discovery and documents, (3) discovery specifically

designated to test the claim of privilege, and (4) the evidence at the

hearing.

In re Monsanto Co. , 998 S.W. 2d at 925 .

It

is clear that Monsanto stands only for the proposition that the party

seeking discovery must specify its challenges to the privilege log after the

party asserting privilege claims has made a prima facie case. The discovery rules provide that any

party may request a hearing on a claim of privilege and the party asserting the

privilege must present any evidence necessary to support the privilege. Tex . R. Civ. P. 193.4(a). This provision does not contain a

requirement that the party seeking discovery specify their rationale for

objecting to each document before requesting a hearing. [5] Accordingly, the trial court did not

abuse its discretion by holding a hearing on the plaintiffs =

objection to DuPont = s

privilege log, which challenged whether DuPont had established a prima facie

case of privilege for all of the documents it withheld.

For

the foregoing reasons, we conditionally grant DuPont = s

petition for mandamus relief from the trial court ruling insofar as the ruling

denied DuPont = s

privilege claim without conducting an in camera review with respect to the

documents containing both A DuPont

Legal @

and non- A DuPont

Legal @

names. Accordingly, pursuant to

Texas Rule of Appellate Procedure 52.8 and without hearing oral argument, we

direct the trial court to vacate in part its May 12, 2003 order and to conduct

further proceedings consistent with this opinion. We are confident that the trial court

will promptly comply, and our writ will issue only if it does

not.

OPINION

DELIVERED: May 14, 2004

[1] A

A privilege

log @

is the commonly used term for a response pursuant to Texas Rule of Procedure

193.3( b ) that: A 1)

describes the information or materials withheld that, without revealing the

privileged information or otherwise waiving the privilege, enables other parties

to assess the applicability of the privilege, and 2) asserts a specific

privilege for each item or group of items withheld. @ The dissenting court of appeals opinion

noted:

The

log is sufficiently detailed for the real parties in

interest to assess the applicability of the specific privilege being asserted.

See Tex. R.

CIV. P. 193.3(b). For example, A DUP

Bates Range 0903484‑3484, Date 741029, @

a document from A Austin

RE (DuPont Legal) @

to A Mfg

Environmental Committee, @

copied to A Bonczek RR (DuPont Legal); Galloway WR; Helmers EN; Hildrew JC; Meany DM; Reichert RJ; Schmutz JF

(DuPont Legal), and Sebree DB (DuPont Legal), @

is a A Memo

between DuPont counsel requesting legal advice and comments re: proposed

amendments to regulations concerning

national emissions standards for hazardous air pollutants. @

__S.W.3d__. Neither the trial court nor the court of

appeals majority opinion concluded that the log inadequately described the

documents and the plaintiffs do not so argue in this court.

[2] The dissenting court of appeals opinion examined

several of the memos that were among the documents containing both A DuPont Legal @ and non- A DuPont Legal @ names.

Both the A DuPont Legal @ names and the names without designation are written with the first and middle initials before the

last name. The identical format of

the two types of names and the inclusion of each

recipient = s

middle initial suggest all of the recipients were DuPont employees. Some recipients of these memos appear to

have been groups, such as A Dept Occ Health

Mgrs @ and A Asbestos Committee. @ This

illustrates the additional evidence that may be adduced through an in camera

review.

[3] Connor did not specifically assert that each recipient

was a

DuPont supervisor. However, for

attorney-client privilege, the subject matter test has replaced the control

group test pursuant to the amendment of Rule of Evidence 503. Tex. R. Evid. 503(a )( 2) & cmt ;

Nat = l Tank Co. v. Brotherton , 851 S.W.2d 193 , 197‑98 (Tex. 1993). The subject matter

test is met where A the

employee makes the communication at the direction of his superiors in the

corporation and where the subject matter upon which the attorney's advice is

sought by the corporation and dealt with in the communication is the performance

by the employee of the duties of his employment . @

Nat = l Tank , 851 S.W.2d at 198 .

As such, the attorney-client privilege may apply to communications

between attorneys and employees who are not executives or supervisors.

The plaintiffs point out that Connor = s affidavit does not exclude the possibility that some

of the recipients of documents within the second group were not DuPont

employees. However, the work

product privilege is not necessarily waived by

disclosure to a non-employee, as there are numerous other classes of individuals

who can qualify.

"Work product" is defined as:

(1) material prepared or mental impressions developed in

anticipation of litigation or for trial by or for a party or a party's

representatives, including the party's attorneys, consultants, sureties, indemnitors , insurers, employees, or agents;

or

(2) a communication made in anticipation of litigation or for trial

between a party and the party's representatives or among a party's

representatives, including the party's attorneys, consultants, sureties, indemnitors , insurers, employees, or

agents.

Tex. R. Civ. P.

192.5(a).

[4] Evidence corroborating or rebutting a prima facie case

of privilege could be found upon in camera review. The documents themselves may contain

evidence indicating the positions held by the non- A DuPont legal @ recipients and the extent to which their duties relate

to the matters upon which legal advice is being

given . Plaintiffs are also

entitled to put on their own evidence on privilege issues. See Tex. R. Civ. P. 193.4. For example, plaintiffs could submit

interrogatories seeking additional information about the individuals listed as

authors or recipients of disputed documents.

[5] We hold simply that the trial court did not abuse its

discretion by holding a hearing. We

do not suggest that a trial court would abuse its discretion by requiring, at

such a hearing or otherwise, that the proponent of the discovery request state

their objection to the claimed privilege specifically as to each document on the

privilege log. Where large numbers

of documents are at issue, such an approach may promote judicial economy by

focusing in camera review on those documents where there is a genuine dispute as

to the application of the privilege and by clarifying the nature of the dispute

so the court can hone in on the probative content of each

document.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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