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Case Files, Bozeman & Wilder Working Files. Assured Investors Life Insurance Co. v. National Union Associates Inc. Court Opinion, 1978. d0ed5480-ee92-ee11-be37-6045bdeb8873. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/ec684f33-dae8-4b8e-a282-492e8f4a2f33/assured-investors-life-insurance-co-v-national-union-associates-inc-court-opinion. Accessed April 06, 2025.
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228 Ala. 362 SOUTHERN REPORTE& 2d SERIES a strained construction in view of the au- whole entity, or any part thereof, was prop- thorities cited. The Act also makes refer- erly discoverable. ence to "occurrence." The occurr€nce which gives rise to these suits happened writ granted conditionally over a year prior to'tlte passag" "nd "ff""- Maddox, J., filed a dissenting opinion in tive date of Act No. 6?8. Giving the Act u which Torbert, C. J., concumed. prospective application only, we hold it has no application to these cases. 6. Mar w to cont tbeless to exet under law. ?. Mar M; to dete discret Rules r 8. Pret As "privilr the lar dure, r s for def 9. Prer T} ,rldhr adt attorar prcper an att, pressio eelf an s for def 10. h, M, obtainr rEDder offre ctvtl lr nile ff It. Pn (tr claime fears i forrrat functic 's br it,. The order of the circuit court denying appellant's request for declaratory relief is hereby affirmed. AFFIRMED. TORBERT, C. J., and BLOODWORTH, FAULKNER and EMBRY, JJ., concur. In re ASSURED INYESTORS LIFE TNSURANQE q0. ,'.,..,i,,Y. NATIONAL UNION ASSOCIATES, INC., et al. Ex parte Jesse C. BISHOP and \Yayne L. Kerns. 77-322. Supreme Court of Alabama. Sept. 15, 1978. Petitioners, plaintiffs in civil litigation who had unsuccesrfully sougtrt transcript of statement made by eertain individual to district attorney in the cout"se of criminal investigation, sought writ of mandamus compelling judggt{ vacate prttcctive order and permity'rscove$&oncerning document. The Supreffirt, Jone!, J., held that cincuit court abueed its discretion by accept- ing barrc assertions of district attorney that matcrial sought was privileged, and, be- cau8e no militsry or ctste tocrets werc in- volved, the circuit court war requirrcd to eximine document to determine whetler 'r I <,i^ eri\A' l- r CI't> l. Mandamue €o187.4 Contention that documents sought through discovery were not properly sub. poenaed pursuant to rule would not be re- viewed in mandamus proeeeding where matter was not raised before circuit courL Rules of Civil Procedure, rule 45(d). 2. Statutcs e226 There exists presumption that cases construing Federal Rules of Civil Procedurc are authority for construction of Alabama Rules of Civil Procedure. 3. Pretrial Procedure F136, 413, 414 To be entitled to protective order, mov- ant must gfther show good cauae why ob ject€d to deposition or production of docp- ments would be unduly butdensome or ex- pensive, oppnessive, embarrassing or annoy- ing, or that subject matter sought to be discovered is privileged. Rules of Civil Pro- cedure, rule 26. 4. Pretrial Procedure Fll, 13 Rules on deposition and discovery ar.e to be broadly and liberally construed; how- ever, right to discovery is not unlimited, and trial court has broad powers to control us€ of discovery process to prcvent its abuse by any party. Rules of Civil Procedure, rule 26(c). 5. heEial kocedure c=19 BuIe of civil procedure does not sllow arbitrary limit on discovery, but, rather, vests trial court with judicial discretion in disoovery prooess, and question on review of discovery decision is whether, under all the circumstances, the trial court has abused thig discretion; an appellate court m8y not decide whether it would, in the first in- stence, have permitted prayed for dis- oov€qi.. Rules of Civil hocedure, rule 26. )rop- ,n ln rSht sub.. ) re- here rurt. ases lure lma lov- ob- ,cu- ex- oy- be to- are )w- ed, ;rol u8e lEt ow €r, in of ;he €d rot m- is- a. ASSUIED INIPRS IJFE ii{S. CO. v. NAT. U. ASSOC. Ata. ZN 6. Mandamus e2g cltcas'416'362s,.2d228 12. Pretrial procedure e41While mandamus does not normally lie Naked assertion of privilege by execu-fi#lTffiilin'lttrJi';r1;"rut tive is in,urri"i.ii'. *,, nondiscrosu,e to exerciJ uis,ai,""Jon and to exerrcise it ;lffiTrt1t"ffir:,f;"1-Tr1:?,,#Tx ;lLO."" ,**r interpretation of "ppli*lf" volves upon court. 7. Mandamus 682 13. Witneesea e>216 . Mandamus is proper means of reviev. - In deciding to uphold or ovemrle claims tr":T,:Tt:[*[,L..in]tif,tTll;';HTTffi #:,;rfi :*";',:;::i*i] Rules of Civil procedir",?ri" wv. u,oLvysrJ. mental questions: whether claim falls with- in 9ne of categories of privileges *""*,* 8. Pretrial Procedure e3g in law of evidence, whether "r"m r,ri u""" As used in discovery rule, the term properly invoked, and whether circumstanc- "privileged" means the ."rn"-",. if';;';; es of ease under consideration are d;;;-the law of evidence. Rules of Ciril p-""_ ate for exercise of claim; underlyiig th; dure, rule 2(bXl). questions is morc important task oideter_ - See publication Words and phrases mlnlng proper balance that must be struck f."1. gSu. judicial construcuons anJ between interest of executive b;;;-;;definitions' government in maintaining confidentieritv 9. hetrial Procedure e34 over types of information neces{,ary for pei- rhe written statcment or.a witness, l-lrul#".r*'H,'ff1 lJ'*llwhether prepared bv him .ra r"t"" J"ii* inrorairtilo';;il L,r*o of regar dio-erEd to the- afor.:aey, or draftcd bt ;il" pute. attorney and adopted by the .,ritn"rr, i, ,oiproperly considered the "work p"oauJ"'oi 14. pretriat procedure e3gan attorney, for it records the mental im- claims of executive privilege, rike otherpressions and observatjons of ,o;tn".. ti,n- evidentiary p.;;ir;;, must be narrowryself and not those of the attorne)' -- """ construed * -*. to permit brcadest poasibre r".t#.t'iff:,:,Y:f;tr$.:yXffi discoverv otherwise auowed rrd;;--;;: definiuons.- -----Euvsvr'r arru covery rules. 10. hetritl procedure coJS . I*" fact that district attoraey,s officeobtained statement rrom ",iii"."" #^;;Ienderit work product of district "tt""nJ. :,1r.rf..lg" puposes of discovery request-in crvu utigation. Bules of Civil hocedue, rule fic). ff. hctrid hocedure esit ^,-,_^YTrOve privilege. is a privilege :1"r.{ by a governmental body when -it rears ttat discovery of its confidential in_rormation will seriously impair its ability tofunction. ffimt$is.:ffi; 15. hetrial Procedure er33 Governmental intercst in favor of maintaining confidentiality uoa"" "f*t iiprivilege nust be tempered by historiJ function of courte to prcvide t.p"f..., !"oTr" for pruduction of nraterial;J; for just determination of tegal di"&;; that, t1 inaure that justice is JG L; Surt should initia[y weigh balane of iiterect in favor of liberai dir*""ry ;i ;facts needed for fair determinatioi Jdl* pute. 16. IVihress€s 6216 .Executive privilege applicabte to infor- ra:tign ield by govemmetrt duriag ougeirgcrhinrl prooeeiling ir qualiffed ; - -- , While viewing of document in camera is' not requ]red for purposes of deciding . IVhere plaintiffs in civil action sought transcript of statement made to district-at- torney in the course of criminal investiga_ tion, whepe district attorney claimed "*"iu_tive privilege so as to prevent possible ham- pering of ongoing eriminal action, but where district attorney asserted privilege not by affidavit or under oath but upon bare allegations at motion hearing, and where, although document was offered to court for in camera examination, no such r.eview took place, trial court abused its discretion in accepting bare assertions of district attorney, and, because no military or state secrets were involved, district court was required to examine document to de_ termine whether whole entity, or any part thereof, was prcperly discoverable. -nuU of Civil Procedure, rule 26(c). -. W. Eugene Rutledge, of Rutledge, Wil- Iiams, Williams & Norton, Annision, for petitioners. William J. Baxley, Atty. Gen. and Wil- liam P. Eldridge, Asst. Atty. Gen., for re_ spondent, Judge William A. Thompson, Jr., 10th Judicial Circuit. __ Eqrl C. Morgan, Dist. Atty. and George Hugh Jonea, Deputy Dist. Atty., Birmin!- han, for nespoadent, State of AIa. ex rc-I. Earl C. Uorgan. JONES, Justice. Petitionera, Jeaso C. Birhop and Wayne L. Keras, seek a Writ of Mandamus from this Court to-compel Judge William A. Thomp Eon, Jr., Circuit Court for the Tenth Judicial Circuit, to vacate his Older of February g, 1918, and permit discovery eoneerning oer- tain documents in the possession of fart C. f,orgen, District Attoruey for the Tenth Judicial Circuit. A Writ of Mandamus, di- 362 SOT]THERN REPORTER. 2d SERIES recting the Circuit Court to vacatn the pro_ tective Order of February g, lg7g, and to conduct a hearing on the Motion of the District Attorney for-a prrtective Order consistent with the principles stat€d in thi8 opinion, is due to issue. Petitioners are the holders of necord of 7,352 shares of common stock of Assured Investors Life Insurance Company. On Au_ gust 1?, 1977, dssured Investors Life Insur- ance Co. v. National IJnion Assxiatns, Inc., Civ. Action No. CV-?? 5044n WAT, was filed in the Circuit Court seeking. adjudica- tion of certain claims against officers, di- rectors and stockholders of Assured. Origi- nally, the action was brought on behalf of Assured by a Special Committee designated by its Board of Directors to investigate and recover on claims made by Bishop. Eventu_ ally, the parties wtrre realigned and Bishop and Kerns proceeded as plaintiffs, both in- dividually and derivatively as stockholders of Assured.t On January 30, lg?8, peddorerc frlod notice of taking deposition and subpoena duces tecum for deposition upon oral exami_ nation addressed to Morgan. The subpoena sought, inter alia: "10. Transcripts of any and aI pro- ceedings occurring during any meeting of any kind or nature whatsoever between yourself and any member of your office and Ronald J. Creel [a named Defendant in the Civil Action mentioned abovel.,, On February 3, 1g?8, Morgan filed a Me : _ tion for Protective Order pursuant to Bule ..il 26(c), ARCP, seeking to deny discovery of the Creel documents. As gmunds ther:for, Morgan alleged ttrat ttre documents sere .. i tive privilege. No supporting affidavit w8t . filed, but the Court, rellang upon Morgan'c , oath as an officer of the Court and hir cth r. as District Attorney, aocepted these conten- tions and ordered that the depositiu,d aubpoena ,luoes tecum be dissllow€d. tlre work product of an ongoing crinilrt t; inveatigation collatcral to the civil rtfor+ j At the hearing, he further alleged tnet such :Ii documents were protected under an "r*-( i! 230 Ala. 17. Witneeseg e223 : goverament's elaim of executive privilege, I it is permissible solong as such in camJra j insnection itself does not violate important ponfidential affairs. yt8. P.o,ri"l Procedure e4l I off an( vio. Sta Cre at tior I Gra Eevr 8ga invr the tr Ans Judl men purs how, raise the Sa/e, (le?tw fie t (r9?r Miil t2) base< the I cSug€ verba const for ct prf€ See a w, I SauU (1e68) trl (l rig{ eoo( diso (1 diso ilqt mat ASSURED INTPRS IJFE INS. CO. v. NAT. U. ASSOC. Clt. r* Al,r., 364 *2dX28 It appears that the District Attorney's that the information sought will bc inad- office conducted investigations of Assured missible at the trial if the information and its officers and directors for possible sought appears reasonably calculated to violations of the insurance laws of this lead to the discovery of admissible evi- Stst€. In so doing, a statement made by dence. Creel was obtained and signed by him. It is a transcript of this statement which Peti- tioners seek. In December, 1977, the Jefferson County Grand Jury returned indictments against several of the civil codefendants, but not against C'reel. Morgan asserts that this investigation is ongoing and that, therefore, the requested documents are privileged. tll Preliminarily, we note that, by their Answerc to this Petition, both Morgan and Judge Thompson contend that the docu- ments sought were not subpoenaed properly pursuant to Rule 45(d), ARCP. It appears, however, that this contention was not raised below and, thus, we may not review the matter here. Cole v. Cole Tomato Sales, Inc., 293 Ala. 731, 310 So.2d 210 (1975). See also Miller v. Sun Chemical Corp., 12 F.R.D. 181 (D.N.J.1952); McDuf- fie v. Hooper,294 Ala. 293, 815 So.2d 573 (1975); and .t'ouatain v. Yrdenburyh Saw Mill b,2il9 Ala. 68, 181 Sozd 508 (1965). l2l Our Rules of Civil Procedure are based upon, and are strikingly similar to, the Federal Rules of Civil Procedure. Be- cause these two sets of Rules are virtually verbatim, a presumption arises that cases construing the Federal Rules are authority for construction of the Alabama Rules. Ex partc Rie,265 Ala. 4U,92 So.2d 16 (1957). See also Ex partn Hugtley Wabr Systcm, fr12 N,a,. 633, 213 So.zd 799 (1968); and Smitlr v. Flynn, Zl5 Ab.892, 155 So.2d 497 (1e63). t31 Rule 26, ARCP, prwides: (b) fupe of Diwvery. Unless other-' wise limited by order of the court in aocordance with these nrles, the scope of discovery is as follows: (l) In GeneraL Parties may obtain discovery regarding any matter, not priv- ileg'ed, which is relevant to the subject matter involved in the pending action It is not ground for objection AIa. 231 (c) Protcctive Oi"r* Upon motion by a party or by the penon from whom discovery is sought, and for good cause shown, the court in which the action is pending or alternatively, on matters re- lating to a deposition or production or inspection, the court in the circuit where the deposition or production or inspection is to be taken may make any order which justice requires to protect a party or per- son from annoyance, embarrassment, op- pression, or undue burden or exp€nse (Emphasis added.) Thus, to be entitled to a protective order, a movant must either show good cause why the objected-to deposition or production of documents v'ould be unduly burdensome or expensive, oppressive, embarrassing or an- noying, or that the subject matter sought to be discovered is privileged. The record be- fore us irl totally without "good ctuee shown." Tbenefore, because the material sought is undisputably otlrerwise within the scope authorized above, it is discoverable unless it is "privileged." See, generally, Glick v. McKesson & Robbins, Inc., l0 F.R.D. 4?? (W.D.Mo.l95O); and Allen v. Jones, ?59 Ala. 98, 65 So.zd 217 (1953). l4-7l It is well settled that the Rules on deposition and discovery are to be broadly and liberally construed. hle, supra. Rule 26(c), supra, recognizes, however, that the right to discovery is not unlimited, and the trial court has broad powen to contrcl the use of the process to prcvent its abuse by any party. fu Campbeli v. bstland,307 F.zd 478 (5th Cir. 1962); and Del-ong C;orp.. v. Luus, 138 F.Supp. 806 (S.D.N.Y.I956). The Rule does not allow an arbitrary limit on discovery; inste&d, it vests the trial court with judicial discnetion in the dis- covery prccess. The question on rcview, then, becomes one of whether, under all the cirncumstances, the court has abusrd this diecretion. Campbll v. Regz,l Tlpwritcr :, i It. G,I i 282 AIa. C.o., Ul So.zd 120 (A1a.1976).r An appellate court may not decide whether it would, in the first instance, have permitted the pnyed for discovery- Furtlrermore, it is unusual to find abuse of tltcretion in these matters. Swanner v. Unitd Sts0es, 4(m F2d ?16 (5th Cir. 1969); ?iedman v. Amei- can Pigmant Corp., ?53 F.zd 803 (4th Cir. 1958); Ex parte Alabama Power h., m Ala, 586, 196 So.2d 702 (1967); and 35A CJ.S. Federal Civil Procedure SS 532, 592. t81 Against this broad policy of liberal discovery, Morgan contends that the docu- ment sought to be discovered is privileged. "Privileged," as used in Rule 26(bXl), ARCP, means "'privileges' as that term is understood in the law of eyidence." United States v. Reynolds, 345 U.S. 1, 6, 73 S.Ct. 528, 531, 97 L.&t. 727 (f953). As stated, Morgan bases this argument upon two premises: (1) That the material sought is the "work product" of the District Attor- ney's office, gathered in preparation of a criminal action; and (2) That the material ti*!tt1b privileged under a bnoad &im of €*alutte or "Crown' piivilege. i [9, f0] The "work product" argument is inapplicable because: "The written statement of a witness, whether prepared by him and later deliv- er"ed to the attorney, or drafted by the ettorney and adopted by the witness, is not properly considered the 'work prod- uct'of an attorney. It records the men- tal impressions and observations of the witness himself and not those of the at- toraey." Scourtes v. Ftred W. Albrccht Grlcrr"ry Co.,l5 F.R.D. 55, 58 (N.D.Ohio 1953), citing, Hickman v. Taylor,S29 U.S. {95, 67 S.Ct. 885, 91 L.E{t. 451 (1947). Here, the merc fact that the District Attor- ncy's office obtained this st8t€ment does not render it their work producl The tran- cgiption and rccordation of tlre statemeat l. As stated, this acdon concrrns a Writ of Madamus. While mandamus does not ns- mally lie to control the enercise of discraion, it ls nevertheless appropriate to compel rn offi- dd both to exercis€ his discretion and to exer- .rU* tt under r propcr lntcrpretldon of epplica- .:Uc:!rry. SacetcrU v. Supcrlor brt d lJarl:. 362 SOUTHERN REPORTER, 2d SERIES wa^s incidental to the statement itself, which was not the prcduct of counsel. Therefor.e, we ane left with tle sole quea- tion of whether the statement is nondiscov- erable under the concept of executive privi- lege. ll[ "Executive privilege" is a privilege claimed by a governmental body when it fear:s that discovery of its confidential in- formation will aeriously impair its ability to function. Wood v. Brcier,54 F.R.D. 7 (8.D. Wis.1972). Historically, it has 6een re- served for military and diplomatic stat€ se- crets and is founded upon the "unfortunate- ly necessary policy of fettering justice to promote national health." Timken Roller Bearing Co. v. Unitcd States, 38 F.R.D. 57, 63 (N.D.Ohio 1964). In the instant action, the privilege is claimed so as to prevent possible hampering of an ongoing criminal action. Morgan, however, asserted this privilege, not by affi- davit or under oath, but upon bare allega- tions at the motion hearing. Though the doctment was offet€d to the C,ourt for ia' cim"rz examination, no sueh r.eview took place. tl2] As stated in ?iml<en, at 63: "It can no longer be claimed that a naked assertion of privilege by the executive is sufficient to assur€ nondisclosure. tudi- cial control over the evidence in a case cannot be aMicated to the caprice of executive officers.' (kynolds, 845 U.S., at $-10, ?3 S.Ct. 528.) Therefore the responsibility of evaluating the claim of privilege devolves upon the Court" Thit can ao longer be questioned." See also Gaison v. futt, 69 F.RD. 8{? (D.Hawaii 197t!); and Cnnwty v. Eimraer1 [1968] Law Rpts. (Appeal casea) 91Q oven nrling, Duaen v. C,ammell L,aird & h,. 1 Ail E.B. 68? (1942). da County, 17 Cd.3d 107, 130 C8I.Rptr. Zr7, 550 P.2d f6l (f976). Mandamus ir thc propcr means of rcview to deterarinG $rtethcr thc tdal judge abused his discr,etion in Umldng th. rlg[t to discovery. See Er porte ,lbDnrrn &.wr C-a.,n0 Ah.586, t96 So.2d ?1Il (lSa rl' U3l In claims of r trial court tltree funt the claim of privileg dence; (2 pruperly ir cumstance are apprc claim. Jt (E.D.Mich. Underlyinl tions is th mining th struck bet terests. ( deniahle ir SOvernmel over certa for the p duties. O unquestior seeking in of the leg; Ju*nn v. 19IA); fr, 889 (E.D.r nally, ther tion of po the backgr privilege. u4, t5l est which is essentia ecutive p privileges, 8tl to perm otherwise .C.J.S. Fed iyiu€rnoer ing confidr ti[n must functiori o ry process rcdded for dhputc. I trirl court the bahn< tliscovery .dettrminar N,,; ES {f, iel. e8- DY. ivi- ]ge rit in- r[p :.D. ne- Ee- rte- to 'ller 51, )ls :ing Ian, lffi- 3ga- the rin-< *ed re is ludi- G88e eof u.s., the nof Thia h,l" : ilt' .opG( l s trlrl ASSURED IN\rRS LIFE INS. CO. v. NAT. U. ASSOC. Cit !s, Ala., l&l Sord 216 tl3] In deciding to uphold or overrule Comm. v. Los Alamos Constructors, Inc., claims of executive privilege, the role of the 382 F.Supp. 1373 (D.N.M.1974); Wood, su- trial court is limited to a determination of pra; Glick, supra; and 35A C.J.S. Federal three fundamental questions: (l) Whether Civil Procedure S ?88. the claim fllls within one of the categories of privileges rEognized in the law of evi- dener; (2) Whether the clairn has been properly invoked; and (3) Whether the cir- cumstances of the case under consideration are appropriate for the exer.cise of the claim. Jabara v. Kelley, 75 F.R.D. 475 (E.D.Mich.19?7). See also Reynolds, supra. Underlying these deceptively simple ques- tions is the more important task of deter- mining the proper balance that must be struck between competing fundamental in- terests. On the one hand, there is the un- deniable interest of the cxecutive branch of government in maintaining confidentiality over certain types of information necessary for the performance of its constitutional duties. On the other hand, there is the unquestionable interest of the litigant in seeking information for the just resolution of the legal dispute. United States ex rel. Jackson v. Petrilli, 63'F.R.D. f52 (N.D.Ill. lll4l; Fnnkenhauser v. Rimr 59 F.R.D. 3il9 (E.D.Pa.f978); xtd Wood, eupna . Fi- nally, there is also the perplexing separa- tion of powers question that is lurking in the background of every claim of executive privilege. [rl, l5] In light of the balance of inter- est which must be resolved in such cases, it is essential to emphasize that claims of ex- ecutive privilege, like other evidentiary privileges, must be narrowly construed so as to permit the broadest possible discovery otherwise allowed under the Rules. 35 C.J.S. Federal Civil Procedure $ ?09. The governmental interest in favor of maintain- ing confidentiality under the doak of privi- Iege must be tempered by ttre historical funetion of the courts to provide compulso- ry process for the prcduction of material needed for a just determination of the legal trdispute. To insurr that justice is done, the /ltrial court should, therefore, initially weigh flthe balance of interest in favor of liberal / | discovery of all facts needed for a fair idetermination of the dispute. Jabara, su- pra; F4ual Employment Opportunity Ala. 233 [Fl8] The executive privilege applica- ble to information held by the government during an ongoing criminal proceeding is a qualified one. Timken, supra. But see Capitnl Vending h. v. Baker,36 F.R.D. 45 (D.D.C.1964). The trial Judge in this case did not view the document in camera. While ordinarily this is not required, cer- tainly it is permissible so long as such in camera inspection itself would not violate important confidential affairs. See Reyn- olds, supra. Yaffe v. Powers,454 F.%l 1362 (lst Cir. 1972); and Kinol' v. Mitchell, 67 F.R.D. 1 (S.D.N.Y.1975). In thc case before us, the trial Court abused its discretion by accepting the bare assertions of the District Attorney that the material sought was priv- ileged. Also, because no military or atate secrets are involved, we hold that tlie trial Court must examine the document tp deter- mine whether the whole entity, or any part thel&f, is properly discoversble. It'is only through such an examination that the pop er balancing deternrination can be made. During the pendency of such examination, however, the Court must be careful not to disclose the very thing the privilege, if any, is designed to protect. If, upon the notification of this decision, the Circuit Court does not vacate the Pro- tective Order of February 3, 1978, and pro- ceed to conduct a hearing on the Motion of the District Attorney for a Protective Order consistent with the principles ststed in this opinion, a Writ to effectuate such action will issue upon the request of Petitioners. WRIT GRANTED CONDITIONALLY. BLOODWORTH, FAULKNEB, EtrT{BRY and BEATTY, JJ., @ncur. TOBBERT, C. J., and MADDOX, J., dis- senL MADDOX, Justice (Dissenting). It may have been better if the District Attoraey had filed an affidavit that the :...