ADT Holdings, Inc. v. Harris
CA 2017-0328-JTL
| Del. Ch. | Aug 24, 2017Background
- ADT noticed a Rule 30(b)(6) deposition of defendant Ring (Bot Home Automation, Inc.) and specified Topic 37 concerning Ring confidential/trade secret information provided to Zonoff that ADT allegedly received, accessed, or reviewed.
- Ring designated Dr. Michael Balog as its Rule 30(b)(6) witness for all topics, including Topic 37; Balog appeared, agreed he was the designee for Topic 37, and testified.
- ADT did not contend Balog was unprepared, lacked knowledge, or was inadequate; Ring likewise made no such claim at the deposition.
- After the deposition, Ring filed an amended Rule 30(b)(6) response adding Peter Gerstberger as an additional designee for Topic 37 and reallocating subject matters between Balog and Gerstberger.
- ADT moved to strike Ring’s supplemental designation; the court analyzed the obligations of organizations under Court of Chancery Rule 30(b)(6) and related authority.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an organization may unilaterally add a supplemental Rule 30(b)(6) designee after its initial designee testifies | Ring’s post-deposition addition is improper and should be struck (ADT) | Ring effectively argued it could supplement its designation after evaluating the deposition | Court struck the supplemental designation; an organization must designate all necessary witnesses before the deposition and cannot add supplemental designees after the fact |
| Who controls whether additional Rule 30(b)(6) testimony is sought when an initial designee is deemed inadequate | ADT argued that because it did not find Balog inadequate, Ring cannot later supplement | Ring implied it could supplement if it believed another witness was needed to present organizational knowledge | Court held the choice to demand additional or better-prepared witnesses lies with the party noticing the deposition, not the deponent organization; the organization cannot cure by unilateral post-deposition supplementation |
Key Cases Cited
- Calzaturficio S.C.A.R.P.A. s.p.a. v. Fabiano Shoe Co., Inc., 201 F.R.D. 33 (D. Mass. 2001) (insufficiently prepared Rule 30(b)(6) designees may warrant re-designation and further depositions)
- Prokosch v. Catalina Lighting, Inc., 193 F.R.D. 633 (D. Mass. 2000) (ordering further deposition of unprepared and unresponsive Rule 30(b)(6) witness)
- Gutierrez v. AT&T Broadband, LLC, 382 F.3d 725 (7th Cir. 2004) (courts may defer to a party’s tactical decision not to insist on better witnesses)
- Resolution Tr. Corp. v. S. Union Co., Inc., 985 F.2d 196 (5th Cir. 1993) (affirming sanctions where 30(b)(6) witnesses lacked relevant knowledge)
- Inmuno Vital, Inc. v. Telemundo Gp., Inc., 203 F.R.D. 561 (S.D. Fla. 2001) (striking Rule 30(b)(6) witness as sanction for untimely production)
