Hartsock v. Goodyear Dunlop Tires North America Ltd.
672 F. App'x 223
| 4th Cir. | 2016Background
- July 2010: Sarah Hartsock killed in S.C. crash; personal representative Theodore Hartsock brings wrongful death and survival claims alleging a Goodyear tire blowout caused the crash.
- Diversity jurisdiction in federal court; discovery dispute over Goodyear’s design/chemical-composition materials which Goodyear claims are trade secrets.
- District court found materials were trade secrets but ordered production under a confidentiality protective order, applying federal discovery law (Rule 26).
- Goodyear sought reconsideration on grounds South Carolina law (SCTSA and related state precedent) governs and affords greater protection; district court denied and certified interlocutory appeal under 28 U.S.C. § 1292(b).
- Fourth Circuit found no controlling South Carolina authority definitively answering whether South Carolina recognizes an evidentiary privilege for trade secrets and certified that question to the South Carolina Supreme Court; did not resolve the substantive disclosure standard.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether South Carolina recognizes an evidentiary privilege for trade secrets, and thus whether state law or federal law governs disclosure in this diversity action | Hartsock: federal law (FRCP and federal common law) governs discovery; SCTSA isn’t inconsistent with federal law so federal standard controls | Goodyear: South Carolina recognizes a trade-secrets evidentiary privilege (per SCTSA and Laffitte), imposing a more stringent disclosure standard; Rule 501 requires application of state privilege law | Fourth Circuit: No definitive controlling state authority found; certified the question to the South Carolina Supreme Court for resolution (did not decide the substantive issue) |
Key Cases Cited
- Federal Open Market Comm. v. Merrill, 443 U.S. 340 (U.S. 1979) (recognizes qualified federal privilege for trade secrets and confidentiality balancing)
- MDK, Inc. v. Mike’s Train House, Inc., 27 F.3d 116 (4th Cir. 1994) (trade secrets discoverable with protective orders under federal law)
- Gasperini v. Center for Humanities, Inc., 518 U.S. 415 (U.S. 1996) (apply state substantive law and federal procedural law in diversity cases)
- Seidman v. Fishburne-Hudgins Educ. Found., Inc., 724 F.2d 413 (4th Cir. 1984) (state law governs privilege when state law supplies rule of decision)
- Laffitte v. Bridgestone Corp., 674 S.E.2d 154 (S.C. 2009) (South Carolina’s three-part balancing test for discovery protective orders under the SCTSA)
- Ex parte Capital U-Drive-It, Inc., 630 S.E.2d 464 (S.C. 2006) (recognizes restriction of public access for matters including legitimate trade secrets)
- S.C. State Hwy. Dept. v. Booker, 195 S.E.2d 615 (S.C. 1973) (defines privileged matter in South Carolina)
- S.C. St. Bd. of Med. Examiners v. Hedgepath, 480 S.E.2d 724 (S.C. 1997) (distinguishes confidentiality from legal privilege)
- Ardrey v. UPS, 798 F.2d 679 (4th Cir. 1986) (district courts have wide latitude supervising discovery; appellate review is deferential)
