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Matrix Group, The v. Innerlight Holdings
2:11-cv-00987
D. Utah
Jan 12, 2015
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Background

  • Plaintiff The Matrix Group, LLC sued defendants InnerLight Holdings, Inc. and InnerLight Worldwide, Inc.; discovery dispute referred to magistrate judge under 28 U.S.C. § 636(b)(1)(A).
  • Defendants moved for a protective order to preclude Rule 30(b)(6) depositions of corporate designees Kevin Brogan and Heber Maughan, asserting Plaintiff already took lengthy individual depositions of those men under Rule 30(b)(1) in August 2012.
  • Defendants agreed to be bound by Brogan’s and Maughan’s prior testimony and argued a 30(b)(6) deposition would be duplicative and cumulative.
  • Plaintiff opposed, arguing prior individual depositions do not bar a Rule 30(b)(6) designation and that corporate-designee testimony differs from individual testimony.
  • The magistrate judge reviewed Rule 30(b)(6) principles: a 30(b)(6) designee testifies on behalf of the corporation and binds it, so such depositions serve a distinct purpose from individual depositions.
  • The court found no specific evidence that the noticed 30(b)(6) topics were duplicative of prior testimony and denied the protective order, allowing the 30(b)(6) depositions to proceed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether prior Rule 30(b)(1) depositions of individuals preclude subsequent Rule 30(b)(6) depositions 30(b)(1) testimony does not insulate a corporation from 30(b)(6) testimony; corporate-designee testimony is distinct Prior individual testimony covered the same topics; requiring 30(b)(6) is cumulative and unnecessary Denied: prior individual depositions do not automatically bar 30(b)(6) depositions
Whether the noticed 30(b)(6) topics are impermissibly cumulative N/A — Plaintiff seeks corporate testimony on designated topics 30(b)(6) would duplicate hundreds of pages of earlier testimony and is unnecessary Court required specific evidence of overlap; none shown, so 30(b)(6) allowed
Whether Rule 30(b)(6) violates the rule against multiple depositions of the same person 30(b)(6) testimony represents the corporation, not the individual, so it is permissible Rule is not intended to authorize two depositions of the same individual Court: Rule 30(b)(6) contemplates corporate-designated testimony that can differ from individual testimony; two depositions are not per se barred
Whether defendants should be bound by prior individual testimony in lieu of producing corporate-designees N/A — Plaintiff seeks binding corporate testimony Defendants offered to be bound by prior testimony to avoid 30(b)(6) depositions Court: being bound by prior testimony is not an adequate substitute absent showing of exact overlap; defendants’ offer insufficient

Key Cases Cited

  • Sprint Commc’ns Co., L.P. v. TheGlobe.com, Inc., 236 F.R.D. 524 (D. Kan. 2006) (explaining Rule 30(b)(6) notice/production obligations)
  • United States v. Taylor, 166 F.R.D. 356 (M.D.N.C. 1996) (discussing corporation appearing through designee and binding effect of testimony)
  • Novartis Pharm. Corp. v. Abbott Labs., 203 F.R.D. 159 (D. Del. 2001) (discussing when prior individual depositions may make 30(b)(6) cumulative)
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Case Details

Case Name: Matrix Group, The v. Innerlight Holdings
Court Name: District Court, D. Utah
Date Published: Jan 12, 2015
Docket Number: 2:11-cv-00987
Court Abbreviation: D. Utah