JAMES P. BLOUNT v. KEITH S. MAJOR, et al.
No. 4:15 CV 322 DDN
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION
November 1, 2016
David D. Noce, UNITED STATES MAGISTRATE JUDGE
MEMORANDUM AND ORDER
This action is before the court on the motion of defendants Matthew Miller, Albert Napier, and Zachary Nicholay to compel discovery. (ECF No. 115). Specifically, defendants Miller, Napier, and Nicholay seek to compel plaintiff to disclose the terms of the settlement agreements he made with defendants dismissed from this case. The court heard oral argument on September 21, 2016.
I. BACKGROUND
On March 16, 2015, plaintiff James P. Blount filed his First Amended Complaint before this court, naming Casino One Corporation, Ezell Cody, Hudson Services, Matthew Harmon, Keith Major, Matthew Miller, Albert Napier, and Zachary Nicholay, Nicholas Shelton, and Erich VonNida, among others, as defendants. (ECF No. 41). In their responsive pleadings, defendants Miller, Napier, and Nicholay each pled set-off as an affirmative defense to plaintiff‘s claims:
If a defendant or another party or entity makes a settlement with Plaintiff, or if Plaintiff receives anything of value from any party, individual or entity, the amount of such payment or consideration should be treated as a payment in full satisfaction of the damages of Plaintiff, or in the alternative, that the amount of such payment or consideration should be a set off against any judgment that may be entered herein.
II. LEGAL STANDARD
The cardinal question, therefore, is whether the terms of the settlement agreements are relevant to this lawsuit. “Relevancy is broadly construed, and a request for discovery should be considered relevant if there is any possibility that the information sought may be relevant to the claim or defense of any party.” Puccinelli, 224 F.R.D. at 684 (citations omitted). The party seeking discovery must make a threshold showing of relevance,
III. DISCUSSION
Defendants Miller, Napier, and Nicolay contend that plaintiff‘s settlement amount is critically important to their affirmative defense of set-off, and some or all of the settlement may set off any claim against them, as provided by
Missouri‘s contribution statute provides in part:
Defendants in a judgment founded on an action for the redress of a private wrong shall be subject to contribution, and all other consequences of such judgment, in the same manner and to the same extent as defendants in a judgment in an action founded on contract.
However, this does not mean that the settlement amount is not relevant for discovery purposes. Defendants have noted that that this amount will be helpful for them
In granting a motion to compel, the Northern District of Illinois compared the disclosure of a settlement amount for negotiation and litigation strategy purposes to the pretrial disclosure of insurance coverage required by the federal rules. U.S. E.E.O.C. v. Rush Prudential Health Plans, 1998 WL 156718, at *3 (N.D. Ill. Mar. 31, 1998). It cited the advisory committee‘s note to
Finally, while the court is sensitive to plaintiff‘s desire to keep his confidentiality agreement, it notes that the defendants with whom plaintiff settled have requested a protective order limiting disclosure of the terms of the settlement agreement, putting the terms under seal, and designating the terms for “attorneys’ eyes only.” (ECF Nos. 116, ¶ 5; 119, ¶ 7). The court will sustain these requests. The court grants defendants’ motion to compel, but limits the disclosure of the terms of the settlement only to those provisions related to witness testimony and the settlement amounts paid, including the disbursement of net proceeds to plaintiff after the deduction of attorneys’ fees and costs. Any issues regarding confidentiality will be adequately protected by the attorneys-eyes-only protective order.
V. CONCLUSION
For the reasons stated above, unless otherwise agreed by the parties,
IT IS HEREBY ORDERED that the motion of defendants to compel production of the terms of the settlement agreement (ECF No. 115) is SUSTAINED. The only terms required to be disclosed are those related to witness testimony and the settlement amounts paid, including the disbursement of net proceeds to plaintiff after the deduction of attorneys’ fees and costs. Plaintiff must produce the requested information not later than November 18, 2016.
IT IS FURTHER ORDERED that dismissed defendants’ motions for protective orders (ECF Nos. 116 and 119) are SUSTAINED, in that the settlement terms must be produced under seal for “Attorneys’ Eyes Only” and under any other condition(s) agreed to by the parties.
IT IS FURTHER ORDERED that a status conference is set for December 6, 2016, at 9:30 a.m.
/S/ David D. Noce
UNITED STATES MAGISTRATE JUDGE
Signed on November 1, 2016.
