Pеnding before the Court in the above referenced cause is the Texas State Board of Public Accountancy’s (“the Board’s”) motion to intervene (instrument # 3173) under Federal Rule of Civil Procedure 24(b)(2)(permis-sive intervention)
Two parties have filed responses.
Vinson & Elkins L.L.P. has stated that it takes no position on the motion to intervene but asks the Court to order the Board to comply with the Court’s July 2, 2004 Confidentiality Order for Deposition Testimony and Exhibits (# 2247) and all subsequent orders granting confidential treatment to specified exhibits and testimony. # 3246.
Arthur Andersen LLP objects for several reasons. First it argues that the Board does not meet the Fifth Circuit’s test for permissive intervention under Deus v. Allstate Ins. Co.,
In reply, the Board points out that this Court has previously ruled that the Fifth
It is well established that nonparties to a case seeking access to documents and records under a protective order
Normally the would-be intervenor must demonstrate that it has (1) an indepеndent ground for subject matter jurisdiction, (2) a timely motion, and (3) a claim or defense that has a question of law or fact in common with the main action. EEOC,
Rule 24(b) also requires the district court to “consider whether the intervention will unduly delay or prejudice the adjudication of the rights of the original parties.” Fed. R.Civ.P. 24(b). The Court sees no reason why the intervention for the limited purpose of access to deposition transcripts and exhibits would unduly delay the litigation. The key issue instead is possible prejudice.
Arthur Andersen relies on the Second Circuit’s somewhat strict and rigid rule. TheStreet.com,
The Court recognizes that Deus v. Allstate Insurance Company is still good law in the Fifth Circuit, but finds that it can be distinguished from the instant case on its facts. The intervеning party is a governmental agency with broad investigatory powers and resources to obtain the protected material on its own. Nevertheless, conservation of judicial and governmental resources point to allowing the Board’s intervention to obtain access to the ESL website and to depositions and related exhibits so long as the Board adheres to the Court’s July 2, 2004 Confidentiality Order for Deposition Testimony and Exhibits (Instrument # 2247) and all subsequent orders granting confidential treatment to specified exhibits and testimony. Accordingly, the Court
ORDERS that the Texas State Board of Public Accountancy’s motion to intervene to gain access to the ESL wеbsite and to depositions and related exhibits (# 3173) is GRANTED. It is further
ORDERED that the Texas State Board of Public Accountancy must comply with the Court’s July 2, 2004 Confidentiality Order for Deposition Testimony and Exhibits (#2247) and all subsequent orders granting confidential treatment to specified exhibits and testimony.
Notes
. Rule 24(b)(2) provides in relevant part,
Upon timely application anyone may be permitted to intervene in an action: ... (2) when an applicant's claim or defense and the main action have a question of law or fact in common. When a party to an action relies for ground of claim or defense upon any statute or executive order administered by a federal or state governmental officer or agency or upon any regulation, order, requirement, or agreement issued or made pursuant to the statute or executive order, the officer or agency upon timely application may be permitted to intervene in the action. In exercising its discretion the court shall consider whether the intervention will unduly delay or prejudice the adjudication of the rights of the original parties.
. Tex. Occ.Code § 901.151 (Vernon 2004).
. Tex. Occ.Code § 901.166; 22 Tex. Admin. Code § 501.93 (West 2004).
. In Deus the Fifth Circuit observed that the purpose of Rule 24(b) is "to prevent multiple lawsuits where common questions of law or fact are involved but is not intended to allow the creation of whole new suits by the intervenors."
. This Court agrees. There is a common law right of public access to judicial documents that predates the Constitution, although various Circuit Courts of Appeals define "judicial document” differently. Nixon v. Warner Communications, Inc.,
. "It is well-established that the fruits of pretrial discovery are, in the absence of a court order to the contrary, presumptively public" [emphasis added by this Court], but Rule 26(c) permits a federal judge to override this presumption upon a showing of "goоd cause.” San Jose Mercury News,
. Arthur Andersen also complains that the Board obtained unauthorized and unlawful access to the website in early 2004 until the website administrators discovered that fact and terminated it. The Board responds, with a supporting document, that Plaintiffs’ liaison, after being informed by the Attorney General’s office that the Board was seeking access to the website, providing the Board with a username and password. After Arthur Andersen objected to the Board’s use of the website and provided the Court's order of July 2, 2004, the Board ceased its use and filed the motion to intervene to obtain court authorization.
. This Court observes that in Martindell, the panel considered "public interest in obtаining all relevant evidence required for law enforcement purposes" as favoring allowing the government access to the documents, but concluded that it was outweighed because " 'the Government as investigator has awesome powers' which render unnecessary its exploitation of the fruits of private litigаtion.”
Three other appellate courts, the Fourth, Eleventh, and Ninth Circuits, have rejected the Martindell standard and adopted a per se rule that protective orders cannot shield discovery from grand jury subpoenas. In re Grand Jury Subpoena,
Here the situation is distinguishable because the entity, a regulatory agency of state government, is involved in civil, not criminal, enforcement of its rules and regulatory power. Therefore the need for access is less compelling.
