Department of Caldas v. Diageo PLC

Department of Caldas v. Diageo PLC, 925 F.3d 1218 (11th Cir. 2019) · United States Court of Appeals for the Eleventh Circuit · June 3, 2019 · No. 17-15267

Summary

The Eleventh Circuit held that district courts evaluating § 1782 applications need not apply a rigid burden-shifting framework for the discretionary "receptivity" factor; instead, courts may consider evidence from both sides. The court also rejected the argument that a joint § 1782 application must be granted or denied in its entirety, affirming a partial grant as to two Colombian departments that satisfied statutory and discretionary factors. This case addresses first-impression issues in the circuit regarding the burden of proof on receptivity and the permissibility of granting a joint application in part.

Court
United States Court of Appeals for the Eleventh Circuit
Writing for the Court
Jordan; Grant; Baldock
Jurisdiction
Federal
Decision date
June 3, 2019
Docket number
17-15267
Procedural posture
Appeal from the United States District Court for the Southern District of Florida's partial grant of a § 1782 application.
Standard of review
Abuse of discretion for grant of § 1782 application, clear error for findings of fact, plenary for statutory interpretation.
Precedential value
Published
Parties
Diageo PLC, Seagrams Sales Company Limited, Pernod-Ricard S.A. v. Department of Caldas, Department of Cundinamarca, Department of Valle del Cauca, Department of Antioquia
Disposition
affirmed

Topics

civil procedurediscovery disputeinternational comitystatutory interpretationappellate procedure

Practice areas

International LitigationDiscovery

Questions Presented

  1. Whether the district court correctly allocated the burden of proof on the receptivity factor under § 1782
  2. Whether the district court erred in granting the § 1782 application only in part as to two of the four Departments when the application was joint

Holdings

  1. District courts need not apply a rigid burden-shifting framework to the receptivity factor; instead, they should consider evidence from both parties and weigh the factor as a guidepost.
  2. The district court did not err in granting the application only as to the two Departments that satisfied the statutory and discretionary factors, and the liquor companies' concern about information sharing does not warrant reversal.

Key quotations

Considering the discretionary nature of the determination, the [c]ourt is inclined to look to both sides to offer support regarding their respective positions on the receptivity issue. (at 10)
district courts need not apply a rigid burden-shifting framework to properly weigh the discretionary factor of receptivity in a § 1782 case. (at 11)
We will not order a course of action that would lead to an identical result through far less efficient means and that would contravene § 1782's 'twin aims of providing efficient assistance to participants in international litigation and encouraging foreign countries by example to provide similar assistance to our courts.' (at 12-13)

Factual background

Four Colombian Departments filed an ex parte joint application under 28 U.S.C. § 1782 to obtain discovery from five former employees of the liquor companies in aid of anticipated unfair competition litigation in Colombia. The liquor companies intervened and opposed. Two Departments, Valle del Cauca and Cundinamarca, filed a solicitud de conciliación, satisfying a condition precedent to filing suit in Colombia. The district court granted the application as to those two Departments after considering the discretionary Intel factors.

Procedural history

The Departments filed an ex parte joint application under 28 U.S.C. § 1782 to obtain discovery for anticipated foreign litigation. The district court initially granted the application. The liquor companies intervened and moved to deny. The magistrate judge recommended denial. The district court adopted the report in part and granted the application as to two Departments. The liquor companies appealed.

Court Document

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