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Party Concepts, Inc. v. American Greetings Corporation and Gibson Greetings, Inc. (In re Party Concepts, Inc.), Adv. No. 01-3286, Case No. 01-34625-11 (06/26/2002) -- Judge Robert D. Martin

Case Summary:
Defendants filed a motion to compel the production of all documents pertaining to a stock purchase agreement and a supply agreement, the former of which was the focus of a breach of contract action against Defendant. These documents contained a memorandum from counsel marked "attorney-client communication." Defendants argued that Plaintiff had waived any attorney-client privilege by disclosing it to Defendant. Fed. R. Civ. P. 26(b)(1) allows a court to limit discovery to the actual claims or defenses pled in a case. The Court also has discretion under Fed. R. Civ P. 26(b)(2)(iii) to limit discovery if it determines that "the burden or expense of the proposed discovery outweighs its likely benefit . . . ." This Court determined that even though the attorney-client privilege was waived, discovery is not compelled. Defendants' motion to compel is denied.

Statute/Rule References:
Fed. R. Civ. P. 26(b)(1) -- Discovery Scope and Limits - In General
Fed. R. Civ. P. 26(b)(2) -- Discovery Scope and Limits - Limitations
Wis. Stat. § 905.11

Key Terms:
Attorney-Client Privilege
Breach of Contract
Non-Compete Covenant


Date: 
Wednesday, June 26, 2002