TRENTON RENEWABLE POWER, LLC VS. DENALI WATER SOLUTIONS, LLC (C-000049-20, MERCER COUNTY AND STATEWIDE) (A-3060-20)
In this breach of contract action, the owner/operator of an aerobic biodigester facility sued defendant, Denali, which was contractually obligated to deliver quantities of organic waste to the facility for processing. Shortly after entry of the initial case management order, Denali served subpoenas on plaintiff and several nonparties, including Symbiont Science, Engineering and Construction, Inc. (Symbiont), which had designed and retrofitted the facility for plaintiff. Symbiont's subpoena required it to identify a corporate designee with familiarity in seventeen topic areas and demanded documents and electronically stored information in thirteen categories.
Much of the requested information centered on communications between plaintiff and Symbiont, such as the terms of Symbiont's agreement with plaintiff, "including the drafting, revision, and execution of the agreement"; "[t]he calculation of Symbiont's guaranteed maximum price to complete the construction to retrofit the Trenton Facility"; and "[a]ll communications with [plaintiff c]oncerning the construction and design" of the facility, "including but not limited to, the construction cost, construction schedule, and design modifications." Denali served similar requests on plaintiff.
When negotiations regarding the scope of production broke down between Denali and plaintiff, and between defendant and Symbiont, Denali moved to compel, and plaintiff and Symbiont moved to quash. The judge granted Denali's motion as to both plaintiff and Symbiont, relying on the broad scope of discovery permitted by Court Rules and case law.
The court granted Symbiont's motion for leave to appeal and reversed. Despite the broad scope of discovery permitted between parties, a court facing a discovery dispute involving a nonparty to the litigation must consider additional factors. The court also noted the special recognition the Federal Rules of Civil Procedure provide to discovery demanded from nonparties.
