Micron Technology, Inc. v. Factory Mutual Insurance Company

Background

This discovery order addressed a dispute over Factory Mutual’s redactions to documents produced in discovery. The plaintiffs argued that “relevance” redactions are generally disfavored and that the redacted material concerned the same type of equipment and loss at issue in the insurance-coverage action. They said the material was relevant to Factory Mutual’s risk appetite and intent regarding coverage.

Factory Mutual argued that the redacted material was irrelevant because it did not concern the same type of equipment involved in the loss. Factory Mutual also appeared to object to producing documents containing slides about specific client loss histories.

Analysis

The court explained that relevance redactions are not prohibited, but they are generally disfavored except in limited circumstances. It found that the distinction Factory Mutual was attempting to draw between relevant and irrelevant material was not clear.

The documents at issue included prior versions of data sheets and other documents related to their development. They concerned loss-prevention recommendations for air-separation processes. The court stated that these materials addressed the same type of loss and damage to the same type of equipment that Micron alleged was damaged, making them relevant to Factory Mutual’s risk appetite and intent concerning coverage.

The court rejected Factory Mutual’s argument that some sections were irrelevant because they addressed equipment not present at the facility involved in the case. It also concluded that allowing Factory Mutual to make unilateral relevance redactions—even with a redaction log—would require the plaintiffs and the court to accept Factory Mutual’s view of relevance. The court found the categorical explanations in the redaction log too broad to allow the parties or the court to evaluate relevance, particularly given the technical subject matter. It further found that the existing protective order should adequately protect sensitive commercial information.

Disposition

The court ordered Factory Mutual to produce, within 14 days of the order, the currently redacted data sheets and related emails that were the subject of the parties’ joint discovery letter, in unredacted form. The order was signed by United States Magistrate Judge Laurel Beeler.