Conahan v. medQuest LTD

Background

Cindy Conahan moved for a protective order allowing her to withhold jointly filed tax returns in response to document requests from the defendants. The opinion states that Conahan had provided the W-2 forms in her possession, which she said reflected wages lost after she was terminated from employment. She had also represented that she had received no other income after her employment ended, except unemployment, pandemic assistance, and Social Security.

The defendants argued that the tax returns might contain information supporting their counterclaims alleging that Conahan stole money from MedQuest, to the extent she reported that income.

Legal standard

The court explained that courts in the circuit apply a stringent two-part test to requests for personal or corporate tax returns. The requesting party must show both that the returns are relevant to the action and that there is a compelling need for them because the information is not readily available from a less intrusive source.

Court’s reasoning

The court assumed, without deciding, that the tax returns were relevant. It held that the defendants had not shown that any relevant information could not be obtained through less intrusive means. The court identified possible alternative sources, including the defendants’ own records, bank statements that the court had ordered produced, third parties, and Conahan’s deposition. The court also described the defendants’ assumption that an alleged thief would necessarily report stolen proceeds as unsupported.

Disposition

Judge Lewis J. Liman granted the motion for a protective order to withhold Conahan’s jointly filed tax returns. The opinion does not state the underlying claims’ final disposition.