Molo Design, Ltd. v. Chanel, Inc.

Background

Molo Design, Ltd. moved to compel Chanel, Inc. to collect and produce documents from Chanel SAS, identified in the order as Chanel, Inc.’s parent company. Molo Design argued that the documents were within Chanel, Inc.’s possession, custody, or control because the two companies coordinated extensively on the design, sourcing, procurement, shipment, and installation of the products at issue in Chanel stores in the United States. Molo Design also pointed to documents shared through SharePoint and other network folders.

Chanel, Inc. said it would produce responsive documents in its own custody and control, including its communications with Chanel SAS and documents it had received from Chanel SAS. It objected only to producing documents held solely within Chanel SAS’s custody and control.

Rule Applied

Under Federal Rule of Civil Procedure 34, a party must produce relevant documents within its possession, custody, or control. The court explained that a document is within a party’s control when the party has the right, authority, or practical ability to obtain it from a nonparty. The court also cited the principle that a party may have control when it can obtain documents held by another corporate entity in the ordinary course of business.

Ruling

The court DENIED Molo Design’s motion to compel. It held that Molo Design had not shown that Chanel, Inc. controlled Chanel SAS’s documents reflecting communications with third parties. The court noted that Molo Design had shown—and Chanel, Inc. conceded—that Chanel, Inc. controlled documents reflecting communications between Chanel SAS and Chanel, Inc.

The court therefore stated that documents held in SharePoint, Microsoft Teams channels, or other network folders accessible to Chanel, Inc. had been or must be produced if they were responsive to Molo Design’s requests. The Clerk of Court was directed to close the motions at docket entries 57, 58, and 66. The order did not decide the underlying dispute between the parties.