Volkswagen, A.G. v. Valdez, 95-0514
| Decision Date | 16 November 1995 |
| Docket Number | No. 95-0514,95-0514 |
| Parties | , 39 Tex. Sup. Ct. J. 114 VOLKSWAGEN, A.G., Relator, v. The Honorable Rogelio VALDEZ, Judge, Respondent. |
| Court | Texas Supreme Court |
Timothy R. Bersch, Houston, N. Terry Adams, Jr., Houston, for Relator.
Bruce L. Jamison, Houston, for Respondent.
This mandamus action involves a conflict between Texas' discovery rules and Germany's privacy laws. We conclude that the trial court abused its discretion in failing to balance the competing interests of the parties and disregarding German law in its entirety. After balancing the respective parties' interests, we further conclude that the information sought should not be produced. Accordingly, we conditionally grant the writ of mandamus. TEX.R.APP.P. 122.
The real parties in interest sued both Volkswagen of America and its German parent company, Volkswagen AG (VWAG), in products liability for personal injuries resulting from an accident involving their 1970 model Volkswagen. The real parties sought production of VWAG's current corporate telephone book to identify individuals who might have relevant information concerning defects in the automobile's door latches. This book contains the names, job titles, position within the company, and direct dial work numbers of more than 20,000 employees as well as the private home numbers of individuals in management positions. VWAG objected to this request on the basis of the German Federal Data Protection Act, which prohibits the dissemination of private information without the consent of the individuals. Bundesdatenschutzgesetz, BGBl, I, 2954 (1990) (FRG) (BDSG). The trial court overruled VWAG's objection and ordered it to produce the phone book.
When information sought for production is located in a foreign country, guidance is provided by the RESTATEMENT (THIRD) OF FOREIGN RELATIONS LAW § 442 (1987). Section 442(1)(a) states:
A court or agency in the United States, when authorized by statute or rule of court, may order a person subject to its jurisdiction to produce documents, objects, or other information relevant to an action or investigation, even if the information or the person in possession of the information is outside the United States.
However, when the laws of the foreign sovereign protect relevant information from discovery, the interests of the domestic court or agency must be balanced with those of the foreign sovereign. The Restatement suggests:
In deciding whether to issue an order directing production of information located abroad, and in framing such an order, a court or agency in the United States should take into account the importance to the investigation or litigation of the documents or other information requested; the degree of specificity of the request; whether the information originated in the United States; the availability of alternative means of securing the information; and the extent to which noncompliance with the request would undermine important interests of the United States, or compliance with the request would undermine important interests of the state [or country] where the information is located.
RESTATEMENT (THIRD) OF FOREIGN RELATIONS LAW § 442(1)(c) (1987). Accordingly, only after a careful balancing of these interests should the trial court rule on a party's request for production.
Before the Restatement's balancing test may be applied, we must determine whether German and U.S. laws actually conflict. That a conflict exists is readily apparent after examination. Texas discovery rules allow an opposing party to discover evidence relevant to the subject matter in the pending action. TEX.R.CIV.P. 166b(2)(a). Germany's privacy laws protect from dissemination "personal data," which is defined as "information concerning the personal or material circumstances of an identified or identifiable individual." BDSG § 3(1). VWAG produced a plethora of authorities confirming its allegation that information contained in its current corporate phone book is, in fact, personal data. The affidavit of Horst-Gunther Bens explicitly acknowledges that VWAG's production of the book would violate the BDSG, while also explaining that privacy rights under German law are "equal in rank to the right of freedom of speech." Likewise, Paul Schwartz, a...
To continue reading
Request your trial
-
Perlstein v. D. Steller 3, Ltd.
...1477 (citing AT & T Techs., 475 U.S. at 650, 106 S.Ct. 1415; First Options, 514 U.S. at 945, 115 S.Ct. 1920); see Prudential Sec. Inc., 909 S.W.2d at 900 ("The burden was on [the parties opposing arbitration] to show that their claims fell outside the scope of the arbitration IV. ANALYSIS A......
-
Reading & Bates Const. Co. v. Baker Energy Resources Corp.
...opinions of foreign law expert as true so long as they are reasonable and consistent with text of foreign law), mand. granted 909 S.W.2d 900 (Tex.1995); but see CPS Int'l, Inc. v. Dresser Indus., Inc., 911 S.W.2d 18, 22 (Tex.App.--El Paso 1995, writ denied) (determination of foreign law is ......
- J.M. Davidson Inc. v. Webster
- Autonation Usa Corp. v. Leroy
-
Discovery Under International Conventions
...104 F. Supp. 3d 1150 (D. Ore. 2015); Zamperla, Inc. v. I.E. Park SrL, 2014 WL 12614505 (M.D. Fla. 2014); Volkswagen, AG v. Valdez, 909 S.W.2d 900 (Tex. 1995). 68 . Hague Evidence Convention, supra note 1 , art. 11. 69 . This does not apply to any attorney fees incurred in preparing or proce......
-
Assessment of Foreign Law Restricting Discovery
...private litigation. In a capitalist economy enforcement of contracts is a subject of the first magnitude.”);Volkswagen, A.G., v. Valdez, 909 S.W. 2d 900 (Tex. 1995); Reinsurance Co. of Am., Inc. , 902 F.2d at 1280. 50 . See United States v. Vetco, 691 F.2d 1281, 1332 (9th Cir. 1981) (U.S. t......
-
Germany
...1992). 156 . AG Volkswagen v. Valdez, 897 S.W.2d 458 (Tex. App.) subsequent mandamus proceeding sub nom . Volkswagen, A.G. v. Valdez, 909 S.W.2d 900 (Tex. 1995). 157 . Accessdata Corp. v. ALSTE Tech. GmbH, 2010 WL 318477 (D. Utah 2010); Jones v. Deutsche Bank AG, 2006 WL 648369 (N.D. Cal. 2......