Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_07-cv-00349/USCOURTS-caed-1_07-cv-00349-9/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

CARGILL INC. AND CAN CASE NO. CV-F-07-0349- LJO-SMS

TECHNOLOGIES, INC., 

Plaintiffs, ORDER REGARDING PRESERVATION OF

EVIDENCE AND RESTRICTIONS ON USE OF

EVIDENCE AND INITIAL DISCOVERY

SCHEDULE 

vs.

ORDER SETTING CASE MANAGEMENT

CONFERENCE

PROGRESSIVE DAIRY

SOLUTIONS, INC. et al., Date: May 16, 2007

Time: 8:45 am

Defendants. Courtroom: 4 (LJO)

 /

The parties have conferred and agree on the stipulations and orders set forth in a stipulation filed

on March 26, 2007 (Doc. 45). The Court, having considered the stipulation, previous filings and

submissions to the Court, and the representations by counsel in telephonic conferences with the Court,

finds good cause to ORDER as follows:

I. PRESERVATION AND RESTRICTIONS ON USE OF EVIDENCE

IT IS HEREBY ORDERED that Plaintiff Cargill Incorporated and CAN Technologies, Inc. (“Cargill”),

their various Defendants, and their respective counsel, where indicated, shall conduct themselves as

follows:

A. Defendants and their respective officers, agents, servants, employees, and attorneys, and those

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other person in active concert or participation with them may not, as of the date of this Order,

do any of the following without prior leave of this Court:

(1) destroy, conceal, or dispose of any documents, paper or electronic filings, or other

materials obtained or belonging to Cargill, or containing or derived from Cargill’s trade

secrets or confidential or proprietary information;

(2) destroy, conceal, or dispose of any documents, paper or electronic files, or other material

related to the formation and other activities relevant to this litigation of Progressive Dairy

Solutions, Inc. and/or Diversified Dairy Solutions, LLC;

(3) alter, delete, remove, or write over (in any way that destroys or makes inaccessible the

original document or file) in any respect any documents, computer files, data, drafts, or

other things encompassed by subparagraphs I(A)(1) or I(A)(2) above, un til such time as

those materials may be turned over in discovery or until further order of the Court. This

does not prevent a Defendant from using an old document to create a new one as long

as the old one is preserved in its entirety;

(4) using for anypurpose certain Cargill confidential information and all derivatives thereof,

which Defendants obtained directly from Cargill (as opposed to information and/or

derivatives obtained from and/or at the request of a customer after February 1, 2007 or

other preexisting, separately known or derived, and/or public source), including, but not

limited to: (a) all information contained in Cargill’s BILLS system; (b) all information

contained in Cargill’s OVS system; (c) all of Cargill’s cost of goods and pricing

information; (d) Cargill Dairy tools, including for example, Cow Comfort Scorecard and

Particle Scorer; (e) all information contained in Cargill’s MAX syste; and (f) the contents

of Cargill’s MALL.

B. Plaintiffs and their officers, agents, servants, employees, attorneys, and those other persons in active

concert or participation with it may not, as of the date of this Order, do any of the following without

prior leave of this Court:

(1) destroy, conceal, or dispose of any documents, paper or electronic files, or other

materials (a) on Defendants’ Cargill computers; (b) in Defendants’ Cargill e-mail

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accounts; ( c ) in back-ups of Defendants’ Cargill computers and/or (d) that Cargill has

knowledge of Defendants’ taking and/or use, and/or that Cargill contends that

Defendants’ took or used, to the extent that any of (a)-(d), inclusive, reflect, contain,

evidence, represent, and/or otherwise relate in any way to: (I) any trade secret,

confidential, and/or otherwise proprietary information that Cargill has contended was

taken by the Defendants in this action; and/or (ii) information, materials, and/or things

that Cargill contended it owned or otherwise belonged to it, and were taken by the

Defendants in this action. The foregoing shall include, but not be limited to: (a)

information contained in Cargill’s BILLS system; (b) information contained in Cargill’s

OVS system; ( c ) Cargill’s cost of goods and pricing information; (d) Cargill Dairy

tools, including, for example, Cow Comfort Scorecard and Particle Scorer; (e)

information contained in Cargill’s MAX system; and (f) the contents of Cargill’s MALL.

(2) alter, delete, remove or write over (in any way that destroys or makes inaccessible the

original document or file) in any respect any documents, computer files, data, drafts, or

other things encompassed by subparagraph I(B)(1) above. This does not prevent Cargill

from using an old document to create a new one as long as the old one is preserved in its

entirety.

II. STORAGE OF ELECTRONIC IMAGES AND HARD COPY DOCUMENTS

IT IS FURTHER ORDERED THAT:

A. Kroll OnTrack, Inc. (“Kroll”) shall continue to hold the foresnic electronic images that have been

taken of Defendants’ computers and other electronic devices pursuant to the March 2, 2007

Amended Temporary Restraining Order or this Order, until further order of this Court;

B. Kreig, Keller, Sloan, Reilly & Roman LLP (“The Krieg Keller Law Firm”) shall hold and

preserve the original paper documents collected by Defendants Progressive Dairy Solutions Inc.,

Matthew Budine, Brian Sundberg, and Luciana Jonkman, pursuant to the terms of the Court’s

March 2, 2007 Amended TemporaryRestraining Order utnil these documents may be produced

in discovery or until further order by this Court. If any Defendant desires a copy of any collected

document, the Krieg Keller Law Firm shall advise all Parties in writing of the Defendant’s

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request. The parties will then have two (2) days to object to said copying and releas to

Defendant. If the parties are unable to resolve the objections, the party requesting a copy shall

file a letter brief with the Court;

C. The hard copy documents preserved by Todd Schwegel pursuant to the March 2, 2007 Amended

Temporary Restraining Order are to be transferred to and held by Keegin, Harrison, Schoppert,

Smith & Karner (“the Keegin Law Firm”), counsel to Mr. Schwegel, until these documents may

be produced in discovery or until further order bhy this Court. Mr. Schwegel will not have

access to these documents, any copies made will be at the expense of the party requesting such

copies. In the event that other defendants make a request for a copy of any document so held,

Ms. Wendy Wyse will advise the parties of which documents are being sought for use in

business, and the parties will have the same right to object as they have have, as specified herein,

with respect to those documents held by the Krieg Keller Law Firm. The Keegin Law Firm also

will cooperate with the Krieg Keller Law Firm to facilitate return of the Progressive Dairy

Solutions’ laptop given to the Keegin Law Firm by Mr. Schwegel.

D. McCormick, Barstow, Seppard, Wayte & Carruth LLP (the “McCormick Firm”) shall hold and

preserve the original paper documents collected from Defendants Diversified Dairy Solutions

LLC, and Douglas DeGroff, pursuant to the terms of the Court’s March 2, 2007 Amended

Temporary Restraining Order until these documents may be produced in discovery or until

further order by this Court. If any Defendant desires a copy of any collected document, the

MrCormick firm shall advise all Parties in writing of the Defendant’s request. The parties will

then have two (2) days to object to said copying and release to Defendant. If the parties are

unable to resolve the objections, the party requesting a copy shall file a letter brief with the

Court.

III. RETURN OF CARGILL MATERIALS

IT IS FURTHER ORDERED THAT:

A. Defendants shall within ten (10) days of entry of this Order, return to Cargill (by delivery to

Cargill’s counsel) all Cargill materials which Defendants obtained directly from Cargill (as

opposed to those obtained from and/or at the request of a customer after February 1, 2007 or

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other preexisting, separately known or derived, and/or public source) in the possession of

Defendants’ and their respective officers, agents, servants, employees, and attorneys, and those

other persons in active concert or participation with them, including, but not limited to, materials

from (a) Cargill’s Dairy College, (b) President’s Forum (c) North American Dairy Focus, (d)

Cattle Show, (e) Dairy Vision Team, (f) MALL and (g) General Managers meetings, as well as

electronic information such as (h) formulas, (i) pricing information, (j) customer information,

and (k) nutrient analysis. 

B. Fish and Richardson P.C. (“The Fish Firm”) shall hold and preserve any and all original paper

documents and/or other things returned from any Defendant pursuant to subsection III(1) above,

until those documents and materials may be produced in discovery or until further order by this

Court. 

C. Defendants shall within ten (10) business days of entry of this Order, certify in writing to the

Court and all parties that any Cargill materials covered by this Order have been returned to

Cargill’s counsel in compliance with this Order. 

IV. PRIVILEGED/WORK PRODUCT MATERIALS AND INFORMATION

The Parties hereby stipulate and agree, and the Court orders, that the foregoing requirements with

respect to document preservation, modification, and production shall not apply to materials and

information created by, or at the request of, counsel, and/or exchanged with counsel, during the course

of this litigation, provided, however, that no party may avoid the foregoing requirements with respect

to document preservation, modification, and production simply by sharing such pre-existing information

or materials with counsel.

V. NO ADMISSION

The Parties further stipulate and agree, and the Court HEREBY ORDERS, that:

A. Neither the existence of this stipulated Order, nor any party’s compliance with any aspect of it,

shall be deemed an admission by any party that any materials and/or information produced,

preserved, returned, and/or otherwise maintained in compliance with this Order are trade secret,

proprietary, confidential, and/or otherwise owned by any party to this action; 

B. The material allegations of this action are in dispute, and nothing in this Order is to be deemed

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a waiver or relinquishment of any party’s rights, claims, defenses, and/or contentions in that

regard; 

C. This Order may not be used and/or referenced for any purpose, whether in this action or

otherwise, except: (a) by Kroll, Lucidata, Inc, other vendors that may be agreed upon by the

parties, the parties, and their counsel in connection with their respective compliance with it; and

(b) in filings with this Court to ensure, or request relief from, compliance with this Order;

D. Except for its entry on this Court’s electronic docket, this Order shall not be promulgated by any

party or anyone acting in concert with any party, including by its posting on any website.

VI. INITIAL DISCOVERY SCHEDULE

IT IS FURTHER ORDERED that the discovery in this matter shall proceed on an expedited schedule

as set forth below:

(1) By March 27, 2007, Defendants shall identify (1) all personal digital assistants (PDAs) and

cellular phones they have used since August 2006 by exact model number and (2) any other electronic

device subject to the March 2, 2007 Amended Temporary Restraining Order that have not yet been

imaged; 

(2) By April 7, 2007, Defendants shall make available to Kroll, Lucidata, Inc., or other vendor

agreed upon by the parties for imaging (1) all PDAs and cellular phones they have used since August

2006 and (2) any other electronic device subject to the March 2, 2007 Amended Temporary Restraining

Order that has not yet been made available for imaging;

(3) By April 7, 2007, Defendants shall make available to Kroll, Lucidata, or other vendor to be

agreed upon by the parties all keys and any other devices necessary to decrypt images of their electronic

devices subject to the March 2, 2007 Amended Temporary Restraining Order;

(4) Until such time as further ordered by the Court, Defendants shall, on a quarterly basis, make

available to Kroll, Lucidata, Inc., or other vendor agreed upon by the parties for imaging all electronic

devices subject to the March 2, 2007 Amended Temporary Restraining Order;

(5) Plaintiffs may serve Requests for Production on Defendants beginning March 27, 2007. This

discovery shall take place in two phases; (1) as to those collected hard documents and things, imaged

electronic devices, and soon to be imaged electronic devices (see subparagraph VI(2) above) subject to

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the Amended Temporary Restraining Order of March 2, 2007 (“Phase 1”); and (2) as to other relevant

items that had not yet been collected or produced pursuant to the TRO (“Phase 2”).

(6) By March 30, 2007, the parties shall submit a Stipulated Protective Order governing discovery

in this case. If agreement cannot be reached by March 30, 2007, the parties shall arrange for a

conference call with the Court regarding entry of a Protective Order;

(7) Following service of Plaintiffs’ Requests for Production, Defendants shall produce (subject to

applicable objections) responsive hard copy documents and things that have already been collected

pursuant to the Court’s March 2, 2007 Amended Temporary Restraining Order within 14 days of service

(Phase 1); 

(8) By March 27 , 2007, Plaintiffs will provide a keyword list to Defendants for the purpose of

searching the imaged drives and electronic devices which have been collected by Kroll and Lucidata

pursuant to the Court’s March 2, 2007 Amended Temporary Restraining Order under Phase 1. The

parties will meet and confer in good faith to finalize and agree on the keyword list to be used for the

search. If the parties have not agreed to the keyword list by March 30, 2007, the parties will arrange for

a conference call with the Court. Upon agreement or order asto the keyword list, Kroll or Lucidata will

search for and produce electronic copies of the documents culled pursuant to the keyword search by

Defendant. The culled documents by Defendant will then be forwarded to that Defendants’ counsel for

review and production. Within thirty (30) days of receipt of the documents from Kroll or Lucidata,

Defendants will produce responsive documents to Plaintiff, along with a privilege log if any documents

are not produced pursuant to the exercise of a privilege. This provision does not require an individual

Defendant to perform the review step if they choose not to do so. In such case, the individual Defendant

can direct Kroll or Lucidata to produce the documents culled pursuant to the keyword search, directly

to Plaintiffs. This provision does not restrict Plaintiffs from conducting further searches on the same

electronic devices based on different keywords or different search parameters pursuant to stipulation or

further order of this court; 

(9) In Phase 2, Defendants shall have 60 days after service of Plaintiffs’ Requestsfor Production to

produce (subject to any applicable objections) hard copy and electronic documents and things responsive

to Plaintiffs’ Requests For Production which have not already been collected pursuant to the Court’s

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March 2, 2007 Amended Temporary Restraining Order; and

(10) By March 27, 2007, Defendants shall identify all e-mail addresses and aliases they have used

since August 2006. Cargill may then immediately subpoena the third parties associated with these email addresses and aliases for any and all records associated with Defendants’ email addresses and

aliases. These third-parties shall be directed to produce the requested documents directly to the

applicable Defendants’ counsel, with no copies to Cargill. Within 14 days of production to Defendants’

counsel, Defendants shall, subject to applicable objections, produce to Plaintiffs such documents that

are responsive to Cargill’s Requests for Production to Defendants. Defendants will not be authorized

to extend the subpoena production date. 

VII. CASE MANAGEMENT CONFERENCE

IT IS FURTHER ORDERED that a case management conference shall be set for May 16, 2007 at 8:45

am. Counsel shall prepare and file a Joint Conference statement five (5) days before the scheduled case

management conference. The Joint Conference statement should be emailed to

ljoorders@caed.uscourts.gov and shall be in WordPerfect format. Counsel may appear at the hearing by

arranging a one- line conference call and telephoning the Court at (559) 499-5680. 

 IT IS SO ORDERED.

Dated: March 27, 2007 /s/ Lawrence J. O'Neill 

b9ed48 UNITED STATES DISTRICT JUDGE

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