Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_04-cv-00883/USCOURTS-cand-3_04-cv-00883-19/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1331 Fed. Question

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ForUnited States Distr the Northern District Court ict of California

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 The letter briefs are found at Docket Nos. 230, 232 and 235. 1

 The prior order, Docket No. 218, also granted discovery of medical records with respect to a 2

third independent director, Mr. Fortunato. Plaintiffs’ instant request only concerns Messrs. Macklin and

Millsaps.

ForUnited States Distr the Northern District Court ict of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SUSAN STRIGLIABOTTI, et al.,

Plaintiffs,

 v.

FRANKLIN RESOURCES, INC., et al.,

Defendants.

 /

No. C 04-883 SI

ORDER RE: DISCOVERY 

TO BE FILED UNDER SEAL

Plaintiffs and two non-party independent directors seek resolution of a discovery dispute

concerning production of medical records. The Court previously ordered the directors, Gordon Macklin

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and Fred R. Millsaps, to produce medical records dating back to January 1, 2004. Plaintiffs originally 2

selected the January 1, 2004 date based upon their understanding that the directors became impaired in

2004. The records were produced on December 20, 2006. According to plaintiffs, the records indicate

that Messrs. Macklin and Millsaps may have suffered impairments prior to 2004, and thus plaintiffs now

seek records for two additional years dating back to January 1, 2002. The directors contend that

plaintiffs have offered no reasonable justification for further invading the privacy of Messrs. Macklin

and Millsaps. 

The Court previously ordered the directors to produce their medical records because those

records are relevant to one of the factors governing plaintiffs’ § 36(b) claim, namely the “independence

Case 3:04-cv-00883-SI Document 239 Filed 02/14/07 Page 1 of 2
ForUnited States Distr the Northern District Court ict of California

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 As this is plaintiffs’ second motion on this matter, the Court will not entertain any further 3

motions seeking additional records prior to 2002.

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and conscientiousness of the trustees.” Krinsk v. Fund Asset Mgmt., Inc., 875 F.2d 404, 409 (2d Cir.

1989); see also Gartenberg v. Merrill Lynch Asset Mgmt., Inc., 694 F.2d 923, 930 (2d Cir. 1982)

(whether independent trustees were fully informed about all facts bearing on adviser’s fees and services,

and extent of care and conscientiousness with which trustees performed duties, were important factors

to § 36(b) analysis). For the same reasons set forth in the Court’s previous order, the Court finds that

the medical records at issue are discoverable. The Court remains cognizant of the significant privacy

concerns implicated by such discovery. However, plaintiffs are entitled to discover whether and to what

degree the directors were impaired between 2002 and 2004, a time period when both individuals were

actively serving on the Franklin Templeton boards. 

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Accordingly, the Court GRANTS plaintiffs leave to seek the medical records for the period

covering January 1, 2002 through December 31, 2003. TheCourt shall not grant any further extensions.

IT IS SO ORDERED.

Dated: February 14, 2007 

SUSAN ILLSTON

United States District Judge

Case 3:04-cv-00883-SI Document 239 Filed 02/14/07 Page 2 of 2