PUBLIC

UNITED STATES OF AMERICA

BEFORE THE FEDERAL TRADE COMMISSION

OFFICE OF ADMINISTRATIVE LAW JUDGES

In the Matter of

MCWANE, INC.,

a corporation, and

STAR PIPE PRODUCTS, LTD.,

a limited partnership.

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DOCKET NO. 9351

RESPONDENT MCWANE, INC.'S MOTION FOR RECONSIDERATION

On July 5, 2012, this Court issued an Order Granting Complaint Counsel's Motion to

Compel Respondent McWane, Inc.'s Responses to Requests for Admission, on the ground that

Respondent did not file its opposition within 5 days as required under Rule 3.38. For the reasons

stated in the attached Motion, Respondent McWane respectfully requests that this Court

reconsider its order. Complaint Counsel did not comply with its meet and confer requirements

under Rule 3.22, and thus, their motion to compel was improperly filed under Rule 3.38, and

McWane moved to strike, or in the alternative, opposed within the 10 days provided under Rule

3.22.

Dated: July 5,2012

lsi J. Alan Truitt

J. Alan Truitt

Thomas W. Thagard III

Maynard Cooper and Gale PC

1901 Sixth Avenue North

2400 Regions Harbert Plaza

Birmingham, AL 35203

Phone: 205.254.1000

Fax: 205.254.1999

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lsi Joseph A. Ostoyich

atruitt@maynardcooper.com

tthagard@maynardcooper.com

Joseph A. Ostoyich

William C. Lavery

Baker Botts L.L.P.

The Warner

1299 Pennsylvania Ave., N.W.

FTC Docket No. 9351

07 10 2012 
PUBLIC
 

Washington, D.C. 20004-2420
 

Phone: 202.639.7700
 

Fax: 202.639.7890
 

joseph.ostoyich@bakerbotts.com
 

william.lavery@bakerbotts.com
 

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FTC Docket No. 9351
 
PUBLIC 

Attorneysfor Respondent McWane, Inc. 

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FTC Docket No. 9351
 
PUBLIC

UNITED STATES OF AMERICA

BEFORE THE FEDERAL TRADE COMMISSION

OFFICE OF ADMINISTRATIVE LAW JUDGES

In the Matter of

MCWANE, INC.,

a corporation, and

STAR PIPE PRODUCTS, LTD.,

a limited partnership.

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PUBLIC

DOCKET NO. 9351

RESPONDENT MCWANE, INC.'S MOTION TO STRIKE COMPLAINT

COUNSEL'S MOTION TO COMPEL RESPONSES TO REQUESTS FOR ADMISSION

AS PREMATURE AND MOOT, OR IN THE ALTERNATIVE, OPPOSITION TO

COMPLAINT COUNSEL'S MOTION

Pursuant to Rule 3.22 ofthe Federal Trade Commission's Rules ofPractice for

Adjudicative Proceedings, Respondent McWane, Inc. ("McWane") respectfully moves to strike

CC's motion, on the grounds that it was premature and was filed before the completion of an

appropriate meet and confer on the subject. Indeed, as the attached declaration and email show,

McWane responded late in the day Friday June 22 that it was "still evaluating" CC's request that

it supplement its answers - - but CC went ahead and filed its motion on Monday before any

further discussions were held. CC improperly rushed to file its Motion before the meet and

confer process was complete, in an apparent attempt to meet its June 25,2012 deadline for filing

motions to compel.

In the alternative, McWane opposes CC's motion and requests that the Court deny

Complaint Counsel's ("CC's") Motion to Compel Respondent McWane, Inc. to supplement its

Responses to Requests Nos. 1-12, 15, 17, 18,22,33,37,38,40,42-43, and 48-50 ofComplaint

Counsel's Requests for Admission (1-50), dated May 22,2012 ("RFAs"). McWane's Objections

and Responses to CC's RFAs ("Responses") were appropriate under Rule 3.32(b), and CC

cannot force McWane to admit assertions that are in dispute, are outside the scope of

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FTC Docket No. 9351

McWane, Inc. 's Opposition to CC's Motion to Compel
PUBLIC

Respondent's knowledge, or are too vague to admit or deny as stated. Thus, McWane has

already complied with its obligations in responding to CC's RFAs. 1

I. BACKGROUND

On May 22,2012, CC served its Requests for Admission on McWane. On June 1,2012,

this Court extended the time in which Respondent had to serve its Responses to June 8, 2012.

On June 8, 2012, Respondent served its Responses to CC's RFAs. On June 25,2012, CC served

its Motion to Compel Respondent to supplement twenty-five (25) ofits fifty (50) Responses to

CC's RFAs ("Motion").

II. ARGUMENT

RFAs 3, 5, 6, 37, 48, 49 and 50 are argumentative and make assertions that McWane has

denied because its investigation showed that the statements were not accurate. McWane denied

RFAs 1,3,5,6,9, 11, 17 and 33 because they also call for information outside McWane's

possession and that is, instead, likely in the possession ofthird parties CC chose not to depose on

these topics. "[R]equests for admissions as to central facts in dispute ... have consistently been

held improper." Pickens v. Equitable Life Assurance Soc. ofthe Us., 413 F.2d 1390, 1393-94

(5th Cir. 1969). Parties also have no obligation to engage in speculation in order to respond to

requests for admission? Carmichael Lodge No. 2103, Benevolent and Protective Order ofElks

ofus. ofAmerica v. Leonard, 2009 WL 1118896 at *5 (E.D. Cal. 2009) ("a party, however, is

not required to speculate about a request that contains genuinely vague or ambiguous

statements"); Shelley v. Hoenisch, 2008 WL 2489927 at *1 (W.D. Wis. 2008) (holding that

I Complaint Counsel did not meet Rule 3.22(d)'s requirement to make an "effort in good faith to resolve by

agreement the issues raised by the motion" and thus, filed this motion to compel under 3.38 prematurely and

improperly. Complaint Counsel states that they met and conferred with McWane's counsel on June 21, 2012, but

that the parties "could not reach a resolution." This misrepresents what occurred. McWane's counsel informed CC

during the meet and confer, and again via email the following day, June 22, that McWane would consider CC's

requests. (See Ex. A (email from Lavery to Holleran). McWane, at minimum, was willing to offer to supplement

RFAs 2, 4, 7, 8, 22,42 and 43, and reiterates that offer here. McWane may also be willing to supplement a number

ofCC's remaining RFAs, ifCC will simply clarify their vague statements. Accordingly, because CC's rushed

motion did not comply with 3.22(d)'s meet and confer requirements, it was improperly filed under 3.38 and

McWane moves to strike.

2 FTC Rule 3.32(a) tracks the language ofFederal Rule ofCivil Procedure 36(a)(I).

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FTC Docket No. 9351

McWane, Inc.'s Opposition to CC's Motion to Compel
PUBLIC 

"defendants need not provide any additional information in response" to an RFA where 

"defendants must speculate as to what they actually are admitting, something the rule does not 

require them to do"). Further, parties responding to requests for admission are not obligated to 

conduct additional discovery on behalf ofthe serving party. Hendricks v. Ohio Dept. of 

Rehabilitation and Correction, 2012 WL 2075317 at *2 (S.D. Ohio 2012) ("Rule 36 is not a 

discovery device, and its proper use is as a means of avoiding the necessity of proving issues 

which the requesting party will doubtless be able to prove") (citing Misco, Inc. v. United States 

Steel Corp., 784 F.2d 198,205 (6th Cir. 1986)). 

A motion to compel is no proper simply because CC disagrees with McWane's answers. 

Despite its objections to CC's RFAs, McWane made a good faith effort to admit or deny each of 

CC's RFAs to the best of its knowledge, and added additional information to make its admission 

or denial clear where required. When McWane stated that it lacked sufficient knowledge and 

thus, denied, it did not say it lacked sufficient knowledge and then deny outright. McWane made 

a reasonable inquiry, per Rule 3.32(b), by reviewing internal documents or interviewing relevant 

employees at McWane, and then answered the parts ofthe questions it could. Here, CC is 

moving to compel simply because they disagree with McWane's responses, and is attempting to 

force McWane to conduct additional discovery on its behalf in an effort to burden Respondent in 

the months leading up to trial. Cada v. Costa Line, Inc., 95 F.R.D. 346, 348 (N.D. 111.1982) (the 

district court held it "would be disinclined to thrust on [defendants], as a condition of making a 

good faith statement of 'reasonable inquiry' under Rule 36(a), the burden of doing [plaintiffs'] 

job for them."). This is an improper use of a motion to compel. 

A. Respondent Provided Good Faith Responses To CC's RFAs Despite Its 

Objections 

CC claims that McWane made improper objections to RFA Nos. 1-11, 15, 17, 18,22,33, 

37, and 42-43. CC is attem tin to confuse the issue here. 

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FTC Docket No. 9351 

McWane, Inc.'s Opposition to CC's Motion to Compel 
PUBLIC
 

As in any court, here Respondent is entitled to preserve its objections to 

CC's improper RFAs - - CC does not cite any case law requiring a party to admit or deny RFAs 

without preserving all objections. Further, McWane's objections were valid and speak for 

themselves. 

B. Respondent Answered All RFAs To The Best Oflts Ability 

CC further claims that Respondent provided nonresponsive or evasive responses to RFA 

Nos. 1,3-6,8, 10-12. This contention is untrue. 

RFA 1. RFA 1 states "All ARRA Waterworks Projects are subject to a Buy American 

requirement." McWane denied this RFA for two reasons: first, McWane has no first-hand 

knowledge ofthe workings ofARRA. Second, CC did not define the term "requirement," but it 

suggests that it was absolute. That is not McWane's understanding and the statute on its face 

(and industry intelligence McWane obtained during the ARRA period) suggests that that there 

were waivers and exemptions that permitted imported product to be used on ARRA jobs (and, 

thus, that domestic was not required in those circumstances). CC cannot force McWane to 

change its response and engage in speculation simply because they do not agree with McWane's 

answer. The fact that McWane went further than required under the Rules b 

information it had shows a ood faith attem t to answer this RFA. 

RFAs 3, 5 and 6. RFAs 3, 4 and 5 concern sales of "Imported Relevant Productfor use 

in an ARRA Waterworks Projects" pursuant to various waivers, or manufactured outside ofthe 

United States. 

McWane denied RFAs 3, 5 and 6, stating that they were more properly directed towards 

round that the asked for information be ond McWane's 

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FTC Docket No. 9351 

McWane, Inc.'s Opposition to CC's Motion to Compel 
PUBLIC
 

RFA 8. RFA 8 states "Respondent competedfor sales 0 Domestic Relevant Product or 

McWane's response is perfectly valid under the Rules and it has no 

obligation to re-write CC's RFAs for them. 

RFAs 10, 11 and 12. RFAs 10-12 relate to the manufacturing of "Relevant Product that 

is 24" in diameter or smaller." Each ofthese RFAs call for speculation and/or information 

beyond McWane's custody or control, as McWane does not know with certainty what its 

competitors have produced, and what their plans are for future production. McWane is not 

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FTC Docket No. 9351 

McWane, lnc.'s Opposition to CC's Motion to Compel 
PUBLIC
 

McWane made a good faith effort to respond to the RFA by providing additional 

information rather than simply denying the assertion. 

C. McWane Conducted Sufficient Inquiry When It Stated It Lacked Sufficient 

Knowledge 

CC argues that Respondent improperly claimed to lack sufficient knowledge on RFA 

Nos. 9, 18,22, and 33. 

RFA 9. RFA 9 states that "Respondent continues to compete 

example of an affirmative statement that McWane cannot admit with certainty. 

RFA 18. RFA 18 states "Respondent has historically offered less Job Pricing on its 

Domestic Relevant Product than its 1m orted Relevant Product. " 

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FTC Docket No. 9351 

McWane, Inc.'s Opposition to CC's Motion to Compel 
PUBLIC 

RFA 33. RFA 33 states "Distributors need access to a Full-Line ofDomestic Relevant 

Product that can be delivered in a timely fashion, i. e. generally less than 12 weeks." This RFA 

is objectionable, as it expressly calls for information that is known to non-party distributors 

noted that on the meet and confer, CC did not attempt to re-define the vagueness ofthis RFA, 

and as such McWane has no obligation to re-write CC's RFAs for them. McWane's objections, 

and its response stating it lacked sufficient information and thus, denied this request, were 

perfectly valid under the Rules. 

D. Complaint Connsel's Claims Regarding RFAs 37 And 48-50 Are Unsupported 

Finally, CC claims that RFA Nos. 37 and 48-50 are unsupported by the record. 

RFA 37. RFA 37 states "Respondent does not assert afree-ridingjustificationfor its 

Exclusive Dealing Arrangements." CC has been on notice that McWane intended to assert a 

McWane's Answer specifies that McWane is asserting an affin:native defense that "[t]he alleged 

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FTC Docket No. 9351 

McWane, Inco's Opposition to CC's Motion to Compel 
PUBLIC

CC claims that

during a prior meet and confer, Andreas Stargard, a former employee ofBaker Botts, agreed with

Complaint Counsel that McWane was not asserting a free-riding defense. However, Mr.

Stargard denies that this conversation ever took place and CC does not attach any support for

their assertion. It is CC's burden to prove McWane waived this defense, and their unsupported

say-so is not sufficient to meet this burden.

RFAs 48-50. RFAs 48-50, respectively, ask McWane to admit that it did not use data

obtained from the "DIFRA Information Exchange" to:

As discussed supra, CC's

disagreement with RFAs that were answered is not a proper basis for a motion to compel.

IV. CONCLUSION

In sum, the Court should deny Complaint Counsel's Motion.

Dated: July 5,2012

lsi J. Alan Truitt

J. Alan Truitt

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lsi Joseph A. Ostoyich

Thomas W. Thagard III

FTC Docket No. 9351

McWane, Inc.'s Opposition to CC's Motion to Compel
PUBLIC
 

Maynard Cooper and Gale PC William C. Lavery 

1901 Sixth Avenue North Baker Botts L.L.P. 

2400 Regions Harbert Plaza TheWamer 

Birmingham, AL 35203 1299 Pennsylvania Ave., N.W. 

Phone: 205.254.1000 Washington, D.C. 20004-2420 

Fax: 205.254.1999 Phone: 202.639.7700 

atruitt@maynardcooper.com Fax: 202.639.7890 

tthagard@maynardcooper.com joseph.ostoyich@bakerbotts.com 

william.lavery@bakerbotts.com 

Joseph A. Ostoyich 

Attorneysfor Respondent McWane, Inc. 

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FTC Docket No. 9351 

McWane, 1nc.'s Opposition to CC's Motion to Compel 
PUBLIC

UNITED STATES OF AMERICA

BEFORE THE FEDERAL TRADE COMMISSION

OFFICE OF ADMINISTRATIVE LAW JUDGES

In the Matter of

MCWANE, INC.,

a corporation, and

STAR PIPE PRODUCTS, LTD.,

a limited partnership.

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IN CAMERA

DOCKET NO. 9351

RESPONDENT MCWANE, INC.'S RESPONSE TO COMPLAINT COUNSEL'S

STATEMENT REGARDING MEET AND CONFER PURSUANT TO SCHEDULING

ORDER

On June 20, 2012, Respondent's counsel met and conferred with Complaint Counsel

regarding its Requests for Admission. During the meet and confer, Respondent's counsel

informed Complaint Counsel that it would consider each if Complaint Counsel's requests, but

first had to run them by the client. On June 22, 2012, Respondent's counsel informed Complaint

Counsel via email that it was still evaluating the requests. On June 25,2012, Complaint Counsel

filed its Motion to Compel before confirming Respondent's position. Because Complaint

Counsel filed its Motion before completing the meet and confer process, McWane files the

instant motion to strike Complaint Counsel's Motion as improper under 3.38.

Respectfully submitted,

/s/ William C. Lavery

William C. Lavery

Counsel for McWane, Inc.

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UNITED STATES OF AMERICA

BEFORE THE FEDERAL TRADE COMMISSION

OFFICE OFADMINISTRATIVE LAW JUDGES

PUBLIC

In the Matter of

McWANE, INC.,

a corporation, and

STAR PIPE PRODUCTS, LTD.,

a limited partnership,

Respondents.

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DOCKET NO. 9351

PROPOSED ORDER

On July 5, 2012, McWane, Inc. filed a Motion to Strike Complaint Counsel's

Motion to Compel. Upon consideration ofthis motion, this Court grants McWane's

motion.

ORDERED:

D. Michael Chappell

Administrative Law Judge

____,2012

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PUBLIC 

CERTIFICATE OF SERVICE 

I hereby certify that on July 10, 2012, I filed the foregoing document electronically using 

the FTC’s E-Filing System, which will send notification of such filing to: 

Donald S. Clark 

Secretary 

Federal Trade Commission 

600 Pennsylvania Ave., NW, Rm. H-113 

Washington, DC 20580 

I also certify that I delivered via hand delivery a copy of the foregoing document to: 

The Honorable D. Michael Chappell 

Administrative Law Judge 

Federal Trade Commission 

600 Pennsylvania Ave., NW, Rm. H-110 

Washington, DC 20580 

I further certify that I delivered via electronic mail a copy of the foregoing document to: 

Edward Hassi, Esq. 

Geoffrey M. Green, Esq. 

Linda Holleran, Esq. 

Thomas H. Brock, Esq. 

Michael L. Bloom, Esq. 

Jeanine K. Balbach, Esq. 

J. Alexander Ansaldo, Esq. 

Andrew K. Mann, Esq. 

By: ______/s/ William C. Lavery_____

 William C. Lavery 

 Counsel for McWane, Inc. 
EXHIBIT A
	

This exhibit has been 

marked Confidential 

and redacted in its 

entirety
	
EXHIBIT B
	

This exhibit has been 

marked Confidential 

and redacted in its 

entirety
	
EXHIBIT C
	

This exhibit has been 

marked Confidential 

and redacted in its 

entirety
	
EXHIBIT D
	

This exhibit has been 

marked Confidential 

and redacted in its 

entirety
	
EXHIBIT E
	

This exhibit has been 

marked Confidential 

and redacted in its 

entirety
	
EXHIBIT F
	

This exhibit has been 

marked Confidential 

and redacted in its 

entirety