Court Opinion

ID: 9857882
Source: CourtListenerOpinion
Date Created: 2023-09-24 16:05:08.211618+00
Date Added: 2024-06-11T09:47:24.290556
License: Public Domain

ON APPELLEES’ MOTION FOR REHEARING
Ballard argues that the protective order entered by the court did not prohibit the appellants from asking David A. Flynn if he told Ballard before he purchased the bank that he would have to put new capital into the bank. The order provides:
BE IT REMEMBERED that, on this, the 27th day of March, 1979, came on to be heard the motion of Daniel A. Flynn, Deputy Banking Commissioner of the Banking Department of the State of Texas, to quash or modify a subpoena. After a hearing on said motion to quash and on deponent’s motion for a protective order, the court is of the opinion, and so finds, that said motions are well taken and that they should be sustained. It is therefore
ORDERED, ADJUDGED, and DECREED that, at any deposition of Daniel A. Flynn, Deputy Banking Commissioner, the deponent herein, said deponent shall not be asked any question calling for information relating to the financial condition of any state bank, and that, if said deponent is asked any such question relating to the financial condition of a state bank, he shall not be required to answer and he shall be protected by this order, (the following phrase was interlined) but *465such questions as are not answered shall be certified to this court for its determination whether such question should be answered.
Ballard contends that the order instructs appellants to ask the question and then certify the question to the trial court for its determination if the question should be answered. The statement of facts unmistakably demonstrates that the court ruled at the pretrial hearing on the protective order issue that the conversation between Ballard and Flynn regarding the need for additional capital was privileged under Tex.Rev.Civ. StatAnn. art. 342-210 (Vernon 1973) and such question could not be asked. The typed portion of the protective order clearly states that Flynn, “shall not be asked any question calling for information relating to the financial condition of any state bank” and that if he is asked a question, “relating to the financial condition of a state bank, he shall not be required to answer.” The penned interlined phrase regarding certification of a question was inserted, following a pretrial hearing, to apply when doubt existed as to whether a particular question called for information relating to the financial condition of a state bank. It is clear from the court’s comments and rulings that the court, along with all the parties, concluded that Flynn’s remarks to Ballard related to the “financial condition” of a state bank.1 Appellants were not required to certify a question which the record shows the court clearly ruled was not to be asked.
Appellees point out that there is no order in the “transcript” denying appellants the right to inspect written correspondence concerning the purchase and sale of the bank, between the Texas Banking Department and Ballard, Freeman, or the bank. The statement of facts clearly reflects that the court refused, upon proper request, to require appellees to permit appellants to examine the written correspondence and reports in question. The court concluded, as urged by appellees, that all written correspondence and reports from the Texas Banking Department were privileged and confidential. We think the court erred in this regard.
Appellees’ motion for rehearing is overruled.

. The court consistently held that appellants could not ask Flynn what, if any thing, he told Ballard about the need for additional capital. Near the end of the trial, which lasted several days, appellants again pointed out to the court that under the court’s rulings they could not go to the “source” (Flynn) to disprove Ballard’s testimony regarding the alleged conversation. The court answered, “I believe that is true.” Statement of Facts p. 2536.