Smith v. Heath C. Nicholas et al

Filing 21

PROTECTIVE ORDER. Signed by Honorable P. K. Holmes, III on April 17, 2012. (lw)

IN THE UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF ARKANSAS
HARRISON DIVISION
JEROD MATTHEW SMITH

PLAINTIFF

v.
HEATH C. NICHOLAS AND PAULETTE NICHOLAS;
UNITED STATES OF AMERICA, INTERNAL REVENUE
SERVICE; TIMOTHY J. LEATHERS, ARKANSAS
DEPARTMENT OF FINANCE AND ADMINISTRATION;
ARTEE WILLIAMS, DIRECTOR OF ARKANSAS
WORKFORCE SERVICES; PROFESSIONAL CREDIT
MANAGEMENT, INC.; AND THE ARKANSAS OFFICE
OF CHILD SUPPORT ENFORCEMENT

DEFENDANTS

Case No. 3:11-CV-03035
UNITED STATES OF AMERICA,
INTERNAL REVENUE SERVICE

COUNTER-CLAIMANT

v.
JEROD MATTHEW SMITH

COUNTER-DEFENDANT
PROTECTIVE ORDER

Upon the Motion for Protective Order (Doc. 20) of the United States of America, Internal
Revenue Service, this Court, having been duly advised, hereby ORDERS that:
1.

This Order governs the treatment and handling of all federal tax information and

documents (including, without limitation, answers to interrogatories, responses to requests for
production, responses to requests for admission, deposition testimony, deposition transcripts,
deposition exhibits, and other written, recorded or graphic matter, and copies of the foregoing)
("discovery material or information") produced in accordance with Rule 26 of the Federal Rules of
Civil Procedure or any order of the Court, by the United States of America, Internal Revenue
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Service, including any attorney, employee or other agent of said party.
2.

The United States of America, Internal Revenue Service, its attorneys, employees and

other agents, may disclose to the other parties to this litigation any and all tax records pertaining to
Heath C. Nicholas and/or Paulette Nicholas, in whole or in part, which contain information within
the proper scope of discovery under Federal Rule of Civil Procedure 26. The United States of
America, Internal Revenue Service, shall have the sole authority to determine what records are
subject to such disclosure and shall have no liability for disclosure of such information that is later
determined to not be subject to discovery under Federal Rule of Civil Procedure 26. However, any
party shall have the right to petition this Court for an order directing the United States of America,
Internal Revenue Service, to not disclose any particular information pursuant to this Order; however,
the United States of America, Internal Revenue Service, its attorneys, employees and other agents
shall have no liability for any such disclosure prior to being placed on notice that this Court has
entered an Order directing that such information not be disclosed. Any party shall have the right to
petition this Court for an order directing the United States of America, Internal Revenue Service, to
disclose any particular information which the United States of America, Internal Revenue Service,
has refused to disclose.
3.

Tax Information received through discovery shall not be disclosed or disseminated

to anyone, except:
(a)

A party, counsel for any party and the employee of such counsel to whom it is

necessary that the information be disclosed for purposes of preparation for and litigation
of this action;
(b)

Any expert engaged by a party for the purpose of assisting in the preparation of
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this litigation;
(c)

Any person who was involved in the preparation of the document or information;

(d)

The Court, the jury, court personnel, court reporters and persons engaged to make

copies;
(e)

Witnesses may be shown such documents to the extent that it is necessary for the

preparation of their testimony; however, in no event shall witnesses be provided a copy
of such material if such person is only entitled access to such documents pursuant to this
subparagraph;
(f)

Agents and employees of the Department of Justice, and Internal Revenue Service

who are involved in investigation of the allegations contained in the pleadings, and/or
preparation for trial; and
(g)

Any other person, entity, or firm with the prior written consent of the person

whose tax information is being disclosed.
4.

Each person to whom such tax information will be disseminated (other than the

Court, the jury, court personnel, court reporters, and employees of the Department of Justice and
employees of the Internal Revenue Service) will be required, prior to any such dissemination, to
receive and read a copy of this PROTECTIVE ORDER.
5.

Within thirty (30) days of the close of this litigation for any reason, counsel for each

party shall retrieve all copies of tax materials from experts or other persons to whom he, she or it has
provided such materials consistent with this Order, and shall do one of the following: (1) return to
the producing party all such materials, including all copies thereof, produced by such party during
the action or (2) certify in writing to counsel for all parties that all such materials produced by such
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other party during this action have been destroyed. Destruction shall be at least to the security level
of a cross cut shredding machine. All tax information which has been placed in any computer data
bank shall be completely erased, and any documents listing or summarizing such information shall
be destroyed within the same period. “Close of this litigation” shall be considered to have occurred
when a judgment or final order determining all issues of the case has been entered, and the time to
appeal or otherwise contest such judgment or order has expired.
6.

Nothing herein contained shall be construed to preclude or limit any party from

opposing any discovery on any ground that would not otherwise be available. Entry of this Order
shall not, in and of itself, prejudice any contention of any party upon any motion, nor shall this Order
and any consent hereto constitute a waiver of any right to seek relief from the Court from any and
all of the provisions hereof or other modifications of the terms hereof. This Order shall not limit any
party's right to seek judicial review or to seek further and additional protection against or limitation
upon production or dissemination of information and documents or their contents.
7.

Nothing herein shall be construed to preclude or limit the presence of any individual

at any hearing or the trial of this action.
8.

The parties, their attorneys, their agents and their employees by complying with this

Order hereby are relieved of any penalties to which they would otherwise be subjected pursuant to
laws pertaining to confidentiality of the tax material which is the subject of this Order.
IT IS SO ORDERED this 17th day of April, 2012.

/s/P. K. Holmes, III
P.K. HOLMES, III
CHIEF U.S. DISTRICT JUDGE

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