Deposition in State Court Case by Federal Agent

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7^th Circuit Court of Appeals

Case Name: St. Vincent Medical Group, Inc. v. DOJ

Case No.: 22-3009

Officials: Scudder, St. Eve, and Kirsch, Circuit Judges.

Focus: Deposition in State Court Case by Federal Agent

Ascension Medical Group sought to depose a DEA agent and a federal prosecutor in a state court case to support its claim that one of its doctors violated his employment agreement by failing to disclose a federal investigation. However, the Department of Justice declined to make the employees available for depositions. Ascension filed a lawsuit to compel their testimony, but the district court ruled in favor of the Department, deeming its refusal reasonable.

The Seventh Circuit upheld the decision. According to 5 U.S.C. 301, federal agencies have established “Touhy regulations” governing the disclosure of information and availability of employees for depositions. The Department of Justice’s Touhy regulations can be found in 28 C.F.R. 16.21. Unless the Department has unreasonably applied its Touhy regulations, a federal court lacks authority to compel its participation in state court discovery. In this case, the Department’s refusal was deemed neither arbitrary nor capricious because it reasonably applied its Touhy regulations to Ascension’s specific request. The court also noted that if the doctor denies being under investigation, Ascension can refer to the DEA proffer letter he signed acknowledging his status as a subject of a federal investigation.

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Affirmed.

Decided 06/22/23

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