John Z. v. Superior Court

The Contra Costa Superior Court has ordered disclosure of the identity of a “whistle-blower,” identified here only as “informant,” who advised Pacific Gas and Electric Company (PG&E) of alleged fraud by people paid by PG&E for services (contractors). The question before us is whether the contractors who are seeking disclosure made a sufficient showing of need to overcome informant’s showing of danger from disclosure. We conclude that the court abused its discretion in ordering disclosure.

PG&E’s power plants on the Sacramento and San Joaquin Rivers discharge particulate matter which can stain boat and vehicle finishes. Because of this, PG&E contracted with various local businesses to clean boats and vehicles and to make covers for them. According to PG&E, it learned from informant that some of the contractors were being paid for services not rendered. Informant had no direct proof, but PG&E conducted an investigation which confirmed informant’s tip. PG&E’s evidence is wholly independent of the evidence provided by informant.

PG&E filed an action against contractors seeking damages for alleged fraud. During deposition of PG&E employee Douglas G. Keeler, contractors…