Richards of Rockford, Inc. v. Pacific Gas & Electric Co.

MEMORANDUM OF OPINION

Plaintiff Richards of Rockford, Inc. (“Richards”) brought this diversity action against defendant Pacific Gas and Electric Company (“PG&E”). In the course of discovery, plaintiff moved to compel a third party to testify and to produce documents concerning certain confidential interviews with employees of PG&E. The issues having been briefed and argued, the Court denied the motion from the bench. While this case was subsequently settled on the *389 eve of trial, the Court felt a written discussion of the reasons for its order would be appropriate because of the importance and novelty of the question presented.

I

Richards brought an action for breach of contract, seeking final payment under an agreement for the design, manufacture and delivery of 135 spray cooling modules for use in PG&E’s Pittsburg, California power plant. PG&E withheld final payment, because the spray cooling modules allegedly did not perform as guaranteed. Richards maintains that the modules met contract specifications, but that the actual weather conditions to which the modules were subjected varied significantly from the design weather conditions specified by PG&E in making the…