California, United States of America
The following excerpt is from Martin v. Superior Court, 110 Cal.App.3d 391, 167 Cal.Rptr. 811 (Cal. App. 1980):
In such circumstances we think the remarks of the court in Richards v. Superior Court, supra, 86 Cal.App.3d at page 271, 150 Cal.Rptr. at page 80, are appropriate:
"Discovery seeking financial information by reason of a claim for punitive damages is one classic instance of the manner in which civil discovery is used to achieve a litigation advantage never contemplated when the methodology was introduced into pretrial procedure. Causes of action for punitive damages have become very easy to allege. (See, e. g., Neal v. Farmers Insurance Exchange (1978) 21 Cal.3d 910 (, 148 Cal.Rptr. 389, 582 P.2d 980) * * *.) [110 Cal.App.3d 395] Response to discovery seeking financial information places a severe burden on the responder. As a minimum, there is the time and expense necessary to the compilation of a complex mass of information unrelated to the substantive claim involved in the lawsuit and relevant only to the subject matter of a measure of damages which may never be awarded. In addition, there is usually the potential that untoward disclosure of the information obtained may in some way or other react adversely against the disclosing party for reasons totally unrelated to the lawsuit. The possibilities run all the way from greater exposure to the not so gentle solicitations of some charitable organizations to the possibility of damage to the discloser in the competitive business arena."
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