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Deere Fights Deposition 05/09 12:53
Deere Moves to Protect Chief Financial Officer From Testifying in
Right-to-Repair Case
Attorneys for John Deere have asked a federal court to issue a protective
order preventing the company's chief financial officer from testifying in an
ongoing right-to-repair lawsuit.
Todd Neeley
DTN Environmental Editor
LINCOLN, Neb. (DTN) -- Farmers suing John Deere alleging anti-trust
violations in limiting repairs on equipment want to depose the company's Chief
Financial Officer Joshua Jepsen, prompting Deere this week to request a
protective order to prevent that from happening.
A group of farmers from across the country sued John Deere, alleging the
company monopolizes the repair service market for the Deere brand agricultural
equipment with onboard central computers known as electronic control units, or
ECUs.
Attorneys for the farmers served a notice of deposition to Jepsen on July
25, 2024, according to court documents filed in the U.S. District Court for the
Northern District of Illinois. On July 31, 2024, Deere responded that Jepsen's
deposition would be "inappropriate, burdensome and contrary to precedent" that
limits what courts call apex witness depositions.
The apex doctrine is a legal principle that shields high-level executives
from being examined under oath, unless a party seeking a deposition
demonstrates the executive has unique knowledge and other less intrusive
methods of discovery have been exhausted. The doctrine recognizes that deposing
executives can be burdensome and disruptive to a company's operation.
In particular, the plaintiffs make the case they are entitled to Jepsen's
deposition based on Deere's 2023 annual report.
"Plaintiffs focused on the unremarkable statement that 'regulations and
legislation regarding right to repair,' among 12 other potential uncertainties
like weather conditions and political concerns, could potentially impact John
Deere's results," Deere said in its request for a protective order filed on
Thursday.
"Plaintiffs then pointed to a 192-page presentation that was an exhibit in
Mr. Caldwell's (Denver, now Deere vice president of global aftermarket and
customer support) deposition, which contains no mention of financial analyses
related to 'right to repair' legislation. Plaintiffs claimed several statements
in the presentation 'undermine' John Deere's position in this lawsuit. Even if
that were true, plaintiffs provided no explanation as to how that entitled them
to a deposition of an apex witness like Mr. Jepsen."
John Deere did not respond to DTN's request for comment.
Deere attorneys told the court the company already has provided four
witnesses to testify on the topics the plaintiffs want to explore, which
include whether Deere officials have conducted financial analyses on the
effects on the company's bottom line of right-to-repair legislation and
regulations.
In previous depositions, other Deere officials have testified that the
company had not "conducted internal projections of its financial performance
and/or profitability" related to right-to-repair, Deere said in the request for
a protective order.
"With fact discovery closing in less than 15 days, requiring a deposition of
Mr. Jepsen, John Deere's senior vice president and chief financial officer, on
such short notice would unduly encroach on his responsibilities which do not
relate to the any of the claims or defenses in this litigation," Deere said in
the court filing.
"Additionally, as the end of second quarter of the fiscal year is
approaching, forcing Mr. Jepsen to sit for a deposition would be extremely
disruptive to John Deere's business because Mr. Jepsen and his team are
preparing an earnings report, with financial results set to be announced on May
15, 2025, as well as preparing for several meetings with the board of directors
and Mr. Jepsen's fellow executive staff the following week."
The court has given the plaintiffs until May 19 to respond to the motion.
In addition, a lawsuit filed by the Biden administration just five days
before President Joe Biden left office continues to churn on in the same court
where pretrial discovery is ongoing.
That lawsuit filed in January by the Federal Trade Commission and attorneys
general in Minnesota and Illinois seeks to stop what the FTC said is
"anticompetitive conduct" on the part of John Deere.
The lawsuit asks the court to order Deere to make available to owners of
Deere large tractors and combines, as well as independent repair shops, access
to its "fully functional Service ADVISOR repair tool and any other repair
resources available to authorized dealers."
That lawsuit has since been joined by attorneys general in Arizona and
Wisconsin. Read about that case here:
https://www.dtnpf.com/agriculture/web/ag/equipment/article/2025/01/15/two-states
-join-ftc-federal-lawsuit.
Read more on DTN:
"Deere Right-to-Repair Lawsuits Grow,"
https://www.dtnpf.com/agriculture/web/ag/news/equipment/article/2022/03/02/john-
deere-faces-growing-list-right
"Ag Groups Ask FTC to Investigate Deere,"
https://www.dtnpf.com/agriculture/web/ag/equipment/article/2022/03/03/farmers-un
ions-press-federal-trade
"Deere Repair Investigation Confirmed,"
https://www.dtnpf.com/agriculture/web/ag/news/equipment/article/2024/10/18/feder
al-trade-commission-deere-right
Todd Neeley can be reached at todd.neeley@dtn.com
Follow him on social platform X @DTNeeley
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