Stanly doesn't have to give documents to Alcoa

By Karissa Minn

kminn@salisburypost.com

ALBEMARLE — Stanly County is not required to release certain documents requested by Alcoa Power Generating Inc., a judge ruled Thurdsay.

In Stanly County Superior Court, Judge W. Erwin Spainhour said the records fall under the county's attorney/client privilege.

Alcoa sued the county for the records in March under the Public Records Act, and it took depositions in May from four Stanly County officials.

Those depositions revealed the existence of what Alcoa calls "secret meetings," where it says county officials and other citizens discussed the relicensing of the Yadkin Hydroelectric Project. Stanly County says the Monday meetings involved a minority of commissioners and a few citizens.

Stanly County filed a motion in October for a protective order to prevent the release of records it saw as protected.

Mike Taylor, attorney for Stanly County, said the county has been steadily producing the records, a process that has taken some time because of their sheer volume.

"We have reviewed 254,000 documents totaling nearly 1 million pages," Taylor said. "We produced more than 20,000 documents with nearly 140,000 pages. We're not holding any secret documents. We have contended those are privileged."

Hugh Stevens, the attorney representing Alcoa, said that the company is concerned not only with the pace and quantity of the release, but also with the extent of redactions in the released documents.

Especially of interest to Alcoa were communications to and from Roger Dick, CEO of Uwharrie Capital Corp., who was present at a number of the Monday meetings.

The county argued that communications with Dick fall under attorney/client privilege for two reasons. First, Taylor said, the banker and the county had a mutual legal interest regarding the Yadkin Hydroelectric Project. The outcome of the relicensing struggle would impact the finances of the bank and thus the county.

Because the redacted discussions also involved ongoing federal and state legal proceedings, the county said such records should be protected.

Stevens said Dick has no mutual interest in the county's legal issues that any other resident of Stanly County does not share as well.

"He would not be more directly affected by the outcome than anybody else in the county," Stevens said. "The fact that he has a business interest does not give rise to a legal interest."

Stanly County also argued that Dick was acting as an agent of the county. He provided financial advice and analysis, Taylor said, on which the county's attorneys relied.

Stevens said Dick was not an agent of the county, because he did not provide vital analysis as an expert. Taylor replied that Dick's economic analysis had been used in legal consultations, but the banker's name was not included on the document provided to the court.

Spainhour decided not to rule on whether the banker was acting as an agent of the county.

"As to the very interesting question of the common interest rule, the best reasonable minds can differ... as to the applicability of that rule," Spainhour said. "I think that no matter which way I rule, it's going to be a tough call."

The judge ruled that the specified communications among Dick, the county and county attorneys were privileged records exempted from the Public Records Act.