EFTA00780307.pdf

Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 1 of 10 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA FORT LAUDERDALE DIVISION WWW flsb.uscourts.Rov IN RE: CASE NO.: 09-34791-RBR ROTHSTEIN ROSENFELDT ADLER, P.A., CHAPTER 11 Debtor. MOTION FOR PROTECTIVE ORDER TO EXCLUDE THE PRODUCTION FROM TRUSTEE STETTIN OF PRIVILEGED DOCUMENTS AND TESTIMONY TO JEFFREY EPSTEIN Movant, L.M., moves this Court pursuant to 11 U.S.C. §105(a), Federal Rules of Bankruptcy Procedure Rule 7026 (which expressly incorporates Fed.R.Civ. P. 26(c)), and L.R. 7026-1 to request that the Court enter a protective order excluding the Trustee's production of any documents to Jeffrey Epstein because all requested documents arc subject to a claim of attorney-client privilege and/or attorney work product, and in support thereof, states as follows: I. Introduction 1. Jeffrey Epstein, through his counsel, seeks to pull the wool over the eyes of this honorable Court. Epstein asks this Court to usurp the properly exercised jurisdiction of the Circuit Court over a subpoena duces tecum issued by the state court in connection with an action pending before the state court. 2. Movant, L.M., respectfully requests that this honorable Court enter a protective order, consistent with the document production methodology already ordered by the Court [D.E. 672), deny Epstein's motion to compel, and prevent the Trustee's production to Epstein of any documents or ESI sought through his state court subpoena since such production consists entirely of documents and ESI which are subject to proper claims of attorney-client communications EFTA00780307  Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 2 of 10 privilege and/or attorney work product. II. Background 3. Movant, L.M. is a party plaintiff in a civil lawsuit' against party defendant Jeffrey Epstein in which she alleges that Epstein sexually exploited, abused, and/or assaulted her when she was a minors. The parties recently reached a confidential settlement of this lawsuit on the eve of trial. 4. Movant's counsel, Brad Edwards was employed by RRA. During this time Attorney Edwards securely and confidentially maintained hard-copies of certain file materials and maintained substantial parts of client case files and investigative files in the Qtask application and other software systems maintained by RRA.2 5. This Court has entered other Orders in this case to preserve the privileges of RRA's former clients. See Order Granting Motion for Protective Order, D.E. 672. 6. Epstein filed a lawsuit against Scott W. Rothstein, L.M.'s counsel Brad Edwards, and L.M. individually.3 Epstein has sought to prove up his meritless claims against Attorney Edwards and L.M., in part, by invoking his Fifth Amendment privilege in deposition in this case seventy-seven times.4 7. On 1)ate, Epstein's counsel had a subpoena duces tecum issued from the Circuit Court in ' L.M. v. Epstein, Case #08-CA-28051, 15m Judicial Circuit in and for Palm Beach County, Florida. Attorney Brad Edwards is plaintiff's counsel in this lawsuit. Epstein was also a party defendant in dozens of other civil lawsuits prosecuted by other woman who allege that Epstein sexually exploited, abused, and/or assaulted them when they were minors. 2 See Motion for Protective Order to Exclude Production of Privileged Documents and Testimony from Qtask, Inc. [D.E. 355]. 3 Epstein v. Rothstein, et aL, Case #09-CA-040800-MBAG, 15th Judicial Circuit in and for Palm Beach County, Florida. 4 Dep. Jeffrey Epstein, Epstein v. Rothstein, et al., March 17, 2010, p. 6 —128. 2 EFTA00780308  Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 3 of 10 Epstein v. Rothstein, a al. seeking production from Trustee Herbert Stettin of Attorney Edwards case files and investigative files which relate to L.M. and his other legitimate clients who possessed bonafide claims or potential claims against Epstein. 8. On Date, L.M., through counsel, filed objections to the subpoena in the Circuit Court. 9. Likewise, 1..M. filed a motion for protective order in the Circuit Court where the subject subpoena had been issued. 10. In addition, the Trustee filed a motion for protective order in the Circuit Court. 11. Thereafter, the Circuit Court entered an agreed order on these motions for protective order protecting privileged and work product materials from production to Epstein. 12. Now, Epstein has come to the Bankruptcy Court to pursue the discovery of privileged and attorney work product materials which the Circuit Court would not allow. See Epstein's Motion to Compel, DE 807. III. Memorandum of Law A. Discovery Issues Related to the State Court Issued Subpoena Arc Not Properly Before the Bankruptcy Court Despite Epstein's stated position to the contrary, neither 28 U.S.C. §§ 152 or 1334 confer jurisdiction on this honorable Court to adjudicate a discovery matter arising purely under state law claims filed in state court which are not before the Bankruptcy Court. Epstein seeks to perform an end run around the Circuit Court's proper exercise of its jurisdiction to adjudicate matters pending before it, including subpoenas issued from that court. Moreover, the honorable Circuit Court has already ruled on a motion for protective order on the subject state court issued subpoena duces tecum. Accordingly, for reasons of comity, this honorable Court should deny Epstein's motion to compel. 3 EFTA00780309  Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 4 of 10 B. The Discovery Sought is Privileged and/or Attorney Work Product and Beyond the Permissible Scope of Discovery Privileges are invoked by the client who possesses the privilege or by the attorney on behalf of the client. i. Scope of Permissible Discovery Rule 26(b) excludes privileged matters from the scope of permissible discovery. Epstein seeks the production of documents from clients' privileged case files and investigative files. These documents are beyond the scope of discovery permitted by Rule 26(b). ii. Protective Orders Rule 26(c) states that a court may protect a party or person from whom discovery is sought, based on "good cause shown:" A party or any person from whom discovery is sought may move for a protective order in the court where the action is pending — or as an alternative on matters relating to a deposition, in the court for the district where the deposition will be taken. The motion must include a certification that the movant has in good faith conferred or attempted to confer with other affected parties in an effort to resolve the dispute without court action. The court may, for good cause, issue an order to protect a party or person from annoyance. embarrassment, oppression, or undue burden or expense, including one or more of the following: (A) forbidding the disclosure or discovery; (B) specifying terms, including time and place, for the disclosure or discovery; (C) prescribing a discovery method other than the one selected by the party seeking discovery; (D) forbidding inquiry into certain matters, or limiting the scope of disclosure or discovery to certain matters; (E) designating the persons who may be present while the discovery is conducted; (F) requiring that a deposition be sealed and opened only on court order; (G) requiring that a trade secret or other confidential research, development, or commercial information not be revealed or be revealed only in a specified way; and 4 EFTA00780310  Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 5 of 10 (H) requiring that the parties simultaneously file specified documents or information in sealed envelopes, to be opened as the court directs. Fed.R.Civ.P. 26(c) Epstein seeks the production from the Trustee of privileged, confidential, and attorney work product materials from the case files and investigative files of L.M. and other clients who possess claims against Epstein. The requested documents, relating to the bona fide cases of clients are not relevant or calculated to lead to the discovery of admissible evidence in the instant bankruptcy action or any adversary proceeding presently before this Court. Therefore, the requested documents are beyond the scope of permissible discovery. The requested materials are it t discoverable under the Florida Rules of Civil Procedure, the Federal Rules of Civil Procedure, the Bankruptcy Rules of Civil Procedure or any other possibly applicable system of rules. Moreover, the document production methodology established by order of this Court was not intended to be a conduit of privileged and work product of RRA's former clients to the clients' litigation adversaries. Epstein's counsel distorts and misrepresents the purpose of the document production methodology by arguing that it was created to facilitate such improper discovery. Epstein's counsel further attempts to skirt the issue ofprivilege by failing to meaningfully identify the nature of the requested materials, other than describing "emails" and documents "other than email?". The materials requested by Epstein, essentially case files, client files, and investigative files arc patently and obviously privileged. Epstein's counsel offers no argument, cognizable under any set of possibly applicable rules, to demonstrate entitlement to these privileged and work product materials. WHEREFORE, based on the foregoing, Epstein is not permitted to obtain production of 5 EFTA00780311  Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 6 of 10 documents and ESI from the Trustee which comprise the privileged, confidential, or attorney work product portions of case files or investigative files, and Movant requests that the Court deny Epstein's motion to compel, grant the foregoing motion for protective order, and enter a protective order excluding the production of any documents or ESI by the Trustee which relate to any cases or matter of L.M. or other clients and granting any other relief the Court deems appropriate to protect the clients ofFarmer Jaffe Weissing. I HEREBY CERTIFY that, pursuant to L.R. 9073-1(D), Movant's counsel has contacted Epstein's counsel in a good faith attempt to resolve the matter without a hearing and I Anther certify that a true and correct copy of the foregoing was served on electronically to the examine; the debtor, the attorney for the debtor, the trustee, all CM/ECF subscribers, and by email or U.S. Mail on those parties listed on the attached service list this 19th day of July, 2010. I HEREBY CERTIFY that I am admitted to the Bar of the United State District Court for the Southern District of Florida and I am in compliance with the additional qualifications to practice in this court set forth in Local Rule 2090-1(A). FARMER, JAFFE, WEISSING, EDWARDS, FISTOS & LEHRMAN, P.L. 425 North Andrews Avenue, Suite 2 Fort Lauderdale, FL 33301 (954)524-2820 Telephone (954)524-2822 Facsimile By: /s/Seth Lehrman Seth Lehrman FI,BN 132896 [email protected] 6 EFTA00780312  Case 09-34791-RBR Doc 818 riled 07/19/10 Page 7 of 10 SERVICE LIST CASE NO.: 09-34791-BEC-RBR Marianella Morales, Esquire (VIA EMAIL) Alison W. Lehr (VIA EMAIL) Authorized Agent For Joining Creditors Assistant United States Attorney Avenida Francisco de Miranda 99 N.E. 4th Street Torre Provincial "A" 7th Floor Piso 8 Miami, Florida 33132 Caracas, Venezuela Phone: (305) 961-9176 Fax: (305) 536-7599 John H. Genovese, Esq. (VIA CM/ECF) [email protected] Robert F. Elgidely, Esq. Theresa M.B. Van Vliet, Esq. Stuart A. Rosenfeldt, Esq. (VIA EMAIL) Genovese Joblove & Battista, PA Rothstein Rosenfeldt Adler, PA Bank Of America Tower at International 401 East Las Olas Boulevard Place Suite 1650 100 S.E. 2nd Street Fort Lauderdale, Florida 33301 Suite 4400 [email protected] Miami, Florida 33131 Phone: (305) 349-2300 Jeffrey R. Sonn, Esq. (VIA EMAIL) Fax (305) 349-2310 Sonn & Erez, PLC Broward Financial Center Kendall Coffey, Esq. (VIA EMAIL) 500 E. Broward Boulevard Coffey Burlington, Suite 1600 Office in the Grove Fort Lauderdale, Florida 33394 Penthouse Phone: (954) 763-4700 2699 South Bayshore Drive Fax (954) 763-1866 Miami, Florida 33133 [email protected] kcoffey®coffeyburlington.com Office of the US Trustee (VIA CM/ECF) Hon. Herbert M. Stettin (VIA EMAIL) 51 Southwest First Avenue One Biscayne Tower Suite 1204 Suite 3700 Miami, Florida 33130 Two South Biscayne Boulevard Miami, Florida 33131 Thomas Tew, Esq. (VIA EMAIL) Lynn Maynard Gollin, Esq. John G. Bianco, Esq. (VIA CM/ECF) Tew-Cardenas, LLP John M. Mulli, Esquire Four Seasons Tower Tripp Scott 15th Floor 110 Southeast Sixth Street 1441 Brickell Avenue Fifteenth Floor Miami, Florida 33131-3407 Fort Lauderdale, Fl. 33301 tt(4)tewlaw.com [email protected] Img®tewlaw.com 7 EFTA00780313  Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 8 of 10 Conrad & Scherer, LLP (VIA EMAIL) United Healthcare 633 South Federal Highway Dept. CH 10151 Fort Lauderdale, FL 33301 Palatine, IL 60055 Tel: 954-462-5500 (Via US Mall) [email protected] [email protected] Special Asst. U.S. Attorney IRS District Counsel Michael D. Seese, Esq. (VIA EMAIL) 1000 S. Pine Island Rd., Ste 340 Hinshaw & Culbertson, LLP Plantation, FL 33324-3906 1 E Broward Blvd Ste 1010 (Via U.S. Mail) Ft Lauderdale, Florida 33301 Tel: 954.4677900 The Honorable Eric H. Holder, Jr. Fax: 954.4671024 Attorney General of the U.S. [email protected] 950 Pennsylvania Avenue, NW Room 4400 Washington, DC 20530-0001 Internal Revenue Service (Via U.S. Mail) Centralized Insolvency Operations P.O. Box 21126 Honorable Jeffrey H. Sloman, Philadelphia, PA 19114 Acting U.S. Attorney (Via U.S. Mail) 99 NE 4th Street Miami, Fl 33132 Internal Revenue Service (Via U.S. Mall) Special Procedures - Insolvency 7850 SW 6th Court Daniel Mink Plantation, FL 33324 Ovadia Levy Tel.: (954) 423-7300 c/o Renato Watches, Inc Fax.: (305) 982-5406 14051 NW 14th Street (Via U.S. Mail) Sunrise, Florida 33323 (Via U.S. Mail) Special Asst. U.S. Attorney P.O. Box 9, Stop 8000 William George Salim, Jr. (VIA CM/ECF) 51 SW 1st Avenue, #1114 Moskowitz Mandell & Salim Miami, Fl 33130 800 Corporate Dr Ste 510 Fax: (305) 530-7139 Fort Lauderdale, Florida 33334 (Via U.S. Mail) [email protected] Tel: 954.491-2000 Grant J. Smith, Esq. (VIA EMAIL) Fax: 954.4912051 Rothstein Rosenfeldt Adler, P.A. 401 East Las Olas Blvd USI (VIA EMAIL) Suite 1650 Attn: Anthony Gruppo Fort Lauderdale, FL 33301 200 West Cypress Creek Road [email protected] Suite 500 Fort Lauderdale, FL 33309 Tel: 954-607-4000 [email protected], 8 EFTA00780314  Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 9 of 10 Fort Lauderdale, FL 33301 Marc Nurik, Esq. (VIA EMAIL) Tel: (954) 462-1431 Rothstein Rosenfeldt Adler, PA. Fax: (954) 763-2692 401 East Las Olas Blvd [email protected] Suite 1650 Fort Lauderdale, FL 33301 Arthur C. Neiwirth, Esq. (VIA CM/ECF) mnurikQi0,rra-law.com One E. Broward Blvd., Suite 1400 Ft. Lauderdale, FL 33301 BAST AMRON LLP (VIA CM/ECF) Tel: (954)523-7008 SunTnsst International Center Fax: (954) 523-7009 One Southeast Third Avenue aneiwirtb(giqpwblaw.com Suite 1440 Miami, Florida 33131 The Florida Bar (VIA EMAIL) Telephone: (305) 379-7904 Adria E. Quintela, Esq. Facsimile: (305) 379-7905 Alan Anthony Pascal, Esq. [email protected] Lake Shore Plaza II [email protected] 1300 Concord Terrace, Suite 130 Sunrise, FL 33323 Mark Bloom, Esq. (VIA EMAIL) aquintel®flabar.org Greenberg Traurig, LLP apase.al®flabar.org 1221 Brickell Avenue Miami, FL 33131 Micheal w. Moskowitz, Esq. (WA E- T 305.579.0500 MAIL) F 305.579.0717 800 Corporate Drive, Suite 500 [email protected] Ft. Lauderdale, FL 33234 [email protected] Robert D. Critton, Esq. (VIA EMAIL) Burman, Critton, Luther & Coleman Francis L Carter, Esq. (VIA E-MAIL) 303 Banyan Blvd., Suite 400 Katz Barron Squitero Faust West Palm Beach, FL 33401 2699 S. Bayshore Drive, 7th Floor [email protected] Miami, Florida 33133 Tel: 305-856-2444 Roth & Scholl (VIA EMAIL) Fax: 305-285-9227 Ann: Jeffrey C. Roth, Esq. [email protected] Attorneys For Creditor Blue Capital Us East Coast Properties, L.P. Bradley S. Shraiberg, Esq. (VIA EMAIL) 866 South Dixie Highway 2385 NW Executive Drive Coral Gables, Fl 33146 Suite 300 Telephone: (305) 662-4141 Boca Raton, Florida 33431 [email protected] Tel: 561-443-0800 Fax: 561-998-0047 Rogers, Morris & Ziegler, LLP (VIA [email protected] EMAIL) 1401 East Broward Blvd Suite 300 9 EFTA00780315  Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 10 of 10 Ira Sochet, Trustee (VIA EMAIL) Henry S. Wulf, Esq. (VIA EMAIL) Revocable Intervivos Trust of Ira Sochet CARLTON FIELDS, P.A. do Phil Hudson, Esq. 525 Okeechobee Blvd., Suite 1200 200 South Biscayne Blvd, Suite 3600 West Palm Beach, Florida 33401 Miami, Florida 33130 Telephone: (561) 659-7070 Telephone: (305) 374-3330 Facsimile: (561) 659-7368 Facsimile: (305) 374-4744 E-Mail: [email protected] E-Mail: [email protected] EMESS Capital, LLC (VIA EMAIL) Coquina Investments (VIA EMAIL) do Bruce A. Katzen, Esq. do Patricia A. Redmond, Esq. 201 S. Biscayne Blvd., 17th Floor 150 West Flagler Street, Suite 2200 Miami, Florida 33131 Miami, Florida 33130 Telephone: (305) 379-9000 Telephone: (305) 789-3553 Facsimile: (305) 379-3428 Facsimile: (305) 789-3395 E-Mail: [email protected] E-Mail: [email protected] Ronald Neiwirth, Esq. (VIA EMAIL) Joseph L. Ackerman, Jr., Esq. Fowler White & Burnett, P.A. 777 S. Flagler Dr. ,Ste 901 W. Palm Beach, FL 334016170 Email: [email protected] meiwirthAfowler-white.corn 10 EFTA00780316