EFTA01114359.pdf

IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT OF FLORIDA IN AND FOR PALM BEACH COUNTY CIVIL DIVISION CASE NO.: 502009CA040800 AG JEFFREY EPSTEIN, Plaintiff(s), vs. SCOTT ROTHSTEIN, etc., et al., Defendant(s). ORDER ON COUNTER-DEFENDANT'S MOTION FOR PROTECTIVE ORDER THIS CAUSE came before the Court upon the Counter-Defendant's Motion for Protective Order, and the Court having heard argument of counsel and being otherwise fully advised in the premises, it is hereby CONSIDERED, ORDERED AND ADJUDGED that the Motion is denied. However, any documents or information produced in response to the discovery shall be produced under a confidentiality order. The confidentiality order shall provide that the documents will not be filed in the public record without further order of court, will not be disclosed to third parties to this litigation (except experts who agree to be bound by the terms of this confidentiality order), shall not be published or disseminated to any third parties, and shall not be utilized in any other proceeding other than the current litigation. Furthermore, any documents produced shall be returned to the Counter-Defendant at the conclusion of this litigation. If the parties cannot agree on the form and content of the confidentiality order, they should schedule a herring before the Court. 112_ DONE AND ORDERED this 'day of January, 2013 est Palm Beach, Palm Beach County, Florida. DAVID F. CIRCUIT COURT JUDGE Copy furnished: See attached list. EFTA01114359  IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA CASE NO.: 502009CA040800XXXXMBAG JEFFREY EPSTEIN, Plaintiff, Pr VS. SCOTT ROTHSTEIN, individually, BRADLEY J. EDWARDS, individually, and L.M., individually, Defendants. TRANSCRIPT OF HEARING PROCEEDINGS DATE TAKEN: January 28, 2013 TIME: 8:45 a.m. PLACE: Palm Beach County Courthouse 205 North Dixie Highway West Palm Beach, Florida BEFORE: DAVID F. CROW, Circuit Judge This cause came on to be heard at the time anc place aforesaid, when and where the following proceedings were stenographically reported by: Tamara A. Jenkins, RMR, CRR, CLR, FPR PHIPPS REPORTING, INC. 1615 Forum Place, Suite 500 West Palm Beach, FL 33401 www.PhippsRer 71.g.com www.phippsreporting.com EFTA01114360  APPEARANCES: On behalf of Plaintiff: TONJA HADDAD, P.A. 315 SE 17th Street 4 Suite 301 Ft Lameterriale, FL 333O1 BY: TONJA HADDAD COLEMAN, ESQ. On behalf of Defendant Edwards: SEARCY DENNEY SCAROLA BARNHART & SHIPLEY, PA 2139 Palm Beach Lakes Blvd P.O. Drawer 3626 West Palm Beach, FL 33402-3626 11 BY: JACK SCAROLA, ESQ. 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 www.phIppsreporting.com EFTA01114361  3 1 The following proceedings began at 8:52 a.m.: 2 THE CLERK: Epstein versus Rothstein. 3 THE COURT: Good morning. Let me just ask 4 before we start, I saw some notice of appeal 5 come across my desk. I didn't look at what it 6 was. 7 Do I still have jurisdiction? 8 MR. SCAROLA: Yes, sir, you do. 9 MS. HADDAD: Yes, Your Honor. 10 MR. SCAROLA: There's a petition for writ. 11 THE COURT: Sorry. Whatever it is it 12 doesn't matter. 13 MR. SCAROLA: Yes. Thank you. 14 THE COURT: What have we got here? 15 MS. HADDAD: Judge, Tonja Haddad on behalf 16 of Jeffrey Epstein. We have filed a motion for 17 protective order with respect to the net worth 18 discovery submission that Mr. Edwards served 19 upon my client. I'm not sure if this can be 20 done on your uniform motion calendar, but if we 21 can use the ten minutes we are willing to try. 22 THE COURT: Let me back up to get my head 23 straight again.. Did I allow the punitive 24 damage claim? 25 MS. HADDAD: What happened, Judge, on www.phippereporting.com EFTA01114362  4 December 18th you entered an order granting Mr. Edwards' second amended claim and punitive damages, which is the subject of the writ that's up for the Fourth. 5 THE COURT: Okay. 6 MS. HADDAD: They've not exercised their 7 decision yet with respect to whether or nc• 8 they will take it. 9 On December 21st Mr. Edwards had not yet 10 filed his amended complaint but served his 11 financial net worth discovery upon Mr. Epstei 12 Thereafter, we filed this motion for 13 protective order and incorporated the 14 memorandum of law which is quite voluminous, 15 which we did get. 16 THE COURT: The basis for your motion for 17 protective order is what? 18 MS. HADDAD: There are three reasons, 19 Judge. Firs and foremost 20 THE COURT: List them for me 21 simplistically. 22 MS. HADDAD: Very simple. First and 23 foremost is the fact that there are so many 24 collateral litigations between these parties, 25 and the fact that Mr. Edwards continues www.phippsreporting.com EFTA01114363  5 1 trolling for clients for whom he can sue on 2 behalf of them Mr. Epstein. 3 And currently pending in Federal court, as 4 everyone talks about as soon as we come in, is 5 a case where Mr. Edwards is seeking a lawsuit 6 against the United States Government to 7 overturn a nonprosecution agreement, which was 8 the underlying issue and the basis where the 9 civil suits that Mr. Edwards brought against 10 Mr. Epstein on behalf of his clients. 11 The first reason that we are seeking a 12 protective order is because of the fact that 13 Mr. Edwards is still actively on his firm website, on his firm's Facebook page 15 everything has been provided to Your Honor and 16 printed out -- is actively seeking potential 17 plaintiffs on his behalf that he can sue 18 Mr. Epstein. We feel this information could be 19 used in that case. 20 In the case of collateral litigation is 21 very serious. We provided the court with case 22 law right on point and coming out of the Fourth 23 DCA where there are special situations such as 24 this. 25 Second reason is the history that www.phippsreporting.com EFTA01114364  6 1 Mr. Edwards has of using documents or discovery 2 found in one case involving these two parties 3 in other cases. We've also provided that 4 information to the court both in our motion and 5 as exhibits attached to our motion. 6 The third reason is the systematic pattern 7 in the discovery between these two parties 8 which granted. In the short time I've been in 9 this case I've seen it first hand. Documents I 10 have drafted and given to Mr. Edwards' counsel 11 have somehow become attached as exhibits in 12 other litigation between the parties and used. 13 So there is an absolute pattern of using these 14 documents for inappropriate reasons. 15 And the fourth reason is that in 16 litigation between these two parties 17 Mr. Edwards has already disregarded procedural 18 safeguards that have been put in place by the 19 court -- not you, but in collateral litigation. 20 There were agreements or stipulations not to 21 use information for other purposes or to 22 preclude the information from being leaked to 23 the press. And leaking to the press is the 24 most important of the arguments that we're 25 putting forth to the court today. www.phippsreporting.com EFTA01114365  7 1 Mr. Edwards has a systematic pattern of 2 not only using information with respect to 3 Mr. Epstein on his firm website, on his firm 4 Facebook, but also as this court remembers, it 5 is the 171 entry privileged log, the 6 communications with the press are unbelievable. 7 When Mr. Epstein was deposed by Mr. Edwards in 8 a videotaped deposition, that videotaped 9 deposition was leaked to the press. 10 Mr. Epstein's -- 11 THE COURT: There's been no order of this 12 court limiting contact by the press, somehow 13 preventing the press from -- or from anybody 14 talking to the press, is there? 15 MS. HADDAD: It was not in this case, 16 Judge. 17 THE COURT: I'm talking about in this 18 case. There's been no such order. 19 MS. HADDAD: Right. 20 THE COURT: Okay. 21 MS. HADDAD: Our concern is this. 22 We've -- as a:: aside, as a nonlegal argument 23 here we've tried to speak with counsel for 24 Mr. Edwards and offer some less intrusive 25 means. You can see by my client's affidavit i. www.phippsreporting.com EFTA01114366  1 8 1 is willing to stipulate to his net worth. We 2 offered to turn documents over to an 3 independent third party to verify his net 4 worth. Or if the court is willing to consider 5 alternatively, perhaps we can put the documents 6 before you in an in camera review for you to be 7 satisfied of his net worth. But the -- 8 THE COURT: That's the least favorable of 9 the things that I would like to do, but I'll do 10 whatever is necessary. I understand. 11 MS. HADDAD: Our concern basically is that 12 the systematic pattern of embarrassment or 13 harassment and oppressive nature that's gone on 14 with respect to these parties with respect to 15 discovery, turning over such personal 16 information that could be used in active 17 litigation in other cases that are occurring at 18 this time, as well as collateral litigation is 19 most concerning. 20 And just briefly, you can read this, I 21 will point the court to a case upon which we 22 rely. 23 THE COURT: Just give me the name of the 24 case. 25 MS. HADDAD: Certainly. The name of the www.phippsreporting.com EFTA01114367  9 1 case is Thomas John Woodward also known as Tom 2 Jones, the singer, versus Berkery. The 3 citation is -- wow -- 4 THE COURT: Is this in your memorandum? 5 MS. HADDAD: It is. 714 So.2d 1027. And 6 the court -- the Fourth District Court of 7 Appeal -- 8 THE COURT: I can read the case. I really 9 need to -- you know, I have a whole courtroom 10 of people. I'm not going to go off the top of 11 my head. I can read your memorandum and read 12 the cases. I understand your position. 13 MS. HADDAD: Okay. We would just say due 14 to the unique nature of this case and the 15 salacious and sensational facts as presented to 16 the press throughout this case and allegation 17 of other famous parties being involved, we feel 18 that this discovery could be embarrassing and 19 harassing, and that the protective order should 20 be granted. 21 And we alternatively have tried to and are 22 willing to submit to nonintrusive means through 23 which this information could be provided to 24 Mr. Edwards. 25 THE COURT: Yes, sir. www.phippsreporting.com EFTA01114368  10 1 MR. SCAROLA: The Tom Jones case is a case 2 in which the Fourth DCA ruled, "The discovery 3 of financial worth information that is not 4 material to any issue reasonably likely to be 5 contested and sought primarily to embarrass, 6 and which included irrelevant details, was 7 inappropriate." 8 And the appellate Court said that a 9 confidentiality order ought to have been 10 issued. 11 We have agreed that we will keep 12 information regarding Mr. Epstein's finances 13 confidential. We have offered to enter into a 14 confidentiality order which restricts the use 15 of this information to this litigation. 16 Your Honor has appropriately granted our 17 motion to assert a claim for punitive damages. 18 The privacy protection that is afforded under :9 the statute has been complied with in this 20 case. 21 This is information that we are entitled 22 to. We are not obliged, respectfully, to rely 23 upon the Court's assessment of the accuracy or 74 completeness of the information provided nor to 25 rely upon some "independent third party." This www.phippsreporting.com EFTA01114369  11 1 is information that we are entitled to have and 2 we are entitled to assess. 3 There have been all sorts of vague 4 allegations made about misconduct of a variety 5 of natures that have been allegedly engaged in 6 by Mr. Edwards in the past. They have nothing 7 whatso -- first of all, those representations 8 will tell Your Honor are not accurate. We 9 contest them. We do not concede them. 10 As counsel has acknowledged these are 11 matters that apparently occurred in some other 12 case, not in this case. They could and should 13 have been addressed in the context of those 14 claims. And as far as I know, Mr. Edwards ha: 15 never been found to have engaged in any 16 misconduct in the vigorous prosecution of his claims against Mr. Epstein. 18 This is simply an effort to try to delay 19 the discovery that we are entitled to having 20 satisfied the statutory obligations to assert 21 claim for punitive damages, and this motion 22 should be denied. 23 Thank you very much, Your Honor. 24 THE COURT: Briefly, ma'am. 25 MS. HADDAD: Judge, I would just with www.phippsreporting.com EFTA01114370  12 1 respect to what Mr. Scarola just said regarding 2 Mr. Edwards' conduct, all of the pertinent 3 information proving that the previous entered 4 court orders, which again arguably were not by 5 this court, but it was -- it's all very 6 specifically spelled out -- include the proper 7 documentation to back up what we've alleged. 8 THE COURT: Well, it seems to me that, you 9 know -- I mean, he's entitled or at least the 10 defendant is entitled under my ruling, unless 11 the Fourth overrules me, to the financial 12 information. And it would seem the proper 13 procedure would be to limit the access or 14 dissemination of the information to anybody 15 other than the parties to this lawsuit, and it 16 can't be used for any other purposes. And if 17 they do violate that order, there are sanctions 18 available through this Court to do it. 19 But how can I not give him information 20 that he's entitled to have? 21 MS. HADDAD: Because of the unique 22 situation and circumstances. If you look at 23 the cases that are cited -- 24 THE COURT: I can control this litigation. 25 Can't I enter orders in this case that says www.phippsreporting.com EFTA01114371  13 1 that if do you this you're going to be in 2 contempt of court? I can either do all kinds 3 of things that are really nasty, especially to 4 a lawyer. I hold a lawyer in contempt of 5 court, he is going to be in front of the bar. 6 MS. HADDAD: Yes. But this type of 7 cat-out-of-the-bag discovery, as it's 8 referenced by the Florida Supreme Court, is not 9 something that can be adequately remedied on 10 appeal or anything else if this is violated. 11 The financial information would already be out 12 there. And based upon the -- 13 THE COURT: First of all, I see no case 14 law that says that once a matter becomes 15 relevant it's a matter of relevance. I mean, 16 it's public record once I determine punitive 17 damage -- he is entitled to punitive damages or 18 at least complete with damages. The discovery 19 is a matter of public record, is it snot? 20 MS. HADDAD: I -- 21 THE COURT: No matter whether you have a 22 hundred dollar net worth or 10 billion net 23 worth. I mean -- I mean, there's nothing in 24 the law that says -- as I understand the 25 constitution and the statute, it says these are www.phippsreporting.com EFTA01114372  14 1 private and privileged and confidential 2 information protected by the right of privacy. 3 But once there's a punitive damage claim that 4 right of privacy goes out the window, doesn't 5 it? 6 MS. HADDAD: In essence, yes, Judge. But 7 there's other case law that's ferreted out that 8 constitutional right of privacy, that it's out 9 the window, and has permitted the courts to 10 assess on a case-by-case basis whether or not :1 some or all of those constitutional rights 12 should remain intact. 13 THE COURT: In other words, I should 14 restrict access to it? 15 MS. HADDAD: There is case law supporting 1.6 our position, yes, Judge, there is. :7 THE COURT: Okay. I'm going to have to 18 read the cases because this is a little unique. 19 I've never had this come up before on punitive 20 damages. I'll take a look at it and get you an 21 order out in the next couple of days. 22 MR. SCAROLA: In the order that the Court 23 enters -- assuming that we are going to be 24 permitted to discovery, the discovery is 25 already past due. I would ask Your Honor to www.phippsreporting.com EFTA01114373  include a time frame for response. THE COURT: I will. Thank you. 5 MR. SCAROLA: Thank you very much. (Proceedings concluded at 9:10 a.m.) 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 www.phippsreporting.com EFTA01114374  16 1 COURT CERTIFICATE 2 3 4 STATE OF FLORIDA 5 COUNTY OF PALM BEACH 6 7 I, TAMARA A. JENKINS, RMR, CRR, CLR, FPR, 8 certify that I was authorized to and did 9 stenographically report the foregoing 10 proceedings; and that the transcript, pages 1 11 through 16, is a true and complete record of my 12 stenographic notes. 13 14 Dated this 29 day of January, 2013. 15 16 17 'MARA A. JENK: M , ORR, CLR, FPR 18 19 20 21 22 23 24 25 www.phippsreporting.com EFTA01114375