Case 09-34791-RBR

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: ROTHSTEIN ROSENFELDT ADLER, P.A., Debtor. CASE NO.: 09-34791-RBR CHAPTER 11 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 bona fide 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 of privilege 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 of Farmer 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) Authorized Agent For Joining Creditors Avenida Francisco de Miranda Torre Provincial "A" Piso 8 Caracas, Venezuela John H. Genovese, Esq. (VIA CM/ECF) Robert F. Elgidely, Esq. Theresa M.B. Van Vliet, Esq. Genovese Joblove & Battista, PA Bank Of America Tower at International Place 100 S.E. 2nd Street Suite 4400 Miami, Florida 33131 Phone: (305) 349-2300 Fax (305) 349-2310 Kendall Coffey, Esq. (VIA EMAIL) Coffey Burlington, Office in the Grove Penthouse 2699 South Bayshore Drive Miami, Florida 33133 kcoffey®coffeyburlington.com Hon. Herbert M. Stettin (VIA EMAIL) One Biscayne Tower Suite 3700 Two South Biscayne Boulevard Miami, Florida 33131 John G. Bianco, Esq. (VIA CM/ECF) John M. Mulli, Esquire Tripp Scott 110 Southeast Sixth Street Fifteenth Floor Fort Lauderdale, Fl. 33301 [email protected] 7 Alison W. Lehr (VIA EMAIL) Assistant United States Attorney 99 N.E. 4th Street 7th Floor Miami, Florida 33132 Phone: (305) 961-9176 Fax: (305) 536-7599 [email protected] Stuart A. Rosenfeldt, Esq. (VIA EMAIL) Rothstein Rosenfeldt Adler, PA 401 East Las Olas Boulevard Suite 1650 Fort Lauderdale, Florida 33301 [email protected] Jeffrey R. Sonn, Esq. (VIA EMAIL) Sonn & Erez, PLC Broward Financial Center 500 E. Broward Boulevard Suite 1600 Fort Lauderdale, Florida 33394 Phone: (954) 763-4700 Fax (954) 763-1866 [email protected] Office of the US Trustee (VIA CM/ECF) 51 Southwest First Avenue Suite 1204 Miami, Florida 33130 Thomas Tew, Esq. (VIA EMAIL) Lynn Maynard Gollin, Esq. Tew-Cardenas, LLP Four Seasons Tower 15th Floor 1441 Brickell Avenue Miami, Florida 33131-3407 tt(4)tewlaw.com Img®tewlaw.com EFTA00780313 Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 8 of 10 Conrad & Scherer, LLP (VIA EMAIL) 633 South Federal Highway Fort Lauderdale, FL 33301 Tel: 954-462-5500 [email protected] [email protected] Michael D. Seese, Esq. (VIA EMAIL) Hinshaw & Culbertson, LLP 1 E Broward Blvd Ste 1010 Ft Lauderdale, Florida 33301 Tel: 954.4677900 Fax: 954.4671024 [email protected] Internal Revenue Service Centralized Insolvency Operations P.O. Box 21126 Philadelphia, PA 19114 (Via U.S. Mail) Internal Revenue Service Special Procedures - Insolvency 7850 SW 6th Court Plantation, FL 33324 Tel.: (954) 423-7300 Fax.: (305) 982-5406 (Via U.S. Mail) Special Asst. U.S. Attorney P.O. Box 9, Stop 8000 51 SW 1st Avenue, #1114 Miami, Fl 33130 Fax: (305) 530-7139 (Via U.S. Mail) Grant J. Smith, Esq. (VIA EMAIL) Rothstein Rosenfeldt Adler, P.A. 401 East Las Olas Blvd Suite 1650 Fort Lauderdale, FL 33301 [email protected] 8 United Healthcare Dept. CH 10151 Palatine, IL 60055 (Via US Mall) Special Asst. U.S. Attorney IRS District Counsel 1000 S. Pine Island Rd., Ste 340 Plantation, FL 33324-3906 (Via U.S. Mail) The Honorable Eric H. Holder, Jr. Attorney General of the U.S. 950 Pennsylvania Avenue, NW Room 4400 Washington, DC 20530-0001 (Via U.S. Mail) Honorable Jeffrey H. Sloman, Acting U.S. Attorney 99 NE 4th Street Miami, Fl 33132 (Via U.S. Mall) Daniel Mink Ovadia Levy c/o Renato Watches, Inc 14051 NW 14th Street Sunrise, Florida 33323 (Via U.S. Mail) William George Salim, Jr. (VIA CM/ECF) Moskowitz Mandell & Salim 800 Corporate Dr Ste 510 Fort Lauderdale, Florida 33334 [email protected] Tel: 954.491-2000 Fax: 954.4912051 USI (VIA EMAIL) Attn: Anthony Gruppo 200 West Cypress Creek Road Suite 500 Fort Lauderdale, FL 33309 Tel: 954-607-4000 [email protected], EFTA00780314 Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 9 of 10 Marc Nurik, Esq. (VIA EMAIL) Rothstein Rosenfeldt Adler, PA. 401 East Las Olas Blvd Suite 1650 Fort Lauderdale, FL 33301 mnurikQi0,rra-law.com BAST AMRON LLP (VIA CM/ECF) SunTnsst International Center One Southeast Third Avenue Suite 1440 Miami, Florida 33131 Telephone: (305) 379-7904 Facsimile: (305) 379-7905 [email protected] [email protected] Mark Bloom, Esq. (VIA EMAIL) Greenberg Traurig, LLP 1221 Brickell Avenue Miami, FL 33131 T 305.579.0500 F 305.579.0717 [email protected] Robert D. Critton, Esq. (VIA EMAIL) Burman, Critton, Luther & Coleman 303 Banyan Blvd., Suite 400 West Palm Beach, FL 33401 [email protected] Roth & Scholl (VIA EMAIL) Ann: Jeffrey C. Roth, Esq. Attorneys For Creditor Blue Capital Us East Coast Properties, L.P. 866 South Dixie Highway Coral Gables, Fl 33146 Telephone: (305) 662-4141 [email protected] Rogers, Morris & Ziegler, LLP (VIA EMAIL) 1401 East Broward Blvd Suite 300 9 Fort Lauderdale, FL 33301 Tel: (954) 462-1431 Fax: (954) 763-2692 [email protected] Arthur C. Neiwirth, Esq. (VIA CM/ECF) One E. Broward Blvd., Suite 1400 Ft. Lauderdale, FL 33301 Tel: (954)523-7008 Fax: (954) 523-7009 aneiwirtb(giqpwblaw.com The Florida Bar (VIA EMAIL) Adria E. Quintela, Esq. Alan Anthony Pascal, Esq. Lake Shore Plaza II 1300 Concord Terrace, Suite 130 Sunrise, FL 33323 aquintel®flabar.org apase.al®flabar.org Micheal w. Moskowitz, Esq. (WA E- MAIL) 800 Corporate Drive, Suite 500 Ft. Lauderdale, FL 33234 [email protected] Francis L Carter, Esq. (VIA E-MAIL) Katz Barron Squitero Faust 2699 S. Bayshore Drive, 7th Floor Miami, Florida 33133 Tel: 305-856-2444 Fax: 305-285-9227 [email protected] Bradley S. Shraiberg, Esq. (VIA EMAIL) 2385 NW Executive Drive Suite 300 Boca Raton, Florida 33431 Tel: 561-443-0800 Fax: 561-998-0047 [email protected] EFTA00780315 Case 09-34791-RBR Doc 818 Filed 07/19/10 Page 10 of 10 Henry S. Wulf, Esq. (VIA EMAIL) CARLTON FIELDS, P.A. 525 Okeechobee Blvd., Suite 1200 West Palm Beach, Florida 33401 Telephone: (561) 659-7070 Facsimile: (561) 659-7368 E-Mail: [email protected] EMESS Capital, LLC (VIA EMAIL) do Bruce A. Katzen, Esq. 201 S. Biscayne Blvd., 17th Floor Miami, Florida 33131 Telephone: (305) 379-9000 Facsimile: (305) 379-3428 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 Ira Sochet, Trustee (VIA EMAIL) Revocable Intervivos Trust of Ira Sochet do Phil Hudson, Esq. 200 South Biscayne Blvd, Suite 3600 Miami, Florida 33130 Telephone: (305) 374-3330 Facsimile: (305) 374-4744 E-Mail: [email protected] Coquina Investments (VIA EMAIL) do Patricia A. Redmond, Esq. 150 West Flagler Street, Suite 2200 Miami, Florida 33130 Telephone: (305) 789-3553 Facsimile: (305) 789-3395 E-Mail: [email protected] EFTA00780316