DS9 Document EFTA01071371

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 IN THE SEVENTEENTH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA CIVIL DIVISION CASE NO: CACE 15-000072 BRADLEY J. EDWARDS and PAUL G. CASSELL, Plaintiff/ Counterclaim Defendants, VS. ALAN M. DERSHOWITZ, Defendant/Counterclaim Plaintiff. HEARING BEFORE THE HONORABLE THOMAS M. LYNCH, IV Thursday, October 22, 2015 9:05 a.m. - 9:15 a.m. 201 Southeast 6th Street Courtroom 950 Fort Lauderdale, Florida 33301 Theresa Tomaselli, RMR ESQUIRE DEPOSITION SOLUTIONS EFTA01071371 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 APPEARANCES OF COUNSEL On behalf of the Plaintiffs: SEARCY. DENNEY, SCAROLA. BARNHART & SHIPLEY. P.A. BY: JOHN (JACK) SCAROLA, ESQUIRE 2139 Palm each Lakes Boulevard West Palm ida 33409 Tel : Fax: E-mail : On behalf of Jeffrey Epstein: TONJA HADDAD, P.A. BY: TONJA HADDAD COLEMAN, ESQUIRE 315 Southeast 7th Street Suite 301 Fort Lau rida 33301 Tel : Fax: E-mail: Also Present: THOMAS E. SCOTT, ESQUIRE ESQUIRE DEPOSITION SOLUTIONS EFTA01071372 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S Thereupon, the following proceedings were had: MS. COLEMAN: Good morning, Your Honor. How are you? THE COURT: Hi there. How are you? MS. COLEMAN: Doing well. How are you? THE COURT: All right. We have got a busy day on this case, huh? MS. COLEMAN: Yes, Judge, and I'm a nonparty to this case. This is hopefully the only time you will be hearing from me today. Tonja Haddad Coleman on behalf of nonparty Jeffrey Epstein. MR. SCAROLA: And Jack Scarola, Your Honor, on behalf of the Plaintiffs in this action. THE COURT: Yes. MR. SCAROLA: Good morning, sir. THE COURT: Let me just sign this order and I'll be right with you. Okay. Go right ahead. MS. COLEMAN: Thank you, Judge. My client is a nonparty to this action, Jeffrey Epstein. Jeffrey Epstein is a Defendant in the civil litigation case that is currently pending before the Fourth DCA in which Mr. Edwards is a ESQUIRE DEPOSITION SOLUTIONS EFTA01071373 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Plaintiff. The Court ordered us to mediation. THE COURT: Oh, that one. Okay. Okay. MS. COLEMAN: The Court ordered -- THE COURT: There's a lot of action in this case. That's the one that's up in the Fourth, okay. MS. COLEMAN: Yes, sir. The Court ordered us to attend a mediation regarding the attorney's fees while the appeal was pending, simply because we, being Mr. Epstein, had successfully moved for entitlement to attorney's fees, and the Judge indicated that he wanted us to attend a mediation while the case was up on appeal . Both parties agreed it wasn't really necessary, but the Court wanted us to do it. And, thereafter, Mr. -- THE COURT: While it was up on appeal? MS. COLEMAN: I'm sorry? THE COURT: While it was up on appeal -- MS. COLEMAN: Yes THE COURT: -- the Trial Court ordered mediation? MS. COLEMAN: Yes, sir. MR. SCAROLA: There was pending before the Trial Court, Your Honor, an issue with regard to ESQUIRE DEPOSITION SOLUTIONS EFTA01071374 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 attorney's fees -- THE COURT: Oh, okay. MR. SCAROLA: -- pursuant to a proposal for settlement, so the Court had jurisdiction -- THE COURT: Gotcha. MR. SCAROLA: -- over that issue, although what was ordered was -- THE COURT: That's really none of my business anyway. I was just interested. MR. SCAROLA: Well , that just helps Your Honor to understand that this wasn't an entirely over vires act. MS. COLEMAN: The issue of attorney's fees was the original subject of the mediation, attorney's fees to which the Court had determined my client, Mr. Epstein, was entitled. What the Court -- Mr. Edwards petitioned the Court to compel Mr. Epstein to personally appear at the mediation. The Court granted that motion, and a copy of the order is attached to our complaint -- our motion here to quash. In compliance with that order, Mr. Epstein personally attended the mediation in West Palm Beach. While present at the mediation in the mediation room with his attorneys, Mr. Epstein ESQUIRE DEPOSITION SOLUTIONS EFTA01071375 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 was sitting, prepared to go forward with the mediation, and Mr. Edwards and his counsel and the process server entered the mediation room and attempted to serve Mr. Epstein with a subpoena duces tecum requiring Epstein to appear for the taking of his deposition in West Palm Beach, Florida. The concern with this, first and foremost, of course, is that we are moving to quash because a party -- a person attending court ordered Alternative Dispute Resolution outside of their territorial jurisdiction of their residence is immune, not only while attending that, but for a reasonable time traveling to and traveling from such hearing. There is a case in which this was extended to Alternative Dispute Resolution which is cited in our motion. The second issue regarding this motion to quash, Judge, is that Mr. Epstein is, as Mr. Edwards is well -aware, a legal resident of the United States Virgin Islands. All of the case law is delineated in our motion, but we would submit that we are well within the proper portion of the law from the ESQUIRE DEPOSITION SOLUTIONS EFTA01071376 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Florida Supreme Court, Stokes v. Bell, 441 So. 2d 146, stating that this will proceed on the ground that the due administration of justice requires that a court shall not permit inference -- interference with the progress of a cause pending before it by the service of process in other suits. And, again, Judge, it's very clear Mr. Epstein submit that Stokes, the lower court of personal service was is not a party to this suit. And we it's, you know, proper because in Florida Supreme Court upheld the 's decision to abate service for lack jurisdiction when the party to whom processed was defending himself in an unrelated civil matter in the Florida courthouse. And that Defendant was a resident of the Bahamas. And the Supreme Court held that nonresidents are exempt from service of civil process while they are attending or traveling to or from court proceedings outside the county of their residence as witnesses or suitors. And there's a Fourth DCA case, 1981, to which that court refers which is Cordoba versus Cordoba, 393 So. 2d 589. And just so Your Honor is clear, in Lee versus Stevens of Florida, 578 So. 2d 867, ESQUIRE DEPOSITION SOLUTIONS EFTA01071377 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Florida Second DCA 1991 , the Court extended the immunity to Alternate Dispute Resolution for the same chilling effect that it may have on parties attending Alternate Dispute Resolution. THE COURT: Okay. Thank you. MR. SCAROLA: Your Honor, there is no dispute with regard to what the law is. There is a dispute with regard to the application of that law to these facts, because the problem with the position taken by Mr. Epstein is that he has confused the concepts of domicile and residence. Mr. Epstein is legally domiciled in the U.S. Virgin Islands on his private island. He has residences in New Mexico, Palm Beach, New York, and Paris, and has given sworn testimony, one of the few substantive questions that he has answered, on January 25, 2012, identifying one of his residences as 350 -- excuse me -- 358 El Brillo Way in the town of Palm Beach. Jeffrey Epstein was present in Palm Beach County, in the State of Florida, in a county and state in which he regularly resides, and so he has not been served outside of the area of his residence. He has been served in a county and state ESQUIRE DEPOSITION SOLUTIONS EFTA01071378 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 where he resides and he should be obliged, as a consequence, to respond to the subpoena that was lawfully issued upon him. THE COURT: Anything else? MS. COLEMAN: Yes, Judge. Section 48.194 of the Florida Statutes provides that service of process of nonresidents of Florida outside the state has to be done properly at the place of their regular residence. Just because Mr. Epstein owns a home here does not make him a resident of the State of Florida. THE COURT: But counsel indicates that there's a distinction between domicile and residence in that, at least it's his position that Epstein is domiciled -- might be domiciled in the Virgin Islands, but is a resident of Palm Beach County. MS. COLEMAN: Well , Judge, he's not a resident. Just because he owns a residence there doesn't make him a resident of that state or city. As the Court is well-aware, there's a very specific process that must be determined to determine -- for the Court or anyone to determine whether someone resides in a particular location. ESQUIRE DEPOSITION SOLUTIONS EFTA01071379 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 And under the statutes, Mr. Epstein does not live here. He was here pursuant to a court order to attend a mediation and was served. Mr. Scarola has offered no case law that distinguishes between a domicile and a residence. The statute does not distinguish between a domicile and a residence. It specifically states, "nonresidents of Florida." We have submitted that Mr. Epstein is a legal resident of the United States Virgin Islands. Just because he owns a home here does not make him a resident. I believe there's several statutes in the State of Florida which are applicable to determining whether or not it is someone's residence, much less primary place of residence, as opposed to their domicile. THE COURT: Well, the case you cited in the Bahamian situation, where that individual, I believe, was a permanent resident of the Bahamas, and is it your position that your client, Mr. Epstein, is a permanent resident of the U.S. Virgin Islands? MS. COLEMAN: Yes, Judge, I am. All of his legal documentation shows that as his legal residence. Every pleading, every response to a ESQUIRE DEPOSITION SOLUTIONS EFTA01071380 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 complaint, any legal issue where it's ever been addressed, it has consistently and unequivocally been held that Mr. Epstein is a legal resident of the United States Virgin Islands. And quoting something from 2012, with all due respect, when we are in 2015, offers no more proof of his residence than anything else. MR. SCAROLA: Your Honor, the burden in quashing this subpoena is upon Mr. Epstein to prove that he is a nonresident of Palm Beach County, Florida. He has asserted that he resides in the U.S. Virgin Islands. It is apparent that his domicile is the U.S. Virgin Islands, but he has not offered any proof that he is a nonresident of Florida. And it is on that basis that this motion to quash should be denied. They have failed to carry their burden of proof, particularly when he has sworn previously that one of his residences is Palm Beach, Florida. THE COURT: I'm going to reserve ruling. I want to take a look at this. Let me just check one thing out here before you go. MR. SCAROLA: May I provide the Court with the partial transcript of the deposition? ESQUIRE DEPOSITION SOLUTIONS EFTA01071381 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE COURT: Sure. MR. SCAROLA: Thank you. There you are, sir. THE COURT: Thank you. How about you give me until either tomorrow or Monday; I'll try to get to it tomorrow depending on how things go. MR. SCAROLA: There's no urgency, Your Honor. That's fine. MS. COLEMAN: And, Your Honor, if the Court wishes, I can provide an affidavit that my client recently signed saying that he's a legal resident of the U.S. Virgin Islands, if the Court is so inclined to review it. THE COURT: I don't know. Let me take a look and I'll let you know. MR. SCAROLA: Thank you, sir. MS. COLEMAN: Thank you. THE COURT: Thanks. (Thereupon, at 9:15 a.m. the hearing was concluded.) ESQUIRE DEPOSITION SOLUTIONS EFTA01071382 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CERTIFICATE STATE OF FLORIDA ) COUNTY OF BROWARD ) I, THERESA TOMASELLI, Registered Merit Reporter certify that I was authorized to and did stenographically report the foregoing proceedings and that the transcript is a true record. Dated this 21st day of November, 2015. THERESA TOMASELLI, RPR, RMR ESQUIRE DEPOSITION SOLUTIONS EFTA01071383