IN THE CIRCUIT COURT OF THE

IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT, IN AND FOR PALM BEACH COUNTY, FLORIDA CASE NO. 50-2009-CA-040800-XXXX-MB-AG JEFFREY EPSTEIN, Plaintiff/Counter-Defendant, vs. SCOTT ROTHSTEIN, individually, and BRADLEY J. EDWARDS, individually, Defendants/Counter-Plaintiffs. TRANSCRIPT OF HEARING Volume 1 of 1 Pages 1 - 33 DATE: TIME: PLACE: BEFORE: Monday, June 10, 2013 4 o'clock, p.m. Palm Beach County Courthol. ., 205 North Dixie Highway West Palm Beach, Florida 33401 Honorable David Crow, Circuit Court Judge This cause came on to be heard at the time and place aforesaid. The following proceedings were reported by: Roger Watford, RPR/FPR U.S. Legal Support, Inc. 444 West Railroad Avenue Suite 300 West Palm Beach, Florida 33401 (561) 835-0220 WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103147 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: FOR THE PLAINTIFF/COUNTER-DEFENDANT: LAW OFFICES OF TONJA HADDAD COLEMAN, P.A. 315 Southeast 7th Street Suite 301 Fort Lauderdale, Florida 33301 954-467-1223 BY: TONJA HADDAD COLEMAN, ESQ. FOR THE DEFENDANT/COUNTER-PLAINTIFF: SEARCY, DENNEY, SCAROLA, BARNHART & SHIPLEY, P.A. 2139 Palm Beach Lakes Boulevard West Palm Beach, Florida 33409 561-686-6300 BY: JACK SCAROLA, ESQ. FOR FARMER, JAFFE, WEISSING, EDWARDS, FISTOS & LEHRMAN, P.L.: FARMER, JAFFE, WEISSING, EDWARDS, FISTOS & LEHRMAN, P.L. 425 North Andrews Avenue Suite 2 Fort Lauderdale, Florida 33301 954-524-2820 BY: GARY M. FARMER, JR., ESQ. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103148 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 above-styled cause came on for hearing before the Honorable David Crow, Circuit County Court Judge, at the Palm Beach County Courthouse, 205 North Dixie Highway, West Palm Beach, Florida, on June 10, 2013, commencing at 4 o'clock, p.m., as follows: THE COURT: Okay, this is Epstein versus Rothstein and Bradley Edwards. It's the motion for protective order in regards to the request which has been submitted to Mr. Edwards, and I understand there's a comparable request to the corporate law firm as well, right? MS. COLEMAN: Yes, Your Honor. THE COURT: Did I schedule this for an hour or did you all ask for an hour? MR. SCAROLA: I don't recall. THE COURT: It doesn't appear to be an hour long hearing in my estimation. MR. SCAROLA: I would agree, Your Honor. I don't think that it is. I don't know whether that is as a consequence of our overestimating the time or whether somehow Your Honor decided that it would be an hour. I don't know. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103149 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: Probably I did it because I generally don't give an hour unless, I thought I had looked at it, but after looking at it again this weekend, I didn't think it would take an hour. But, anyway, it's your motion, Mr. Scarola. Is someone here for the law firm as well? MR. SCAROLA: They are scheduled to be here. I was informed earlier today there would be two lawyers from Farmer Jaffe who would be present. I don't see any reason why we can't proceed with my motion, although were they hear to listen to my argument they might- be able to abbreviate theirs by adopting portions of it. THE COURT: I think they are the same issues. Here they are. MR. FARMER: My apologies, Your Honor. We had a hellacious drive from Broward County. My apologies. THE COURT: Okay, good enough Go ahead, sir. I read the motion and I have read the request for production and I hope I am familiar enough with the lawsuit by now. MR. SCAROLA: I suspect you are more WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103150 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 familiar than you would have chosen to be and choose to be. Jack Scarola, on behalf of the counter-plaintiff, Bradley Edwards, Your Honor. This is our motion for protective order. Focusing on the scope of discovery that is being sought with regard to financial information concerning Mr. Edwards and his earnings as an attorney, both personal records, records of the law firm that employs him and in which he is a shareholder, it is based upon what we contend to be an irrelevant effort to invade his financial privacy, the financial privacy of the firm and the privacy of his clients as well. I think that the dispute focuses on a misunderstanding on the part of the counter-defendant of what it is that we are claiming as damages in this matter. I have explained that difference hopefully with some degree of clarity in the written submission that we provided to Your Honor, and knowing that you have read it and recognizing that Your Honor has a substantial background in WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103151 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 this case, I will keep my argument very short and simply make myself available to answer any questions that Your Honor may have. We are not attempting to allege that Bradley Edwards lost any specific fee or specific earnings as a consequence of his having been maliciously named in litigation brought by Mr. Epstein. What we are contending is that his time was diverted from a variety of other matters because he was obliged to devote time to the defense of a baseless claim. That time was taken away from his employment, it was taken away from his family, that is time he would have otherwise devoted to his family, and it was taken away from all other activities in which he ordinarily would engage. The time has a value. That value has been established by the price that others have been willing to pay for that time and we would offer evidence and have supported that with disclosures that have been made of what that value is. That is, records have been kept with WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103152 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 regard to the amount of time contemporaneous records have been kept, with regard to the amount of time Mr. Edwards has been obliged to the devote to the defense of the claim, not separate involvement in prosecuting of this counterclaim but simply to the defense of the claim that was wrongfully brought against him, and we have kept records with regard to the hourly work that he did during that same period of time and the rates that he was paid for that hourly work. That is appropriate discovery and we have acknowledged its appropriateness and have made disclosures in that regard. We do not believe that anything else is relevant in light of the theory of damages that we intend to pursue. We don't believe that the broad request for discovery that have been made casts any light upon our damage claim in any respect at all. We believe that it is irrelevant and immaterial, designed to solely annoy, harass and embarrass and unnecessarily invade the economic and financial privacy of the counter-plaintiff. So, with that, I am available to answer WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103153 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 any questions you might have or otherwise reserve time for response to the other side's arguments. THE COURT: Yes. MR. FARMER: However Your Honor wishes to proceed, I just wanted to remind the Court that the law firm has also filed its own motion for protective order, because many of these records involve our firm, the shareholder agreement, et cetera, and so we have filed a separate motion for protective order. THE COURT: Why don't you go ahead and make your argument, because they are substantially similar I guess, other than I guess you do have other privacy rights apart from them. MR. FARMER: Thank you, Your Honor. Gary Farmer, Your Honor, on behalf of the law firm of Farmer, Jaffe, Weissing, Edwards, Fistos & Lehrman. I don't have much to add. We adopt the arguments made by Mr. Scarola. I think the key focus here is does this discovery request- even raise a colorable relevant inquiry, given WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103154 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 limitation on the damage claim, as explained to the Court by Mr. Scarola. My partner, Brad Edwards, is not seeking damages associated with any business claim that he could have cases, he could have brought in cases he could have pursued, but for the time spent in defending against this case. THE COURT: Let me ask you. Perhaps this is more direct to Mr. Scarola, and I will give him an opportunity to respond before I hear from counsel for the counter-defendant, but I've tried to reduce things to a simplistic analogy because of the complexity of this case. Suppose, rather than losing time as , result of defending these alleged baseless allegations, Mr. Edwards was involved in an automobile accident, not claiming loss of income, by the way, claiming as a result of having to go to doctors and therapy and to, and because of all of this accident, get his car fixed and all that, he has had to devote time away from his work, his family, and, by the way, just happens that the measure of that. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103155 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 is $350 an hour, whatever his hourly rate is. Are you suggesting under those circumstances that at least some of his financial records showing what he earns, how he earns it, when he earns it, how much time he spends doing that is not relevant? MR. FARMER: Well, I don't want to speak for Mr. Edwards personally, but -- THE COURT: I have had situations where doctors have tried to make that same argument- in front of me and other professionals and it. a straight tort case and I said wait a minute, you know, you can't sanitize this to the point of trying to keep those records out, because, while it may not be a loss of income claim, 1. is a loss of time claim, and how you spend your time and what you do with your time and how much money you make with that time is relevant for the case, at least discoverable. MR. FARMER: Well, Your Honor, with respect, again, I would not speak for Mr. Scarola, I will let him address this as to Mr. Edwards, but, as I understood Mr. Scarola just a minute ago, and I would agree with this if my understanding of what he said is correct, WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103156 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 that is, certainly evidence as to the rate that Brad Edwards has received either in court awards or -- THE COURT: The fact that he's spending 80 hours a week in the office, for example, or his billing hours are this or he billed this or spends this much time, how would that not be relevant to determine whether or not what he is saying is true or does he have to accept the testimony from Mr. Edwards that, oh, by the way, I had to spend 20 hours doing work on this file or something like that? MR. FARMER: I think the reason I would disagree, Your Honor, is that if Mr. Edwards would not have been compelled to spend the time he was forced to spend defending against the baseless lawsuit, he wouldn't necessarily have had to have spent that working on another case, it took away from his private time, hiss family time, it took away from recreational time. At some point there must be a measure ass to the value of that time, but I wouldn't agree, Your Honor, that it has to come from his average work week, if you will, or his WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103157 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 prior history of work, and it certainly isn't based upon or relevant to, and returning back to the discovery that affects my law firm, and that is asking for the partnership agreement with our firm, asking for the K1 tax returns and distribution schedules for the last four calendar years from all of our law firm, asking for the current tax records of our law firm, quote, all documentation related to all settlements, attorney's fee awards, jury verdict awards and arbitration/mediation income received by Farmer, Jaffe, Weissing, Edwards, Fistos & Lehrman, P.L. Your Honor, I do not see how that information is discoverable. I think at the very least, as we pointed out in our memo and under the case law, the Spry versus Professional Employer Plans case, 985 So.2d, 1187, I think at the very least you have to conduct an evidentiary hearing and then review the documents in camera just to make sure that the scope of what you are going to allow to be discovered, if anything, is appropriate and to confirm that if there is a prima facie showing of possible relevance that, once you review WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103158 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 those documents themselves, you do find them to be relevant to the claim. Again, Your Honor, I don't believe that, given the limitation on Mr. Edwards' claim, not claiming a loss of income, not claiming, "I didn't get more cases because of this time," just simply, "I was forced to devote time to a frivolous lawsuit," that measurement can be made and it is really separate and apart -- THE COURT: What difference is that from a doctor that comes in and says, "Well, you know, because of my injuries here I had to devote, I had to devote time to physical therapy, I had to devote time for this, devote time for that, and, by the way, I make $125,000 a day when I am in surgery"? I can't get -- they can't get the financial records under those circumstances? MR. FARMER: I think in that situation, physician claiming an injury which has affected his ability to practice medicine -- THE COURT: It doesn't matter what it is that's causing the loss, the fact is it's the loss of time, and how can time be measured WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103159 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 other than what he is doing? MR. FARMER: Well, I would again submit, Your Honor, I think there is a record Mr. Edwards' career has established, and I think this is more analogous, Your Honor, if I can, than an injury claim, which is based on some measure loss of income, to mean this is more analogous to -- THE COURT: Well, whether it caused a loss of income or not, he is saying, "I have not been able to devote time to my professional practice that I ordinarily would have done and, therefore, I am entitled to an hourly rate of," whatever his hourly rate is, "times the time I missed I couldn't spend on it." Again, I think it would be a stretch to say, okay, the time with my family is worth $350 an hour. I am not sure that is competent testimony as to how much time he's missing, vacation time with your family, but when you are talking about loss of professional time and measuring it by your hourly rate -- I understand your position. MR. FARMER: If I could just close with WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103160 15 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 this, Your Honor, this is more analogous to me to a, when the Court is in the position of awarding prevailing party attorney's fees. You are simply looking at the numbers of hours worked on the file and you are determining a reasonable and customary rate for an attorney of that level of skill, experience, training. And in this case that is, we're talking about, it's essentially an award of time incurred in the defense of this case. THE COURT: Unless you happen to be some of the marital family attorneys and they ask for your other time records for the day and find out you have put in 89 hours in one day. MR. FARMER: That is true. THE COURT: Okay. Mr. Scarola, I will allow you to respond. Let me hear from her first, then you can answer my questions as well. MR. SCAROLA: Thank you, Your Honor. MS. COLEMAN: Thank you, Judge. Good afternoon. I will be brief since you obviously read our memorandum of law in opposition to their motion. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103161 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 With respect to the argument first made by Mr. Scarola, the argument that they are trying to seek some kind of time diverted because of work fails for two reasons. First- of all, as the Court already correctly stated, this time must be quantified. How do we quantify the time unless, as you say, we know how much time you normally spent, what took the time away. With respect to that argument, the larger issue that nobody seems to remember is the fact that, because of this unique situation, Mr. Edwards is an attorney, he hired an attorney right away to defend this alleged spurious claim, the very well capable Mr. Scarola. Were it his time at issue, maybe this argument would be relevant, but any time Mr. Edwards allegedly lost with respect to this isn't even relevant to the claim. We are not asking how much time Mr. Edwards spent defending this cause of action because that would be attorney's fees, which are not permissible at this time. We are trying, rather, to quantify what time was diverted. His hourly rate, providing us with WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103162 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 his hourly rate and how many hours he spent on this case, does not show us how much time was diverted. In order to properly defend this cause of action or examine the damages Mr. Edwards is alleged to suffer, we must have these records. Mr. Edwards, it's very important, has never been counsel of record in this case until two months before we dismissed the lawsuit in the case in chief. How much time he spent, again, he had an attorney, those aren't the records we are seeking. His Complaint has very specific special damages pled, injury to reputation, mental anguish, embarrassment, anxiety, fear of physical injury, loss of the value of his time required to be diverted from his professional responsibilities and the cost of defending this spurious and baseless claim that Mr. Epstein filed. That's directly from his fourth amended counterclaim. I brought a copy for the Court- if you would like to see it. Would you like to see it? THE COURT: Yes. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103163 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 MS. COLEMAN: It's in two paragraphs, Judge, paragraphs 17 and 33, both of which are tabbed for your convenience. I would also point out to the Court that- this is a tort case. You would be surprised that malicious prosecutions are torts. We are in the same situation we would be with any other tort. We request documents from 2009 to present because Mr. Epstein filed this lawsuit in 2009 in November and Mr. Edwards filed his counter- claim, which is the case we are here on now, in December, right away. Those records are the only way pursuant to which we can establish what damages, if any, he suffered. The request made to the law firm or specifically, if you have a Schedule A, if not I will provide you with mine, requests 3, 4, 5 and 6, and they do ask for settlements, attorney's fees awards, jury verdict awards and the like. Attached to another motion we filed, the law firm of Farmer, Jaffe, Weissing, Edwards, Fistos & Lehrman does take quite a bit of time to advertise its jury verdict awards, and we would like to have WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103164 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 something other than a newspaper from which to quantify the amount of money that's being earned. It is absolutely necessary that since the date of the inception of this lawsuit Mr. Edwards has been a shareholder and employee at this law firm and this information is germane to his own case. Damages are an essential element to both causes of action. Furthermore, Judge, when we received a copy of the motion for protective order we did send them a letter, which is attached to our memorandum in opposition, in which we stated that we understand the confidentiality potentially of their business records, their clients and the third parties that may be involved in these settlements and offered that we just wanted the amounts, the bottom line, the financial number and the name of the attorneys who worked on the case and originated the case to see whether or not that included Brad Edwards. We are not unsympathetic to the fact that client information could be confidential. We just want the numbers, Judge. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103165 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: Let me ask you, one thing that confuses me, it looks like the duces tecum is the same for both. Am I right? MS. COLEMAN: Judge, we served the duces tecum on Mr. Edwards personally because he is a shareholder at the firm. THE COURT: Right. MS. COLEMAN: This was served on Mr. Edwards to bring to his deposition. THE COURT: Some of them don't make accepts in regards to corporations is what I am getting at. MS. COLEMAN: Numbers 3 through 6 were the only ones to the corporation. That's why the corporation is specifically listed, Judgc. THE COURT: Okay. Go ahead. MS. COLEMAN: That's all, Judge. We do respect the fact that the corporation may not want to give confidential client information or confidential settlement agreement information to us and we already said that we would just like the number and whether or not Mr. Edwards is an attorney who worked on the case, the originating attorney, the billing attorney. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103166 21 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 As the Court has already correctly pointed out, we need to know what the value of that time is, how to quantify these alleged hours that he is claiming were diverted from his attention to his office. With that, as you pointed out, we need to know what other cases, if any, he was working on, how much time was taken away from those cases, how much money did he lose as a result of this case, how much time was taken away as a result of this case. The arguments we just heard sound more like an impermissible seeking of attorney's fees. We are not there yet. This isn't a prevailing party motion. This isn't a 57.105. Mr. Edwards was not counsel of record in this case. He was a defendant just like any other. He had counsel. How much time Mr. Edwards spent as an attorney on this case is irrelevant. But we need to know what the value of the time is that he allegedly lost due to this case, if any, and how to quantity that so we can properly assess the damages he's alleging as well as how to defend this action. This WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103167 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 information is relevant and it's narrowly tailored to the pertinent time frame and we would submit, therefore, that the protective order should not be granted. THE COURT: Thank you. Mr. Scarola. MR. SCAROLA: Thank you, Your Honor. Your Honor, some considerable time ago we were asked to brief for Your Honor's benefit the recoverable elements of damage in a malicious prosecution claim, and my recollection is that we submitted those memoranda. They included cases that specifically talked about recoverability of compensation for lost time as a consequence of having to defend against a maliciously prosecuted claim. The focus here is indeed on the time that Brad Edwards lost. It is not upon the loss of his income. Your Honor has correctly observed that the discovery that is reasonably directed at testing the credibility of Brad Edwards' claim with regard to the amount of time that he lost is appropriate. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103168 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 It would be entirely appropriate for the defense to make requests that test the credibility of Brad Edwards' assertion that on a particular day he devoted X number of hours to the defense of this case in his capacity as a defendant in a malicious prosecution claim. But let's look at the duces tecum that we are before the Court to address. And I think you will find that not one of the requests that has been made, with perhaps one exception, focuses upon anything that would be relevant to Brad Edwards' claim that a specific amount of time was lost in the defense of this claim. Number 1 asks for five years of income tax returns. Income tax returns will say nothing about time. Number 2 asks for income tax records, which say nothing about time. Number 3 asks for income tax records and Schedule Kl's for the law firm, which obviously say nothing about Brad Edwards' time. Number 4 asks for a copy of all documentation related to all settlements, attorney's fees awards, jury verdict awards and arbitration/mediation income received by WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103169 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 Farmer Jaffe and Brad Edwards. This is the one exception I spoke about. Mr. Edwards is claiming a particular value for his time. Attorney's fee awards of Brad Edwards would be relevant and material to that claim. We that that, Attorney's have disclosed those. We believe in fact, is appropriate discovery. fees awarded to in the firm or to the firm some other in general that don't involve Brad Edwards could possibly have Brad Edwards' any bearing time. lawyer in cases not upon the value of It is also significant to note that this is primarily a firm that earns its income based upon contingency fee representation. The firm may spend an extraordinary amount of time to recover no fee at all or a very small fee or it may spend a small amount of time to recover a very large fee. But how much time they actually spent, 1. they kept any time records at all, to recover a fee in a contingent case would have no bearing upon the contention that Mr. Edwards' time is worth a particular amount of money when that time is provided in exchange for WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103170 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 hourly fees. So, if it relates to hourly fees, it's discoverable. If it does not, I suggest that it is not. Now, the next is number 6 asking for the partnership agreement, and again we are more than happy to provide that to Your Honor for in camera inspection to determine whether it has anything to do whatsoever with an hourly rate of compensation for Mr. Edwards. I represent to Your Honor that it does not. But I understand that the other side would be entitled to an independent confirmation. If you want to take a look at it to assure yourself that it has nothing to do with the value of Mr. Edwards' time, we would be happy to provide it to the Court for in camera inspection. Now, the next, 1, 2, well, number 7, number 8, number 10, number 11 and number 12 all talk about documents that we intend to rely upon, copies of any and all memorandum, diaries, journals, et cetera upon which you rely in support of your allegation of lost time. We are providing what we intend to rely upon. That is what they are asking for. We WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103171 26 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 are giving it to them. These are Mr. Edwards' contemporaneous time records. That's what we are relying upon. They haven't asked for anything else. They have just asked for what- we are relying upon. Number 8 asks for copies of all memorandum, diaries, et cetera upon which yon. rely in support of your allegation of injury to your reputation. We are providing what we rely upon. We are certainly not going to withhold anything that we relied upon. So are giving them that. Number 10 asks for evidence of lost income. We are not claiming lost income, so there is no evidence of lost income. That is what they asked for. The answer to that is none. we Number 11 again asks for memorandum, diaries, journals, et cetera upon which you rely in support of your claim for punitive damages. Now, what we rely upon in support of our claim for punitive damages is all the evidence with regard to misconduct on the part of the counter-defendant. That has nothing to do with these financial issues. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103172 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 I skipped over number 9, copies of any and all receipts, reports, invoices or other documents evidencing treatment for your mental anguish, embarrassment, anxiety, as alleged in your counterclaim, there has been no formal treatment, we have already told them none. The last one is copies of any and all documents you intend to introduce at trial support of the allegations made by you in the fourth amended counterclaim. Again, we are giving them all the evidence that we intend to rely upon. So the motion for protective order is directed principally to number 1, number 2, number 3, number 4, as it relates to anything other than attorney's fees awards for Bradley Edwards, and number 5 and the partnership agreement in number 6. So, understanding what we are claiming and the fact that they are entitled to test our claim, the answer to the question Your Honor asks is, yes, they are entitled to test our claim that this is the amount of time that Brad Edwards devoted to the defense of this case, but they haven't asked for anything that WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103173 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 relates to time except to the extent that we have agreed to produce that which relates to time. So I hope I have answered the question for Your Honor. If you take a look at what they really asked for, they haven't asked for anything that is relevant to the one issue that has been identified, and I want to just expand upon the answer a little bit in response to one of the comments that Your Honor made. Mr. Edwards has a choice as to how he is going to use his time every day. He can use it with his family, he can use it in recreation, he can use it for purposes of fulfilling his professional responsibilities, he can sleep, and if as a consequence of the filing of this action Mr. Edwards continued to do everything that he was obliged to do in order to maintain he lost time away recreational time his professional income but from his family, he lost and he gave up sleep in order to be able to fulfill his professional responsibilities, there needs to be some manner in which the jury can assess the value of that lost time, and one way in which to do WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103174 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 it, one reasonable way in which to do it, is to find out what the market value of that time is, which is what is a willing buyer of Mr. Edwards' time willing to pay for that time when Mr. Edwards is willing to make that time available to him, a willing buyer, willing seller, open market, here's the value. That is what we intend to rely on. THE COURT: I'm not sure the value to the wife or the children is the same as the value of an attorney. MR. SCAROLA: Oh, I think it is more, Your Honor. THE COURT: It may be. MR. SCAROLA: I think if we can make that argument, and I intend to, that the value of Mr. Edwards' time with his family is greater than the value is to a client, so that the value to a client establishes a minimum with respect to the value of Mr. Edwards' time, because he is taking it away from his family in order to devote it to his professional practice. It is at least, as the law requires, a reasonable yardstick of measurement. And they WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103175 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 are asking for what we are relying upon. We are giving them what we are relying upon. Thank you, Your Honor. THE COURT: Yes, ma'am. You have the last word. MR. SCAROLA: Actually, I thought it was my motion. THE COURT: It is, but I'm going to givtc her the last word anyway, because you said a lot of other things. MS. COLEMAN: Judge, I rely on our motion and the very clear unequivocal case law upon which we rely in support of our motion, but I would like to say, with respect to the argument Mr. Scarola made about Mr. Edwards' shareholder's agreement or his partnership agreement, his K1 statements from the firm, irrefutably, if Mr. Edwards is, in fact, a shareholder of that firm, if there's a profit- sharing agreement or he is required to bill a certain number of hours, bring in a certain amount of cases, it's clearly germane to the issues in this case, just as it is very germane to all of the issues raised as to quantification of his time. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103176 31 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 Mr. Edwards could choose sleep all day or not go to work or whatever the activities are that Mr. Scarola pointed out he may choose to do, but if he is making $20 million a month not doing that, how much time has he really lost from work? Clearly, even the best of lawyers can't not go to work all day and eart that kind of money. This income that he makes both in his personal tax returns as well as through his firm is relevant. There are many cases upon which we relied, I printed out all the cases in our motion, where corporate records arc permitted when the person who is claiming these damages makes them an issue. Mr. Edwards has made his finances an issue. Whether through a claim of stolen time or lost time, injury to his reputation or whatever it is, how do you measure injury of reputation to a lawyer? These are things that need to be addressed, and this is the only way to quantify those issues or to see what, if any, damage has been done financially to Mr. Edwards as a result of that. Thank you. WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103177 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: Okay. I will get an order out probably in the next day or so. I have another order pending for you guys, I already have it half written, so it will be out to you in a day or two as well, on clarification of the order on the production. Actually, it will be coming out hot off the presses shortly. MR. SCAROLA: Thank you, Your Honor. (Hearing concluded at 4:35 o'clock, p.m.) WWW.USLEGALSUPPORT.COM 561-835-0220 EFTA01103178 1 2 3 4 5 6 7 B 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CERTIFICATE OF REPORTER I, Roger Watford, Florida Professional Reporter, certify that I was authorized to and did stenographically report the foregoing proceedings and that the transcript is a true and complete record of my stenographic notes. I further certify that I am not a relative, employee, attorney or counsel of any of the parties, nor am I a relative or employee of any of the parties' attorneys or counsel connected with the action, nor am I financially interested in the action. 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