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Newmark Realty Capital, Inc. v. BGC Partners, Inc., 16-cv-01702-BLF (SVK). (2018)

Court: District Court, N.D. California Number: infdco20180511891 Visitors: 11
Filed: May 09, 2018
Latest Update: May 09, 2018
Summary: ORDER ON JOINT STATEMENT RE SUBPOENAS TO NON-PARTIES CHRIS CARAS AND PARACORE, LLC Re: Dkt. No. 345 SUSAN VAN KEULEN , Magistrate Judge . In accordance with the Court's May 7, 2018 Order on Joint Statement re Defendants' Motion for Production of Third Party ESI (ECF 342), third parties Chris Caras and ParaCore LLC on the one hand, and Defendants on the other hand, submitted a chart setting forth the disputed categories of documents sought in Defendants' subpoenas to Mr. Caras and ParaCore
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ORDER ON JOINT STATEMENT RE SUBPOENAS TO NON-PARTIES CHRIS CARAS AND PARACORE, LLC

Re: Dkt. No. 345

In accordance with the Court's May 7, 2018 Order on Joint Statement re Defendants' Motion for Production of Third Party ESI (ECF 342), third parties Chris Caras and ParaCore LLC on the one hand, and Defendants on the other hand, submitted a chart setting forth the disputed categories of documents sought in Defendants' subpoenas to Mr. Caras and ParaCore (ECF 345). The Court ORDERS as follows with respect to these subpoenas:

I. Subpoena to Chris Caras

Category of Mr. Caras's Defendants' Proposed Order Information Sought Objection Position Compromises 1. All Mr. Caras's Mr. Caras's Defendants' Mr. Caras shall COMMUNICATIONS declaration, declaration is offer: produce all with NRC or its which spans only not, as he Defendants offer documents, counsel (including the five paragraphs claims, limited to narrow to all including law firm Sheppard of substantive to discussing his communications emails from any Mullin). testimony, was experiences with NRC or its account, directed toward while at N&Co. counsel reflecting the limited topic (See Dkt. 202-2 regarding communications of his experience at ¶ 4 ("To this Defendants or between Mr. in 2002-2005 day, I think of this litigation Caras and NRC while employed Newmark (including or its counsel at Defendant Knight Frank as providing regarding Newmark & a real estate testimony or any Defendants or Company Real transactional assistance in this the subject Estate, Inc. (Dkt. brokerage firm, litigation, such litigation from 202-2, ¶¶ 4-8.) and not a firm as his the period He also uses a that arranges or declaration). January 1, single sentence structures 2017-present. to express his financing for Mr. Caras's personal commercial proposed With regards to perception of properties."); ¶ 5 compromise is a Mr. Caras's Newmark Knight (I did not think ploy to hide work email Frank's business of Mr. Kolsky as communications address at today. (Id., ¶ 4.) a debt or equity with Plaintiff CBRE, if Mr. This testimony financing itself, despite the Caras provides does not entitle professional, nor fact that an affidavit Defendants to do I think of Plaintiffs stating every single him as one principals unequivocally email he ever now."); ¶ 6 solicited the that he did not exchanged with (opining that very testimony communicate Plaintiff or any certain language Mr. Caras with NRC or its of its lawyers for "does not submitted via counsel through all time, from describe debt declaration, and that email any email and equity Defendants account, his address he has financing") believe Mr. obligation to ever used. (emphasis Caras search that added).) communicated account for Moreover, with Plaintiffs responsive obtaining emails Importantly, Mr. principals using documents shall from Mr. Caras Caras must his CBRE email be relieved. beyond his produce emails address. personal email from his work Documents that address (such as email address at Though Mr. either a party or from his work CBRE (in Caras complains third party email address at addition to about the timing claim are CBRE) would be personal email of this offer, privileged are to disproportionate. accounts), as counsel agreed be reflected in a The testimony in such emails are to exchange privilege log. Mr. Caras's in his possession their positions at emails are his or control. 9:00 a.m. this Production to be own personal Notably, Mr. morning. completed by testimony, not Caras has Moreover, Mr. May 18, 2018. those of his already Caras's prior employer CBRE. produced some position was an At no point does of his CBRE absolute refusal he use the emails (in to produce any collective "we" particular, ESI regardless or "us" to imply communications of any that his opinions with Sheppard compromise are shared by Mullin), thereby Defendants those of his demonstrating would offer. employer CBRE. that relevant emails exist and Mr. Caras's Importantly, the waiving any position: emails of Mr. objection to Defendants' Caras's CBRE producing such "offer" above email account are emails. It would was made for the the property of be unfair for Mr. first time at 9 CBRE, not Mr. Caras to email a.m. the morning Caras, and not Plaintiff or its this chart was within his counsel about due (and up until "possession, Defendants or this moment custody, or this litigation they have never control." The through his work compromised emails Mr. Caras email and then one iota). It is produced from claim he should still too broad his CBRE not have to because it seeks account were produce emails emails from Mr. those exchanged from that Caras's CBRE with Sheppard account. For email address Mullin, and example, to the (which is not his therefore within extent Plaintiffs property) and is Sheppard principals unbounded by Mullin's files. exchanged time. If Mr. Caras emails with Mr. Defendants expressly (in Caras through wanted CBRE writing) his work account emails, they produced these and told Mr. could have documents Caras what to issued a without any say in his subpoena to waiver of any declaration, CBRE (as they rights Defendants are did with another whatsoever. entitled to those third party Greg highly relevant Michaud and his Notably, the emails. employer Voya subpoena was Investment directed to Mr. Mr. Caras also Management), Caras as an cites no but they elected individual, not to authority for the not to. him as a proposition that representative of emails to/from Mr. Caras has his employer his work email already CBRE, and Mr. address are the produced all Caras has treated sole property of responsive it accordingly. his employer non-privileged To order emails CBRE and emails with the from beyond Mr. cannot be Sheppard Mullin Caras's personal obtained through law firm, and email account a validly issued respectfully would exceed the subpoena to Mr. submits this is scope of the Caras. Mr. the proper subpoena. Caras should not compromise for be permitted to this document In earlier meet hide relevant request. and confers, emails simply Defendants because he used speculated that his work email the emails would account. show bias, but this is completely Moreover, Mr. disproportionate Caras has not and a violation of satisfied his Rule 45(d)(1), burden of which mandates proving undue a district court to burden or prevent a party expense. from using a Specifically, it subpoena to appears that Mr. impose undue Caras has not burden on a third searched for party. If responsive Defendants want documents and to show that, thus it is contrary to Mr. possible that Caras's only a minimal testimony, their number of Southern responsive California office documents exist. performed debt When and equity Defendants' financing in counsel asked 2002-2005, they for an should proffer approximation evidence of the of the volume of debt and equity responsive financing documents, transactions they opposing actually counsel either performed during would not or that period. could not Instead, they try provide one. to skirt around this work by To obviate using Rule 45 to Plaintiffs harass Mr. Caras. objection that Defendants seek all emails exchanged with Plaintiff and its lawyers, Defendants have offered to narrow this request to communications with Plaintiff or its lawyers relating to Defendants or this litigation. 2. All See Mr. Caras's Defendants Defendants' The request is DOCUMENTS objection as to incorporate their offer: overbroad and relating to Request No. 1 position as set Defendants offer is therefore COMMUNICATIONS above. forth for request to narrow to all denied, without with NRC or its no. 1 above. communications prejudice to counsel, including Defendants have with NRC or its Defendants typed or hand-written never The documents counsel questioning Mr. notes and any proffered—even sought, regarding Caras as to the documents concerning here—any particularly in Defendants or existence and transactions on which satisfactory light of this litigation nature of YOU have worked explanation for Defendants' (including business with NRC. how "any offer to providing relationships documents compromise, are testimony or any between Mr. concerning" Mr. relevant to assistance in this Caras and NRC. Caras's undermine the litigation, such transactions with assertions in Mr. as his Plaintiff would Caras's declaration). have any declaration, relevance to the show bias, and As to documents claims and potentially relating to defenses in the reflect that the transactions that case. Such ESI content of his Mr. Caras has certainly has declaration was worked on with absolutely no influenced by NRC, relationship Plaintiff or its Defendants whatsoever to counsel. would limit it to Mr. Caras's the past 3 years. testimony that Plaintiff should Defendant did indicate whether not perform debt that limitation and equity would generate financing more than 10 services in total 2002-2005 (13 years transactions; ago). Defendants Defendants' believe the total demand for all will be lower. documents "concerning" Mr. Caras's such transactions position: is overbroad and Defendants' unduly "offer" above burdensome. was made for the first time at 9 Defendants' offer a.m. the morning to limit such this chart was documents to the due (and up until last 3 years does this moment not make such they have never documents any compromised more relevant. In one iota). It is fact, that means a still too broad full decade because it seeks separates the emails from Mr. subject of Mr. Caras's CBRE Caras's email address testimony from (which is not his the documents property) and is Defendants seek, unbounded by further time as to ESI emphasizing the communications. complete lack of If Defendants relevance. wanted CBRE emails, they could have issued a subpoena to CBRE (as they did with another third party Greg Michaud and his employer Voya Investment Management), but they elected not to. The request for all documents "concerning" Mr. Caras's transactions with Defendants is facially improper and should be denied in its entirety. Mr. Caras has already produced all responsive non-privileged emails with the Sheppard Mullin law firm, as well as all documents attached thereto, and respectfully submits this is the proper compromise for this document request. 3. All Mr. Caras has Defendants Mr. Caras's The request is DOCUMENTS already produced incorporate their position: A proper and it relating to the all documents position as set compromise is appears that Mr. Declaration of Chris responsive to this forth for request not applicable, Caras has Caras that YOU request, and is no. 1 above. as Mr. Caras has complied with executed under penalty not withholding already it. No further of perjury on February any responsive Such documents produced all order from the 9, 2018, including documents on the are highly documents Court. draft declarations basis of any relevant as Mr. responsive to and any DOCUMENTS objections. Caras put them this request, and that YOU reviewed, at issue given is not considered, or the statements withholding any consulted in preparing made in his responsive or revising the declaration. documents on declaration, including the basis of any without limitation any Although Mr. objections. internal Caras claims he communications at has produced all Mr. Caras has CBRE relating to the responsive already Declaration. documents, it is conducted a Defendants' reasonable and understanding diligent search, that Mr. Caras and there is has not produced nothing for the anything from Court to further his own files but order. that Sheppard Defendants' Mullin instead attempt to produced its distinguish emails with Mr. between Caras on his Sheppard Mullin behalf. Further, emails obtained given that Mr. from Sheppard Caras only Mullin's files produced 37 and Mr. Caras's documents to own files is date (almost illogical and a exclusively ruse—they are emails with the same Sheppard Mullin documents and draft regardless of declarations), whose "files" Defendants they were believe he likely is in possession obtained from. of additional documents "relating to" his declaration and the assertions therein. Defendants thus ask the Court to order Mr. Caras to conduct a reasonable and diligent search for any ESI relating to the assertions in his declaration. 5. DOCUMENTS See Mr. Caras's Defendants Defendants' The request is sufficient to show objection as to incorporate their offer: overbroad and every entity to which Request No. 1 position as set Defendants offer is therefore YOU have referred a above. forth for request to narrow the denied, without client for debt or no. 1 above. timeframe of prejudice to equity financing This request is responsive Defendants services. extremely vague The requested documents to questioning Mr. and overbroad, documents are three (3) years, Caras as to who and unduly relevant to show from May 2015 Mr. Caras burdensome. the companies to May 2018, considers The request is that Mr. Caras and ask that Mr. competitors to not bounded by considers as Caras provide a Plaintiff and as time in any way, competitors to summary list of to the volume of even though Mr. Plaintiff (i.e., such referrals, referrals Caras has been in companies redacted to keep between Mr. the commercial which Mr. Caras the particular Caras and real estate believes provide deals Plaintiff industry for debt and equity confidential. decades. Nor financing does it specify services), and Mr. Caras' what would assess the assertion below count as a volume of that "he has "referral," or referrals that Mr. already how Mr. Caras Caras—who has compromised by would identify a side business producing any such investment with documents referrals over his several of responsive to entire career. A Plaintiff's other requests referral can take principals— (including those many forms, sends to not identified in from a simple Plaintiff. this chart)" is introduction to false. The only something more This request is request not set involved. not "overbroad forth in this and unduly chart sought Mr. Defendants say burdensome" as Caras's resume, the requested it seeks and in response documents would documents Mr. Caras show who "Mr. "sufficient to produced his Caras considers show" and has publicly as competitors to been narrowed available Plaintiff." First, to a three-year professional Defendants never period. profile. bother to explain how any logical Mr. Caras's inference can be position: made from Defendants' "referrals" to "offer" above "competitors." was made for the Second, first time at 9 obtaining all of a.m. the morning Mr. Caras's this chart was referral due (and up until information this moment would be a have never wholly compromised disproportionate one iota). It is method to still overbroad. discover Defendants say Plaintiffs that the request competitors. It is is relevant to Defendant's assess the competitors that volume of matter in this referrals Mr. case, because— Caras sends to as Plaintiff has Plaintiff. Yet asserted— Defendants are Defendant never not seeking meaningfully "volume" competed with (which is just a debt and equity number), nor are financing firms they limiting until recently, their request for and certainly not referrals solely with mortgage to Plaintiff. banking firms. Importantly, their "offer" above is for a "summary list" (i.e., for Mr. Caras to prepare this from scratch), which is not ESI, and therefore not the proper subject of this motion. Mr. Caras submits that he has already compromised by producing documents responsive to other requests (including those not identified in this chart). This document request is improper for the reasons articulated and Mr. Caras should not be forced to incur further undue burden to respond. 6. All Defendants are Defendants Mr. Caras's The request is COMMUNICATIONS demanding ESI incorporate their position: overbroad in with N&CO. from Mr. Caras position as set Defendants even light of Mr. employees or agents that, by forth for request now are Caras's since you left the definition should no. 1 above. unwilling to departure from company. be in the compromise N&Co in 2005 possession, The requested whatsoever on and is therefore custody, or documents are this request, and denied, without control of relevant to test are expressly prejudice to Defendants. the veracity of unwilling to Defendants They cannot shift Mr. Caras's limit this by any questioning Mr. this burden onto statements in his date range. They Caras as his Mr. Caras to declaration still try to shirk awareness or avoid this burden regarding his the burden of lack thereof of themselves. The lack of collecting colleagues at Court must awareness of responsive N&Co who protect Mr. Caras colleagues at documents provided debt from this undue N&Co. who themselves, and and equity and unfair provided debt impermissibly services. burden. See Rule and equity shift that burden 45(d)(1) ("A services. (Dkt. onto Mr. Caras. party or attorney 202-2 at ¶¶ 4-8.) responsible for Defendants do Mr. Caras issuing and not anticipate a submits that he serving a large volume of has already subpoena must responsive compromised by take reasonable documents and producing steps to avoid are unable to documents imposing undue limit by date responsive to burden or given the broad other requests expense on a nature of Mr. (including those person subject to Caras's not identified in the subpoena. assertions. this chart). This The court for the document district where request is compliance is improper for the required must reasons enforce this duty articulated and and impose an Mr. Caras appropriate should not be sanction—which forced to incur may include lost further undue earnings and burden to reasonable attorney's fees— respond. on a party or attorney who Defendants' fails to comply.") response to Mr. (emphasis Caras's position: added). Mr. Caras' assertion below If the Court is that "he has inclined to already entertain this compromised by request, it should producing not allow documents Defendants to responsive to obtain emails other requests from Mr. Caras (including those beyond his not identified in personal email this chart)" is address (such as false. The only from his work request not set email address at forth in this CBRE). The chart sought Mr. testimony in Mr. Caras's resume, Caras's emails and in response are his own Mr. Caras personal produced his testimony, not publicly those of his available employer CBRE. professional At no point does profile. he use the collective "we" Moreover, Mr. or "us" to imply Caras's burden that his opinions argument is are shared by completely those of his unsubstantiated employer CBRE. and amounts to nothing more Importantly, the than speculation emails of Mr. designed to Caras's CBRE evade the email account are production of the property of relevant CBRE, not Mr. documents. Caras, and not within his "possession, custody, or control." The emails Mr. Caras produced from his CBRE account were those exchanged with Sheppard Mullin, and therefore within Sheppard Mullin's files. Mr. Caras expressly (in writing) produced these documents without any waiver of any rights whatsoever. Notably, the subpoena was directed to Mr. Caras as an individual, not to him as a representative of his employer CBRE, and Mr. Caras has treated it accordingly. To order emails from beyond Mr. Caras's individual, personal email account would exceed the scope of the subpoena. 7. All This request is Defendants Mr. Caras's The request is COMMUNICATIONS impermissibly incorporate their position: overbroad as to in YOUR possession, vague, as the position as set Defendants even communications custody, or control request is forth for request now are and vague and related to your completely nos. 1 and 6 unwilling to ambiguous as to previous employment unclear as to the above. compromise "related to . . . with N&Co., including scope of what it whatsoever on employment." without limitation means to be The requested this request. work papers and "related" to Mr. documents are They still try to Mr. Caras shall marketing materials. Caras's previous important to test shirk the burden produce any employment with the veracity of of collecting marketing Defendant. Nor the assertions responsive materials have Defendants Mr. Caras made documents relating to ever provided a in his themselves, and N&Co. that he satisfactory declaration, impermissibly has in his explanation as to including his shift that burden possession. how all such supposed lack of onto Mr. Caras. responsive ESI is awareness of the Production to be relevant to the nature of the Mr. Caras complete by claims and services offered submits that he May 18, 2018. defenses in this by his has already case. colleagues. compromised by Moreover, Mr. producing Further, Caras has made documents Defendants seek no effort to responsive to ESI from Mr. actually other requests Caras that is in demonstrate that (including those the possession, he has a not identified in custody, or significant this chart and control of volume of nonpublic drafts Defendants. responsive of his They cannot shift documents so professional this burden onto that there is any bio). This Mr. Caras to burden document avoid this burden associated with request is themselves. The responding. facially Court must improper and protect Mr. Caras overbroad for from this undue the reasons burden. See Rule articulated and 45(d)(1) ("A Mr. Caras party or attorney should not be responsible for forced to incur issuing and further undue serving a burden to subpoena must respond. take reasonable steps to avoid Defendants' imposing undue response to Mr. burden or Caras's position: expense on a Mr. Caras' person subject to assertion below the subpoena. that "he has The court for the already district where compromised by compliance is producing required must documents enforce this duty responsive to and impose an other requests appropriate (including those sanction—which not identified in may include lost this chart)" is earnings and false. The only reasonable request not set attorney's fees— forth in this on a party or chart sought Mr. attorney who Caras's resume, fails to comply.") and in response (emphasis Mr. Caras added). produced his publicly If the Court is available inclined to professional entertain this profile. request, it should not allow Moreover, Mr. Defendants to Caras's burden obtain emails argument is from Mr. Caras completely beyond his unsubstantiated personal email and amounts to address (such as nothing more from his work than speculation email address at designed to CBRE). The evade the testimony in Mr. production of Caras's emails relevant are his own documents. personal testimony, not those of his employer CBRE. At no point does he use the collective "we" or "us" to imply that his opinions are shared by those of his employer CBRE. Importantly, the emails of Mr. Caras's CBRE email account are the property of CBRE, not Mr. Caras, and not within his "possession, custody, or control." The emails Mr. Caras produced from his CBRE account were those exchanged with Sheppard Mullin, and therefore within Sheppard Mullin's files. Mr. Caras expressly (in writing) produced these documents without any waiver of any rights whatsoever. Notably, the subpoena was directed to Mr. Caras as an individual, not to him as a representative of his employer CBRE, and Mr. Caras has treated it accordingly. To order emails from beyond Mr. Caras's individual, personal email account would exceed the scope of the subpoena, and the request. 8. ALL This request is Defendants Mr. Caras's Request is DOCUMENTS completely incorporate their position: vague, reflecting your harassing and position as set Defendants even ambiguous and statement to any improper. It forth for request now are overbroad and person that any demands that Mr. nos. 1 and 6 unwilling to as such is materials you Caras make a above. compromise denied without distributed while at legal conclusion, whatsoever on prejudice to N&Co. were false i.e., identify Mr. Caras this request. Defendants and/or misleading. documents that asserts in his Their position in questioning Mr. are "false and/or declaration: the previous Caras as to misleading," "Although column, which whether he ever which is [Defendants] apparently told anyone that inappropriate for advertised as revises what N&Co's a document providing debt they seek, was marketing request. and equity expressed to Mr. materials were Document financing, we Caras for the misleading or requests should did not actually first time at 9 false. ask for factual provide it." a.m. the morning matter, not (Dkt. 202-2 at ¶ this chart was require a third 8.) Given his due. It does not party to make a assertion, save judgment call as Defendants seek Defendants' to what communications, position, documents are if any, in which because it is still "false and/or Mr. Caras told harassing, misleading." third parties that improper, vague, N&Co.'s and requires Mr. marketing Caras to make a materials were legal conclusion. misleading or false because Mr. Caras they contained a submits that this reference to document mortgage request is finance/debt foundationally and equity improper and finance services. should be denied Defendants do in its entirety. not believe Mr. Mr. Caras Caras has any should not be such documents, required to make but seek legal confirmation one conclusions and way or the other. identify ESI relating to documents that are purportedly "false and/or misleading." Defendants' response to Mr. Caras's position: The request is proper as framed. 9. DOCUMENTS Mr. Caras has Given Mr. N/A N/A sufficient to identify confirmed that he Caras' any transactions or produced a representation, potential transactions responsive there is no on which you are document outstanding currently working with sufficient to issue for the NRC. identify the Court to resolve information on this request. sought by the request, which is Bates labeled as CARAS0000153.

II. Subpoena to ParaCore, LLC

Category of Information ParaCore's Defendants' Proposed Order Sought Objection Position Compromises 1. All DOCUMENTS, ParaCore has Given counsel's N/A N/A including YOUR conducted a representation, COMMUNICATIONS reasonable and Defendants with NRC (including but diligent expect a not limited to Adam investigation complete Parker), relating to Google will produce all production of Analytics, including log responsive and responsive files, for any website non-privileged documents by owned by NRC (e.g. documents by May 11, 2018. newmarkrealtycapital.com) May 11, 2018, for which YOU provided and will not any web solution services. withhold documents based on any of its objections other than privilege. 2. All DOCUMENTS, Same as above. Same as above. Same as above. N/A including YOUR COMMUNICATIONS with NRC, relating to search engine optimization services that you performed for or recommend to NRC. 3. All DOCUMENTS, Same as above. Same as above. Same as above. N/A including YOUR COMMUNICATIONS with NRC, in YOUR possession, custody, or control in which YOU or NRC referred to N&Co.'s corporate names, trademarks, or websites. 4. All DOCUMENTS, Same as above. Same as above. Same as above. N/A including YOUR COMMUNICATIONS with NRC, relating to Google AdWords lead generation services that you provided to or for NRC. 5. All DOCUMENTS, Same as above. Same as above. Same as above. N/A including YOUR COMMUNICATIONS with NRC, relating to the confusion between NRC and N&Co. or the lawsuit filed by NRC against N&Co.

SO ORDERED.

Source:  Leagle

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