American Classics of Lakewood, LLC, et al. v. Daniel Buchanan, et al.

CourtDistrict Court, D. New Jersey
DecidedNovember 19, 2025
Docket3:22-cv-05382
StatusUnknown

This text of American Classics of Lakewood, LLC, et al. v. Daniel Buchanan, et al. (American Classics of Lakewood, LLC, et al. v. Daniel Buchanan, et al.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Classics of Lakewood, LLC, et al. v. Daniel Buchanan, et al., (D.N.J. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

AMERICAN CLASSICS OF : LAKEWOOD, LLC, et al., : Civil Action No. 22-5382 (GC)(JTQ) : Plaintiffs, : : MEMORANDUM OPINION v. : AND ORDER : DANIEL BUCHANAN, et al., : : Defendants. : : :

The recipients of third-party subpoenas—Latrecia Littles-Floyd (“Littles- Floyd”), Michael P. Rutherford, Gregory D. Focarino, Brittni V. Pizzarelli, Tamika M. Day, Tavia S. Kelly, Christopher Hillmann, James S. Walker, George P. Kinczel, Andre M. Bethea, and Ernest F. DiStefano (collectively, “MVC Employees”) (collectively with Littles-Floyd, “Third Parties”)—filed a motion to quash subpoenas that were served on them. ECF No. 61. On June 2, 2025, Plaintiffs American Classics of Lakewood, LLC (“ACL”), American Classics of Lakewood IV, LLC (“ACL IV”), and John Patel (“Patel”) (collectively, “Plaintiffs”) filed a Cross-Motion to Compel and Disqualify Counsel under Fed. R. Civ. P. 11. ECF No. 73. The Court has fully reviewed the submissions of the parties and addresses the motions without oral argument pursuant to Fed. R. Civ. P. 78. For the reasons set forth below, the Third Parties’ Motion is GRANTED and Plaintiffs’ Cross-Motion is DENIED. I. BACKGROUND1 A. Allegations in the Complaint Plaintiffs own and manage several properties throughout New Jersey, many of

which are leased to used car dealerships. Compl. ¶ 3. This matter arises out of Defendants’ Daniel Buchanan (“Buchanan”), Theodore Lefkowich2 (“Lefkowich”), and the New Jersey Motor Vehicles Commission (the “MVC”) denial of used car dealer licenses to Plaintiffs. In 2017, MVC investigators Buchanan and Lefkowich were assigned to conduct routine inspections of Plaintiffs’ properties and review the related licensing

applications. Id. ¶¶ 31-32. Buchanan and Lefkowich denied multiple license applications connected to Patel’s properties. Id. ¶ 34. Plaintiffs allege that Buchanan and Lefkowich made false, reckless, and malicious statements to Plaintiffs’ existing clients, stating, among other things, that Patel is dishonest, engages in fraudulent business practices, and, at that time, was the subject of an ongoing criminal investigation. Id. In 2018, Plaintiffs filed suit in New Jersey Superior Court against Buchanan

and Lefkowich, asserting claims for interference with contractual relations, trade disparagement, and economic harm. Id. ¶¶ 36-37. The parties entered into a settlement agreement on February 7, 2020 whereby Buchanan and Lefkowich were

1 The following facts are taken from Plaintiffs’ Complaint, ECF No. 1 (“Compl.”), and are assumed true for the purposes of this decision. 2 Defendant Lefkowich is mistakenly identified as Theodore “Lefkowitz” in the Complaint. Compl. ¶ 6. barred from inspecting or reviewing applications for any properties owned by Plaintiffs until February 7, 2021. Id. ¶¶ 38-41. Following that exclusionary period, Buchanan and Lefkowich resumed

oversight of Plaintiffs’ properties. Id. ¶ 47. From October 2021 onward, Buchanan and Lefkowich denied sixteen separate license applications, each of which Plaintiffs allege met all regulatory requirements and were otherwise satisfactory. Id. ¶¶ 48-49. Plaintiffs further claim that Buchanan and Lefkowich have again made disparaging comments regarding Patel’s character, accusing him of “dropp[ing] envelopes to state officials,” to imply bribery. Id. ¶ 68.

Plaintiffs filed the instant federal action in 2022 under 42 U.S.C. § 1983, raising First Amendment retaliation and selective enforcement claims. Id. ¶ 77. Plaintiffs’ suit against the MVC was dismissed on sovereign immunity grounds, and the only claims that remain are the First Amendment retaliation claims. ECF No. 21. B. Plaintiffs’ Attempts to Depose Third-Party Witnesses and to Disqualify Counsel On February 21, 2025, Plaintiffs served Subpoenas Duces Tecum and Testificandum (“Subpoenas”) requiring the Third Parties to appear for a deposition and to produce certain documents. On March 18, 2025, the New Jersey Office of the Attorney General (“OAG”) acknowledged service of the Subpoenas on the Third Parties. See ECF No. 73, Ex. N. That same day, the OAG lodged a formal objection to

the Subpoena served on Littles-Floyd under Fed. R. Civ. P. 45(d)(2)(B), arguing it was vague and overbroad. Id. The objection made no reference to the Subpoenas served on other MVC Employees. On April 18, 2025, Plaintiffs sent the OAG two letters. Plaintiffs’ first letter requested that the OAG withdraw as counsel. According to Plaintiff, the OAG’s prior representation of Defendants created an unwaivable conflict of interest of the Third

Parties here.3 Id., Ex. O. The second letter advised the OAG that their objection to the Subpoena was without merit. Id., Ex. P. The Parties met and conferred on April 24, 2025, which resolved nothing. The OAG promptly filed the instant motion. Plaintiffs’ cross-motion followed shortly thereafter.

II. LEGAL STANDARD Federal Rule of Civil Procedure 45 governs the issuance, service, and enforcement of subpoenas. If the information sought falls within the scope of permissible discovery, then a party may serve a subpoena on a third party to obtain documents, testimony, and/or other information. See Fed. R. Civ. P. 45(c). Rule 26(b)(1) sets forth scope of permissible discovery. See In re Novo Nordisk Sec. Litig.,

530 F. Supp. 3d 495, 501 (D.N.J. 2021). Pursuant to Rule 26, [p]arties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit.

3 In this matter, Defendants were initially represented by the OAG. However, the OAG notified the Court of its intent to withdraw as attorney on February 18, 2025. ECF No. 53. Private counsel substituted into the matter on March 4, 2025. ECF No. 56. Clearly, “Rule 26 establishes a liberal discovery policy.” S.M. v. Tamaqua Area Sch. Dist., 2023 WL 3689607, at *1 (M.D. Pa. May 26, 2023). And federal courts have “discretion to manage discovery[.]” Resser v. J.B. Hunt Transp., Inc., 2022 WL 1240859, at *1 (M.D. Pa. Apr. 27, 2022) (citing Sempier v. Johnson & Higgins, 45 F.3d 724, 734 (3d Cir. 1995); Pacitti v. Macy’s, 193 F.3d 766, 777 (3d Cir. 1999)). However, courts should not allow discovery to “serve as a fishing expedition.” Saller v. QVC,

Inc., 2016 U.S. Dist. LEXIS 82895, at *5 (E.D. Pa. June 24, 2016). To that end, if the requests do not fall within the permissible scope of discovery under Rule 26, the subpoena may be quashed or modified. Schmulovich v. 1161 Rt. 9 LLC, 2007 WL 2362598, at *2 (D.N.J. Aug. 15, 2007); see also Fed. R. Civ. P. 45(d)(3). III. ANALYSIS A. The Motion to Quash and The Cross-Motion to Compel

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American Classics of Lakewood, LLC, et al. v. Daniel Buchanan, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-classics-of-lakewood-llc-et-al-v-daniel-buchanan-et-al-njd-2025.