Baron Financial Corp. v. Natanzon

240 F.R.D. 200, 67 Fed. R. Serv. 3d 118, 2006 U.S. Dist. LEXIS 94831, 2006 WL 3924117
District Court, D. Maryland·Decided December 13, 2006·No. No. SKG-03-3563·Published·Cited by 35 cases

Opinion

MEMORANDUM OPINION

GAUVEY, United States Magistrate Judge.

Pending before the Court is Non-Party Witness Stuart R. Rombro’s Motion for Protective Order. The issue is fully briefed and a telephone conference was held before the Court on December 12, 2006. For the reasons discussed below, the Court hereby DENIES Mr. Rombro’s motion.

I. Background

On December 15, 2004, Baron Financial Corporation (“Baron” or “plaintiff’) filed a Second Amended Complaint (“2004 Matter”) against Rony Natanzon (“Mr.Natanzon”) and several other defendants including ERN Acquisition, LLC (“ERN”) and Stuart R. Rom-bro (“Mr.Rombro”) in the above-captioned case. (Paper No. 15). Mr. Rombro was specifically named as a defendant in Counts II, III, IV, V, VI, VII, VIII, and IX of the complaint. Id. On July 22, 2005, Judge William D. Quarles, Jr. (“Judge Quarles”) issued an order dismissing the complaint as to Mr. Rombro. (Paper No. 72). Judge Quarles also dismissed a variety of the counts contained in plaintiffs Second Amended Complaint including Counts VI, VII, and VIII, which contained allegations of intentional interference and civil conspiracy to interfere with plaintiffs UCC Contractual Relations by Mr. Natanzon and Mr. Rombro.1 (Paper No. 15, HH 109-141; Paper No. 72).

Mr. Natanzon and other existing defendants in the 2004 Matter filed a Motion for Summary Judgment on the remaining counts of plaintiffs Second Amended Complaint on September 5, 2006. (Paper No. 110). The Court is awaiting plaintiffs response to this motion, which is due on December 18, 2006. Recently-submitted papers to the Court indicate that, as part of discovery in this case, plaintiff seeks to depose Mr. Rombro, formerly the attorney for ERN, Mr. Natanzon, and other corporate defendants. (Paper No. 15,1111; Paper No. 117; and Paper No. 118). Mr. Rombro states that at no point during efforts to schedule this deposition was his counsel informed by plaintiffs counsel that a new complaint against Mr. Rombro was filed or about to be filed. (Paper No. 117, p. 2).

On October 10, 2006, plaintiff filed a new action against Mr. Rombro: Baron Financial Corp. v. Stuart R. Rombro, docketed as WDQ-06-2655 (“2006 Matter”). In its complaint (“2006 Complaint”), plaintiff alleges that Mr. Rombro filed a UCC Financing Statement Amendment that in effect terminated Baron’s UCC Financing Statement and its perfected security interest in ERN’s merchant accounts with Concord EFS, Inc.2 (2006 Complaint). When he is served with the complaint in the 2006 Matter, Mr. Rom-bro intends to file “a motion to dismiss or a motion for summary judgment based on the doctrines of res judicata and collateral estoppel.” (Paper No. 117, p. 3). Before doing so, however, Mr. Rombro is seeking a protective order from the Court, pursuant to Rule 26(c) of the Federal Rules of Civil Procedure, staying all discovery against him until either such time as the 2006 Matter is dismissed or consolidated with the 2004 Matter.3 Id.

[202]*202II Analysis

In his Motion for Protective Order, Mr. Rombro argues that plaintiff filed the 2006 Matter solely to harass him with the same allegations dismissed by Order of this Court more than a year ago. (Paper no. 117, p. 3). He contends that plaintiffs efforts to depose him regarding the 2004 Matter are in fact a “fishing expedition to prop up allegations contained in the 2006 Matter[,]” and an attempt to “sidestep” the Court’s July 22, 2005 Order. Id. at 4. In Mr. Rombro’s view, he should not be subject to deposition until there is clarity regarding whether he is being, deposed as a party-opponent or a non-party witness. Id. at 5. A temporary stay is proper, according to Mr. Rombro, given his intentions to file a motion that will dispose of all claims against him. Id.

Plaintiff counters that Mr. Rombro has provided no factual or legal basis for the “indefinite protective order” he is requesting. (Paper No. 118, p. 8). It argues that neither Mr. Rombro’s “conclusory speculation” as to how he may proceed in the 2006 Matter nor his surprise at plaintiffs filing of that matter constitute the good cause needed to avoid answering deposition questions. Id. at 3-5. Plaintiff further maintains that Mr. Rombro will be deposed as a non-party witness and questioned about ERN and Mr. Natanzon’s actions at issue in the 2004 Matter. Id. at 2, 6-7. As part of its response, plaintiff requests the Court to compel Mr. Rombro to appear for deposition within five days of any order denying his Motion for Protective Order. Id. at 8.

Federal Rule of Civil Procedure 26(c) (“Rule 26(c)”) provides that, upon a showing of good cause, “the court in the district where [a] deposition is to be taken may make any order which justice requires to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense[.]” In order to establish good cause, a proponent may not rely upon “stereotyped and conclusory statements,” but must present a “particular and specific demonstration of fact,” as to why a protective order should issue. Wright, Miller & Marcus, Federal Practice and Procedure: Civil 2d § 2035 (1994) (citations omitted) [hereinafter Wright & Miller]; 10 Fed. Proc., L.Ed. § 26:181 (last updated June 2006) (citations omitted). See also Merit Industries, Inc. v. Feuer, 201 F.R.D. 382, 384-385 (E.D.Pa.2001) (“Broad allegations of harm, unsubstantiated by specific examples or articulated reasoning, do not support a good cause showing.”); Medlin v. Andrew, 113 F.R.D. 650, 653 (M.D.N.C.1987) (burden of demonstrating good cause is a heavy one) (citation omitted). He must demonstrate that the discovery sought lacks relevance “to the extent that the likelihood and severity of the harm or injury caused by the deposition outweighs any need for the information.” UAI Technology, Inc. v. Valutech, Inc., 122 F.R.D. 188, 191 (M.D.N.C.1988) (defining relevant information broadly as any matter that bears on or could bear on “any issue that is or may be in the case”) (quoting Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 351, 98 S.Ct. 2380, 57 L.Ed.2d 253 (1978)); 10 Fed. Proc., L.Ed. § 26:191 (last updated June 2006) (citations omitted).

Although its good cause requirement creates a rather high hurdle for proponents, Rule 26(c) “confers broad discretion on the trial court to decide when a protective order is appropriate and what degree of protection is required.” Furlow v. U.S., 55 F.Supp.2d 360, 366 (D.Md.1999) (quoting Seattle Times Co. v. Rhinehart, 467 U.S. 20, 36, 104 S.Ct. 2199, 81 L.Ed.2d 17 (1984)); Wright & Miller § 2036 (citations omitted). Nonetheless, protective orders “should be sparingly used and cautiously granted.” Medlin, 113 F.R.D. at 652. This is especially the case with requests to stay depositions, the majority of which courts deny. Id. (citations omitted). See also Wright & Miller § 2037 (citing in part Motsinger v. Flynt, 119 F.R.D.

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Baron Financial Corp. v. Natanzon, 240 F.R.D. 200, 67 Fed. R. Serv. 3d 118, 2006 U.S. Dist. LEXIS 94831, 2006 WL 3924117 (D. Md. 2006).

240 F.R.D. 200 (Baron Financial Corp. v. Natanzon) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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