Crawford v. Franklin Credit Management Corp.

261 F.R.D. 34, 2009 U.S. Dist. LEXIS 66019, 2009 WL 2222736
CourtDistrict Court, S.D. New York
DecidedJuly 17, 2009
DocketNo. 08 Civ. 6293(JFK)(FM)
StatusPublished
Cited by18 cases

This text of 261 F.R.D. 34 (Crawford v. Franklin Credit Management Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crawford v. Franklin Credit Management Corp., 261 F.R.D. 34, 2009 U.S. Dist. LEXIS 66019, 2009 WL 2222736 (S.D.N.Y. 2009).

Opinion

[36]*36 MEMORANDUM DECISION AND ORDER

FRANK MAAS, United States Magistrate Judge.

This action arises out of an unusual 2004 meeting at Kennedy Airport, during which plaintiff Linda Crawford (“Crawford”), hoping to save her home from imminent foreclosure, allegedly provided specimens of her signature on blank sheets of paper in connection with a proposed bridge loan transaction. She contends that Franklin Credit Management Corp. (“Franklin”) and Tribeca Lending Corp. (“Tribeca”) (together, the “Defendants”) and their lending officer, Robert Koller (“Koller”) instead fraudulently transposed her signature onto several mortgage-related documents. After a lengthy series of discovery disputes and delays, Crawford now moves, pursuant to Rule 37 of the Federal Rules of Civil Procedure (“Rule 37”), for an order striking the Defendants’ answer and directing them to pay the attorneys’ fees and expenses she allegedly incurred based upon their noneompliance with my discovery orders. In her reply papers, Crawford also contends that the Defendants have waived any claim of privilege as to the documents on their privilege log. For the reasons set forth below, Crawford’s motion is granted in part and denied in part.

I. Relevant Facts

On July 11, 2008, Crawford filed her original complaint, which was amended on July 25, 2008. (Docket Nos. 1, 2). After the Defendants filed their answer on September 26, 2008, (see Docket Nos. 3, 4), Judge Keenan set March 6, 2009, as the discovery cutoff date and referred the case to me for general pretrial supervision.1 (Docket No. 6).

By mid-December, discovery was not proceeding smoothly. (See letter to the Court from Krishnan Chittur, Esq., dated Dec. 18, 2008). Accordingly, I held a discovery conference on January 9, 2009, during which counsel indicated that despite my instructions they had spent little time conferring about their disagreements. (See 1/9/09 Tr. 14-15). I therefore directed them to do so before our next conference. (Id at 15).

When counsel showed no progress at the time of the February 2, 2009, conference before me, I required them to meet and confer immediately in my jury room in an effort to narrow their disputes. (2/2/09 Tr. 14, 16). Later that day, I finally was able to address their remaining differences. After narrowing the time period applicable to Crawford’s requests to calendar years 2004 through 2006,1 directed that the Defendants produce within two weeks: (a) all of their communications with various regulatory bodies; (b) documents sufficient to show the business relationships between and among the Defendants; (c) any incentive compensation plans applicable to persons involved directly or as supervisors in the Crawford loan; (d) year-end financial statements for Franklin; (e) a list of any actions commenced against the Defendants arising out of mortgage or refinancing agreements; and (f) a privilege log complying with Local Civil Rule 26.2. (See Docket No. 8). Because it appeared that the Defendants had been dragging their feet, I also directed them to produce one or more witnesses on February 26, 2009, to be deposed pursuant to Rule 30(b)(6) of the Federal Rules of Civil Procedure (“Rule 30(b)(6)”) regarding the adequacy of their document search. (Id)

On March 26, 2009, twenty days after the close of discovery, counsel again appeared before me to discuss further discovery disputes. During this conference, the Defendants’ counsel, William M. Rifkin, Esq., conceded that he had served his document demand so late that he would, at most, have had two days to take depositions after Crawford’s responses were due. (3/26/09 Tr. 2-3). Incredibly, Mr. Rifkin suggested that this was sufficient time for him to complete his discovery. (Id at 3). The following exchange then took place;

THE COURT: October 3rd, I set a March 6th discovery cutoff, correct?2
MR. RIFKIN: Correct.
[37]*37THE COURT: What happened in October, November, December, and January in this case, nothing?
MR. RIFKIN: Nothing.
THE COURT: And the reason for that is — ?
MR. RIFKIN: I — Your Honor, it’s just— there are a lot of reasons, but it’s really irrelevant ... as far as this Court is concerned.

(Id. at 4). Counsel previously had conceded that his firm had “around thirty attorneys,” so it would appear that lack of staff was not the reason for the delay. (See 2/2/09 Tr. 5).

As of the March conference, the Defendants also had not provided Crawford with a privilege log. Mr. Rifkin represented that, “[a]s far as I remember, Your Honor, there’s nothing that’s been withheld on the ground of privilege,” but offered to “double cheek.” (3/26/09 Tr. 6). I then directed him to file an affidavit within one week representing that no documents created before the filing of the lawsuit had been withheld on privilege grounds, or, if they had, to provide a schedule of those documents, (Id.). The following week, the Defendants filed the affirmation of an in-house counsel at Franklin, who indicated that the Defendants had located additional documents that they believed had not previously been produced. The affirmation also conceded that certain documents had, in fact, been withheld on attorney-client privilege grounds. (Docket No. 16). As a consequence of this belated disclosure, Crawford first received the Defendants’ privilege log more than two months after the deadline I had set during the January conference.

During the March conference, Crawford’s counsel also complained that Mr. Rifkin had provided him with a list of cases commenced by the Defendants, rather than the list of suits brought against them as I had directed. In response, Mr. Rifkin represented that aside from a lawsuit brought in the Eastern District of New York, he did not “believe there [were] any others.” (3/26/09 Tr. 17). The lawsuit to which he referred was one that Crawford’s counsel previously had unearthed.

Mr. Rifkin further represented that the Defendants possessed no copies of any commission incentive plan applicable to their lending agents and that, with the exception of one unsigned writing, no documents existed that reflected the business relationships between and among the Defendants from 2004 through 2006. (Id. at 18, 21, 22). He also declared that there had been no disciplinary proceedings commenced against the Defendants in the states where they did business. (Id. at 23). When he was asked about license applications during the same period, Mr. Rifkin indicated that his clients had produced all the documents from their files that constituted license applications. (Id. at 24-25).

The affirmation that the Defendants filed after the March conference apparently contained a schedule of litigations pending against them. Unfortunately, the EOF filing by their counsel does not contain the exhibit identifying those suits. (See Docket No. 16).

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261 F.R.D. 34, 2009 U.S. Dist. LEXIS 66019, 2009 WL 2222736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crawford-v-franklin-credit-management-corp-nysd-2009.