Ensminger v. Credit Law Center, LLC

District Court, D. Kansas·Decided July 27, 2020·No. 2:19-cv-02147·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

MARK ENSMINGER, on behalf of himself and those similarly situated,

Plaintiff, Case No. 19-2147-JWL v.

CREDIT LAW CENTER, LLC, et al.,

Defendants.

ORDER

The defendants, Credit Law Center, LLC (“CLC”) and Thomas Addleman, have filed a motion for protective order (ECF No. 90). They seek to preclude the plaintiff, Mark Ensminger, from serving certain discovery, arguing it’s precluded by an order previously entered by the court. In addition, they argue the discovery is irrelevant and unduly burdensome. Plaintiff opposes the motion, arguing the discovery is not precluded by the court’s previous order, and further arguing the discovery is relevant and would impose no undue burden. Plaintiff has also filed a motion to amend the scheduling order (ECF No. 98), which defendants do not oppose. For the reasons discussed below, the court denies defendants’ motion for protective order and grants plaintiff’s motion to amend the scheduling order. Background A detailed summary of the procedural background of this case is necessary to understand the issues raised by defendants’ motion. On March 15, 2019, plaintiff filed this putative class-action complaint for violation of the Credit Repair Organizations Act (“CROA”).1 On July 23, 2019, plaintiff served his first set of discovery requests.2 On April 1, 2020, the same day the fact-discovery deadline in the court’s original scheduling order was set to expire, and before filing any motion to compel, plaintiff filed a motion to

amend the court’s scheduling order and extend the discovery deadline, based on the ongoing discovery dispute relating to class data and to seek “additional time to complete fact discovery due to unforeseen circumstances.”3 Defendants didn’t oppose a limited extension but opposed the request to allow all fact discovery as overbroad and unnecessary.4

The amended scheduling order entered by the court on April 7, 2020 granted plaintiff’s request for extension of time, extending fact discovery 90 days, but significantly didn’t limit the subject matter of such discovery.5 The court did note defendants’ position that discovery should be limited to the then-forthcoming motion to compel and the deposition of Paige White, but the court intentionally didn’t incorporate that limitation in

its order. Rather, the amended scheduling order granted plaintiff’s request and stated “[b]ased on the scope of the disputed discovery, it seems reasonably likely the parties will

1 ECF No. 1. 2 ECF No. 83. 3 ECF No. 76 at 2. 4 ECF No. 78 at 1-2. 5 ECF No. 80. have additional follow-up to conduct.”6 The order allowed for “both the possibility of supplemental discovery and the uncertainty of rescheduling depositions during the pandemic.”7

The court ruled on plaintiff’s motion to compel related to his first set of discovery on May 4, 2020.8 That order granted plaintiff’s request to produce the list of clients who actually submitted a retainer payment for credit repair services, along with the dates of those actual payments.9 The court denied to compel to obtain the amounts of the retainers because that information was not included in the request.10

Plaintiff served his second set of discovery on May 8, 2020. This set seeks the amount of the retainers paid by clients, in addition to a range of other information.11 Plaintiff also asserts the discovery relates to “defendants’ attacks on the previously- produced class discovery.”12 Before filing their motion for a protective order, defendants asked plaintiff to withdraw the discovery, arguing it improperly sought information

unrelated to the motion to compel, which they maintain is precluded. Plaintiff argues any

6 Id. at 1. 7 Id. at 2. 8 ECF No. 88. 9 Id. 10 Id. 11 ECF No. 89. 12 ECF No. 99 at 3. denial to compel discovery in the first order was because the discovery wasn’t previously requested, not because the court found it objectionable.13 In the instant motion, defendants raise this point – they argue plaintiff was limited in what discovery he could serve to

supplemental discovery related to the motion to compel.14 The court disagrees. Plaintiff’s first motion to compel centered on a dispute over whether the first set of discovery sought information about the date on which putative class members provided a retainer, the amount of the retainer, the date of the first billable event, and the client files.15 Defendants argued plaintiff sought information beyond his originally-served request, while

plaintiff argued he had sought that information initially.16 Defendants are correct that the court declined to compel production of certain information, including the client files, retainer amounts, and initial invoice dates.17 The court’s May 4, 2020 order stated that each client’s entire file might not be relevant, depending on the method of production. The court directed defendants to produce the dates of actual payments of retainers.18 The court

allowed for the possibility that defendants’ proposed method, exporting the dates from its Credit Money Machine software, wouldn’t work, in which case they should compare the

13 Id. at 4. 14 ECF No. 102 at 2. 15 ECF No. 88 at 6. 16 Id. 17 Id. 18 Id. at 11. dates of the retainer payments against the dates of their first billable events, ostensibly using the client file.19 The court referenced the possibility of using the client file to get that information but explicitly stated it was not ruling the entire client file to be relevant.

Notably, plaintiff requested the amount of the retainer payment in his motion. Plaintiff argued the information was necessary to determine whether a particular credit reflected a retainer, versus a different type of credit.20 Because plaintiff had not requested that information in his initial requests, the court ruled defendants didn’t have to produce the amount at that time.21 But, as discussed above, nothing in the order ruled that plaintiff

couldn’t request the information in the future, nor was any particular subject deemed objectionable. And plaintiff did not represent in his motion to extend the scheduling order that it was solely to expound on specific discovery issues. The language in the motion and in the court’s resulting order do not limit the scope of discovery. Once plaintiff served his second set of discovery, the parties conferred over the

disputed issues by telephone on June 1, 2020 and June 4, 2020.22 Plaintiff represents he offered to pay an independent expert to extract the client files requested in Request No. 6, and offered to narrow the scope of the request of the database tables when he received the

19 Id. 20 Id. at 12. 21 Id. 22 ECF No. 99 at 4. row and column headings for each field in the database.23 Plaintiff represents defendants did not respond to these proposals until after filing their motion for protective order.24 Importantly, plaintiff asserts the parties have not conferred regarding multiple

interrogatories and requests. Plaintiff expresses belief “the parties ostensibly could have reached an agreement with respect to some of those requests”25 and concludes “the court must now allocate resources to several discreet issues that the parties could have – and in some instances, would have – resolved by agreement.”26 Defendants disagree and represent the parties “covered all of the matters at issue in this motion”27 in their efforts to

confer. Analysis Under Rule 26(c) of the Federal Rules of Civil Procedure, upon a showing of good cause, a court may “issue an order to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense.” Discovery may be proscribed

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