ERB Legal Investments, LLC v. Quintessa Marketing, LLC

CourtDistrict Court, E.D. Missouri
DecidedMay 27, 2022
Docket4:20-cv-01255
StatusUnknown

This text of ERB Legal Investments, LLC v. Quintessa Marketing, LLC (ERB Legal Investments, LLC v. Quintessa Marketing, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ERB Legal Investments, LLC v. Quintessa Marketing, LLC, (E.D. Mo. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

ERB LEGAL INVESTMENTS, LLC, ) ) Plaintiff and ) Counterclaim defendant, ) ) v. ) No. 4: 20 CV 1255 DDN ) QUINTESSA MARKETING, LLC, ) ) Defendant, and ) Counterclaim plaintiff. )

MEMORANDUM AND ORDER This matter is before the Court on several motions: (a) the motion of defendant Quintessa Marketing, LLC to compel (Doc. 104); (b) the motions of defendant for order to show cause (Docs. 106 and 113); (c) the motions of plaintiff ERB Legal Investments, LLC for relief from the protective order (Docs. 109, 117, and 118); (d) the motions of plaintiff for leave to file under seal (Docs. 110 and 119). The Court heard argument on several of the motions on April 1, 2022. The parties have consented to the exercise of plenary authority by a United States Magistrate Judge pursuant to 28 U.S.C. § 636(c).

MOTION TO COMPEL Defendant moves to compel plaintiff’s responses to six interrogatories and five requests for production. (Doc. 104.) In its counterclaim, it alleges that plaintiff committed fraud by disengaging leads within plaintiff’s system but later settling the claims of the disengaged leads. (Doc. 105 at 1.) Defendant seeks information related to its own fraud allegations, as well as information regarding plaintiff’s claim of breach of contract. (Id.) Plaintiff responds that defendant cannot make a threshold showing of fraud, and its attempts to obtain discovery are a fishing expedition. (Doc. 121 at 6.) It asserts that “[t]he only thing that [defendant] apparently relies upon is an unauthenticated, undated, inadmissible hearsay statement from” the mother of a disengaged lead, “which [is] factually incorrect.” (Id.) Defendant contends in reply that it investigated the statement by the mother of the disengaged lead, which gave it a good faith belief that plaintiff committed fraud. (Doc. 124 at 1.) “Parties may obtain discovery regarding any non-privileged matter that is relevant to any party's claim or defense and proportional to the needs of the case . . .” Fed. R. Civ. P. 26(b)(1). However, “[t]he District Court does have discretion to limit the scope of discovery.” Credit Lyonnais v. SGC Int'l, Inc., 160 F.3d 428, 431 (8th Cir.1998). “To determine if a matter is discoverable, the analysis may require the court to first determine whether the sought discovery is relevant to a claim or defense.” Heller v. HRB Tax Group, Inc., 287 F.R.D. 483, 485 (E.D. Mo. 2012). The phrase “relevant to the subject matter involved in the pending action” has been “construed broadly to encompass any matter that bears on, or that reasonably could lead to other matter that could bear on any issue that is or may be in the case.” Oppenheimer Fund Inc. v. Sanders, 437 U.S. 340, 351 (1978). “However, although the standard of relevance in the context of discovery may be broader than in the context of admissibility, ‘this often intoned legal tenet should not be misapplied so as to allow fishing expeditions in discovery.’” Ariel Preferred Retail Group, LLC v. CWCapital Asset Mgmt., No. 4:10CV623SNLJ, 2012 WL 1620506, at *3 (E.D. Mo. May 9, 2012). In Interrogatory 2, defendant seeks information regarding any leads sent to plaintiff by defendant that plaintiff referred to another lawyer or law firm. (Doc. 105-1 at 2.) In Interrogatory 3, defendant seeks information regarding every law firm or lawyer to whom plaintiff referred a lead, client, or case since April 21, 2020. (Id.) Defendant contends that the information is relevant to its fraud claim and that it has a right to discover if plaintiff referred any disengaged leads to other counsel. (Doc. 105 at 3.) Plaintiff responds that Interrogatories 2 and 3 are overbroad, as it had the prerogative to pay for a lead and then refer it to another firm. (Doc. 121.) In reply, defendant reiterates that it has the right to conduct third-party discovery and that it would agree to the information being subject to a protective order. (Doc. 124 at 1.) The requested information is relevant to defendant’s claim that plaintiff fraudulently identified leads as “disengaged” while continuing to represent them. As defendant notes, if plaintiff referred a purportedly disengaged lead to another firm, it could have profited from a resulting settlement. Additionally, the Court recognizes that it ordered defendant to produce to plaintiff its client list, pursuant to a protective order. The Court concludes that defendant’s request is relevant and proportional to the needs of the case. See Fed. R. Civ. P. 26(b)(1). Plaintiff must respond to Interrogatories 2 and 3 pursuant to the following protective order: the response must be designated “Confidential – Attorneys’ Eyes Only,” for defendant’s counsel James Wyrsch. In Interrogatories 4 and 5, defendant seeks information regarding every lead generation and marketing service or entity that plaintiff has utilized. (Doc. 105-1 at 2-3.) Defendant contends that plaintiff’s relationships with other lead generation services are relevant to its fraud claim; specifically, defendant asserts that plaintiff contracted with another lead generation company, accepted leads, and demanded a refund. (Doc. 105 at 4.) Plaintiff acknowledges that the Court allowed it to discover defendant’s client list pursuant to a similar discovery request, but it contends that defendant has not made a threshold showing of similar conduct. (Doc. 121 at 8.) Plaintiff does not respond to defendant’s assertion that it has, on at least one other occasion with a different lead generation company, received leads before requesting a refund. (Doc. 105 at 4.) Plaintiff contends that the Court allowed it to discover defendant’s client list because it “provided evidence of another lawsuit filed by a [client of defendant] alleging fraud in connection with the same or similar lead generation product.” (Doc. 121 at 8.) This argument mischaracterizes the Court’s previous order. The Court considered the existence of another lawsuit in its analysis of defendant’s motion to dismiss, but not in the context of a discovery request. (See Doc. 82 at 4, 7-8.) Rather, the Court stated that “[t]he requests for production are relevant to plaintiff’s claim of fraud, so the Court will not bar discovery of defendant Quintessa’s clients.” (Id. at 8.) Likewise, here, defendant requests information regarding plaintiff’s relationships with other lead generation and marketing services. Plaintiff’s relationships with and past practices with such entities are relevant to its claim, so the Court sustains defendant’s motion to compel Interrogatories 4 and 5. In Interrogatories 6 and 7, defendant seeks information regarding any accusations or lawsuits alleging that Ryan Bradley and/or plaintiff engaged in fraud, libel, slander, and/or defamation. (Doc. 105-1 at 3.) Defendant argues that plaintiff has made numerous false allegations against defendant, and it has a right to discover accusations of similar behavior, as it goes to Mr. Bradley’s credibility. (Doc. 105 at 4.) Defendant also notes that the Court permitted plaintiff to send questionnaires to defendant’s former clients soliciting information regarding disputes, so it should be permitted to discover similar information from plaintiff itself. (Id. at 4-5.) Plaintiff contends that defendant has not alleged libel, slander, or defamation, so information regarding such accusations is irrelevant. (Doc.

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Bluebook (online)
ERB Legal Investments, LLC v. Quintessa Marketing, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/erb-legal-investments-llc-v-quintessa-marketing-llc-moed-2022.