GSC Logistics, Inc. v. Amazon.com Services LLC

District Court, S.D. New York·Decided January 21, 2025·No. 1:23-cv-05368·Unknown

Opinion

WINDELS | Mars MARX Mittondorf up MEMO ENDORSED Ben J. Kusmin 156 West 56" Street | w York, NY 10019 bkusmin@windelsmarx.com T. 212.237.1000 | F. 212.262.1215 For the reasons stated on the record at the January 16, 2025 conference before this Court, the parties’ requests are GRANTED | December 13, 2024 PART and DENIED in part as articulated by this Court at the conference. The Clerk of Court is respectfully directed to terminat VIA ECF: ECF No. 83. Hon. Jessica G. L. Clarke, U.S.D.J. Dated: January 21, 2025 SOO RDERED. , A Daniel Patrick Moynihan United States Courthouse New York, New York ( \eaaca | KA 500 Pearl Street (J New York, NY 10007-1312 JESSICA G.L. CLA United States District Re: GSC Logistics, Inc. v. Amazon.com Services LLC and Amazon Logistics, Inc., S.D.N.Y., Case No. 1:23-cv-05368-JGLC Dear Judge Clarke: Please accept this joint letter motion of counsel made, pursuant to Rule 4(k) of Your Honor’s Individual Rules and Practices, to explain the nature of the subject discovery Dispute concerning Amazon’s Privilege Log (the “Privilege Log”). Plaintiff GSC Logistics, Inc. (“GSC”) seeks to compel production by Defendants Amazon.com Services LLC and Amazon Logistics, Inc.’s (collectively, “Amazon”). I. Facts Relevant to the Subject Dispute over Amazon’s Privilege Log Amazon served its Privilege Log on November 7, 2024, and GSC responded via email on December 5, 2024, objecting to certain categories of documents described on Amazon’s log.’ On December 10, 2024, the parties met and conferred through their respective counsel to clarify their positions and attempt to resolve the dispute over the challenged entries set forth herein (the “Dispute”’). During the meet and confer, the parties mutually declared an impasse as to the Dispute necessitating this joint letter.’ Il. GSC’s Position Regarding the Nature of the Dispute: Amazon Should be Compelled to Produce the SLA Analysis Materials Amazon purports to withhold various documents and Microsoft Excel files reflecting its factual analysis of GSC’s OTD SLA performance (collectively, the “SLA Analysis Materials”) as attorney-client privileged and/or attorney work product. These documents are described in more detail in an email sent by counsel for GSC to counsel for Amazon, attached hereto as Exhibit 1,

2 The meet and confer lasted approximately one hour and the following attorneys participated: (1) Amazon: Rasheed MeWilliams, Sherron Wiggins, Helena Berezowskyj, Grace Pak, and Shannon Stahl; and (2) GSC: Rodman Honecker, Ben Kusmin, and Dennis Amore. 3 Counsel for GSC originally identified 57 items for inclusion in “Category A” as SLA Analysis Materials. Counsel for Amazon subsequently identified 24 items from this category that have been produced elsewhere. Exhibit 2 reflects

and are listed in an excerpt of Amazon’s privilege log, attached hereto as Exhibit 2. Counsel for GSC has identified entries that are likely to relate to the SLA Analysis (i.e., the analysis performed by Amazon allegedly justifying the termination of the linchpin agreement in this case) based on the filenames, the descriptions on the privilege log, the dates, and the authors and recipients. The SLA Analysis Materials should be produced because i) the analysis was performed for business reasons, and would have been performed even without the prospect of litigation; ii) because the material constitutes factual information and analysis that is not independently privileged; and/or iii)because GSC has a substantial need for the material in the prosecution of its case.4-5 The work product privilege protects “documents and tangible things that are prepared in anticipation of litigation or for trial by or for another party or its representative.” Fed. R. Civ. P. 26(b)(3)(A). For work product privilege to apply, “the material in question must: (1) be a document or tangible thing, (2) which was prepared in anticipation of litigation, and (3) was prepared by or for a party, or by or for its representative.” Shih v. Petal Card, Inc., 565 F. Supp.3d 557, 571 (S.D.N.Y. 2021). “The burden of establishing all three elements of the work product doctrine rests with the party invoking it.” Id. As to the second prong, in the SDNY “work product must have been created ‘because of’ existing or expected litigation.” Id. at 575 (quoting United States v. Adlman, 134 F.3d 1194, 1198 (2d Cir. 1998)). Work product privilege does not apply to “documents that are prepared in the ordinary course of business or that would have been created in essentially similar form irrespective of the litigation.” Id. at 1202. Under this standard, the SLA Analysis Materials are not entitled to protection for the simple reason that the analysis would have been performed whether Amazon anticipated litigation or not. See id. Numerous internal documents produced by Amazon identified the need for such an analysis beginning about two months prior to the termination in February 2023. Amazon deposition witnesses have admitted— and it is clear from the produced documents—that the analysis had to be conducted with respect to GSC in order for Amazon to determine whether it should terminate for convenience and pay the $15 million Withdrawal Payment, or terminate for cause based on the SLA analysis and deny the payment. Thus, Amazon’s assertion of work product protection over the SLA Analysis Materials fails the standard articulated in Adlman and elsewhere. Even if the SLA Analysis Materials were otherwise entitled to protection as fact work product, Amazon should produce this material because GSC has a substantial need for this material in the prosecution of its case. Under Fed. R. Civ. P. 26, the work product privilege may be overcome where a party “has substantial need for the materials to prepare its case and cannot, without undue hardship, obtain their substantial equivalent by other means.” Fed. R. Civ. P. 26(b)(3)(A)(i)-(ii); see Hickman v. Taylor, 329 U.S. 495, 511 (1947) (“[w]here relevant and non- privileged facts remain hidden in an attorney’s file and where production of those facts is essential to the preparation of one's case, discovery may properly be had”). The termination analysis is fact as Category ‘A’ the privilege log entries for the remaining SLA Analysis Materials in dispute, and ‘withdrawn’ for the 24 items identified by Amazon. For clarity, Exhibit 2 also includes the parent document for the challenged items. 4 GSC also challenges Amazon’s assertion of attorney-client privilege over 12 communications that do not include any attorneys, described in the exhibits as “Category B.” 5 By way of an email from Amazon’s counsels sent late on December 12, 2024 at 10:57 PM EST, Amazon states that it has agreed to produce certain of the challenged SLA Analysis Materials but potentially with redactions (the “December 12 Email”), attached hereto as Exhibit 3. Without knowing what those materials are, or the extent of the work product, not opinion work product, because it does not reflect the “mental impressions, conclusions, opinions, or legal theories of an attorney.” In re Grand Jury Proceedings, 219 F.3d 175, 190 (2d Cir. 2000).

A critical issue in this case is whether the OTD SLA calculations used by Amazon to justify its for-cause termination of GSC were performed correctly, and in accordance with the Agreement.

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