In re Mesa Power Group, LLC

878 F. Supp. 2d 1296, 2012 WL 2886827, 2012 U.S. Dist. LEXIS 97329
CourtDistrict Court, S.D. Florida
DecidedJuly 13, 2012
DocketCase No. 11-24335-CIV
StatusPublished
Cited by1 cases

This text of 878 F. Supp. 2d 1296 (In re Mesa Power Group, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Mesa Power Group, LLC, 878 F. Supp. 2d 1296, 2012 WL 2886827, 2012 U.S. Dist. LEXIS 97329 (S.D. Fla. 2012).

Opinion

ORDER DENYING NEXTERA ENERGY RESOURCE’S MOTION TO QUASH SUBPOENA DUCES TE-CUM AND DEPOSITION SUBPOENAS

EDWIN G. TORRES, United States Magistrate Judge.

This matter is before the Court on Next-Era Energy Resources’ (“NextEra”) Motion to Quash Subpoena Duces Tecum and Deposition Subpoenas [D.E. 9] filed April 6, 2012. NeictEra additionally filed a Supplement to Motion to Quash on May 1, 2012 [D.E. 25]. Mesa Power Group, LLC (“Mesa Power”) responded in opposition on May 21, 2012 [D.E. 28]. NextEra then filed a reply to Mesa Power’s Opposition to Quash Subpoena Duces Tecum and Deposition Subpoenas. [D.E. 30]. Finally, Mesa Power filed a Notice of Supplemental Authority on June 6, 2012 [D.E. 32], to which NextEra responded. Both parties also appeared before the Court on June 19, 2012 for a Hearing on NextEra’s Motion to Quash. Upon review of the motions, responses, replies, the record, and the arguments made by counsel at the hearing, we conclude that NextEra’s Motion to Quash Subpoena Duces Tecum and Deposition Subpoenas should be denied.

I. BACKGROUND

A. NAFTA Arbitration

This matter arises from Mesa Power’s Ex Parte Application for.Judicial Assistance in Obtaining Evidence for Use in a Foreign and International Proceeding pursuant to 28 U.S.C. § 1782. Mesa Power sought assistance in a pending arbitration under the North American Free Trade Agreement (“NAFTA”) involving Mesa Power and. the Government of Canada [D.E. 1]. According to the Ex Parte Application, in July 2011, Mesa Power was awaiting the response to six applications that had been filed under the Ontario FIT program. The Ontario FIT Program guarantees electrical grid access to renewable energy producers through long-term fixed price contracts with the Ontario Power Authority (“OPA”).

However, as alleged by Mesa Power, on July 3, 2011 an unexpected change in the rules for awarding FIT Program contracts effectively prevented Mesa Power from obtaining any contracts with the OPA. Due to the ability to change interconnect points, NextEra and Boulevard were awarded FIT contracts while Mesa Power was allegedly shut out of the market. Mesa Power claims that the Government of Ontario unfairly usurped Mesa Power’s ranking, essentially confirming a course of conduct of arbitrariness, discrimination, [1300]*1300and inequitable treatment as compared to other investors.

Since Canada is responsible for Ontario’s observance of NAFTA pursuant to NAFTA Article 105, Mesa Power proceeded to file a Notice of Intent under the United Nations Commission of Internal Trade Law (“UNCITRAL”) with the Government of Canada to establish an international tribunal to address violations of section A of Chapter 11 of NAFTA by Canada. On October 4, 2011, Mesa Power filed a Notice of Arbitration in Ottawa, Canada, claiming that Canada imposed sudden and discriminatory changes to the established scheme- for renewable energy. In the NAFTA Arbitration proceedings, Mesa Power is seeking: (a) a declaration that the Canadian Government has breached NAFTA; (b) a declaration that such a breach has caused harm to Mesa Power; and (c) an award of damages for the value of Mesa Power’s investments; appropriate Compound interest on this amount; -and an amount for the costs and disbursements for professional and expert advisors and the costs of arbitration.

B. Miami Proceedings

Mesa Power then filed an Ex Parte Application, accompanied by a declaration, a memorandum of law, correspondence regarding the arbitration, and a notice of arbitration, seeking to conduct discovery pursuant to 28 U.S.C. § 1782 [D.E. 1]. In preparation for the NAFTA Arbitration, the Application requested documents within NextEra’s possession and control-relating to the Ontario FIT Program, including communications with the Government of Ontario, lobbyist groups in Canada,, and other third parties that were involved in NextEra’s bid process. Mesa Power also sought to depose seven senior executive members of NextEra. On December 6, 2011, the Ex Parte Application for Judicial Assistance was granted [D.E. 4]. NextEra responded shortly thereafter by filing a Motion to Quash Subpoena and Deposition Subpoenas [D.E. 9], which motion was referred for disposition.

NextEra argued in its Motion to Quash that the discovery sought was contrary to the applicable discretionary factors established in Intel Corp. v. Advanced Micro Devices, Inc., 542 U.S. 241, 255, 124 S.Ct. 2466, 159 L.Ed.2d 355 (2004). Specifically, NextEra claimed that Mesa Power did not prove that NAFTA would be receptive to the discovery sought and as such it was unclear whether this was an attempt to circumvent the tribunals’ proof-gathering mechanisms. In addition, NextEra asserted that the request sought company trade secrets and competitive information while imposing an undue burden. As for the deposition subpoenas, NextEra claimed that they should be quashed since the tribunal had not yet decided if Mesa was entitled to discovery, and, if not quashed, they should alternatively be restricted to less intrusive means. NextEra considered the request to depose the most senior executives inappropriate where other agents of the corporation could be deposed.

Mesa Power reiterated in its Opposition to NextEra’s Motion to Quash that, contrary to NextEra’s assertions, the Intel discretionary factors weighed in favor of denying the Motion to Quash. ' Mesa Power contended that the discoverability and admissibility of evidence in the foreign proceeding does not bar a district court from ordering discovery. Even more so, it is not a factor to be considered unless NextEra had authoritative proof that such evidence would be rejected. Mesa Power further responded to NextEra’s assertions that the NAFTA Arbitration proceeding was not even pending by stating that the proceeding had in fact been recognized and, even if it had not been pending, Intel [1301]*1301instructs us that discovery can still be attained through §• 1782 at the pre-investigative stage. Additionally, Mesa Power contended that, because there is no exhaustion requirement, NextEra’s argument that Mesa Power should first seek discovery from Canada in the foreign proceedings held no weight.

Mesa Power additionally responded to the claim that the requests were unduly intrusive or burdensome, and, even if they were, NextEra waived a right to objections since it failed to specify how the discovery requests were burdensome. NextEra’s failure to specify their concerns allegedly extended to their assertion that the requested documents were confidential. Finally, Mesa Power contended that the depositions were appropriate but offered to substitute the seven executives subpoenaed for the deposition of a person most knowledgeable as identified by NextEra.

II. ANALYSIS

A. Assistance to Foreign and International Tribunals to Litigants Before Such Tribunals Pursuant to 28 U.S.C. § 1782

The applicable statute relevant to this dispute, 28 U.S.C.

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878 F. Supp. 2d 1296, 2012 WL 2886827, 2012 U.S. Dist. LEXIS 97329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mesa-power-group-llc-flsd-2012.