International Petroleum Products and Additives Company, Inc. v. Black Gold S.A.R.L.

District Court, N.D. California·Decided August 12, 2020·No. 4:19-cv-03004·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 EUREKA DIVISION 7 8 INTERNATIONAL PETROLEUM Case No. 19-cv-03004-YGR (RMI) PRODUCTS AND ADDITIVES 9 COMPANY, INC., ORDER ON MOTION FOR 10 Plaintiff, SANCTIONS 11 v. Re: Dkt. No. 90

12 BLACK GOLD S.A.R.L.,

13 Defendant.

14 15 Now pending before the court is a Motion for Monetary Sanctions filed by Petitioner 16 International Petroleum Products and Additives Company, Inc. (“IPAC”) (dkt. 90), to which 17 Respondent Black Gold S.A.R.L. (“Black Gold”) has responded (dkt. 92), and IPAC has replied 18 (dkt. 95). The matter came on for oral argument before the undersigned on July 28, 2020. Min. 19 Entry (dkt. 101). For the reasons described below, IPAC’s Motion is granted in part and denied in 20 part. 21 FACTUAL BACKGROUND 22 This Motion arises out of an action for court confirmation of IPAC’s arbitration award 23 against Black Gold. See Pet’r’s Mot. (dkt. 90) at 3. After granting IPAC’s Motion to confirm the 24 arbitration award, Judge Gonzalez Rogers issued a judgment by a separate Order on November 18, 25 2019, confirming IPAC’s arbitration award of $1,094,193.58. See generally Order of November 8, 26 2019 (dkt. 38); Judgment (dkt. 40). Since Black Gold did not pay the judgment, IPAC then filed 27 an Ex Parte Motion for Judgment Debtor Examination (dkt. 55), which Judge Gonzalez Rogers 1 While IPAC’s February 10, 2020 discovery requests were still pending, Judge Gonzalez Rogers 2 awarded IPAC attorneys’ fees and costs incurred after the arbitration award. See Order of 3 February 18, 2020 (dkt. 54). On March 6, 2020, the undersigned granted the Ex Parte Motion. See 4 Order of March 6, 2020 (dkt. 59). 5 The Discovery Request, Discovery Dispute, and Relevant Orders: 6 On February 10, 2020, IPAC served 11 Interrogatories, 30 Requests for Production, and 32 7 Requests for Admission that sought information on Black Gold’s assets related to its ability to 8 satisfy the judgment. Id. The discovery served on Black Gold was limited to: 9 1. IPAC’s First Set of Interrogatories (Nos. 1-11) (“ROGs”); 10 2. IPAC’s First Set of Requests for Production of Documents (Nos. 1-30) (“RFPs”); and 11 3. IPAC’s First Set of Requests for Admission (Nos. 1-32) (“RFAs”). 12 Black Gold served its objections and responses to the discovery on March 11, 2020. See 13 See Exh. 1 to Joshi Decl. (dkt. 90-2) at 1. Instead of responding to the interrogatories 14 substantively, Black Gold asserted several meritless objections, including the objection that Rule 15 69 of the Federal Rules of Civil Procedure did not apply to foreign parties; that the term “hold 16 assets” was ambiguous and undefined; and that certain interrogatories constituted more than 25 17 separate requests. Id. at 4, 5. 18 On April 7, 2020, IPAC sent a discovery letter to Black Gold setting forth the numerous 19 deficiencies in Black Gold’s responses and requesting to meet and confer. See Joshi Decl. (dkt. 90- 20 1) at 2. On April 14, 2020, Mr. O’Neill, a partner at Benjamin, Heather, Iaciofano & Bitter, LLC 21 (“BHIB”) – the firm that had represented Black Gold since the inception of the arbitration 22 proceedings – replied to IPAC’s letter explaining that he would be taking over the representation 23 of Black Gold since previous counsel had left BHIB. Id. Mr. O’Neill also requested an “informal 24 extension of 20 days” to familiarize himself with the case and respond to the issues raised in 25 IPAC’s April 7, 2020 discovery letter to Black Gold. Exh. 2 to Joshi Decl. (dkt. 90-3) at 1. 26 On April 21, 2020, the undersigned held a hearing on Black Gold’s Motion to Quash the 27 Order (dkt. 59) directing certain persons to appear for a judgment debtor examination. See 1 “the arguments in support of canceling the hearing and urging vacatur of the court’s previous 2 order are meritless and warrant no discussion.” See id. at 1.1 In addition, the undersigned denied 3 IPAC’s request for attorneys’ fees incurred in opposing the Motion to Quash. Id. 4 On April 24, 2020, in light of the undersigned’s Order finding Black Gold’s similar 5 arguments in support of the Motion to Quash meritless, IPAC asked Mr. O’Neill to withdraw 6 Black Gold’s discovery objections and provide substantive responses to IPAC’s requests by May 7 4, 2020. Exh. 3 to Joshi Decl. (dkt. 90-4) at 2-5. On May 4, 2020, Mr. O’Neill replied stating that 8 he could not respond to IPAC’s discovery letter since his Pro Hac Vice application was still 9 pending. See Exh. 4 to Joshi Decl. (dkt. 90-5). On May 8, 2020, two days after his application was 10 granted, Mr. O’Neill responded to IPAC’s April 7, 2020 discovery letter but did not agree to 11 supplement any responses or produce any documents. See Exh. 5 to Joshi Decl. (dkt. 90-6). 12 Furthermore, on May 13, 2020, during a telephonic meet and confer, Black Gold stated that it was 13 not withdrawing any objections, and did not offer to provide any supplemental responses. Id. 14 Instead, Black Gold suggested that IPAC re-issue its discovery requests in accordance with Black 15 Gold’s objections. Id. 16 At that point, the parties had reached an impasse that could not be resolved without court 17 assistance, and on May 21, 2020, the parties filed a Joint Discovery Letter regarding Black Gold’s 18 objections to IPAC’s discovery requests. See generally Joint Discovery Letter (dkt. 83) (“the 19 Letter”). In the Letter, Black Gold defended its aforementioned objections, including its objections 20 to the use of “vague” terms and the extraterritorial application of Rule 69, reasoning that “[t]he 21 materials and information that IPAC seeks are in Europe and other places than the United States.” 22 Id. at 5. 23 Judge Gonzalez Rogers referred the matter to the undersigned, who ordered the parties to 24 hold a further meet and confer prior to a June 5, 2020 discovery hearing. Id. About 90 minutes 25 prior to a meet and confer call, on June 4, 2020, Mr. O’Neill emailed IPAC and offered to produce 26

27 1 In its Motion to Quash, Black Gold asserted, among other arguments, that “Rule 69 cannot be applied 1 discovery if IPAC were “to attempt to obtain information from Black Gold reasonably related to 2 the claims in the complaint from the date of judgment/arbitration award.” Exh. 6 to Joshi Decl. 3 (dkt. 90-7) at 2. Otherwise, Mr. O’Neill requested to know the significance of the date range in the 4 discovery request. Id. During the meet and confer call, Black Gold confirmed its objection to the 5 date range encompassed by certain date-limited discovery requests, and the parties sent a letter to 6 this court indicating that Black Gold and IPAC had purportedly narrowed their dispute to the time- 7 period of the discovery requests – specifically, whether any date-limited discovery requests from 8 IPAC should start from January 1, 2016, the date of the agreements that led to the arbitration 9 award, or from May 29, 2019, the date of the arbitration award. See Joint Notice of Compliance 10 (dkt. 87) at 2. During the telephonic hearing before the undersigned on June 5, 2020, however, Mr. 11 O’Neill stated that Black Gold never said it was dropping any of its initial objections, contrary to 12 the parties’ Joint Notice of Compliance. See id; Pet’r’s Mot. (dkt. 90) at 6. In that hearing, and for 13 the first time, Black Gold generally asserted that COVID-19 delayed its production. Min. Entry 14 (dkt. 101). 15 Ultimately, the undersigned ruled in IPAC’s favor overruling all of Black Gold’s 16 objections as meritless. See Order of June 9, 2020 (dkt. 89). Black Gold was ordered to provide 17 substantive responses to each Interrogatory, produce responsive documents to each RFP, and 18 provide a substantive response to RFA Nos. 31 and 32 on a rolling basis beginning on June 10, 19 2020, and ending no later than July 20, 2020. Id. at 2.

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International Petroleum Products and Additives Company, Inc. v. Black Gold S.A.R.L., (N.D. Cal. 2020).

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