Massachusetts Mutual Life Insurance v. Cerf

177 F.R.D. 472, 1998 U.S. Dist. LEXIS 12206, 1998 WL 42881
CourtDistrict Court, N.D. California
DecidedJanuary 16, 1998
DocketNo. C-96-20375 SW EAI
StatusPublished
Cited by8 cases

This text of 177 F.R.D. 472 (Massachusetts Mutual Life Insurance v. Cerf) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Massachusetts Mutual Life Insurance v. Cerf, 177 F.R.D. 472, 1998 U.S. Dist. LEXIS 12206, 1998 WL 42881 (N.D. Cal. 1998).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT ALAN L. CERF’S MOTION FOR PROTECTIVE ORDER

INFANTE, United States Magistrate Judge.

I. INTRODUCTION

Defendant Alan L. Cerf has filed an expedited motion for a protective order (1) precluding Plaintiff Massachusetts Mutual Life Insurance Company from taking the depositions of third-party witnesses Sandra Clam-age, Rick Anzalone, George Mageles, Lynn Gross-Cerf, William Dok, Joan M. Pfeiffer, and Anthony J. Trepel; and (2) precluding Plaintiff Massachusetts Mutual Life Insurance Company from obtaining documents from said third-party witnesses by subpoena. For the reasons set forth below, Defendant’s motion for protective order is GRANTED IN PART AND DENIED IN PART.

II. BACKGROUND

This is a declaratory relief action filed by Plaintiff Massachusetts Mutual Life Insur[475]*475anee Company (“Mass Mutual”) against Defendant Alan L. Cerf (“Cerf”). In 1995, Cerf filed a claim for disability benefits under two long-term disability insurance policies issued by Mass Mutual. Cerf claims that he became disabled as a result of depression caused by his wrongful termination as a life insurance agent by Central Life Insurance Company (“Central Life”) and Pacific Mutual Life Insurance Company (“Pacific”). Mass Mutual concluded that Cerf was not disabled and denied the claim. This declaratory relief action followed. Cerf has filed counterclaims for bad faith and breach of contract:

According to Cerf, he was terminated by Central Life in 1992 because he refused to give false testimony favorable to the company in its litigation with Cerfs former supervisor. Cerf claims that this wrongful termination started his battle with depression. His depression allegedly became worse when he was later wrongfully terminated by Pacific in 1994. Cerf is currently involved in litigation with both Central Life and Pacific. Cerf alleges that Pacific’s decision to terminate him in 1994 was related to his refusal to give false testimony on behalf of Central Life and that the reason offered for his termination was pretextual.

Pacific’s stated reason for terminating Cerf relates to his alleged misconduct in his marital dissolution case on June 28, 1994. In April 1994, Cerf filed a petition for the dissolution of his marriage to Lynn Gross-Cerf. Cerf was represented by attorney Joan M. Pfeiffer at the commencement of his divorce action. Lynn Gross-Cerf was represented by attorney William Dok. In June 1994, Cerf filed an income and expense declaration in the dissolution case which apparently understated his income. Fleming Decl., Exh A To verify his income, attorney William Dok subpoenaed Cerfs commission records from Pacific. Fleming Decl., Exh B.

When Cerf learned that William Dok had subpoenaed his records, he allegedly made repeated telephone calls to Pacific’s records department to attempt to prevent their production but was unsuccessful. In June 1994, Pacific sent Cerfs commission records to the copy service hired by Mr. Dok. Fleming Decl., Exh. C. The records indicate that during the period from 1992 to 1994, Cerf earned more than $1 million in commissions from sales of Pacific life insurance policies. Cerf then allegedly contacted the copy service, Castle Copy Service, and identified himself as attorney William Dok. Cerf told the employees of Castle that he would be coming to their office to personally retrieve the subpoenaed documents. He then apparently retrieved the Pacific/documents and falsified them so that they would support his earlier-filed income and expense report. The purportedly falsified records, which show that Cerf earned approximately $550,000 in commission income from 1992 to 1994, are attached as Exhibit D to the Fleming Declaration.

When Mr. Dok received the falsified records, he complained to Pacific. At this point, Pacific hired a private investigator to determine how the commission records had been falsified. The investigator questioned two employees of Castle Copy Service and was told that Mr. Dok had personally retrieved the subpoenaed records on June 28, 1994. The investigator then allegedly conducted a “photo lineup” to determine whether Cerf had impersonated Mr. Dok. The two employees selected Cerfs photograph from the 10 black-and-white photographs the investigator presented to them. On July 20, 1994, the two Castle employees executed a declaration to document the events surrounding the apparent falsification of the Pacific records. Fleming Decl., Exh. E. When Pacific learned the details of the incident, it immediately fired Cerf. Also, Cerfs attorney, Joan Pfeiffer, withdrew as his attorney in the dissolution action.

Cerf claims that the entire story concerning his impersonation of attorney William Dok and his falsification of his commission records is a fabrication. In short, Cerf claims that Pacific conspired with Central Life to set him up and that his termination was therefore pretextual. To support his claim, Cerf contends that he was in fact at a viticulture meeting many miles away from Castle Copy Service at the time that he allegedly picked up the Pacific documents. He has identified two alibi witnesses, Rick Anzalone and George Mageles, who will pur[476]*476portedly testify that they saw him at the viticulture meeting on June 28,1994.

Shortly after Cerf was terminated by Pacific, he filed a claim for disability benefits under the policies issued by Mass Mutual. Cerf contends that his wrongful termination from Central Life and Pacific and the false accusations made against him by those companies have caused him to suffer extreme depression which has rendered him disabled under the terms of the policies.

Mass Mutual filed this declaratory relief action after it determined that Cerf does not, in fact, suffer from depression and that his loss of income is attributable to his inability to find work because of his history of improper and fraudulent sales practices as a life insurance agent. Mass Mutual alleges that Cerf employed improper and fraudulent tactics while he was employed by Central Life, Pacific and, later, Security Life of Denver, such as “churning” and “twisting.” Fleming Decl., 112(a), (b) and (d).

III. DISCUSSION

A. Cerfs Expedited Motion for Protective Order

On December 20, 1997, Mails Mutual served Cerf with notices of third-party depositions. The attorneys have exchanged letters regarding the propriety of these depositions and the subpoenas duces tecum attached thereto. Cerfs expedited motion seeks the entry of a protective order prohibiting Mass Mutual from taking the depositions of these third-party witnesses and obtaining the subpoenaed documents.

Attorney Anthony Trepel, one of the third-party witnesses, has filed a joinder in Cerfs motion for protective order with regard to his scheduled deposition. Trepel wants the Court to issue an order prohibiting the taking of his deposition.

B. Cerfs motion for protective order regarding Sandra damage’s deposition is denied

Sandra damage was Cerfs administrative assistant during the period from 1990 to January 1995. Mass Mutual subpoenaed her for deposition and requested that she produce “[a]ll personal and business canceled checks to CostCo for June 1994, including without limitation June 28, 1994.” Silver Decl., Exh. D. No other documents were subpoenaed.

Cerfs objection to Ms.

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177 F.R.D. 472, 1998 U.S. Dist. LEXIS 12206, 1998 WL 42881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-mutual-life-insurance-v-cerf-cand-1998.