NRA Group, LLC v. Durenleau

CourtDistrict Court, M.D. Pennsylvania
DecidedMarch 1, 2022
Docket1:21-cv-00715
StatusUnknown

This text of NRA Group, LLC v. Durenleau (NRA Group, LLC v. Durenleau) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NRA Group, LLC v. Durenleau, (M.D. Pa. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA

NRA GROUP, LLC, : Plaintiff : No. 1:21-cv-00715 : v. : (Judge Kane) : NICOLE DURENLEAU and JAMIE : BADACZEWSKI, : Defendants :

MEMORANDUM Before the Court is Plaintiff’s Motion for Award of Expenses and Attorneys’ Fees. (Doc. No. 26.) For the reasons discussed below, the Court will grant in part and deny in part the motion. I. BACKGROUND On April 16, 2021, Plaintiff NRA Group, LLC (“Plaintiff” or “NRA”) initiated the above-captioned action by filing a complaint in this Court against a former employee, Defendant Nicole Durenleau (“Defendant Durenleau”), alleging a claim under the Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030. (Doc. No. 1.) On May 19, 2021, Plaintiff filed an amended complaint, adding another former employee, Jamie Badaczewski, as a defendant (“Defendant Badaczewski,” and with Durenleau, “Defendants”), and asserting additional claims under the CFAA, as well as claims of: violation of the Defend Trade Secrets Act, 18 U.S.C. § 1836; violation of the Pennsylvania Uniform Trade Secrets Act, 12 Pa. C.S. § 5302; civil conspiracy; and breach of the common law duty of loyalty. (Doc. No. 8.) Before either Defendant was due to respond to the amended complaint, on June 9, 2021, Plaintiff filed a Motion for Protective Order and Special Relief (Doc. No. 14), with exhibits and a brief in support (Doc. No. 15). The motion related to the issuance of a subpoena by Defendants’ counsel, dated May 17, 2021, directed to the Swatara Township Police Department (“STPD”) seeking the production of “[a]ny and all files, complaints, investigations, reports, letters, memorandums, emails and/or any other documents which reference or relate to Shell Sharma, Steve Kusic, Jill Kusic and/or NRA Group, LLC a/k/a National Recovery Agency.”

(Doc. No. 15-1.) According to Plaintiff’s moving papers, the subpoena at issue was officially served on the STPD on May 19, 2021, after Defendants’ counsel provided notice of the subpoena to a detective with the STPD via email on May 17, 2021. (Doc. No. 15-2.) Plaintiff’s former counsel received notice of the subpoena via email on May 17, 2021. (Doc. No. 15-6.) Before STPD’s Solicitor had notice of service of the subpoena, and on the same day the subpoena was served, the STPD detective sent numerous documents in response to the subpoena to Defendants’ counsel via email, totaling 764 pages of materials. (Doc. No. 15 at 5-8.) In connection with its motion, Plaintiff’s counsel asserted that the materials reflected the STPD’s investigative work, including a significant amount of sensitive business information that Plaintiff provided to the STPD to aid in its investigation of a criminal complaint previously lodged by Plaintiff with the

STPD against Defendant Durenleau related to the conduct that forms the basis of its claims against her. (Id. at 8-9.) After numerous communications among Plaintiff’s counsel, Defendants’ counsel, and the STPD, Plaintiff filed its motion seeking a protective order preventing Defendants from utilizing the materials obtained via the May 17, 2021 subpoena, and further, seeking an award of its fees and costs incurred in filing the motion. (Id. at 16.) After full briefing and a telephone conference with the parties, the Court issued an Order dated July 16, 2021 (Doc. No. 23) granting Plaintiff’s motion for a protective order. In doing so, the Court found that: (1) Defendants’ counsel issued the subpoena in violation of Rule 26 of the Federal Rules of Civil Procedure because it was undisputed that, at the time of the issuance of the subpoena, the parties had not conferred as required by Rule 26(f); and (2) the subpoena was substantively improper because it sought the production of information that was irrelevant to the claims at issue, in light of the fact that—despite Defendants’ counsel’s representation at the time that the subpoena sought information “that goes directly to Ms. Durenleau and Ms.

Badaczewski’s defenses and counterclaims in this matter”—as of May 17, 2021, neither Defendant had filed an answer or a counterclaim, and in fact, Ms. Badaczewski was not yet a defendant in this action, as the amended complaint asserting claims against her was filed on May 19, 2021.1 (Id. at 5-7.) Accordingly, the Court’s July 16, 2021 Order provided that “Defendants may not use any of the documentation produced by the Swatara Township Police Department in response to the May 17, 2021 subpoena issued by Defendants’ counsel (the ‘Subpoenaed Documents’), unless such documents are obtained independently in compliance with the Federal Rules of Civil Procedure,” and that “Defendants and their counsel shall immediately delete and destroy any and all electronic and hard copies of the Subpoenaed Documents and shall confirm that destruction in

writing to Plaintiff’s counsel within five (5) days of the date of this Order.” (Id. at 8.) In accordance with the provisions of Federal Rule of Civil Procedure 37(a)(5), the Court’s Order permitted Plaintiff to file a motion for attorneys’ fees. (Id.)

1 Defendant Durenleau subsequently filed an Answer and Counterclaim on June 18, 2021 (Doc. No. 16), while Defendant Badaczewski filed an Answer and Counterclaim on July 20, 2021 (Doc. No. 24). Defendant Durenleau filed an Amended Answer and Counterclaim on July 28, 2021. (Doc. No. 25.) Plaintiff subsequently filed an answer to Defendants’ counterclaims on August 10 and 17, 2021, respectively. (Doc. Nos. 31, 33.) The parties held a case management conference with the Court on October 13, 2021 (Doc. No. 48), after which the Court issued a scheduling order identifying March 31, 2022 as the date for the close of fact discovery (Doc. No. 49). On February 28, 2022, the Court granted the parties’ joint motion for an extension of time to complete discovery (Doc. No. 65), setting May 16, 2022 as the date for the close of fact discovery. (Doc. No. 66.) Thereafter, on July 29, 2021, Plaintiff filed a Motion for Award of Expenses and Attorneys’ Fees with a brief in support and several exhibits. (Doc. Nos. 26, 27.) A few days later, Plaintiff filed a Motion for Special Relief (Doc. No. 29) with supporting brief (Doc. No. 30), asking the Court for an order requiring Defendants “to provide a certificate of destruction

relating to the destruction of any and all electronic materials required to be destroyed pursuant to this Court’s July 16, 2021 Order.” (Doc. No. 29 at 1.) Defendants thereafter filed a brief in opposition to Plaintiff’s motion for expenses and attorneys’ fees (Doc. No. 32) and motion for special relief (Doc. No. 35). Plaintiff filed its reply brief in support of its motion for special relief on September 2, 2021. (Doc. No. 40.) Meanwhile, Plaintiff filed its reply brief in support of its attorneys’ fees motion on August 26, 2021 (Doc. No. 36), and on that same date, filed a Motion for Leave to File Exhibit 4 to Plaintiff’s Reply Brief Under Seal (Doc. No. 37). Defendants did not concur in the motion, and on September 9, 2021, Plaintiff filed a brief in support of its motion. (Doc. No. 41.) On August 30, 2021, Defendants filed a Motion for Leave to File a Sur-Reply Brief to Plaintiff’s

attorneys’ fees motion (Doc. No.

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NRA Group, LLC v. Durenleau, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nra-group-llc-v-durenleau-pamd-2022.