Peskoff v. Faber

244 F.R.D. 54, 2007 U.S. Dist. LEXIS 62595, 2007 WL 2416119
District Court, District of Columbia·Decided August 27, 2007·No. Civil Action No. 04-526 (HHK/JMF)·Published·Cited by 9 cases

Opinion

MEMORANDUM OPINION

FACCIOLA, United States Magistrate Judge.

I. BACKGROUND

As indicated in earlier opinions, the central question dividing these parties is the sufficiency of the search done by the defendant Michael Faber for emails and other eleetroni[55]*55cally stored information in response to plaintiff Jonathon Peskoffs discovery requests. Specifically, Peskoff seeks emails from his tenure with NextPoint Management (“Next-Point”) that he argues “are highly likely to contain information relating to the ownership issues in this case, the suspect transactions identified in the Complaint and other relevant matters.” Plaintiffs Motion to Compel Discovery (“Pls.Mot.”) at 8. Faber initially produced computer disks containing electronic documents, including emails, that were obtained from Peskoffs computer, but these disks did not include any emails that Peskoff received or authored between mid-2001 and mid-2003, nor did Faber explain why two years of emails were not produced, where the emails might currently be located within NextPoint’s computer system or archives, or what specific steps were taken to locate the emails. Id.

Instead, Faber contended that all emails from Peskoffs computer had been produced. Defendant’s and Non-Party Plaza Street’s Memorandum in Opposition to Plaintiffs Motion to Compel Discovery (“Opp.”) at 1. According to Faber, “no electronic documents have been withheld” and, if the sought-after emails were not on the computer disks provided, then they no longer existed on the system.1 Id. at 6-7. When Peskoffs employment ended, Faber’s counsel “caused the creation of an archive of all Peskoff electronic files, including documents stored on his computer hard drive, email, and any other Peskoff electronic documents.” Id. According to Faber’s counsel, this entire archive was produced to Peskoff, and as a result, “[t]here is nothing more to produce.” Id. at 7.

In an earlier opinion, I provided detailed analysis of several possible locations where emails and other electronic information could remain in the Defendant’s system following Faber’s initial search for responsive electronic documents. See Peskoff v. Faber, Civ. A. No. 04-526, 2006 WL 1933483 at *5 (D.D.C. July 6, 2006). After I explained why the information that Faber provided to me about the initial search he conducted “[told] me little, if anything, about the scope of Faber’s search,” I ordered Faber to file “a detailed affidavit specifying the nature of the search” that he conducted, after which I stated I may order additional searches or an evidentiary hearing based on the submitted information. Id.

In response to my order, Faber’s counsel submitted an affidavit that described the previously conducted search for emails. See Declaration of William Davis Concerning Defendant’s Production of Peskoff Electronic Mail [# 55] (“Davis Aff.”) It 2. In it, Faber’s counsel explained that he conducted an “investigation,” without description, and concluded that Peskoffs electronic documents existed in two places: (1) the hard drive of Peskoffs computer and (2) the Mintz Levin server, which stores all of NextPoint Management’s electronic files. Davis Aff. 1t 6. He had Mintz Levin’s information services department provide a copy of Peskoffs hard drive as of March 2004 on DVD, and one month later he asked Mintz Levin’s information services department to archive Peskoffs email. Davis Aff. 119, 11-13. When Plaintiffs counsel complained that the DVD did not contain any email from mid-2001 to mid-2003, Faber’s counsel reviewed the DVD and swore under oath that he could “confirm that plaintiffs contention is incorrect. I saw many electronic mail messages from the time period mid-2001 to mid-2003.” Davis Aff. f 23. He did not know why Plaintiff “mistakenly believes” that the provided archive did not contain emails from this time period and accused Plaintiff of making a “false statement” in this regard. Davis. Aff. f 24, 31.

Faber’s counsel acknowledged the various mechanisms for locating electronic data outlined by the Court, but confirmed that, other than providing Peskoff with the email archive and copy of his hard drive, no other search was performed. Davis Aff. 1125-30. Moreover, though NextPoint employed an assistant, the only other files searched were those of Faber, who “separately searched his files and produced responsive documents and electronic mail.” Davis Aff. 1127. No details of Faber’s search were provided to the [56]*56Court. Thus, of the five possible locations where the Court explained electronic documents may exist, Defendant’s search only involved two, each of which I found was questionable in its scope. Peskoff v. Faber, 240 F.R.D. 26, 29-30 (D.D.C.2007).

I therefore ordered Faber to conduct an additional search of all depositories of electronic information in which one could reasonably expect to find all emails to Plaintiff, from Plaintiff, or in which Plaintiffs name appeared, and to make the results of the search available to Plaintiff. Id. at 31. I also ordered Defendant to file a statement under oath by the person who conducted the additional search, explaining how the search was conducted, of which electronic depositories, and how it was designed to produce and did in fact produce all of the emails described in prior orders. Id. Finally, I ordered an evidentiary hearing to be held, at which the person who made the attestation was to testify and explain how he or she conducted the search, his or her qualifications to conduct the search, and why I should find that the search was adequate. Id.

I held such a hearing on June 19, 2007, but Faber did not appear. Thus, the only information I have as to his search of his personal computer is from his counsel that “Mr. Faber separately searched his files and produced responsive documents and electronic mail.” Davis Aff. U 27. Since Faber did not testify at the hearing and there were no representations made at the hearing as to how he conducted the search of his specific computer and what criteria he used to determine whether a file or email was responsive to Peskoffs discovery requests, I will construe Faber’s failure to comply with my order against him and proceed to the other evidence.

I now turn to the evidence presented at the hearing and elsewhere in the record regarding the search for Peskoffs emails.

II. FINDINGS OF FACT

A. NextPoint’s Business Practices and Retention of Electronic Documents

1. Peskoff and Faber were managing partners of NextPoint GP, LLP, the general partner of the venture capital fund NextPoint Partners, LP. The NextPoint Management Company, Inc. (“NextPoint”), was the vehicle for receiving the management fees due from the venture capital fund to NextPoint GP and for fulfilling NextPoint GP’s management responsibilities to the fund.

2. Email was the main communication tool for NextPoint employees.

3. At the time of Peskoffs tenure with NextPoint, NextPoint employees consisted entirely of Peskoff, Faber, and an assistant to Faber, Ms. Ann Van Aiken. Mr. Jim MacIntyre was also affiliated with NextPoint as a “venture partner” who provided advising and consulting services. All four individuals had NextPoint email accounts.

4.

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Peskoff v. Faber, 244 F.R.D. 54, 2007 U.S. Dist. LEXIS 62595, 2007 WL 2416119 (D.D.C. 2007).

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