Phipps v. Camp Pendleton & Quantico Housing, LLC

District Court, S.D. California·Decided November 2, 2022·No. 3:21-cv-01514·Unknown

Opinion

1 2 3 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 SOUTHERN DISTRICT OF CALIFORNIA 11 12 VICTORIA PHIPPS, Case No.: 3:21-cv-01514-DMS-AHG 13 Plaintiff, ORDER RESOLVING JOINT MOTION FOR RESOLUTION OF 14 v. DISCOVERY DISPUTE 15 CAMP PENDLETON & QUANTICO HOUSING, LLC, and LPC PENDLETON 16 QUANTICO PM LP, 17 [ECF No. 26] Defendants. 18 19 20 Before the Court is the parties’ Joint Motion for Determination of Discovery Dispute 21 (ECF No. 26). The Court held a hearing on the Joint Motion on October 19, 2022. ECF 22 No. 37. This order follows. 23 I. BACKGROUND 24 The parties’ dispute concerns certain documents produced by third party APEX 25 Companies, LLC (“APEX”) in response to a business record subpoena issued by Plaintiff 26 in this matter on April 11, 2022. The dispute arose between the parties during a deposition 27 of APEX’s 30(b)(6) witness, Cole Bryngelson, on June 23, 2022, when Plaintiff’s counsel 28 began questioning Mr. Bryngelson regarding some of the documents APEX produced in 1 response to the subpoena. See ECF No. 26-1 (excerpts of Mr. Bryngelson’s deposition 2 transcript). After a recess, counsel for the parties agreed to suspend Mr. Bryngelson’s 3 deposition until after the Court could resolve Defendants’ claim of privilege over the 4 documents. See id. at 5-6, Bryngelson Dep. 28:17-29:8. 5 Defendants contend the documents at issue are attorney-client privileged 6 communications and have accordingly requested that Plaintiff return, sequester, or destroy 7 the documents pursuant to Fed. R. Civ. P. 26(b)(5)(B). Plaintiff argues that Defendants’ 8 practice of copying outside counsel on business communications with APEX does not 9 render those communications privileged.1 10 The Advisory Committee Notes to Rule 26(b)(5)(B) make clear that, although the 11 onus is on the producing party to notify the receiving party in writing of the claim of 12 privilege over information produced in discovery, the receiving party then bears the burden 13 of deciding “whether to challenge the claim.” Fed. R. Civ. P. 26(b)(5)(B), advisory 14 committee’s note to 2006 amendment. See also Coleman v. Sterling, No. 3:09-CV-1594- 15 W-BGS, 2011 WL 13177041, at *3 n.4 (S.D. Cal. Nov. 4, 2011); Woodard v. Victory Recs., 16 Inc., No. 11-CV-7594, 2013 WL 4501455, at *2 (N.D. Ill. Aug. 22, 2013). Accordingly, 17 the Court construes the motion at hand as Plaintiff’s motion challenging the validity of 18 Defendants’ claim of privilege and seeking a determination from the Court on that 19 question. 20 On August 1, 2022, after reviewing the parties’ Joint Motion, the Court ordered 21 Defendants to produce the following documents to the Court for in camera review, to aid 22 the Court in resolving the dispute: (1) all documents Plaintiff received from APEX in 23

24 25 1 In their Joint Motion, the parties further request that the Court amend the fact discovery deadline to allow an additional 30 days to take the deposition of APEX’s 30(b)(6) witness 26 following adjudication of the dispute. ECF No. 26 at 18. However, the Court has since 27 extended all dates in the case schedule by approximately 90 days each, setting the new fact discovery deadline as January 11, 2023. ECF No. 36 at 2. Accordingly, the Court denies 28 1 response to her business record subpoena, and over which Defendants assert a claim of 2 attorney-client privilege; (2) the October 2019 APEX retention agreement between 3 Defendants’ outside counsel and APEX, referenced in footnote 6 of the Joint Motion; and 4 (3) the Master Services Agreement between Defendants and APEX referenced in 5 footnote 7 of the Joint Motion. ECF No. 28. Defendants timely produced the documents 6 for in camera review. 7 After in camera review, the Court determined that it needed Defendants to provide 8 more clarity regarding which documents in their production they contend are subject to the 9 attorney-client privilege. Specifically, in the Joint Motion, Defendants indicated that the 10 claim of privilege applies only to “communications between Defendants’ Counsel Jeffrey 11 Knight of Pillsbury Winthrop Shaw Pittman LLP [(“Pillsbury”)] and Defendants’ retained 12 consultant APEX[.]” ECF No. 26 at 2. However, most of the documents produced for in 13 camera review were not communications between Defendants’ counsel and APEX, and 14 many were not communications at all. Therefore, the Court held a hearing on 15 October 19, 2022 and required Defendants to produce a privilege log beforehand to narrow 16 the field of documents at issue. See ECF Nos. 34, 37. 17 During the hearing and in their privilege log, Defendants confirmed that the only 18 documents over which they are claiming attorney-client privilege are two emails: (1) a 19 December 10, 2020 email from Mr. Bryngelson to Defendants’ outside counsel Jeffrey 20 Knight at Pillsbury, with an attached Word document entitled, “Privileged and Confidential 21 – Draft PRV Report – 261-01 Palma Ct;” and (2) a February 16, 2021 email from Mr. 22 Bryngelson to Regional Maintenance Director for Lincoln Military Housing Elmer 23 Salgado, other employees of Lincoln Military Housing, and Mr. Knight, with an attached 24 PDF document entitled, “PRV Assessment Report – 261-01 Palma Ct[.]” Defense counsel 25 further confirmed during the hearing that the attachments on the emails are not privileged; 26 Defendants are claiming attorney-client privilege only as to the body of each email. 27 Upon due consideration of the parties’ briefing and oral arguments during the motion 28 hearing, the Court will uphold Defendants’ claim of attorney-client privilege over the 1 bodies of the two emails at issue. Accordingly, the Court RESOLVES the parties’ dispute 2 in Defendants’ favor and DENIES Plaintiff’s motion to reject Defendants’ claim of 3 privilege under Rule 26(b)(5)(B). However, as explained in more detail below, this ruling 4 is very narrowly limited to the contents of the emails between APEX and Pillsbury. 5 II. LEGAL STANDARD 6 The parties agree that California law applies to Defendants’ claim of attorney-client 7 privilege. The California attorney-client privilege is codified in Cal. Evid. Code §§ 950 et 8 seq. The privilege protects confidential communications between a client and lawyer made 9 during the course of the attorney-client relationship. “The privilege authorizes a client to 10 refuse to disclose, and to prevent others from disclosing, confidential communications 11 between attorney and client.” Mitchell v. Super. Ct., 691 P.2d 642, 645 (Cal. 1984). 12 A “confidential communication between client and lawyer” is defined in the 13 California Evidence Code as: 14 . . . information transmitted between a client and his or her lawyer in the course of that relationship and in confidence by a means which, so far as the client 15 is aware, discloses the information to no third persons other than those 16 who are present to further the interest of the client in the consultation or those to whom disclosure is reasonably necessary for the transmission of 17 the information or the accomplishment of the purpose for which the 18 lawyer is consulted, and includes a legal opinion formed and the advice given by the lawyer in the course of that relationship. 19 20 Cal. Evid. Code § 952 (emphasis added). 21 “[W]aiver of the attorney-client privilege . . . occurs when any holder of the privilege 22 ‘has disclosed a significant part of the communication or has consented to such disclosure 23 made by anyone. . . .” Mitchell v. Super. Ct., 691 P.2d 642

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Phipps v. Camp Pendleton & Quantico Housing, LLC, (S.D. Cal. 2022).

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