Quest Solution v. Redlpr LLC

CourtDistrict Court, D. Utah
DecidedNovember 7, 2023
Docket2:19-cv-00437
StatusUnknown

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

Bluebook
Quest Solution v. Redlpr LLC, (D. Utah 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT DISTRICT OF UTAH

QUEST SOLUTION, INC.; HTS IMAGE MEMORANDUM DECISION AND PROCESSING, INC.; HTS (USA) INC., ORDER RE: UNSEALING DOCUMENTS Plaintiffs,

v. Case No. 2:19-cv-437-CW-DBP REDLPR, LLC; SAGY AMIT; JEREMY BARKER; RIVERLAND TECHNOLOGIES Judge Clark Waddoups LLC,

Defendants

On August 3, 2023, the court issued a Memorandum Decision and Order (ECF No. 310)1 (the “August Memorandum Decision”) granting Defendants’ Motions for Summary Judgment on Plaintiffs’ trade secret claims. In that decision, the court cited to documents that Plaintiffs filed ex parte and in camera. This matter is before the court on whether the August Memorandum Decision should be unsealed in its entirety even though it cites to in camera documents. For the reasons stated below, the court concludes the August Memorandum Decision should be unsealed in its entirety. The court further concludes the in camera documents also should be unsealed.

1 Because the August Memorandum Decision contained a detailed factual background, the court does not repeat the facts in this decision. When citing to the August Memorandum Decision and other documents in the record, pinpoint citations are to the ECF page numbering at the top of the documents and not to the page numbering at the bottom of the documents. FACTUAL BACKGROUND On April 18, 2022, Defendant Sagy Amit (“Amit”) filed a Motion for Rule 11 Sanctions against Plaintiffs. As part of that motion, Amit asserts Plaintiffs’ prefiling investigation focused “on how to inflict the most harm on Defendants personal reputation, instead of looking for merits to [their] frivolous claims.” Mot. for Sanctions, at 10 (ECF No. 243). Ten days later, Plaintiffs moved for “leave to file certain materials under seal ex parte and in camera in connection with Plaintiffs’ anticipated opposition to pro se defendant Sagy Amit’s motion for sanctions.” Mot. for Leave to Seal, at 1 (ECF No. 256). Plaintiffs asserted that they and their “counsel did perform [a reasonable prefiling] investigation. But most of the evidence substantiating these activities is protected by the attorney work product and attorney client privileges.” Id. (emphasis in original).

Thus, Plaintiffs sought “leave to submit such privileged materials under seal ex parte and in camera for the limited purpose of demonstrating the adequacy and reasonableness of the referenced prefiling investigation.” Id. (citing Icon Health & Fitness, Inc. v. Park City Entm’t, Inc., No. 1:10-cv-195 DAK, 2011 U.S. Dist. LEXIS 72702, at *5 (D. Utah July 5, 2011)). In so doing, Plaintiffs stated they were not waiving “any applicable privileges or protections.” Id. at 2. The court granted the motion, but it did so with qualifications. The order stated, “[a]t this time, the court will allow Plaintiffs to file the specified documents under seal for in camera review due to their alleged privileged nature. After the court’s review, it will determine if the documents should be disclosed to the defendants.” Order (ECF No. 261). Despite Plaintiffs being placed on

notice that the in camera documents may need to be disclosed, Plaintiffs elected to provide the documents to the court. Summary of In Camera Document In total, Plaintiffs filed twenty-three exhibits to their opposition memorandum. Although the court summarized some of their content in its August Memorandum Decision, it now summarizes their content in more detail with some related context. Exhibit 1 (ECF No. 267-1): It is a 16-page declaration by Plaintiffs’ counsel that discloses discussions he had with his clients and efforts he made to investigate before filing suit. Counsel also addressed the exhibits he attached to his declaration. Plaintiffs filed a redacted version of the document (ECF No. 266-1). At times, the redactions exceeded the scope of attorney-client and work product privileges. For example, the redactions included redacting that Plaintiffs’ counsel has a close professional rapport with Yoram Hofman (“Hofman”) and has visited Hofman’s office

in Israel ten times or more; the fact that published patents list Plaintiffs’ counsel as the attorney of record and Hofman as the inventor; the content of an email drafted by Amit; the holding of a case; when Riverland Technologies’ counsel contacted Plaintiffs’ counsel and so on. Reinitz Decl., ¶¶ 6 & n.2, 33, 46, 63 (ECF No. 267-1). Plaintiffs’ counsel also included events not pertaining to the pre-filing investigation as part of the declaration, which is different from the scope stated in Plaintiffs’ motion for leave to file documents in camera. Exhibit 1-A (ECF No. 267-2): It is a 16-page document containing various emails on disparate topics. The opening email is a communication between Plaintiffs’ counsel and Hofman stating “you may have a case for trade secret misappropriation against your former employee(s).”

Email, at 1 (ECF No. 267-2). The subject line is different from the next email, so it is unclear why this was filed as an email chain. On pages 1 through 10, the email chain veers to the topic of Plaintiffs filing a cloud-based patent application, what company name the patent should issue under, and payment for that work. The email chain includes various people and Plaintiffs have not explained how the various people on the chain fall under the attorney-client protection. Pages 11 through 16 change back to Plaintiffs’ communications about Amit and Jeremy Barker’s (“Barker”) activities at RedLPR, LLC (“RED”), potential patent infringement claims, and matters pertaining to Amit’s California lawsuit against Plaintiffs. Like the other pages of the document, the communications involve a number of individuals and Plaintiffs have not explained how the attorney-client privilege encompasses all those on the email chain. Exhibit 1-B (ECF No. 267-3): It is a 13-page document mainly consisting of a report and product comparison that Hofman, Plaintiffs’ Chief Technology Officer, drafted. Attached to the report are emails that Plaintiffs obtained between defendants and third parties, a screenshot of

Defendant RED’s webpage, and a Riverland Technologies non-disclosure agreement (“Riverland NDA”) that Amit signed on behalf of HTS Americas, Inc. while he was employed by that company. Although the Riverland NDA is unsealed elsewhere in the record (ECF No. 49-51), Plaintiffs want the NDA language redacted because the NDA was attached to a privileged email. Proposed Redactions, at 20–21 (ECF No. 313); Response to Order to Show Cause, at 2 (ECF No. 312) (asserting when “non-privileged elements were incorporated within privileged communications and materials,” the privilege then “attaches to the document or communication as a whole”). Exhibit 1-C (ECF No. 267-4): It is a 2-page document where Hofman assisted in setting

up a telephone call between Haim Nissenson (“Nissenson”) and Plaintiffs’ counsel. Plaintiffs assert “Mr. Nissenson is not an officer or director of any party to this case. (He is a shareholder of and consultant to Quest Solution – now Omniq).” Email, at 3 (ECF No. 267-20). Additionally, Plaintiffs stated “[i]t remains unclear what (if any) testimony Mr. Nissenson would provide that would meaningfully bear on any of the claims or defenses in this case.” Id. Although Plaintiffs’ internal communications state Nissenson is “based in New York,” Plaintiffs informed Defendants that he “does not reside in the U.S.” Cf Email, at 2 (ECF No. 267-4) with Email, at 3 (ECF No. 267-20). Based on the above, Plaintiffs would not produce Nissenson for deposition. Email, at 3 (ECF No. 267-20). Because Nissenson is associated only with one of the Plaintiffs as a consultant and does not have meaningful information relevant to the claims and defenses in the case, it is unclear whether the attorney-client privilege attaches to communications involving him.

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Quest Solution v. Redlpr LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quest-solution-v-redlpr-llc-utd-2023.