Sihler v. Global e-Trading, LLC

District Court, M.D. Florida·Decided October 21, 2024·No. 8:23-cv-01450·Unknown

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

JANET SIHLER and CHARLENE BAVENCOFF, Individually and on Behalf of All Others Similarly Situated,

Plaintiffs,

v. Case No. 8:23-cv-1450-VMC-LSG

GLOBAL E-TRADING, LLC, d/b/a Chargebacks911, GARY CARDONE, and MONICA EATON,

Defendants. /

ORDER This matter is before the Court on consideration of Plaintiffs Janet Sihler and Charlene Bavencoff’s Motion for Sanctions (Doc. # 167), filed on September 17, 2024. Defendants Global E-Trading, LLC, Gary Cardone, and Monica Eaton responded on October 1, 2024. (Doc. # 168). Plaintiffs replied on October 10, 2024. (Doc. # 174). For the reasons that follow, the Motion is granted. I. Background Plaintiffs initiated this putative class action against Defendants on June 28, 2023. (Doc. # 1). The operative complaint is the third amended complaint, in which Plaintiffs assert two RICO claims: (1) for violation of 18 U.S.C. § 1962(c) (Count 1) — a substantive RICO claim; and (2) for violation of 18 U.S.C. § 1962(d) (Count 2) — a RICO conspiracy claim. (Doc. # 102). On August 13, 2024, the Court certified a nationwide class in this RICO case. (Doc. # 156). The parties have been proceeding through discovery. Beginning in May 2024, the parties began trying to schedule

Ms. Eaton’s deposition. (Doc. # 167-1 at Ex. 1). Plaintiffs’ counsel informed Defendants’ counsel of the importance of scheduling Ms. Eaton’s deposition “sooner rather than later” because the Magistrate Judge had ruled that Plaintiffs could not “renew [their] motion to compel [another witness] Mr. Scrancher’s deposition until after completing the depositions of Mr. Cardone and Ms. Eaton.” (Id.). Plaintiffs were concerned that “completing Ms. Eaton’s deposition in late August [would] not give [them] enough time before the discovery cutoff to renew the motion to compel Mr. Scratcher’s deposition in the event [they] deem[ed] that necessary.”

(Id.). Nevertheless, after some back-and-forth, the parties initially scheduled Ms. Eaton’s deposition for August 21, 2024. (Id.). Later, the parties agreed to reschedule Ms. Eaton’s deposition for August 30, 2024. (Id. at Ex. 4). On July 22, 2024, Plaintiffs served their Amended 30(b)(1) Notice of Deposition of Monica Eaton, which set an August 30, 2024 deposition date for Ms. Eaton. (Id. at Exs. 5, 6). On July 25, 2024, Defendants’ counsel asked to relocate Ms. Eaton’s deposition to the Tampa offices of Gunster, one of the law firms representing Ms. Eaton. (Id. at Ex 6). Plaintiffs agreed to relocate the deposition to the location

Defendants requested and served a Second Amended 30(b)(1) Notice of Deposition of Monica Eaton, which reflected the new location. (Id. at Exs. 6-7). At Defendants’ request, Plaintiffs changed the time of Ms. Eaton’s deposition to begin earlier at 9:00am on August 30. (Id. at Ex. 6). Plaintiffs served a Second Amended 30(b)(1) Notice of Deposition of Monica Eaton, which reflected the earlier time. (Id. at Ex. 8). On August 13, 2024, Plaintiffs’ counsel contacted Defendants’ counsel to schedule the Rule 30(b)(6) deposition of Chargebacks911 for mid-September 2024. (Id. at Ex. 9).

Defendants responded that they did not “intend to produce Ms. Eaton for deposition twice and it may very well be that we designate her as CB911’s [corporate] representative” and that they would “get Ms. Eaton’s availability for the dates listed as well as other days in September.” (Id.). Plaintiffs’ counsel explained that Plaintiffs could not “agree to changing the date of Ms. Eaton’s individual deposition from the previously agreed and noticed August 30, 2024.” (Id.). Plaintiffs did not want to reschedule the deposition for a later date because of the Court’s order requiring Plaintiffs to depose Ms. Eaton before moving to compel Mr. Scrancher’s deposition and because Plaintiffs

wanted some time between Ms. Eaton’s deposition and the Rule 30(b)(6) deposition. (Id.). On August 20, 2024, Defendants’ counsel wrote: “We do not plan to have the CEO of the company [Ms. Eaton] sit for non-consecutive 30(b)(6) and personal depositions.” (Id.). The next day, Plaintiffs’ counsel responded: We are not in a position to reschedule the August 30, 2024 deposition of Ms. Eaton, which has been on the books for weeks. We have already made travel plans/scheduling decisions for that deposition based on your representation that both Ms. Eaton and her counsel would be available on that date. We look forward to seeing you in Tampa . . . . [on August 30 for the Eaton deposition]. (Id.). In response, Defendants’ counsel wrote: “I think you have started to take our hospitality for granted. We hosted a deposition at Gunster in Tampa and offered to host others there. This saved you cost and time.” (Id.). Piqued by Defendants’ counsel’s suggestion that they were doing Plaintiffs’ counsel a favor by hosting the depositions at the Gunster office, Plaintiffs’ counsel on August 23, 2024, re-noticed the Eaton deposition for a hotel conference room a few blocks from Gunster’s Tampa office. (Id.; Id. at Ex. 10). On August 24, 2024, Defendants’ counsel emailed

Plaintiff’s counsel: You have been informed several times that Ms. Eaton will not appear for a deposition on August 30. We can also discuss this on the meet and confer. I assume you are planning to show up, then file a motion to compel and seek sanctions, including the costs you incur in showing up. If this is correct, you are needlessly wasting your time and money to create additional issues before the court (at least with regards to costs). I hope we can all be practical about this disagreement. If it needs to go before the court, so be it. That said, there is no reason for you or others to get a conference room in Tampa, to fly to Tampa, and to have a court reporter and videographer show up. We acknowledge without you incurring any of those expenses that you are fully prepared to move forward with her personal deposition on August 30. From our long back and forth on this issue, you know our position and we can further discuss it on Wednesday. (Id. at Ex. 9). According to one of Plaintiffs’ attorneys, Lorraine Weekes, she and Defendants’ counsel had a videoconference a few days later on August 28, 2024, during which they discussed the scheduling of Ms. Eaton’s deposition. (Doc. # 167-1 at ¶ 19). Ms. Weekes “told Defendants’ counsel that Plaintiffs could not know for certain whether Ms. Eaton would truly not show up for her properly-noticed deposition until the morning of August 30, 2024.” (Id.). She “explained that Plaintiffs did not want to be in the situation where Ms. Eaton appeared for her properly-noticed deposition, but Plaintiffs’ counsel did not.” (Id.). “At no point during that meet and confer (or

at any other time) did Defendants’ counsel represent to [Ms. Weekes] that either Ms. Eaton or her counsel had any particular conflict or personal or professional circumstances that would render them unavailable for Ms. Eaton’s properly- noticed deposition on August 30, 2024.” (Id.). As Plaintiffs’ counsel had advised Defendants they would, they traveled to Tampa to attend the August 30 deposition. But Ms. Eaton and Defendants’ counsel failed to appear. (Doc. # 167-2 at ¶¶ 12-15). Notably, Defendants never filed a motion for protective order or otherwise raised the issue of deposition scheduling with the Court before the

August 30 deposition. Plaintiffs then asked Defendants to reimburse them for the “$7,497.27 in fees and costs incurred because of Ms. Eaton’s failure to appear for her deposition.” (Doc. # 167-2 at ¶¶ 16-17, 23). Defendants refused. (Id.). Subsequently, Plaintiffs took Ms.

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