Sony Computer Entertainment America, Inc. v. Great American Insurance

229 F.R.D. 632, 2005 U.S. Dist. LEXIS 18733, 2005 WL 1870021
CourtDistrict Court, N.D. California
DecidedAugust 9, 2005
DocketNo. C-04-0492 PJH (EMC)
StatusPublished
Cited by6 cases

This text of 229 F.R.D. 632 (Sony Computer Entertainment America, Inc. v. Great American Insurance) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sony Computer Entertainment America, Inc. v. Great American Insurance, 229 F.R.D. 632, 2005 U.S. Dist. LEXIS 18733, 2005 WL 1870021 (N.D. Cal. 2005).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO COMPEL ANSWERS TO DEPOSITION QUESTIONS BY ANDREW VU; AND GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO COMPEL FURTHER DEPOSITION OF JENNIFER LIU (Docket Nos. 145-46)

CHEN, United States Magistrate Judge.

Defendant American Home Assurance Co. (“American Home”) has filed two motions to [633]*633compel contesting the assertion of privilege by Plaintiff Sony Computer Entertainment America, Inc. (“SCEA”) at the depositions of Jennifer Liu and Andrew Vu. Part of the motion related to Ms. Liu has been withdrawn. See Joint letter of 7/25/05, at 2. The Court hereby addresses the remaining issues raised in each motion. Each motion is GRANTED in part and DENIED in part.

I. FACTUAL & PROCEDURAL BACKGROUND

SCEA has filed suit against various insurance companies, including American Home. In essence, SCEA contends that American Home and the other insurance companies wrongfully and in bad faith denied insurance coverage to SCEA for defense and indemnity in connection with consumer lawsuits against SCEA claiming property damage, false advertising, and other injury in connection with PlayStation and PlayStation 2. See FAC U1. The consumer lawsuits at issue are known as the Nickerson/Muccioli lawsuits and the Kim/Kaen lawsuits.

A. Deposition of Ms. Liu

On December 14, 2005, American Home noticed the deposition of Ms. Liu, the director of legal and business affairs at SCEA. See Davis Deck, Ex. 1; see also id., Ex. 5 (Liu Dep. at 68). SCEA produced Mr. Liu for deposition on January 11, 2005. See Mot. at 8.

On December 15, 2004, American Home also noticed a 30(b)(6) deposition' regarding the underlying Nickerson and Muccioli lawsuits, see Davis Deck, Ex. 2, and another 30(b)(6) deposition regarding the underlying Kim and Kaen lawsuits. See id., Ex. 3. SCEA elected to designate Ms. Liu for both 30(b)(6) depositions, which took place on January 12 and 14, 2005. See Mot. at 8.

During the depositions of Ms. Liu, both in her individual and 30(b)(6) capacities, privilege objections were made by SCEA’s counsel.

B. Deposition of Mr. Vu

On December 14, 2004, American Home noticed the deposition of Mr. Vu, a lawyer at SCEA. See Davis Deck, Ex. 1; Mot. at 3. SCEA produced Mr. Vu for deposition on January 21, 2005. See Mot. at 3.

During Mr. Vu’s deposition, privilege objections were asserted by SCEA’s counsel.

II. DISCUSSION

At the hearing on the motions to compel, the parties agreed that the disputes involving Ms. Liu and Mr. Vu could be boiled down to three issues, namely, (1) whether SCEA’s communications with and in the presence of third parties are privileged; (2) whether SCEA waived its privilege with respect to communications with outside counsel (ie., the Crosby Heafey and Gray Cary law firms) by disclosing to third parties a document known as “Exhibit A-49”; and (3) whether Ms. Liu and Mr. Vu played business roles or legal roles, e.g., with respect to the supervision of SCEA’s counsel in the consumer lawsuits and events related to the tender of SCEA’s claim to American Home.

A. SCEA’s Communications with and in the Presence of Third Parties

At the hearing on the motions, the parties clarified that the only third party at issue is Mr. O’Neil, the insurance broker for SCEA, and not Mr. Webber, the representative of another insurance company, Great American. (SCEA agreed that there is no privilege as to communications to which Mr. Webber was a party.) American Home argues that attorney-client communications involving or made in the presence of Mr. O’Neil are not privileged. SCEA, in turn, argues that such communications are confidential and privileged because Mr. O’Neil was “present indisputably to further SCEA’s interest in Ms. Liu’s consultations.” Joint letter of 7/25/05, at 9 (citing Cal. Civ.Code § 952 (allowing for disclosure of information to third parties “present to further the interest of the client in the consultation or those to whom disclosure is reasonably necessary for the transmission of the information or the accomplishment of the purpose for which the lawyer is consulted”)).

Generally, “[t]he burden of establishing that a particular matter is privileged is on the party asserting the privilege.” San [634]*634Diego Professional Ass’n v. Superior Court, 58 Cal.2d 194, 199, 23 Cal.Rptr. 384, 373 P.2d 448 (1962). There is an exception: “Whenever a privilege is claimed on the ground that the matter sought to be disclosed is a communication made in the course of the lawyer-client ... relationship, the communication is presumed to have been made in confidence and the opponent of the claim of privilege has the burden of proof to establish that the communication was not confidential.” Cal. Evid.Code § 917. That exception to the normal allocation of burden is lost, however, when the communication is disclosed to a third party under California Evidence Code § 912(a). See id. § 912(a) (noting that party has waived privilege if it has “disclosed a significant part of the communication or has consented to such disclosure made by anyone”); see also Moeller v. Superior Court, 16 Cal.4th 1124, 1136, 69 Cal.Rptr.2d 317, 947 P.2d 279 (1997) (“[T]he holder of an evidentiary privilege waives it by voluntarily disclosing the privileged communication to a third party....”). Where a third party is present, no presumption of confidentiality obtains, and the usual allocation of burden of proof, resting with the proponent of the privilege, applies in determining whether confidentiality was preserved under § 952.1 See Raytheon Co. v. Superior Court, 208 Cal. App.3d 683, 688, 256 Cal.Rptr. 425 (1989) (“[T]he presence of third parties does not destroy confidentiality if the disclosure was reasonably necessary to accomplish the client’s purpose in consulting counsel.”) (emphasis added); see also D.I. Chadboume, Inc. v. Superior Court, 60 Cal.2d 723, 729, 36 Cal.Rptr. 468, 388 P.2d 700 (1964) (“The party claiming privilege carries the burden of showing that the evidence which it seeks to suppress is within the terms of the statute.”); cf. 2 Paul R. Rice, Attorney-Client Privilege in the United States § 9:20, at 53-54 (2d ed. 1999) (“[0]nce it is established that third parties were either present at an attorney-client meeting or permitted to examine confidential attorney-client communications, the proponent must prove that those third parties were acting as agents of either the attorney or client in order to avoid a finding that confidentiality was missing.”).

Here, SCEA provided no evidentiary support for its claim that Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Jeffrey Reich
E.D. California, 2025
Cooley v. C.R. Bard, Inc.
S.D. California, 2024
In Re: Steve Lewis
C.D. California, 2022
Behunin v. Superior Court of Los Angeles County
9 Cal. App. 5th 833 (California Court of Appeal, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
229 F.R.D. 632, 2005 U.S. Dist. LEXIS 18733, 2005 WL 1870021, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sony-computer-entertainment-america-inc-v-great-american-insurance-cand-2005.