Spirit Master Funding, LLC v. Pike Nurseries Acquisition, LLC

287 F.R.D. 680, 2012 WL 5866218, 2012 U.S. Dist. LEXIS 165334
CourtDistrict Court, N.D. Georgia
DecidedNovember 20, 2012
DocketCivil Action No. 1:12-CV-00260-AT
StatusPublished
Cited by7 cases

This text of 287 F.R.D. 680 (Spirit Master Funding, LLC v. Pike Nurseries Acquisition, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spirit Master Funding, LLC v. Pike Nurseries Acquisition, LLC, 287 F.R.D. 680, 2012 WL 5866218, 2012 U.S. Dist. LEXIS 165334 (N.D. Ga. 2012).

Opinion

ORDER

AMY TOTENBERG, District Judge.

The Court conducted a telephonic hearing on November 8, 2012, to resolve several discovery disputes between the parties. Subsequent to the hearing the parties submitted supplemental authority, and the sole remaining issue before the Court is whether Plaintiff is entitled to assert the work product privilege over documents prepared by and communications with its non-testifying consulting experts.

I. BACKGROUND

This case arises out of an alleged breach of certain lease agreements1 between Spirit Master Funding, LLC and Pike Nursery Holding, LLC as a result of Defendant Pike’s alleged failure to comply with all of its obligations under the lease agreements, including Pike’s failure to maintain and repair the property and failure to pay rent. {See Am. Compl.) According to the Complaint, Plaintiff hired a third-party to inspect the condition of the retail building on the property in September 2005, three years before Defendant Pike took possession of the property. (Am. Compl. ¶ 46.) The inspection revealed that the economic life of the building would extend through 2028. {Id.)

In connection with Defendant’s efforts to obtain rent concessions from Plaintiff in June 2011, Pike notified Plaintiff on June 15, 2011, that the building’s roof had collapsed and had been damaged in a snow and ice storm that had occurred six months earlier in January 2011. {Id. ¶¶ 48-49.) Pike hired a professional engineer, Jack Bell, to inspect the condition of the building on July 11, 2011. {Id. ¶ 51.) Mr. Bell’s July 18, 2011 report found that the “metal roof decking appears to be in poor condition in several locations” and the structural integrity of the building had been compromised. {Id.) Plaintiff alleges that rather than make the necessary repairs to the building, Defendant Pike hatched a plan to use the deteriorated condition of the retail building as a means to escape its ongoing obligations under the lease agreements by lobbying the Gwinnett County Department of Planning and Development to condemn the building in late July and August 2011. {Id. ¶¶ 52-55.)

On August 18, 2011, prior to an inspection by Gwinnett County, Spirit received notification from Pike that Gwinnett County would be issuing a condemnation notice for the building. (Ex. D to Defendant’s Discovery Statement.) The following day on August 19, [683]*6832011, Spirit informed Pike that it would be unable to agree to the previously requested rent concessions. (Ex. J to Plaintiffs Discovery Statement.) Pike’s representative responded on August 20, 2011 as follows: “Too bad You just inherited a mess and lost millions. I will be too busy to do anything with Tucker. Besides the lease was cancelled. You can’t lease a retail condemned facility. The federal bankruptcy judge will decide the issue separately from the other leases. So told by our attorney I can’t stop it now.” (Id.)

Gwinnett County inspected the property on August 22, 2011, and “red tagged” the building as “unsafe for occupancy” on August 24, 2011.2 (Id. ¶ 58.) Following the County’s inspection of the property, Pike informed Spirit on August 24, 2011, via email that the County condemned the building and required the owner to demolish the building within 60 days. (Id. ¶ 62; August 24, 2011 Email.) Pike copied Gary Marsh of the law firm McKenna Long & Aldridge on its email to Spirit. That same day, Spirit retained Bruce Samuels and Matt Burbach of Lewis and Roca LLP to represent Spirit in the dispute with Pike. (Samuels Decl. ¶¶ 2-4.) Plaintiffs counsel sent a letter to Pike on August 24, 2011, notifying Pike that it was in breach of its obligation to repair and maintain the building under the lease agreement. (Id. ¶4.) On August 29, 2011, counsel for Pike responded by providing notice of its intention to terminate the lease agreement on the grounds that the property had “suffered a Total Condemnation or Casualty.” (Id. ¶ 5; Am. Compl. ¶ 64.) On September 1, 2011, Spirit’s counsel informed Pike that it could not respond to Pike’s notice of termination until Spirit had an opportunity to inspect the property. (Ex. I to Defendant’s Discovery Statement.)

Mr. Samuels attests that “[bjased on the parties’ positions, [he] anticipated that litigation would ensue.” (Samuels Decl. ¶ 6.) Accordingly, Mr. Samuels began researching roofing engineers in late August and hired Ray Ramos of Ramos Engineering to inspect the roof of the building and report his observations to Samuels. (Id. ¶¶ 7-9.) Spirit’s counsel notified Pike’s counsel of an inspection to take place on September 5, 2011, which was subsequently moved to September 13, 2011. (Id. ¶¶ 8-9; Exs. I & J to Defendant’s Discovery Statement.) Following Ramos’ inspection, Mr. Samuels hired Khris Hercules, a structural engineer, on October 20, 2011, to perform a property inspection in connection with his representation of Spirit. (Hercules Decl. ¶ 4.) Mr. Hercules performed the inspection on October 25, 2011. (Id.) Spirit also hired several contractors to provide repair estimates for the property. (Ex. N to Defendant’s Discovery Statement.)

On December 2, 2011, Spirit sent Pike a pre-suit notice and demand letter notifying Pike that Spirit’s engineers had confirmed that the buildings had not been adequately maintained and were in need of repair, attaching Gwinnett County’s Compliance Inspection Reports detailing the required repairs, and rejecting Pike’s notice of condemnation and/or termination. (Ex. P to Defendant’s Discovery Statement.) Spirit concluded the letter as follows:

Within seven (7) days of your receipt of this letter, please provide Spirit with confirmation of Pike’s intention to timely repair the Lawrenceville Property pursuant to the requirements contained in the Compliance Inspection Reports and as required by the Master Lease. To the extent that Pike does not respond to this letter or continues to disregard its obligations under the Master Lease, Spirit will move forward with repairing the property and will seek indemnification from Pike pursuant to the Master Lease. Further, Spirit will consider declaring Pike in default under the entirety of the Master Lease and will consider exercising any rights and remedies under the Master Lease, the Unconditional Guaranty, and applicable law.

(Id.) Spirit filed its Complaint in this matter on January 25, 2012. On June 25, 2012, Defendant served its First Request for Pro[684]*684duction of Documents on Plaintiff seeking “all documents or communications, including electronic documents, memorializing, evidencing, relating, or referring to any inspection and/or assessment of the Tucker Property or the Buildings performed by any person, from June 15, 2004” and specifically identifying “communications between Spirit and KSI Structural Engineers, including Kris [sic] Hercules, concerning (a) any inspection and/or assessment of the Tucker Property of [sic] the Buildings or (b) any allegations in the Complaint.” (Ex. A to Plaintiffs Discovery Statement, RPDs 7 & 9.) Plaintiff objects to the production of documents by and communications with its non-testifying consulting experts on the basis that such information is subject to the work-product privilege.

II. DISCUSSION

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Bluebook (online)
287 F.R.D. 680, 2012 WL 5866218, 2012 U.S. Dist. LEXIS 165334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spirit-master-funding-llc-v-pike-nurseries-acquisition-llc-gand-2012.