Sussman Sales Co., Inc. v. VWWR International, LLC

District Court, S.D. New York·Decided July 21, 2026·No. 1:20-cv-02869·Unknown

Opinion

VENABLE 151 WEST 42ND STREET 49THFLOOR NEW YORK, NY 10036 LLP T 212.307.5500 F 212.307.5598 www.Venable.com

USDC SDNY DOCUMENT ELECTRONICALLY FILED July 20, 2026 DOC #- Kan M. Nawaday | ae | t 212.370.6240 DATE FILED: 7/21/26 KMNawaday@Venable.com

Hon. Barbara C. Moses United States Magistrate Judge, Southern District of New York Daniel Patrick Moynihan Courthouse 500 Pearl Street, Room 740 New York, New York 10007 Re: Sussman Sales Co., Inc. v. VWWR International, LLC, 20-cv-2869 (LTS) (BCM) Letter-Motion for Stay of Production Pending Rule 72(a) Appeal Dear Judge Moses, Defendant VWR International, LLC (“VWR”) respectfully submits this letter-motion requesting a stay of the portion of the Court’s July 15, 2026 Order (Dkt. 198, the “Order’’) directing VWR to produce communications and documents exchanged between VWR’s General Counsel and VWR’s auditor Deloitte regarding audit letters and ongoing litigations (the “Deloitte Materials”), pending resolution of VWR’s objection to, and appeal of, the Order to Judge Swain pursuant to Rule 72(a). Noel v. City of New York, No. 15 CV 5236-LTS-KHP, 2018 WL 6786238, at *4 (S.D.N.Y. Dec. 12, 2018) (“A party may file an objection with a district judge to an order issued by a magistrate judge within 14 days of service of a copy of that order.”) (citing Fed. R. Civ. P. 72(a)). A party seeking a stay pending an appeal from, or objection to, a court order requires an assessment of four factors: (1) the likelihood of success on the merits; (2) whether the party seeking a stay will suffer irreparable injury without it; (3) whether the stay will substantially injure the other party; and (4) the public interest. See Nken v. Holder, 556 U.S. 418, 434 (2009). An analysis of these factors militates in favor of granting VWR a stay. VWR Will Likely Succeed on the Merits VWR will likely succeed on the merits because the Court’s decision directing it to produce these protected materials is clearly erroneous and contrary to law. See Noe/, 2018 WL 6786238, at *]2 (reversing magistrate’s decision for error in analysis of deliberative process privilege claim as contrary to law); Curto v. Med. World Commc’ns, Inc., No. 03CV6327 DRH MLO, 2007 WL 1452106, at *8 (E.D.N.Y. May 15, 2007) (same). In particular, the Court did not adequately address the substantive merits of whether the Deloitte Materials are protected attorney work product. Instead, the Court found that VWR had “waived” its work product claim over these

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materials because it had failed to timely articulate the basis for the work product protection and that its basis is inadequate. Compare Dkt. 198 at 3; with Gray v. Cleaning Sys. & Suppliers, Inc., 143 F.R.D. 48, 49 (S.D.N.Y. 1992) (“I find it was clearly erroneous to disallow the privileges claimed without further inquiry once a prima facie showing of privilege was made”). First, VWR cannot be said to have waived its assertion of privilege over the Deloitte Materials. VWR has consistently designated the Deloitte Materials as privileged work product in its privilege log. See e.g., Dkt. 180-1 at 5 (Item 9 of VWR’s Privilege Log, as filed by Sussman). Its error, for which it sincerely apologizes, was only that it had misdescribed Deloitte’s role as a consultant rather than an auditor and that the Deloitte Materials are subject to work product protection only. While VWR further apologizes for the late timing in providing this clarification, that does not mean that the materials are not protected work product. They are. Clear precedent provides that an attorney’s sharing of privileged materials with the client’s auditor does not result in waiver. Cases are legion on this score. See e.g., Merrill Lynch & Co., Inc. v. Allegheny Energy, Inc., 229 F.R.D. 441, 445 (S.D.NY. 2004) (finding no waiver of work product protection over internal counsel’s reports despite waiver of attorney client privilege over communications with its independent auditor); Jn re Honeywell International, Inc., 230 F.R.D. 293, 300 (S.D.N.Y. 2003) (finding an “assertion of work product protection for its audit letters and litigation reports prepared by its internal [] counsel [and shared with auditors]. . . proper’’). Here, the Deloitte Materials consist of emails between VWR’s General Counsel and Deloitte, its auditor, concerning ongoing litigations and audit letters prepared by outside counsel about those litigations. Those emails attach litigation trackers concerning litigations in which VWR was involved at the time and audit letters prepared at the direction of VWR by its outside counsel, concerning ongoing litigations, including this very litigation. Indeed, such materials fall into the heartland of protected attorney work product, and the fact that they have been shared with an auditor does not waive that protection. See Merrill Lynch, 229 F.R.D. at 445. To the extent this proffer of the nature of the Deloitte Materials is insufficient, VWR respectfully requests an opportunity to submit the Deloitte Materials to the Court for in camera review. VWR intends to make the same request to the District Court in its appeal. Second, any deficiency in VWR’s privilege log does not extinguish the work product protection due to these materials. The Court’s waiver finding appeared to rest in part on the content and timing of VWR’s clarification of its privilege log descriptions. But deficiencies in a privilege log description do not waive the underlying substantive protection, especially when VWR has consistently maintained that these materials are protected attorney work product. See Chevron Corp. v. Donziger, No. 11 CIV. 0691 LAK JCF, 2013 WL 4045326, at *3 (S.D.N.Y. Aug. 9, 2013) (declining to find waiver of privilege based on deficient privilege log descriptions).

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