TVT Records & TVT Music, Inc. v. Island Def Jam Music Group

214 F.R.D. 143, 2003 U.S. Dist. LEXIS 3061, 2003 WL 749315
CourtDistrict Court, S.D. New York
DecidedMarch 4, 2003
DocketNo. 02 Civ. 6644(VM)
StatusPublished
Cited by21 cases

This text of 214 F.R.D. 143 (TVT Records & TVT Music, Inc. v. Island Def Jam Music Group) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TVT Records & TVT Music, Inc. v. Island Def Jam Music Group, 214 F.R.D. 143, 2003 U.S. Dist. LEXIS 3061, 2003 WL 749315 (S.D.N.Y. 2003).

Opinion

DECISION AND ORDER

MARRERO, District Judge.

Plaintiffs TVT Records and TVT Music, Inc. (collectively “TVT”) appeal to this Court from a ruling by Magistrate Judge Debra Freeman rendered on February 10, 2003 and memorialized in a written Order dated February 28, 2003 (the “Privilege Ruling”), a copy of which is attached and incorporated hereto, regarding disclosure of documents identified as privileged respectively by TVT and defendants, The Island Def Jam Music Group and Lyor Cohen (“Cohen,” and collectively with The Island Def Jam Music Group, “IDJ”). In this connection, the Court has reviewed the objections to Magistrate Judge Freeman’s decision set forth in TVT’s letter dated February 19, 2003, and accompanying exhibits; IDJ’s response dated February 24, 2003, and accompanying exhibits; the transcripts of the conferences Magistrate Judge Freeman conducted with the parties on December 23, 2002, February 10, 2003, and February 20, 2003; the standards and guidance Magistrate Judge Freeman employed in determining the applicability of the attorney-[144]*144client privilege as to particular documents; and the case law and other authorities cited by the parties in support of their respective arguments, as well as those relied upon by the Magistrate Judge as legal standards governing her ruling.

The Court finds that Magistrate Judge Freeman has meticulously examined the documents in contention and thoroughly considered the parties’ dispute with regard to them, laboring under the exhaustive burden that the parties’ scorching litigation tactics here have wreaked upon each other and upon this Court. Overall, the Court agrees with the findings, reasoning and conclusions of Magistrate Judge Freeman on most of the documents at issue. Accordingly, the discussion that follows will address only those documents and corresponding portions of the Privilege Ruling with respect to which this Court arrives at a different conclusion. As to the rest, this Court agrees with and affirms Magistrate Judge Freeman’s findings and conclusions.

DISCUSSION

A. LEGAL STANDARD

The attorney-client privilege was designed “to encourage full and frank communication between attorneys and their clients and thereby promote broader public interests in the observance of law and administration of justice.” Upjohn Co. v. United States, 449 U.S. 383, 393, 101 S.Ct. 677, 66 L.Ed.2d 584 (1981); see In re Grand Jury Subpoena Duces Tecum Dated September 15, 1983, 731 F.2d 1032, 1036 (2nd Cir.1984). Because the privilege “stands in derogation of the public’s right to every man’s evidence ... it ought to be strictly confined within the narrowest possible limits consistent with the logic of its principle.” In re Grand Jury Proceedings, 219 F.3d 175, 182 (2nd Cir.2000) (citation omitted; internal quotations omitted). The Second Circuit has explained that

(1) where legal advice of any kind is sought (2) from a professional legal advisor in his capacity as such, (3) the communications relating to that purpose, (4) made in confidence (5) by the client, (6) are at his instance permanently protected (7) from disclosure by himself or by the legal advis- or, (8) except [where] the protection [is] waived____

In re Grand Jury Subpoena Duces Tecum Dated September 15, 1983, 731 F.2d at 1036. Under New York law, the party invoking the privilege “must demonstrate that the information at issue was a communication between client and counsel or his employee, that it was intended to be and was in fact kept confidential, and that it was made in order to assist in obtaining or providing legal advice or services to the client.” Bowne of New York City, Inc. v. AmBase Corp., 150 F.R.D. 465, 470-71 (S.D.N.Y.1993).

Application of this doctrine is complicated in situations where communications claimed to be privileged involve in-house as opposed to outside counsel because “in-house attorneys are more likely to mix legal and business functions.” Bank Brussels Lambert v. Credit Lyonnais (Suisse), S.A., 220 F.Supp.2d 283, 286 (S.D.N.Y.2002) (citation omitted). The Second Circuit has made clear that only those communications related to “legal, as contrasted with business, advice” are protected. In re Grand Jury Subpoena Duces Tecum Dated September 15, 1988, 731 F.2d at 1037; see In re John Doe Corp., 675 F.2d 482, 488 (2nd Cir.1982).

B. DOCUMENTS WITHHELD BY TVT

This Court is in agreement with and affirms Magistrate Judge Freeman’s findings and conclusions regarding the documents withheld by TVT.

C. DOCUMENTS WITHHELD BY IDJ

At the outset the Court notes a consideration that adds an additional layer of difficulties to the already close judgment calls entailed in the determinations of attorney-client privilege regarding many of IDJ’s documents. IDJ’s transactions with TVT at issue here, and the bulk of the communications associated with them as to which IDJ invokes the attorney-client privilege, were conducted by two in-house attorneys, Jeffrey Kempler (“Kempler”) and Jonathan Lieberman (“Lieberman”), whose positions at IDJ at the relevant times were Senior Vice President of Business and Legal Affairs and Vice Presi[145]*145dent of Business and Legal Affairs, respectively. As the titles indicate, these representatives served within the company not only as lawyers, but as high-ranking management executives. As such, it is not always readily discernable in what capacity they may have been functioning at the time they participated in particular communications, whether as lawyers or business managers. In some instances it appears clear to the Court that in the exchanges in question these employees convey information, advice or instruction from their capacities as business executives rather than as lawyers. Insofar as IDJ endeavors to assert a blanket privilege for large portions of the communications of Kempler and Lieberman merely because they were in-house attorneys, the Court finds that invocation of the privilege overly broad.

Exhibit B to the Declaration of Jeffrey Kempler dated December 16, 20021 (IDJ-PRIV 003-004)2 consists of a series of three e-mails in which Lieberman, seeks permission to and directs the execution of a check for $200,000 to Irv Gotti (“Gotti”) as a profit advance. These e-mails include background information explaining the reasons for this advance as well as contemplated repayment plans. The discussions address business strategy and negotiations and include no legal strategy or advice. They are not protected by the attorney-client relationship and must be disclosed.

The documents attached as Exhibit C to the Kempler Decl. (IDJ-PRIV 002, 005, 009-012, 043, 052, 054, 062, 065, 069, 071, 072-75, 081, and 093) consist of a series of emails among various IDJ employees, including attorneys Lieberman and Kempler.

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214 F.R.D. 143, 2003 U.S. Dist. LEXIS 3061, 2003 WL 749315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tvt-records-tvt-music-inc-v-island-def-jam-music-group-nysd-2003.