Judge: David A. Rosen, Case: BC654195, Date: 2023-02-17 Tentative Ruling

Case Number: BC654195    Hearing Date: February 17, 2023    Dept: E

Hearing Date:  02/17/2023 – 10:00am

Case No:BC654195                                                                    

Trial Date: 03/20/2023

Case Name: DONARA GRIGORYAN v. ENTERPRISE RENT-A-CAR COMPANY et al.

 

TENTATIVE RULING - MOTION TO COMPEL FURTHER RESPONSES RE: NON-PARTY DEPOSITION SUBPOEANA FOR PRODUCTION OF BUSINESS RECORDS

 

Moving Party: Intervenor, Empire Fire and Marine Insurance Company

Responding Party: Non-Party, Kevin Kelley

Proof of Service Timely Filed (CRC Rule 3.1300): Ok
16/21 Court Days Lapsed (CCP 1005(b)): Ok
Proper Address: Ok

Moving Papers: Motion; Proposed Order; Linhardt Declaration; Separate Statement; Request for Judicial Notice

Opposition: Opposition of Non-Party Kevin Kelley

Reply: Request to Strike Untimely Opposition; Supplemental Linhardt Declaration

The Court considers all moving, opposing, and reply papers.

RELIEF REQUESTED
Intervenor, Empire Fire and Marine Insurance Company will and herby does move for an order compelling compliance with and production of records under the deposition subpoena for production of business records served upon third-party B&D Law Group.

This motion is brought pursuant to CCP 1987.1 and 2025.480(a). Intervenor alleges that the subpoena seeks clearly relevant documents from discovery in another action about a car collision involving Defendant Izat Murataliev and Harutyun Ajaryan, which are the same two individuals involved in renting and driving the Enterprise Rent-A-Car vehicle that collided with the vehicle carrying Plaintiff Donara Grigoryan in this case. Despite stating that they intended to produce at least some of the requested documents, B&D has failed to provide a single document or Code-compliant responses to Empire’s subpoena. Moreover, Empire’s discovery is integral to the Court’s order in this case allowing Empire to issue limited third-party document discovery.

BACKGROUND
This case arises from a motor vehicle accident which occurred on July 21, 2015, on the SR-170 Freeway in Los Angeles, California wherein Defendant, Izat Murataliev driving a rental vehicle owned and rented by Defendant Enterprise smashed into the back of a vehicle in which Plaintiff, Donara Grigoryan, was a passenger. As a result of the accident, Plaintiff sustained injuries and on March 15, 2017, brought this action to recover for the damages sustained. Plaintiff brought suit against the driver Izat Murataliev as well as Defendants Enterprise Rent-A-Car of Los Angeles who provided the rental vehicle to the driver, and EAN Holdings, LLC. Empire Fire and Marine Insurance Company joined the lawsuit as an Intervenor and filed a Complaint in Intervention.

 

Further, according to Intervenor’s introduction, Murataliev was not the renter of the Enterprise car; instead, Harutyan Ajarayan had rented the car for Murataliev. Intervenor alleges that after Empire intervened in this case earlier this year, Empire’s counsel learned that five months before our “accident,” Murataliev, driving a car procured for him by Ajarayan—a BMW 750, which had no license plates and which neither Murataliev nor Ajaryan owned—hit another car in which an occupant later filed suit claiming injury. That case was filed in Los Angeles Superior Court as Kevin Kelley v. Izat Murataliev, et al., LASC Case No. BC652521 (the “Kelley Case”).

 

Given the unusual similarity of the underlying facts, Empire believes that evidence generated during or uncovered in the Kelley Case likely will support Empire’s theory of its case here—namely, that Murataliev and Ajaryan were fraudsters and co-schemers; that the two had a history of attempted frauds involving car accidents; and that the July 21, 2015 crash was the product of a staged accident insurance fraud scheme involving numerous individuals with a documented history of defrauding insurance companies.

 

The instant motion pertains to Empire seeking documents regarding the Kelley case from B&D Law Group, which represents plaintiff Kevin Kelley.

 

The Deposition subpoena for production of documents sought as follows:

 

The documents sought pursuant to this subpoena do not and shall not include (a) any medical records or information that would otherwise be protected by HIPAA or comparable state law; (b) any attorney-client privileged communications; or (c) any attorney-work product.

 

1. All non-privileged documents relating to or generated in connection with the lawsuit entitled Kevin Kelley v. Izat Murataliev, et al., Los Angeles Superior Court Case No. BC652521 (the “Kelley Action”), including but not limited to the following: all pleadings served or filed in the Kelley Action; written discovery served or received in the Kelley Action: document productions made or received in the Kelley Action; law and motion records; non-medical expert reports; deposition records including recordings (video and/or audio), written transcripts, and exhibits; correspondence; and trial records including but not limited to transcripts, exhibits, demonstrative aids, and trial transcripts.

 

2. All non-privileged documents and communications relating to all investigations conducted in connection with the claims and allegations asserted in the Kelley Action.

 

ANLAYSIS
As a preliminary matter, Intervenor moves under CCP §2025.480(a) and 1987.1.  Confusingly, the Intervenor does not make clear how it met the requirements of either statute.

 

In any event, the following statutes provide as follows:

CCP §2025.480(a)-(c)  

(a) If a deponent fails to answer any question or to produce any document, electronically stored information, or tangible thing under the deponent’s control that is specified in the deposition notice or a deposition subpoena, the party seeking discovery may move the court for an order compelling that answer or production.

(b) This motion shall be made no later than 60 days after the completion of the record of the deposition, and shall be accompanied by a meet and confer declaration under Section 2016.040.

(c) Notice of this motion shall be given to all parties and to the deponent either orally at the examination, or by subsequent service in writing. If the notice of the motion is given orally, the deposition officer shall direct the deponent to attend a session of the court at the time specified in the notice.

 

Here, Intervenor does not state how it met the timeliness requirements under 2025.480(b). However, according to the Court’s calculation, Intervenor timely moved under 2025.480(b) because B&D served objections on November 7, 2022 and the instant motion was made on 12/20/2022. Therefore, the motion appears to have been made no later than 60 days after objections were served.

 

Further, Intervenor appears to have met the meet and confer requirement of 2025.480(b) based on paragraphs 9-10 of the Linhardt declaration.

 

CCP §1987.1

“If a subpoena requires the attendance of a witness or the production of books, documents, electronically stored information, or other things before a court, or at the trial of an issue therein, or at the taking of a deposition, the court, upon motion reasonably made by any person described in subdivision (b), or upon the court’s own motion after giving counsel notice and an opportunity to be heard, may make an order quashing the subpoena entirely, modifying it, or directing compliance with it upon those terms or conditions as the court shall declare, including protective orders. In addition, the court may make any other order as may be appropriate to protect the person from unreasonable or oppressive demands, including unreasonable violations of the right of privacy of the person.

(b) The following persons may make a motion pursuant to subdivision (a):

(1) A party.

(2) A witness.

(3) A consumer described in Section 1985.3.

(4) An employee described in Section 1985.6.

(5) A person whose personally identifying information, as defined in subdivision (b) of Section 1798.79.8 of the Civil Code, is sought in connection with an underlying action involving that person’s exercise of free speech rights.”

(CCP §1987.1 (a)-(b)(5).)

Discussion
Non-Party asserted seven objections to each of the two requests.

The Court does not find the first objection as to indefinite time and scope/overbreadth to be a valid objection.

The Court does not find the second objection as to harassment/equally available to be valid.

The Court does not find the third objection as to vague/ambiguous/unintelligible to be a valid objection.

The Court does not find the fourth objection as to privacy to be a valid objection.

The Court does not find the fifth objection as to third party privacy to be a valid objection.

The Court does not find the sixth objection as to the collateral source rule to be a valid objection.

The Court does not find the seventh objection as to attorney-client privilege/work-product to be a valid objection.

In particular as to the sixth and seventh objections, the Court finds these objections invalid based of the language in the subpoena that limits the requests to non-privileged documents.

In considering the late Opposition, the Court does not find Opposition’s arguments on privacy rights of third parties to be convincing, with the exception of the fact that social security numbers would have to be redacted.

The Court is not persuaded by Opposition’s ample opportunity argument.

Further, the Court is not persuaded by Opposition’s argument that Empire has no right to documents reflecting attorney-client communications and work-product because the subpoena expressly did not ask for anything privileged.

Also, the Court finds the objections as to vagueness, ambiguity, and overbreadth to be unpersuasive.

Finally, the Court finds the objections as to lack of proper service unpersuasive based on the Reply’s argument that B&D, whose records were subpoenaed, had only one consumer or client to protect – Mr. Kelley. Mr. Kelley was timely served consumer notice of this subpoena before B&D was to produce records. Neither Mr. Murataliev (now deceased), Mr. Ajaryan, nor even Ms. Arakelian, were ever represented by the recipient of the subpoena, B&D; therefore, Intevenor/subpoenaing party/movant had no duty to notify them of a subpoena which did not, by definition, seek any personal or private records of these three persons.

TENTATIVE RULING
Motion to compel further responses to the non-party deposition subpoena is GRANTED, with the exception that social security numbers are to be redacted.

Sanctions

“The court shall impose a monetary sanction under Chapter 7 (commencing with Section 2023.010) against any party, person, or attorney who unsuccessfully makes or opposes a motion to compel an answer or production, unless it finds that the one subject to the sanction acted with substantial justification or that other circumstances make the imposition of the sanction unjust.” (CCP §2025.480(j)

Although Intervenor requested sanctions of $10,000.00 in its “conclusion” section of the moving papers, Intervenor did not request sanctions in the notice of the motion, as our law requires. Further, in the Court’s view, imposing a sanction on the non-party here would be unjust.

Sanctions are DENIED.

Request for Judicial Notice
Intervenor’s requests for judicial notice of Exhibit A, B, and C are granted.