Judge: Gail Killefer, Case: 19STCV03280, Date: 2022-08-12 Tentative Ruling



Case Number: 19STCV03280    Hearing Date: August 12, 2022    Dept: 37

HEARING DATE:                 August 12, 2022   

CASE NUMBER:                  19STCV03280

CASE NAME:                        West Hollywood Collision Center v. Elizabeth Kathryn Davies, et al.  

MOVING PARTIES:             Consolidated Defendants, Hovhannes Keshishian; Rodolfo Hernandez; Arsen Kazanchian; Holistic Alternative, Inc. #57/D; Kevork Kazanchian; Onnik Kazanchian

OPPOSING PARTY:             Consolidated Plaintiff, Elizabeth Kathryn Davies

TRIAL DATE:                        September 6, 2022

PROOF OF SERVICE:          OK

                                                                                                                                                           

MOTION:                               Motion for Protective Order  

OPPOSITION:                       August 1, 2022

REPLY:                                  August 5, 2022

                                                                                                                                                           

TENTATIVE:                        Defendants’ motion is granted. Defendant is to give notice.

 

                                                                                                                                                           

Background

This action arises out of Cross-Complainant and Defendant, Elizabeth Davies’ (“Plaintiff”) accident involving her 2018 BMW and the corresponding services provided to Plaintiff by Defendants Hovhannes Keshishian, Rodolfo Hernandez, Arsen Kazanchian, Holistic Alternative, Inc. #57/D, Kevork Kazanchian and Onnik Kazanchian (collectively “Defendants”)

On October 23, 2020, the court signed a stipulation and order submitted by Defendants’ counsel ordering the consolidation of this action with Action No. 19STCV12569 for all purposes, and designating 19STCV03280 as the lead case.

On October 22, 2020, the parties attended a Case Management Conference before this court. Counsel for Defendants was present and waived notice. The court set a post-mediation status conference for December 1, 2021; a final status conference for March 15, 2022; and a jury trial on March 22, 2022. Counsel for Defendants was present and waived notice.

On December 1, 2021, the parties attended a Post-Mediation Status Conference and informed the court that mediation had not taken place. Counsel for Defendants was present at that hearing and informed the court that the corporate defendant’s status had been suspended, so he was not appearing on its behalf. The court set an order to show cause hearing for January 21, 2022, and counsel was present. Plaintiff’s counsel was directed to give notice. There was no proof of service of the notice filed.

On January 21, 2022, Defendants failed to appear before the court for an Order to Show Cause. Since no reviver was filed Defendant West Hollywood’s answer was stricken and its claims were dismissed. Counsel for Plaintiff was ordered to give notice. Notice was filed on February 3, 2022, with a proof of service on Defendants’ counsel showing electronic service.

On March 15, 2022, Defendants failed to appear for the Final Status Conference before trial. No changes were made to the scheduled trial date.

On March 22, 2022, Defendants failed to appear, and after hearing evidence from Plaintiff, the court found that Plaintiff was entitled to judgment against remaining Defendants and ordered Plaintiff’s counsel to prepare a proposed judgment.

On April 4, 2022, Plaintiff submitted a proposed judgment and served it on Defendants electronically to the same address as the prior service. On April 7, 2022, Defendants moved to set aside or vacate the March 22, 2022 Judgment and filed an ex parte application to advance the hearing date. On May 5, 2022, the court granted Defendants’ motion to set aside or vacate the March 22, 2022 Judgment.

Defendants now move for a protective order as follows: “will move the court for an order prohibiting Plaintiffs, through counsel, and their agents, servants and representatives, from engaging in the following discovery: 1) SUBPOENA FOR APPEARANCE AT DEPOSITION AND PRODUCTION OF DOCUMENTS – JOAN KENEGOS 2) SUBPOENA FOR APPEARANCE AT DEPOSITION AND PRODUCTION OF DOCUMENTS – Maria Sandoval 3) SUBPOENA FOR APPEARANCE AT DEPOSITION AND PRODUCTION OF DOCUMENTS – JEREMY ROSENBERG.” Consolidated Plaintiff oppose the motion.

 

Consolidated Defendants’ Objections

 

In defiance of Cal. Rules of Court Rule 3.1354, Defendants have submitted evidentiary objections without following one of the two allowed formats—namely, Defendants fail to number the objections and as such, fail to accurately refer to each objection individually. Although this failure is reason for the court to overrule the objections entirely, the court will address the objections individually.

 

Objections to the Declaration of Hovanes Margarian

 

Overruled: 1-3, 5

Sustained: 4, 6-10

 

 

 

Objections to the Declaration of Elizabeth Kathryn Davies

 

Overruled: 1-9, 11-12, 15, 17-21 

Sustained in part: 10, 16

Sustained: 13-14, 22-29

 

Meet and Confer 

 

A motion for a protective order under CCP § 2031.060 must be accompanied by a meet and confer declaration.  (CCP § 2031.060(a).) The declaration must state facts showing a reasonable and good faith attempt at an informal resolution of each issue presented in the motion.  (CCP § 2016.040.)  “[A] reasonable and good faith attempt at informal resolution entails something more than bickering with [opposing] counsel….  Rather, the law requires that counsel attempt to talk the matter over, compare their views, consult, and deliberate.”  (Clement v. Alegre (2009) 177 Cal.App.4th 1277, 1294.)  “A determination of whether an attempt at informal resolution is adequate involves the exercise of discretion.”  (Stewart v. Colonial W. Agency (2001) 87 Cal.App.4th 1006, 1016, internal ellipses omitted.)  Where a party fails to make any real effort at informal resolution, a particularly egregious failure may justify an immediate and outright denial of further discovery.  (Obregon v. Superior Court (1998) 67 Cal.App.4th 424, 433-34, citing Townsend v. Superior Court (1998) 61 Cal.App.4th 1431, 1437.)   

 

Defendants submit the declaration of their counsel, Jerry Kaplan (“Kaplan”), in support of the instant motion. Kaplan attests that “Joan Kenegos, a partner at my firm, has made reasonable and good faith efforts to reach an informal resolution to each issue addressed in the motion, however, the parties cannot reach an agreement. By way of a letter from Consolidated Plaintiff’s counsel dated June 8, 2022, Consolidated Plaintiff has refused to withdraw the subpoena or modify it in any satisfactory way.” (Kaplan Decl. ¶ 9.) However, for the first time, Defendants in their Reply introduced new evidence, namely the Declaration of their counsel, Joan Kenegos (“Joan Kenegos”) who attests that on May 9, 2022, Kenegos sent an email “explaining my objections to his request to take the depositions of opposing counsel and a secretary in my office,” further citing Care Convalescent Hospital v. Superior Court (2006) 143 Cal.App.4th 1558 to contend “taking opposing counsel’s attorneys [sic] deposition is rarely if ever allowed.” (Kenegos Decl. ¶4.)

 

First, the court reminds the parties that the purpose of a reply brief is to address arguments made in the Opposition; it may not be used to raise new arguments, present new authorities, or introduce new evidence. Supporting authority consistently provides that points raised for the first time in a reply brief ordinarily will not be considered because such consideration would either deprive respondent of an opportunity to counter the argument or require the effort and delay of additional brief by permission. (See, e.g., San Diego Watercrafts, Inc. v. Wells Fargo Bank, (2002) 98 Cal.App.4th 1316; Marriage of Khera & Sameer (2012) 206 Cal.App.4th 1467, 1477 ["Obvious reasons of fairness militate against consideration of an issue raised initially in the reply brief."].)

 

Second, the court notes that neither counsel’s declaration explains or elaborates that the parties have attempted to meet and confer as to these depositions, outside of a single email sent with objections to the depositions which were noticed by Plaintiff’s counsel. The declarations do not show “a reasonable and good faith attempt at an informal resolution of each issue presented in the motion.”  (CCP §§ 2016.040; 2031.060.) They further do not evince an attempt by the counsels “to talk the matter over, compare their views, consult, and deliberate.”  (Clement v. Alegre, supra, 177 Cal.App.4th at 1294.) However, as the declarations do not evince a particularly egregious failure to meet and confer, the court continues with the parties’ arguments.

 

Discussion

 

I.                   Legal Authority

 

“When an inspection, copying, testing, or sampling of documents, tangible things, places, or electronically stored information has been demanded, the party to whom the demand has been directed, and any other party or affected person, may promptly move for a protective order.” (CCP § 2031.060(a).) “The court, for good cause shown, may make any order that justice requires to protect any party or other person from unwarranted annoyance, embarrassment, or oppression, or undue burden and expense.” (CCP § 2031.060(b.)

 

II.                Analysis

 

A.     Requested Protective Order

 

Defendants seek a protective order regarding subpoenas for the depositions of two opposing counsel, Joan Kenegos and Jeremy Rosenberg and a secretary who works in counsel’s office, Maria Sandoval.  (Motion, 4-6.) The depositions of counsel and their secretary were noticed as “Consolidated Plaintiff alleges that Kaplan Kenegos & Kadin has been ‘advancing the crimes’ of its clients.” (Motion, 4.)

 

According to Defendants, this protective order is required because the requested depositions are “presumptively improper and must meet an extremely high standard.” (Motion, 5.) Defendants rely on Carehouse Convalescent Hospital v. Superior Court to contend that depositions of opposing counsel are “presumptively improper, severely restricted, and require extremely good cause.” (Id.)

 

The court in Carehouse further explains:

 

“Attorney depositions chill the attorney-client relationship, impede civility and easily lend themselves to gamesmanship and abuse. "`Counsel should be free to devote his or her time and efforts to preparing the client's case without fear of being interrogated by his or her opponent.'"” (Carehouse Convalescent v. Superior Court, supra, 143 Cal.App.4th at 1563.)

 

Thus, Defendants explain a three-prong test has been established by the court to determine the right to deposing opposing counsel. (Motion, 5-6; Carehouse Convalescent v. Superior Court, supra, 143 Cal.App.4th at 1563 [“To effectuate these policy concerns, California applies a three-prong test in considering the propriety of attorney depositions. First, does the proponent have other practicable means to obtain the information? Second, is the information crucial to the preparation of the case? Third, is the information subject to a privilege? ”].) Defendants here further contend that even under the crime-fraud exception to privileged information, Plaintiff bears the burden of proof of the existence of a crime or fraud. (Motion, 6.) Defendants explain:

 

“The crime-fraud exception is ‘a very limited exception to the [attorney-client] privilege’ and the ‘proponent of the exception bears the burden of proof of the existence of crime or fraud.’ (Geilim v. Superior Court (1991) 234 Cal.App.3d 166, 174.) To trigger the crime-fraud exception, a ‘party must make a prima facie showing that the communication at issue furthered a crime or fraud.’ (State Farm Fire & Cas. Co. (1997) 54 Cal.App.4th at 643.) ‘Mere assertion of fraud is insufficient; there must be a showing the fraud has some foundation in fact.’ (BP Alaska Exploration, Inc. v. Superior Court (1988) 199 Cal.App.3d 1240, 1262.) ‘[T]he [proponent] must also establish a reasonable relationship between the fraud and the attorney client communication.’ (Id.)  Extreme caution must be exercised when an accusation is made which will invade the attorney-client relationship in connection with ongoing litigation. (State Farm Fire & Casualty Co. v. Superior Court, supra, 54 Cal.App.4th at 644–645.) Crime/fraud exception only applies to attorney-client privileged materials; it does not apply to work product privilege. (Id.)” (Motion, 6.)

 

Thus, Defendants here first contend Plaintiff has failed to rebut the presumption against deposing counsel as “Plaintiff has failed to show that (1) she lacked other practicable means of obtaining the demanded information, and (2) such information is crucial to her case. Moreover, Plaintiff's deposition subpoena demands documents covered by the work-product doctrine.” (Motion, 6.) Defendants point out that Plaintiff has not propounded discovery requests for two years, emphasizing that Plaintiff has not propounded any discovery on these Defendants. (Id.) Defendants explain that Plaintiff’s counsel only requested discovery after this court granted Defendants’ motion and set aside the judgment in this matter. (Id.) They further contend that the depositions of opposing counsel are not necessary as they are “not crucial to her cause” and “fall outside the scope of [Plaintiff’s] Complaint.” (Motion, 7.)

 

Next, Defendants contend “there is no evidentiary basis to show [Defendants] engaged in a crime fraud [sic], let alone that [their] counsel engaged in a crime or fraud.” (Motion, 7.) Therefore, Defendants contend Plaintiff “attempts to use inadmissible hearsay evidence to implicate the [Defendants’] involvement in a crime or fraud,” again emphasizing that no factfinding through discovery has taken place by Plaintiff’s counsel to establish Defendants’ conduct. (Motion, 8.) Lastly, Defendants again contend that the requested documents accompanying the subpoenas are barred by the work product doctrine, which does not have a crime-fraud exception. (Id.)

 

In opposition, Plaintiff first contends that Defendants’ counsel has represented Defendants in other matters before. (Opposition, 8.) Plaintiff also contends Defendants have failed to show good cause for the protective order and have not made reasonable efforts to meet and confer. (Opp., 9.) Also, Plaintiff contends she “has no other means of obtaining information regarding Defendants who do not [sic] longer exist as entities.” (Opp., 11.) Plaintiff then contends counsel’s “longtime representation of Defendants in various cases by the same Counsel allows [sic] to assume the Counsel is in a unique position with the access to this type of information.” (Opp., 11.) Plaintiff provides no supporting authority to justify such an assumption.

 

Plaintiff then contends the crime-fraud exception applies because Defendants are mostly “represented by a singular defense firm in this matter which illustrates unity in form and purpose among these. Further, Defendant’s Counsel participated directly in the extortion scheme by filing a lawsuit against Plaintiff.” (Id.) Again, Plaintiff provides no supporting authority for these contentions or assumptions. Plaintiff then explains the allegedly fraudulent “scheme,” and makes assertions as to Defendants’ counsel’s involvement. (Opp., 12-13.) Plaintiff therefore contends that since counsel has represented Defendants in other matters, “[t]his gives reason to assume that it was familiar with their practices in general and was at least aware of the scheme if not directly involved in it,” and asserts it is “highly unlikely” counsel was unaware of investigations by the Bureau of Automotive Repairs and the West Hollywood Police Department. (Id.) Again, Plaintiff provides no supporting authority for these claims.

 

Plaintiff then contends all necessary documents are in the possession of counsel, and are otherwise impossible for Plaintiff to find since most of the named entities no longer exist. (Opp., 14.) Plaintiff then seeks to rely on Hickman v. Taylor, (1947) 329 U.S. 495, but that provides no support as Hickman concerned itself with “non-privileged facts” where counsel here alleges privilege. (Id.) Plaintiff further contends that Defendants’ counsel “either failed to investigate” Defendants’ claims or participated in the alleged crimes. (Opp., 14-15.) However, Plaintiff fails to show how Defendants’ counsel’s filing of a complaint can amount to such an inference.

 

Lastly, Plaintiff explains that Defendants’ unresponsiveness is to blame for the lack of discovery conducted in this matter, and that Defendants only appeared after Plaintiff filed judgment against them. (Opp., 15.) Plaintiff contends “Defendants involvement in a crime/fraud scheme has been established by government agencies/bodies,” but provides no supporting evidence as to this assertion. (Opp., 17-18.)

 

It is undisputed that this motion pertains to privileged documents and the conduct of opposing counsel, and precedent shows us that the deposing of opposing counsel and the factfinding regarding such conduct should be done with great hesitancy. While Plaintiff explains that Defendants’ counsel maintains information about entities which are no longer operating, Plaintiff does not show how the three-prong test in Carehouse is satisfied or provide prima facie evidence that a crime or fraud was committed or perpetrated here. As “extreme caution must be exercised” with the invoking of the crime-fraud exception to privilege, the court finds Plaintiff has not established a prima facie showing that a crime or fraud was committed with the aid or enabling of counsel. (State Farm Fire & Casualty Co. v. Superior Court, supra, 54 Cal.App.4th at 644–645.)

 

For these reasons, Defendants’ motion is granted.

 B.     Request for Attorney’s Fees

 

The court may impose sanctions against any party for engaging in conduct constituting a “misuse of the discovery process.”  (CCP § 2023.030 (a).)  Misuse of the discovery process includes “failing to respond or submit to an authorized method of discovery.” (CCP § 2023.010 (d).)   

 

Here, Defendants request monetary sanctions in the amount of $4,631.65 in connection with this motion. (Motion, 8.) Defendants contend Plaintiff’s refusal to withdraw or modify the subject subpoena amounts to a “misuse” of the discovery process. (Id.)  

 

Plaintiff also requests $2,000 in attorney’s fees in connection with this motion on the grounds that Defendants should be sanctioned for their lack of good faith efforts to meet and confer before bringing this motion and no explanations were offered as to their objections. (Opp., 18-19.)  

 

However, both parties cite to no legal authority in support of their request for attorney’s fees. In light of Defendants’ failure to meaningfully meet and confer in their discussions with Plaintiff’s counsel prior to bringing this motion, and in further light of the equities between the parties, the court does not find a misuse of the discovery process to have taken place. Thus, the parties’ requests are both denied.  

 

Conclusion

 

Defendants’ motion is granted. Both parties’ requests for attorney fees are denied. Defendants are to give notice.