Judge: H. Jay Ford, III, Case: 20SMCV01704, Date: 2023-12-07 Tentative Ruling



Case Number: 20SMCV01704    Hearing Date: December 7, 2023    Dept: O



20SMCV01704 CORE FINANCIAL PARTNERS, INC. vs JOSE VITELA
Status Conference Re Proposed Orders and Any Objections Regarding Referee Reports No. 6 and No. 7

The Court intends to adopt the following recommendations by the Referee regarding Plaintiff’s requests for monetary sanctions in the Referee’s Report and Recommendation #6:

“The Referee does not recommend that the Court award nonmonetary sanctions against Vitela for misuse of discovery or failure to comply with the Court’s order.  The Referee recommends that the Court award monetary sanctions against Vitela for Vitela’s extended failure to produce any text messages responsive to Core’s Request for Production (RFP) Number 14, a problem exacerbated by the deletion of text messages from Vitela’s cell phone.... The Referee recommends that the Court hold Vitela responsible for Referee fees in October, 2022 associated with the hearing of October 27, 2022 and the preparation of the October 31, 2022 Referee Directive. This would comprise a total of 3.45 hours of Referee time. The Referee also recommends that Vitela be held responsible for attorney fees incurred by Core in addressing compliance with RFP 14 and the related issue of deletion of text messages from Vitela’s cell phone, and recommends that the Court to have Core counsel submit a declaration identifying in their invoices what portion of the work was associated with addressing those issues.  In light of the Referee’s conclusion that several of the bases asserted by Core as grounds for sanctions against Vitela do not justify sanctions by the Court, the Referee recommends that the parties bear equal portions of the Referee’s fees associated with preparation of this Report and Recommendations as well as the previous Reports & Recommendations ##4 and 5 as noted below.”

Similarly, at minimum, the Court intends to adopt the Referee’s recommendations by the Referee regarding Plaintiff’s requests for monetary sanctions in the Referee’s Report and Recommendation #7:

“Vitela’s extended delay in responding to RFP 14 in the face of a Court order compelling compliance, a circumstance exacerbated by Vitela’s failure to promptly confirm and address the deletion of text messages from Vitela’s cell phone, justifies the levying of appropriate monetary sanctions for misuse of discovery since Vitela has been unable to provide substantial justification for its actions. The Referee recommends that the Court hold Vitela responsible for Core’s attorney fees incurred in addressing compliance with RFP 14 as well as related Referee fees associated with the hearing of October 27, 2022 and the preparation of the October 31, 2022 Referee Directive, as well as any other costs the Court deems appropriate.” 

Having reviewed the further declaration of Alexander Karger in support of Plaintiff’s request for monetary sanctions (filed 11-29-23)  it is not clear what portion of the attorney’s fees were incurred in connection with the initial sanctions motion that are attributed solely to Vitela’s extended delay in responding to Core’s Request for Production (RFP) Number 14 regarding text messages that were deleted from Vitela’s phone.   Plaintiff’s are to provide a supplemental brief that: (1) identifies with reasonable particularity what portion, if any, of the $213,122.5 incurred by SBK in connection with the “motion for sanctions” (exhibit 1 to Karger decl.) is attributable to seeking to compel further responses to RFP #14 and the production of text messages; (2) what portion, if any, of the $375,238 incurred by Paul Hastings fees is attributable to seeking  to compel further responses to RFP #14 and the production of text messages; (3) what portion of the fees incurred by Paul Hastings (if any) that are directly related to the pursuit of the spoliation motion and the further briefing and hearings before the Referee related to that motion; and,  (4) what portion of the fees relating to the “spoliation motion” were incurred relating to third party subpoenas, depositions or other discovery that was necessary as a direct consequence of the deletion of the text messages from Vitela’s phone.

Plaintiff’s supplemental brief is to be filed on ______________________.  Defendant’s may file a supplemental response (not to exceed 5 pages)  The Court continues the hearing on the parties respective

objections to the Referee’s Report and Recommendations Nos. 6 & 7 to _______________________________.