Judge: Kevin C. Brazile, Case: 21STCV01295, Date: 2023-05-15 Tentative Ruling

Hearing Date: May 15, 2023

Case Name: Zarabian v. Willwerth, et al.

Case No.: 20STCV29052

Matter: Motions to Compel (2x)

Moving Party: Plaintiff Babak Zarabian 

Responding Party: (1) Defendant Zanna USA, Inc.

(2) Defendant Zanna USA Holdings, Inc.

Notice: OK

Ruling: The Motions are granted in part.

Moving party to give notice.

If counsel do not submit on the tentative, they are strongly 

encouraged to appear by LACourtConnect rather than in person due to the COVID-19 pandemic. 

This is an action in which Plaintiff Babak Zarabian alleges the Defendants cut him out of a partnership deal relating to the “Zanna” family of corporate entities.    

Plaintiff seeks to compel further responses and documents with respect to his requests for production in connection with the depositions of Defendants Zanna USA, Inc. and Zanna USA Holdings, Inc.  Plaintiff asserts that no documents were produced because Defendants asserted meritless objections.

Defendants contend that they “object[] to any and all requests that relates to Defendant’s internal matters such as business licenses or permits, the type and amount of investments, and the identity of investors, the identity of shareholders, communications with investors and shareholders, operating costs, licensing fees, equipment and cultivation costs, profit and loss statements, payment of any dividend, and similar internal matters.”  

Defendants object on the grounds that Plaintiff seeks documents that contain confidential and proprietary business information; that the documents encompass income tax returns, W2s, and/or 1099 forms, which are privileged under state and federal law; that the requests are unduly burdensome and oppressive; that Plaintiff seeks documents or information containing and/or reflecting trade secrets, confidential information and/or other proprietary information; that Plaintiff’s requests are overbroad, burdensome, and oppressive because they require Defendants to prepare a compilation of data; and that the requested documents are not relevant to this litigation, nor reasonably calculated to lead to the discovery of admissible evidence. 

Zanna USA Holdings, Inc. also contends that the subject documents do not exist.  

The Motion is granted as to request nos. 1-12 and 15 because these requests merely seek documents identifying certain shareholders, managers, and banks for Defendants.  These requests also seek the total number of shareholders for Defendants and documents relating to their investments, as well as profit and loss statements.  Most of this is not private information.  In any case, this information is directly relevant to identifying witnesses and establishing damages.  If there are certain documents that do not exist, then an appropriate response should be provided.  

The Motion is denied as to request nos. 13-14, which encompass documents subject to the taxpayer privilege.

Documents are to be produced within thirty days.  The Court awards reduced sanctions against the Defendants in the total amount of $1,000.  This liability is joint and several.  

Moving party to give notice.

If counsel do not submit on the tentative, they are strongly encouraged to appear by LACourtConnect rather than in person due to the COVID-19 pandemic.