Judge: Steven A. Ellis, Case: 22STCV31603, Date: 2024-03-22 Tentative Ruling

Case Number: 22STCV31603    Hearing Date: April 12, 2024    Dept: 29

Motion for Protective Order filed by Plaintiff
Motion to Compel Compliance with Deposition Subpoena filed by Defendant Numark Transportation, Inc.

 

Tentative

The motion to compel is granted in part and denied in part.

The motion for a protective order is granted in part and denied in part.

Background

On September 27, 2022, Angel Contreras (“Plaintiff”) filed the complaint in this action against Mario Lua, Numark Transportation, Inc. (“Numark”), and Does 1 through 25, asserting causes of action for motor vehicle negligence and general negligence arising out of an accident occurring on February 17, 2022, on the 710 Freeway near Washington Boulevard in Commerce.  At the time of filing, Plaintiff was represented by counsel of record Jennie Levin.

On April 20, 2023, Plaintiff filed a substitution of counsel, with David R. Lira replacing Jennie Levin.

Defendants Numark and Mario Lua (collectively, “Defendants”) filed their answers on July 21, 2023, and January 16, 2024.

On November 28, 2023, Numark noticed the deposition of Plaintiff’s former counsel of record Jennie Levin.  (Mathis Decl., ¶ 6.)  Numark asserts that it seeks to take the deposition of Ms. Levin because she, on behalf of Plaintiff, entered into an oral settlement agreement with Defendants in October 2022, shortly after the complaint was filed.  (Id., ¶ 2.)

On February 21, 2024, Plaintiff filed a motion for a protective order to preclude Numark from taking the deposition of Ms. Levin.  Plaintiff also seeks sanctions.  The hearing on that motion was initially set for April 29, 2024.

On February 29, 2024, Numark filed this motion to compel the deposition of Ms. Levin.  Numark also seeks sanctions.  The hearing on the motion was initially set for March 22, 2024, and was then continued to March 26. Plaintiff filed an opposition on March 11, and Numark filed a reply on March 15.

On March 26, Numark’s motion to compel came on for hearing.  After discussing the matter with counsel, the Court continued the hearing to April 12; advanced and continued the hearing on Plaintiff’s motion for a protective order to April 12; and ruled that Numark’s moving papers on its motion to compel would be treated as its opposition to Plaintiff’s motion for a protective order.

Legal Standard

“Any party may obtain discovery … by taking in California the oral deposition of any person, including any party to the action.”  (Code Civ. Proc., § 2025.010.)  The process by which a party may obtain discovery from a person who is not a party to the action is through a deposition subpoena.  (Code Civ. Proc., § 2020.010, subd. (b).)  Personal service of the deposition subpoena on the non-party is required.  (Code Civ. Proc., § 2020.220, subd. (b).)

“A deposition subpoena may command any of the following: (a) Only the attendance and testimony of the deponent …. (b) Only the production of business records for copying …. (c) The attendance and the testimony of the deponent, as well as the production of business records, other documents, electronically stored information, and tangible things.” (Code Civ. Proc., § 2020.020.)

“If a deponent on whom a deposition subpoena has been served fails to attend a deposition or refuses to be sworn as a witness, the court may impose on the deponent the sanctions described in Section 2020.240 [contempt and an action for civil damages under section 1992].” (Code Civ. Proc., § 2025.440, subd. (b).)

“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.”  (Code Civ. Proc., § 2025.480, subd. (a).)  “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.” (Id., subd. (b).)

“If the court determines that the answer or production sought is subject to discovery, it shall order that the answer be given or the production be made on the resumption of the deposition.  (Id., subd. (i).)

“[T]he 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.”  (Id., subd. (j).)  

In Chapter 7 of the Civil Discovery Act, section 2023.010, subdivision (d), defines “[m]isuses of the discovery process” to include “[f]ailing to respond to or to submit to an authorized method of discovery.”  Where a party or attorney has engaged in misuse of the discovery process, the court may impose a monetary sanction in the amount of “the reasonable expenses, including attorney’s fees, incurred by anyone as a result of that conduct.”  (Id., § 2023.030, subd. (a).)

Except as specifically modified by the Civil Discovery Act, the provisions of Code of Civil Procedure sections 1985 through 1997 apply to deposition subpoenas.  (Code Civ. Proc., § 2020.030.)¿ 

Code of Civil Procedure section 1987.1, subdivision (a), provides: “If a subpoena requires the attendance of a witness or the production of books, documents, 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.”

Code of Civil Procedure section 1987.2, subdivision (a), states, in relevant part, that in connection with an order directing compliance with a subpoena, quashing it, or modifying it, “the court may in its discretion award the amount of the reasonable expenses incurred in making or opposing the motion, including reasonable attorney’s fees, if the court finds the motion was made or opposed in bad faith or without substantial justification.”¿ 

A motion to compel a nonparty to answer questions or produce documents “must be personally served on the nonparty deponent unless the nonparty deponent agrees to accept service by mail or electronic service.”  (Cal. R. Ct., rule 3.1346.)

“The court shall limit the scope of discovery if it determines that the burden, expense, or intrusiveness of that discovery clearly outweighs the likelihood that the information sought will lead to the discovery of admissible evidence.  The court may make this determination pursuant to a motion for protective order by a party or other affected person.  This motion shall be accompanied by a meet and confer declaration under Section 2016.040.”  (Code Civ. Proc., § 2017.020, subd. (a).)

“Before, during, or after a deposition, any party, any deponent, or any other affected natural person or organization may promptly move for a protective order.  The motion shall be accompanied by a meet and confer declaration under Section 2016.040.”  (Code Civ. Proc., § 2025.420, subd. (a).) 

“The court, for good cause shown, may make any order that justice requires to protect any party, deponent, or other natural person or organization from unwarranted annoyance, embarrassment, or oppression, or undue burden and expense.”  (Id., subd. (b).)  The court may order (among other things) that the deposition “not be taken at all” or that the deposition “be taken only on certain specified terms and conditions.”  (Ibid.)

“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 for a protective order, 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.”  (Id., subd. (h).)

Preliminary Issue

As discussed with counsel at the March 26 hearing, the Court has been informed that although Ms. Levin was not personally served with the deposition subpoena or the motion to compel, Plaintiff’s current counsel represents her for purposes of the deposition and has accepted service of the subpoena and the motion on her behalf.  (Mathis Decl., ¶ 10 & Exhs. G & I; Lira Decl., ¶ 1 & Exh. 1.)

The parties have satisfied the applicable meet and confer requirements.

Discussion

Numark has issued a deposition subpoena to Plaintiff’s former counsel Ms. Levin, seeking to obtain both testimony and documents regarding disputed events that occurred (or did not occur) while Ms. Levin was representing Plaintiff.  Numark moves to compel Ms. Levin to comply with the subpoena.  Plaintiff moves for a protective order to prevent the taking of the deposition at all.

Separate issues arise with regard to the testimony and the requested document production.  Accordingly, these two issues will be addressed separately. 

Testimony

Depositions of counsel are restricted, rarely permitted, and require a showing of “extremely” good cause. (Carehouse Convalescent Hospital v. Super. Ct. (2006) 143 Cal.App.4th 1558, 1562.)  Courts generally apply a three-part test and require the party seeking the deposition to make a sufficient showing in support of the deposition on all three parts.  “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?” (Id. at p. 1563, citing Spectra–Physics, Inc. v. Super. Ct. (1988) 198 Cal.App.3d 1487, 1494.)

This three-part test applies here notwithstanding Numark’s contention that the subject of Ms. Levin’s testimony will relate to events that predate service of the complaint. (See Motion to Compel, 12:25-26.) Regardless of the timing of service, Numark seeks to depose Ms. Levin about events that occurred in connection with this matter, after the complaint was filed, and while Ms. Levin was representing Plaintiff.  This is precisely the type of testimony that the “extremely” good cause standard and the three-part test are designed to protect against.  “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.” (Spectra–Physics, supra, 198 Cal.App.3d at p. 1494.)

First, in part one of the test, the Court finds that Numark has shown that the information cannot be obtained through alternate means.  Plaintiff has already been deposed and has denied that he agreed to or approved any settlement.  It is Numark’s contention that Ms. Levin made statements or representations that are sufficient to establish that the parties entered into a settlement agreement in October 2022 that is binding and enforceable against Plaintiff.  Of course, the Court does not know at this point what Ms. Levin will state in her deposition, but asking Plaintiff again (including, for example, through written discovery directed to him) is clearly not sufficient.   

Second, in part two of the test, the Court finds that Numark has shown that the information is crucial.  Numark asserts, in its Seventh and Eighth Affirmative Defenses, that the entire action is barred based on a settlement agreement or promissory estoppel.  This is not a minor or tangential issue: to the contrary, Ms. Levin’s testimony will go to the core of a potentially dispositive issue in this litigation. 

On a related point, Plaintiff argues that regardless of what Ms. Levin may or may not say, there was no enforceable settlement agreement between the parties because the requirements of Code of Civil Procedure section 664.6 were plainly not met.  (Opp. to Mot. to Compel, at pp. 11-13; Mot. for Prot. Order, at pp. 8-10.)   

Section 664.6, however, is only a procedural statute.  It provides a mechanism for summary enforcement of certain types of settlement agreements.  It is possible for parties to have an enforceable settlement agreement that is not subject to the summary enforcement proceedings of section 664.6 (including, for example, an enforceable oral agreement to settle).  In those circumstances, a party seeking to enforce the agreement must proceed through other means, such as through an affirmative defense and/or a motion for summary judgment, rather than through the summary procedures of section 664.6.  (See generally Weddington Productions v. Flick (1998) 60 Cal.App.4th 793, 809.)  Thus, the information that Numark seeks is critical regardless of whether the statutory requirements of section 664.6 were satisfied.

Third, in part three of the test, the Court finds that Numark has shown that at least some of the information that it seeks to obtain through Ms. Levin’s testimony is not privileged.  For example, Ms. Levin’s discussions with Plaintiff about a potential settlement or the potential settlement value of the case are almost certainly protected by the attorney-client privilege; Ms. Levin’s own analysis of the strength of the case or its settlement value are almost certainly protected by the work product doctrine; but Ms. Levin’s discussions with Numark or its representatives about settlement are not covered by the attorney-client privilege or work product doctrine.  To be sure, such communications might be inadmissible at trial under Evidence Code section 1154 to prove the validity or invalidity of Plaintiff’s claim, but they are not inadmissible on the issue of whether the parties reached an enforceable settlement agreement.

The Court has considered the arguments of both sides and all of the evidence in the record.  The Court concludes that Numark has shown extremely good cause for the deposition of Ms. Levin and has satisfied the requirements of the three-part test set forth in the case law.  Numark’s motion to compel Ms. Levin to appear for her deposition and give testimony is GRANTED, and Plaintiff’s motion for a protective order to prevent the taking of Ms. Levin’s deposition is DENIED.

The Court’s ruling is without prejudice to the right of Plaintiff and Ms. Levin to object, including on privilege and work product grounds, to individual questions.  But the privilege and work product issues are not so pervasive as to the preclude the taking of the deposition entirely.  Numark will be entitled to inquire of Ms. Levin as to matters that are not privileged or protected by the work product doctrine, including the communications that she had with representatives of Numark (including its insurer) regarding what Numark alleges was a settlement agreement in October 2022.

Documents

The most recent version of the deposition notice is attached to the declaration of Numark’s counsel as Exhibit H and to the declaration of Plaintiff’s counsel as Exhibit 7.  Plaintiff’s objections are in Exhibit 8 to the declaration of Plaintiff’s counsel.

Numark includes in the deposition notice 14 requests for production.  Plaintiff objects to each and every request on the grounds of attorney-client privilege and work product protection.

Requests Nos. 1-5

These requests seek documents regarding communications with Canal Insurance Company, Numark’s insurer, about the incident or the alleged settlement.

Communications between Plaintiff’s counsel and Numark’s insurance company are not subject to the attorney-client privilege or work product protection.  Communications between Plaintiff’s counsel and Plaintiff about counsel’s communication with the insurer are, however, presumptively privileged.

Accordingly, the Court narrows these requests as follows: (1) All communications with Canal Insurance about the incident; (2) All communications with Canal Insurance about any settlement discussions in this matter; (3) All communication with Canal Insurance about settlement negotiations in this matter; (4) All documents communicating any settlement offers made by Canal Insurance Company; and (5) All documents communicating with Canal Insurance Company about any agreement to accept a settlement offer.

As narrowed, the motion to compel is GRANTED and the motion for a protective order is DENIED.

Request No. 6

The retainer agreement itself must be produced (with any privileged material redacted); the fact of the retainer is not privileged.  Communications regarding the retainer agreement, including negotiations, are presumptively privileged.

Accordingly, the Court narrows this request as follows: (6) All retainer agreements between you and Plaintiff Angel Contreras.

Ms. Levin may redact any material that is privileged or protected by the work product doctrine.

As narrowed, the motion to compel is GRANTED and the motion for a protective order is DENIED.

Requests Nos. 7-14

These requests, on their face, seek documents relating to communication between attorney and client.  The responsive documents are presumptively privileged.

The motion to compel is DENIED.  The motion for a protective order is GRANTED.

Sanctions

The Court finds that all parties have acted with substantial justification as to these motions.  Plaintiff has acted with substantial justification in vigorously seeking to protect the full scope of the attorney-client privilege and work product doctrine, and Numark has acted with substantial justification in vigorously seeking to obtain all non-privileged and non-protected evidence in support of its affirmative defenses.  These are difficult issues, and under all of the circumstances it would be unjust to impose sanctions on either party. 

Conclusion

The Court GRANTS in PART and DENIES in PART Numark’s motion to compel.

The Court GRANTS in PART and DENIES in PART Plaintiff’s motion for a protective order.

The Court ORDERS Ms. Levin to appear for her deposition and give testimony at a date and time to be arranged by counsel within 30 days of notice.

The Court STATES that this order does not preclude counsel for Plaintiff or for Ms. Levin from making appropriate objections at the deposition, including on the basis of the attorney-client privilege or work product doctrine, consistent with the terms of this order.

The Court ORDERS Ms. Levin to produce, at or before her deposition, documents responsive to Document Requests Nos. 1-6, as narrowed by this order.

The Court DENIES both parties’ requests for sanctions.

The Court DENIES all other relief requested by either party.

Counsel for Numark is ordered to give notice.