Free Letter - District Court of Delaware - Delaware

Case 1 :07-cv-00427-JJF Document 96 Filed 08/28/2007 Page 1 of 2
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 NORTH MARKET STREET
P.O. Box 1347
Wr1.1vm~1cToN, DELAWARE 19899-1347
r 302 658 9200
302 658 3989 FAX
WILLIAM H. SUDELL, J1:.
302 351 9284
302 425 4685 Fax
WSud€l1@]I1I13t. com
August 28, 2007
E-FILED AND HAND-DELIVERED
The Honorable Joseph J. Faman, Jr.
United States District Court
District of Delaware
844 N. King Street 8
Room 4124, Lockbox 27
Wilmington, DE 19801
RE: Stanziale v. Pepper Hamilton LLP, et al., No. 07-427
Dear Judge Farnan:
On February 8, 2007, the United States District Court for the Southern District of
New York transferred Pepper Hamilton’s motion to compel compliance with a subpoena duces
tecum to this Court. The motion, which relates to two cases presently scheduled for trial before
Your Honor on October 10, 2007 -- Stanziale v. Pepper Hamilton LLP, et al., No. 04-1551, and
Royal Indemnity Co. v. Pepper Hamilton LLP, et al., No. 05-165 -- was officially entered on this
Cou1t’s docket under a separate docket number on July 6, 2007. Pepper respectfully requests a
ruling on the motion, as Pepper will need to make considerable efforts if the motion is granted to
extract and review the potentially critical information contained on the computer server that is
the subject of the motion in the six weeks remaining before trial.
Pepper Hamilton’s motion seeks to compel the production of an email server used
by its former client, Student Finance Corporation ("SFC"). The email server contains thousands
of emails to and from former SFC employees, including emails between SFC, Pepper Hamilton
and other attomeys retained by SFC. These emails are critically important given that the
bankruptcy trustee for SFC has sued Pepper for, among other things, legal malpractice and
breach of fiduciary duty. The emails likely will show what advice Pepper Hamilton and SFC’s

Case 1:07-cv-00427-JJF Document 96 Filed 08/28/2007 Page 2 of 2
The Honorable Joseph J. Farnan, Jr.
August 28, 2007
Page Two ·
other lawyers did and did not give to SFC and what disclosures Pepper Hamilton made to SFC
with respect to the conflicts of interest alleged by the Trustee.]
The email server at issue is in the possession of a non-party, Mandiant
Corporation. VVhen Mandiant refused to comply with a subpoena commanding the production of
the server, Pepper Hamilton moved to compel compliance in the United States District Court for
the Southern District of New York, the Court from which the subpoena issued. The motion was
fully briefed and argued in the Southern District before it was transferred to Your Honor.
Pepper Hamilton stands ready to present the Court with any additional
information it may need to decide the motion in advance of the October l0, 2007 trial in these
matters.
Respectfully submitted,
L/(/%V pa/..·.2n—
7
William H. sudcii, J1.
WHS/clh
cc: All Counsel on Attached Service List
1221983
1 Pepper Hamilton does not have copies of many of the emails it sent to SFC because those emails
were deleted from Pepper Hamilton’s system in the nonnal course of business pursuant to Pepper
Hamilton’s document retention policies before SFC collapsed.

Case 1 :07-cv-00427-JJF Document 96-2 Filed 08/28/2007 Page 1 of 2
VIA EMAIL AND U.S. MAIL
Michael S. Waters John I. Grossbart
Lois H. Goodman Alan S. Gilbert
Charles A. Stanziale Sonnenschein Nath & Rosenthal LLP
Donald Crecca 8000 Sears Tower
Jeffrey T. Testa 233 S. Wacker Drive
McElroy, Deutsch, Mulvaney & Carpenter, LLP Chicago, IL 60606
Three Gateway Center Email: j [email protected];
100 Mulberry Street [email protected]
Newark, NJ 07102 Counsel for Royal Indemnity Company
Email: [email protected];
[email protected]
[email protected]
1 [email protected]
[email protected]
Counsel for Charles A. Stanziale, Jr. SFC Trustee
Neil G. Epstein Veronica E. Rendon
Carol L. Press Richard P. Swanson
Eckert Seamans Cherin & Mellott, LLC Jason M. Butler
50 South 16th Street Amold & Porter LLP
22"d Floor 399 Park Avenue
Philadelphia, PA 19102-1909 New York, NY 10022
Email: [email protected]; Email: Jason [email protected];
nepsteingQ_D,eckertsea1nans.com veronica [email protected]
Counsel for W Roderick Gagné, Counsel for McGladrey & Pullen LLP and
Pamela Bashore Gagné, Robert L. Bast Michael Aquino
and the Trusts
Steven M. Farina Andre G. Castaybert
Thomas H.L. Selby Proskauer Rose LLP
Williams & Connolly LLP 1585 Broadway
725 12th Street, N.W. New York, NY 10036
Washington, D.C. 20005 Email: [email protected]
Email: [email protected] Counsel for MBLA
Counsel for MeGladrey & Pullen LLP
John H. Eickemeyer
Marie A. Tieri
Vedder Price Kaufman & Kammholz, P.C.
1633 Broadway, 47th Floor
New York, NY 10019
Email: jeickemeyer@vedde;price.com;
mtieri@vedder_price.com
Counsel for Freed Maxick & Battaglia, CPAs, PC
2
1222002

Case 1 :07-cv-00427-JJF Document 96-2 Filed 08/28/2007 Page 2 of 2
SERVICE LIST
VIA E-MAIL AND HAND DELIVERY
Christopher M. Winter Tiffany Geyer Lydon
Duane Morris LLP Philip Trainer, Jr.
1100 North Market Street, Suite 1200 Carolyn Shelly Hake
Wilmington, DE 19801 Ashby & Geddes
Email: [email protected] 500 Delaware Avenue, 8th Floor
Counsel for McGladrey & Pullen LLP and P.O. Box 1150
Michael Aquino Wilmington, DE 19801
Email: t1ydon@,ashby-geddescom; ptrainer@ashby-
geddes.com; [email protected]
Counsel for Royal Indemnity Company
David E. Wilks ~ Charlene M. Davis
Reed Smith LLP Ashley B. Stitzer
1201 North Market Street Mary E. Augustine
Suite 1500 The Bayard Firm
Wilmington, DE 19801 222 Delaware Avenue, Suite 900
Email: [email protected] P.O. Box 25130
Counsel for Freed Maxick & Battaglia, CPAs, PC Wilmington, DE 19899
Email: [email protected];
astitzerg@,bayardfinn.com;
maugustineg@,bayard1inn.com
Counsel for Charles A. Stanziale, Jr.,
Chapter 7 Trustee of Student Finance Corporation
Karen Lee Turner J olm W. Shaw
Eckert Seamans Cherin & Mellott, LLC Young, Conaway, Stargatt & Taylor
300 Delaware Avenue, Suite 1360 The Brandywine Building
Wilmington, DE 19801 1000 West Street, 17th Floor
Email: [email protected] P.O. Box 391
Counsel for W Roderick Gagné, Wilmington, DE 19899-0391
Pamela Bashore Gagné, Robert L. Bast Email: [email protected]
and the Trusts Counsel for MBIA