Free Letter - District Court of Delaware - Delaware

Case 1:05-cv-00072-JJF

Document 184

Filed 06/26/2007

Page 1 of 3

June 26, 2007

VIA E-FILING & HAND DELIVERY

The Honorable Joseph J. Farnan, Jr. United States District Court 844 North King Street Wilmington, Delaware 19801 Re: MBIA Ins. Corp. & Wells Fargo Bank, N.A. v. Royal Indemnity Co., No. 02-1294 (JJF) Charles A. Stanziale, Jr., Chapter 7 Trustee of Student Finance Corporation vs. Pepper Hamilton LLP, et al., No. 04-1551 (JJF) Charles A. Stanziale, Jr., Chapter 7 Trustee of Student Finance Corporation vs. McGladrey & Pullen, LLP, and Michael Aquino, No. 05-72 (JJF) Royal Indemnity Company vs. Pepper Hamilton LLP, et al., No. 05-165 (JJF)

Dear Judge Farnan: We write on behalf of Royal Indemnity Co. ("Royal") concerning a discovery motion made earlier this year by defendant Pepper Hamilton LLP ("Pepper") in the United States District Court for the Southern District of New York. The motion asked Mandiant Corporation, successor in interest to Red Cliff Consulting, Inc. ("Mandiant"), to show cause why it should not have to comply with a subpoena purporting to require Mandiant to produce e-mails from servers formerly maintained by Student Finance Corp.'s servicing affiliate, Student Loan Servicing, LLC ("SLS"), or a complete copy of the servers. Royal did not object to the subpoena or move to quash it; nor did Mandiant. However, Mandiant declined to produce the emails or the servers without further direction from SLS or the courts, in light of an August, 2004 agreement whereby the servers originally came into Mandiant's possession. The August 2004 agreement precluded such production. Mandiant and Royal therefore jointly responded to Pepper's order to show cause by advising the court that they had no objections to producing all the data on the servers, but requesting the court first to determine whether the communications on the SLS servers could be produced notwithstanding the August, 2004 agreement with SLS, and asking the court to determine appropriate safeguards, if need be, for such a production and to allocate the cost of complying with the subpoena.

Case 1:05-cv-00072-JJF

Document 184

Filed 06/26/2007

Page 2 of 3

The Honorable Joseph J. Farnan, Jr. June 26, 2007 Page 2

On February 9, 2007, the Southern District of New York transferred the motion to this Court for resolution. Royal writes to advise this Court that it continues not to oppose Pepper's motion and, as in New York, merely asks this Court to determine whether the documents sought by the subpoena can be produced by Mandiant in view of the prior agreement with SLS and to direct that the costs of compliance be shared among the parties. We are available at the Court's convenience should Your Honor desire to hear us on this matter. Respectfully submitted, /s/Philip Trainer, Jr. Philip Trainer, Jr. (#2788) cc:
181836.1

Counsel of record on attached service list

Case 1:05-cv-00072-JJF

Document 184

Filed 06/26/2007

Page 3 of 3

SERVICE LIST By Hand Delivery William H. Sudell, Jr., Esquire Morris Nichols Arsht & Tunnell 1201 North Market Street Wilmington, DE 19899-1347 Michael R. Lastkowski, Esquire Christopher M. Winter, Esquire Duane Morris LLP 1100 North Market Street, Suite 1200 Wilmington, DE 19801 Karen Lee Turner, Esquire Eckert Seamans Cherin & Mellott, LLC 300 Delaware Avenue, Suite 1210 Wilmington, DE 19801 David E. Wilks, Esquire Reed Smith LLP 1201 North Market Street, Suite 1500 Wilmington, DE 19801 John W. Shaw, Esquire Young Conaway Stargatt & Taylor, LLP The Brandywine Building 1000 West Street, 17th Floor Wilmington, DE 19899 Ashley Stitzer, Esquire The Bayard Firm 222 Delaware Avenue, Suite 900 Wilmington, DE 19899 By E-mail John H. Eickemeyer, Esquire Jonathan A. Wexler, Esquire Vedder, Price, Kaufman & Kammholz, P.C. 1633 Broadway, 47th Floor New York, NY 10019 Stephen Shapiro, Esquire Elizabeth K. Ainslie, Esquire Schnader Harrison Segal & Lewis LLP 1600 Market Street, Suite 3600 Philadelphia, Pennsylvania 19103 Michael S. Waters, Esquire Lois H. Goodman, Esquire McElroy, Deutsch, Mulvaney & Carpenter, LLP Three Gateway Center 100 Mulberry Street Newark, NJ 07102-4079 Neil G. Epstein, Esquire Eckert Seamans Cherin & Mellott, LLC 1515 Market Street, 9th Floor Philadelphia, PA 19102 Steven M. Farina, Esquire Thomas H.L. Selby, Esquire Williams & Connolly LLP 725 Twelfth Street, NW. Washington, DC 20005 Charles A. Gillman, Esquire M. Justin Lubeley, Esquire Cahill Gordon & Reindel LLP 80 Pine Street New York, NY 10005-1702 Richard P. Swanson, Esquire Veronica E. Rendon, Esquire Jason M. Butler, Esquire Arnold & Porter LLP 399 Park Avenue New York, NY 10022-4690 Andre G. Castaybert, Esquire Ronald Rauchberg, Esquire Steven Obus, Esquire Proskauer Rose LLP 1585 Broadway New York, NY 10036-8299