Free Response to Motion - District Court of California - California

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J. Daniel Holsenback, Esq. (SBN 145640) J. DANIEL HOLSENBACK, APC 625 Broadway, Suite 906 San Diego, California 92101 Telephone: (619) 269-4634 Facsimile: (619) 269-4635 Attorneys for Plaintiffs Theodore & Lois Koziol

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA THEODORE AND LOIS KOZIOL 24 Seagoin Road Brick Town, NJ 08723 Plaintiffs, vs. THE UNITED STATES OF AMERICA The Executive Office Office of the Legal Adviser Room 5519 United States Department of State 2201 C Street, NW Washington, DC 20520-6310 Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. 08cv947-DMS(BLM) (E.D. Pa. No. 07-3432) PLAINTIFFS' RESPONSE TO GENERAL ATOMICS CROSS-MOTION TO QUASH OR TO ENTER A PROTECTIVE ORDER Hon. Courtroom: Date: Time: Barbara L. Major TBD August 13, 2008 1:30 p.m. [FRCP 45]

PLAINTIFFS' RESPONSE IN OPPOSITION TO GENERAL ATOMICS CROSS-MOTION TO QUASH OR TO ENTER A PROTECTIVE ORDER

Plaintiffs respectfully request this Court deny General Atomics Aeronautical Systems, Inc.'s (GA-ASI) Motion to Quash or Enter a Protective Order and GA-ASI's request for sanctions against Plaintiffs' counsel. Alternatively, Plaintiffs' request that the Court enter a reasonable protective order which is limited in scope.

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I.

Preliminary Statement GA-ASI's Motion to Quash or Enter a Protective Order raises the same legal and factual

argument as its Response in Opposition to Plaintiff's Motion to Compel. The only argument not previously raised is GA-ASI's request for sanctions against Plaintiffs' counsel. Plaintiffs, therefore, will not rehash the same arguments they made in Reply to GA-ASI's Response to the Motion Compel, but will incorporate it by reference. However, for the convenience of the Court, Plaintiffs now submit a composite exhibit detailing all of the correspondence between Plaintiff's counsel and GA-ASI's counsel over the subpoena and protective order. (Ex. 1). II. There is No Justifiable Basis for Imposing Sanctions on Plaintiffs' Counsel Under Federal Rule of Civil Procedure 45(c)(1), the Court has authority to impose sanctions on a party or attorney for issuing and serving an unduly burdensome subpoena. GA-ASI's

argument for sanctions is based entirely on an inaccurate construction of the facts. Contrary to GAASI's position, the record proves that Plaintiffs acted in good faith while GA-ASI engaged in a series of dilatory tactics. GA-ASI's misconduct with respect to the unconscionable terms of the protective order only occurred after GA-ASI was in direct contact with its subcontractor Rotax1, a party materially adverse to Plaintiffs' interest, who is being sued in a RICO action. GA-ASI's arguments for sanctions are all without merit. The subpoena is enforceable because this Court has jurisdiction to issue a subpoena in connection with the federal FOIA action. Fed. R. Civ. P. 45 (a)(2)(C) (a subpoena duces tecum must be issued by the district court located where the production is to be made). Moreover, the documents subpoenaed are clearly relevant to the FOIA action. Plaintiffs filed the FOIA action to obtain evidence that the State Department effectuated service on Rotax in Austria. The documents subpoenaed have the potential to prove

Rotax has a vested interest in closing the courtroom because if the GA-ASI documents show that every brief, affidavit and deposition of a Rotax employee was false, other lawyers are likely to file their own RICO lawsuits. That is not an excuse for GA-ASI's attempt to insulate Rotax from liability for perjury. Accordingly, if the Court decides to enter a protective order, Plaintiffs respectfully request that the Court allow all documents produced to be freely given, without restriction, to State or Federal prosecutors for the purposes of any potential criminal investigations for perjury or obstruction of justice. 2
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Rotax is subject to service in the United States, therby rendering the need to prove foreign service unnecessary. Thus, the documents are central to the FOIA action. See, e.g., Topol v. Trustees of Univ. of Pa., 160 F.R.D. 476, 477 (E.D. Pa. 1995) ("[M]aterial is relevant if it bears on, or reasonably could bear on, an issue that is or may be involved the litigation."). The fact that the documents are also relevant to Plaintiffs' state court action does not provide a basis for GA-ASI to avoid production in connection with the FOIA action. E.g., Dove v. Atl. Capital Corp., 963 F.2d 15, 19 (2d Cir. 1992) ("[W]here the discovery sought is relevant to a good faith defense in the federal case, the mere fact that it may be used in other litigation does not mandate a protective order."); Cipollone v. Liggett Group, Inc., 113 F.R.D. 86, 91 (D. N.J. 1986). Although GA-ASI contends that the documents subpoenaed contain confidential information and trade secrets, there is nothing on the face of the subpoena that indicates that the documents are the type subject to protection. The documents requested pertain solely to Rotax's amenability to service. The contract related documents Plaintiffs seek pertain to GA-ASI's purchase of Rotax engines, which are then incorporated into the United States Air Force Predator unmanned aircraft. Through FOIA, Plaintiffs received a multitude of publically available documents concerning accident investigations for these faulty Rotax engines and the Air Force's request for a new engine to power the Predator. (Ex. 2). As the United States Government feels that sensitive information

such as accident investigations of the Rotax engine system is unprotected from public access, there is no privilege or right that protects GA-ASI from disclosing the benign categories of documents Plaintiffs request. Plaintiffs agreed to negotiate a workable protective order as a courtesy to GAASI and to facilitate discovery without court intervention. However, once Rotax asserted its influence in the negotiation process, the demands of GA-ASI became unbearable and have resulted in a breakdown of negotiations. GA-ASI must show good cause for this Court to issue a protective order. Fed. R. Civ. P. 26(c)(1); Phillips ex rel. Estates of Byrd v. Gen. Motors Corp., 307 F.3d 1206, 1210 (9th Cir. 2002). Good cause exists when the moving party proves that "specific prejudice or harm will result if no protective order is granted." Id. at 1210-11. GA-ASI's unsubstantiated claim that the documents contain confidential proprietary information is insufficient to justify a protective order. 3
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See, e.g., Joy v. North, 692 F.2d 880, 894 (2d Cir. 1982) (rejecting defendant's argument that certain documents were confidential and should be placed under seal because "a naked conclusory statement that publication of the Report will injure the bank in the industry and local community falls woefully short of the kind of showing which raises even an arguable issue as to whether it may be kept under seal."), cert. denied, 460 U.S. 1051 (1983). Alternatively, if the Court finds that GA-ASI is entitled to a protective order, such an order must be limited in scope. GA-ASI's proposed order is unduly burdensome on Plaintiffs because it requires Plaintiffs to agree to two unconscionable provisions. (Wolk Declaration ¶ 4; Ex. 3). There is no justification for requiring Plaintiffs to request that the courtroom be closed during the time when GA-ASI's documents are disclosed. Forcing Plaintiffs to make such request when the

documents contain no confidential information would undermine Plaintiffs counsel's credibility with the court. Additionally, GA-ASI's provision imposing automatic sanctions for inadvertent disclosures without the option to cure is patently unfair. Inadvertent mistakes happen during litigation. Imposing automatic sanctions would restrict Plaintiffs use of the documents out of fear retaliation for an innocent mistake. Plaintiffs and GA-ASI have negotiated over the scope and terms of this subpoena since February of 2008. Plaintiffs' rely on their composite exhibit as evidence that they negotiated in good faith and made every attempt to make compliance with the subpoena inexpensive and simple for GA-ASI. (Ex. 1). A review of the record presented shows that it is GA-ASI that has refused to negotiate in good faith. Plaintiffs have taken all necessary steps to minimize the burden on GAASI. Under the facts and circumstances of the instant case, it is clear that there is no basis for this Court to conclude that Plaintiffs' counsel abused the subpoena power. Any unnecessary delays or costs GA-ASI incurred was caused by its own misconduct. Accordingly, GA-ASI's request for sanctions must be denied. III. Conclusion Based on the arguments and evidence presented, Plaintiffs respectfully request this Court to deny GA-ASI's Motion to Quash or Enter a Protective Order. If the Court enters a protective order, Plaintiffs' request that such order be limited in scope and eliminate the two unconscionable 4
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provisions GA-ASI is requesting.

Finally, as there is no justifiable legal basis for imposing

sanctions on Plaintiffs' counsel, GA-ASI's request for sanctions must also be denied. /// J. DANIEL HOLSENBACK, APC

By:

s/ J. Daniel Holsenback J. Daniel Holsenback Attorney for Plaintiffs Theodore & Lois Koziol

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Kozoil v. United States of America USDC, Southern District of California, Case No. 3:08-cv-00947-DMS-BLM PROOF OF SERVICE

3 4 5 On July 11, 2008, I caused to be electronically filed the foregoing document(s), described as: 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 /s/ Patrick Todd Patrick Todd Executed on July 11, 2008, at San Diego, California. Pursuant to the CM/ECF System, registration as a CM/ECF user constitutes consent to electronic service through the Court's transmission facilities. I declare penalty of perjury under the laws of the State of California, that the above is true and correct. Paul A. Tyrell, [email protected] United States Attorneys' Office, [email protected] Daniel A. Lowenthal, [email protected] Sarah Goodstine, [email protected] with the Clerk of the United States District Court for the Southern District of California, using the CM/ECF System. The Court's CM/ECF System will send an e-mail notification of the foregoing filing to the following parties and counsel of record who are registered with the Court's Cm/ECF System: PLAINTIFFS' RESPONSE TO GENERAL ATOMICS CROSS-MOTION TO QUASH OR TO ENTER A PROTECTIVE ORDER; DECLARATION OF ARTHUR ALAN WOLK IN SUPPORT OF PLAINTIFFS' OPPOSITION TO GA-ASI'S MOTION TO QUASH OR ENTER A PROTECTIVE ORDER; I am a resident of the State of California, over the age of 18 years and not a party to the within action. My business address is HOLSENBACK APC, 625 Broadway, Suite 906, San Diego, California 92101.

PROOF OF SERVICE

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J. Daniel Holsenback, Esq. (SBN 145640) J. DANIEL HOLSENBACK, APC 625 Broadway, Suite 906 San Diego, California 92101 Telephone: (619) 269-4634 Facsimile: (619) 269-4635 Attorneys for Plaintiffs Theodore & Lois Koziol

5 6 7 8 9 10 11 12 Plaintiffs, 13 vs. 14 15 16 17 18 Defendants. 19 20 21 22 23 24 25 26 27 28 1
08cv0947 DMS (BLM)

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA THEODORE AND LOIS KOZIOL 24 Seagoin Road Brick Town, NJ 08723 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. 08cv947-DMS(BLM) (E.D. Pa. No. 07-3432)

THE UNITED STATES OF AMERICA The Executive Office Office of the Legal Adviser Room 5519 United States Department of State 2201 C Street, NW Washington, DC 20520-6310

DECLARATION OF ARTHUR ALAN WOLK IN SUPPORT OF PLAINTIFFS' OPPOSITION TO GA-ASI'S MOTION TO QUASH OR ENTER A PROTECTIVE ORDER Hon. Courtroom: Date: Time: [FRCP 45] Barbara L. Major TBD August 13, 2008 1:30 p.m.

I, Arthur Alan Wolk, declare: 1. I represent Plaintiffs in the above-referenced action in their effort to compel production of documents pursuant to subpoenas issued by this District Court to non-party General Atomics as part of the discovery process in Koziol v. USA, E.D. Pa. No. 07-3422.

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Exhibit 3

Case 3:08-cv-00947-DMS-BLM

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