Firefighter'sRet.Sys.v.CitcoGrp.Ltd.2018WL276941(M.D.La.2018)

FIREFIGHTERS'RETIREMENTSYSTEM,ETAL.,v.

CITCOGROUPLIMITED,ETAL.CivilActionNo.13-373-SDD-EWD.

UnitedStatesDistrictCourt,M.D.Louisiana.

January3,2018.

Firefighters'RetirementSystem&MunicipalEmployeesRetirementSystemofLouisiana,Plaintiffs,representedbyPhillipW.Preis,PreisGordon,CarolineDanaPreis,PreisGordon,CharlesMalcolmGordon,PreisGordon&CrystalDiBenedettoBurkhalter,PreisGordon.

NewOrleansFirefighters'Pension&ReliefFund,Plaintiff,representedbyPhillipW.Preis,PreisGordon,CarolineDanaPreis,PreisGordon,CharlesMalcolmGordon,PreisGordon,CrystalDiBenedettoBurkhalter,PreisGordon&LouisL.Robein,Robein,Urann,Spencer,Picard&Cangemi,APLC.

CitcoGroupLimited,CitcoFundServices(CaymanIslands),Limited&CitcoBankingCorporation,N.V.,Defendants,representedbyMichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver,AliciaM.Bendana,Lowe,Stein,Hoffman,Allweiss&Hauver,GregoryFrederickLaufer,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,JacobJosephTaber,Paul,Weiss,Rifkind,Wharton,&GarrisonLLP,prohacvice,JosephPhillipKolatch,Paul,Weiss,Rifkind,Wharton,&GarrisonLLP,prohacvice&JuliaTarverMasonWood,Paul,Weiss,Rifkind,Wharton,&GarrisonLLP,prohacvice.

CitcoFundServices(Suisse)S.A.,Defendant,representedbyMichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver.

CitcoFundServices(Europe)BV,Defendant,representedbyMichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver,AliciaM.Bendana,Lowe,Stein,Hoffman,Allweiss&Hauver&GregoryFrederickLaufer,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice.

Citco(Canada),Inc.,Defendant,representedbyAliciaM.Bendana,Lowe,Stein,Hoffman,Allweiss&Hauver,AmyJ.Beaux,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,AndrewG.Gordon,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,GregoryFrederickLaufer,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,KelleyA.Cornish,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,MichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver&RobertN.Kravitz,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice.

CitcoTechnologyManagement,Inc.,Defendant,representedbyMichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver,AliciaM.Bendana,Lowe,Stein,Hoffman,Allweiss&Hauver,AmyJ.Beaux,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,AndrewG.Gordon,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,GregoryFrederickLaufer,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,JacobJosephTaber,Paul,Weiss,Rifkind,Wharton,&GarrisonLLP,prohacvice,JosephPhillipKolatch,Paul,Weiss,Rifkind,Wharton,&GarrisonLLP,prohacvice,JuliaTarverMasonWood,Paul,Weiss,Rifkind,Wharton,&GarrisonLLP,prohacvice,KelleyA.Cornish,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice&RobertN.Kravitz,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice.

CitcoBankNederland,N.V.DublinBranch&CitcoGlobalCustodyN.V.,Defendants,representedbyMichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver,AliciaM.Bendana,Lowe,Stein,Hoffman,Allweiss&Hauver&GregoryFrederickLaufer,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice.

CitcoFundServices(Bermuda)Limited,Defendant,representedbyMichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver,AliciaM.Bendana,Lowe,Stein,Hoffman,Allweiss&Hauver,AmyJ.Beaux,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,AndrewG.Gordon,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,GregoryFrederickLaufer,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice,KelleyA.Cornish,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice&RobertN.Kravitz,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,prohacvice.

FletcherAssetManagement,Inc.,Defendant,ProSe.

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AlphonseFletcher,Jr.,alsoknownasBuddy,Defendant,ProSe.

DenisKiely&DuhallowFinancialServices,LLC,Defendants,representedbyJamesConnerPercy,Jones,Walker,DavidP.Borghardt,Jones,Walker,DavidMatthewKerth,JonesWalkerLLP&RobertB.Bieck,Jr.,JonesWalkerLLP.

PeterM.Zayfert,Defendant,representedbyThomasM.Flanagan,FlanaganPartnersLLP,AndersF.Holmgren,FlanaganPartnersLLP,AndyJ.Dupre,FlanaganPartners,LLP,JohnRe,Aronauer,Re&YudellLLP,prohacvice,JosephAronauer,Aronauer,Re&YudellLLP,prohacvice&KennethS.Yudell,Aronauer&Yudell,LLC.

ConsultingServicesGroup,LLC&JoeMeals,Defendants,representedbyNicholasJohnWehlen,Stone,Pigman,Walther,Wittmann,LLC,BryantStanierYork,StonePigmanWaltherWittmanLLC,JustinP.Lemaire,StonePigmanWaltherWittman,L.L.C.,MichaelQ.Walshe,Jr.,Stone,Pigman,Walther,Wittmann,LLC,PaulJamesMasinter,Stone,Pigman,Walther,Wittmann,LLC&RichardM.Nummi,Nummi&Assocates,P.A.,prohacvice.

GrantThorntonInternationalLtd,Defendant,representedbyCraigIsenberg,BarrassoUsdinKuppermanFreeman&SarverLLC,DavidM.Cheifetz,Stroock&Stroock&Lavan,LLP,prohacvice,JamesL.Bernard,Stroock&Stroock&Lavan,LLP,prohacvice&StephenL.Miles,BarrassoUsdinKuppermanFreeman&SarverLLC.

CityofNewOrleans,HonorableMitchellJLandrieu,NormanSFoster,TimothyMcConnell,StacyHead,JasonRogersWilliams,SusanGGuidry,LaToyaCantrell,NadineMRamsey,JaredCBrossett&JamesAustinGray,II,Intervenors,representedbyJamesM.Garner,Sher,Garner,Cahil,Richter,Klein&Hilbert,LLC.

JoeMeals,CounterClaimant,representedbyNicholasJohnWehlen,Stone,Pigman,Walther,Wittmann,LLC,BryantStanierYork,StonePigmanWaltherWittmanLLC,JustinP.Lemaire,StonePigmanWaltherWittman,L.L.C.,MichaelQ.Walshe,Jr.,Stone,Pigman,Walther,Wittmann,LLC,PaulJamesMasinter,Stone,Pigman,Walther,Wittmann,LLC&RichardM.Nummi,Nummi&Assocates,P.A.,prohacvice.

ConsultingServicesGroup,LLC,CounterClaimant,representedbyNicholasJohnWehlen,Stone,Pigman,Walther,Wittmann,LLC,BryantStanierYork,StonePigmanWaltherWittmanLLC,JustinP.Lemaire,StonePigmanWaltherWittman,L.L.C.,MichaelQ.Walshe,Jr.,Stone,Pigman,Walther,Wittmann,LLC,PaulJamesMasinter,Stone,Pigman,Walther,Wittmann,LLC&RichardM.Nummi,Nummi&Assocates,P.A.

Firefighters'RetirementSystem&MunicipalEmployeesRetirementSystemofLouisiana,CounterDefendants,representedbyPhillipW.Preis,PreisGordon,CarolineDanaPreis,PreisGordon,CharlesMalcolmGordon,PreisGordon&CrystalDiBenedettoBurkhalter,PreisGordon.

Firefighters'RetirementSystem&MunicipalEmployeesRetirementSystemofLouisiana,CounterClaimants,representedbyPhillipW.Preis,PreisGordon,CarolineDanaPreis,PreisGordon,CharlesMalcolmGordon,PreisGordon&CrystalDiBenedettoBurkhalter,PreisGordon.

NewOrleansFirefighters'Pension&ReliefFund,CounterClaimant,representedbyPhillipW.Preis,PreisGordon,CarolineDanaPreis,PreisGordon,CharlesMalcolmGordon,PreisGordon,CrystalDiBenedettoBurkhalter,PreisGordon&LouisL.Robein,Robein,Urann,Spencer,Picard&Cangemi,APLC.

ConsultingServicesGroup,LLC,CounterDefendant,representedbyNicholasJohnWehlen,Stone,Pigman,Walther,Wittmann,LLC,BryantStanierYork,StonePigmanWaltherWittmanLLC,JustinP.Lemaire,StonePigmanWaltherWittman,L.L.C.,MichaelQ.Walshe,Jr.,Stone,Pigman,Walther,Wittmann,LLC,PaulJamesMasinter,Stone,Pigman,Walther,Wittmann,LLC&RichardM.Nummi,Nummi&Assocates,P.A.

CitcoGroupLimited&CitcoFundServices(CaymanIslands),Limited,CounterClaimants,representedbyMichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver,AliciaM.Bendana,Lowe,Stein,Hoffman,Allweiss&Hauver,GregoryFrederickLaufer,Paul,Weiss,Rifkind,Wharton&GarrisonLLP&JuliaTarverMasonWood,Paul,Weiss,Rifkind,Wharton,&GarrisonLLP,prohacvice.

CitcoTechnologyManagement,Inc.,CounterClaimant,representedbyMichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver,AliciaM.Bendana,Lowe,Stein,Hoffman,Allweiss&Hauver,AmyJ.Beaux,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,AndrewG.Gordon,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,GregoryFrederickLaufer,Paul,Weiss,Rifkind,Wharton&GarrisonLLP,JuliaTarverMasonWood,Paul,Weiss,Rifkind,Wharton,&GarrisonLLP,prohacvice,KelleyA.Cornish,Paul,Weiss,Rifkind,Wharton&GarrisonLLP&RobertN.Kravitz,Paul,Weiss,Rifkind,Wharton&GarrisonLLP.

CitcoBankingCorporation,N.V.,CounterClaimant,representedbyMichaelR.Allweiss,Lowe,Stein,Hoffman,Allweiss&Hauver,AliciaM.Bendana,Lowe,Stein,Hoffman,Allweiss&Hauver,GregoryFrederickLaufer,

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Paul,Weiss,Rifkind,Wharton&GarrisonLLP&JuliaTarverMasonWood,Paul,Weiss,Rifkind,Wharton,&GarrisonLLP,prohacvice.

NewOrleansFirefighters'Pension&ReliefFund,CounterDefendant,representedbyPhillipW.Preis,PreisGordon,CarolineDanaPreis,PreisGordon,CharlesMalcolmGordon,PreisGordon,CrystalDiBenedettoBurkhalter,PreisGordon&LouisL.Robein,Robein,Urann,Spencer,Picard&Cangemi,APLC.

RULINGANDORDERONMOTIONTOCOMPEL

ERINWILDER-DOOMES,MagistrateJudge.

BeforethecourtisTheLouisianaFunds'RenewalofMotiontoCompelonDocumentsintheControloftheCitcoGroup,Ltd.(the"RenewedMotiontoCompel").[1]TheRenewedMotiontoCompelreassertsapreviousMotiontoCompelfiledbyplaintiffs,Firefighters'RetirementSystem("FRS"),MunicipalEmployees'RetirementSystemofLouisiana("MERS"),andNewOrleansFirefighters'Pension&ReliefFund("NOFF")(collectively,"Plaintiffs").[2]Defendants,CitcoTechnologyManagement,Inc.("CTM"),CitcoBankingCorporationN.V.("CitcoBanking"),CitcoFundServices(CaymanIslands)Limited("CFSCayman"),andTheCitcoGroupLimited("CitcoGroup")(collectively,the"CitcoDefendants")havefiledanOpposition.[3]OnDecember12,2017,thepartiesparticipatedinastatusconferenceinthismatterandtheRenewedMotiontoCompelwasdiscussed.Forthereasonssetforthherein,Plaintiffs'RenewedMotiontoCompelisDENIED.

I.Background

OnMarch1,2013,Plaintiffsfiledsuitagainst23defendants,includingtheCitcoDefendants,assertingclaimsundertheLouisianaSecuritiesActandLouisianaUnfairTradePracticesAct,aswellasthirdpartybeneficiary,unjustenrichment,breachofcontract,negligentmisrepresentation,andgeneraltortclaims.[4]Plaintiffs'claimsarisefroma$100millioninvestmentloss.InAprilof2008,theLouisianaFundspurchased100,000SeriesNSharesofferedandissuedbyFIALeveragedFund("Leveraged")for$100million.[5]AfteraseriesofinvestmenttransactionsinitiatedbyLeveraged,inMarchof2011,PlaintiffssoughttoredeemtheirSeriesNshares.[6]Ultimately,theshareswentunredeemedandthePlaintiffsdeterminedthattheinvestmentwasilliquidand,thus,theNshares,forwhichtherewasnomarket,werevalueless.[7]

PlaintiffspreviouslyfiledaMotiontoCompel[8](the"InitialMotiontoCompel")seekinganordercompellingCitcoGrouptorespondtomultipleinterrogatoriesandrequestsforproductionbasedupontheknowledgeofentitiescontrolledbyCitcoGroupand/orpossessionofdocumentsbyentitiescontrolledbytheCitcoGroup.Plaintiffs'InitialMotiontoCompelalsoassertedthatPlaintiffshadissuedparticularinterrogatoriestotheCitcoGroupforthepurposeofobtaininginformationregardingCitcoGroup'sproceduresforrespondingtodiscoveryrequestsandgatheringdocuments,butthatCitcoGrouphadrefusedtorespondtothoseinterrogatories.[9]InoppositiontotheInitialMotiontoCompel,theCitcoDefendantsdidnotchallengePlaintiffs'positionthatanentitymustproducedocumentswithinits"possession,custody,orcontrol,"orthatsuchcustodyorcontrolextendstodocumentswithintheparty'scontrol,evenifownedbyanonparty;instead,theCitcoDefendantsarguedthatgrantingPlaintiffs'motionwouldignorethesubstantialdiscoveryeffortsalreadymadeinthiscaseandwouldbeincompatiblewiththeproportionalityrequirementofthefederalrules.[10]

TheInitialMotiontoCompelwasdiscussedduringanOctober24,2017statusconferencewiththeparties,andthecourtfoundthatPlaintiffs'concernsregardinghowinformationwasgatheredbytheCitcoGrouptorespondtodiscoveryshouldbeaddressedviaadepositionpursuanttoFed.R.Civ.P.30(b)(6).[11]Accordingly,thecourtdeniedtheInitialMotiontoCompel(withoutprejudicetore-urgingfollowingthecorporatedeposition)andorderedthepartiestoproceedwiththe30(b)(6)depositionofCitcoGroupto"addressthemethodbywhichCitcorespondedtointerrogatoriesandrequestsforproduction,identifiedappropriatecustodians,gatheredbothhardcopydocumentsandelectronicallystoredinformation,andwhetherdocumentswereproducedaskeptintheordinarycourseofbusiness."[12]

Plaintiffstookthe30(b)(6)depositionofCitcoGroupviaMr.JohnDiver,AssociateGroupGeneralCounsel,onNovember8,2017.[13]TheNoticesettingthedepositionsetforth38topicareas.[14]Topicareasincludednamesofpersonsresponsibleforsearchingforresponsivedocuments,howsearchesweremadeandthelocationofelectronicfilesandservers,methodsusedtolocatedocumentsotherthanelectronicsearches,andtheidentityofanypersonwithwhomCitcoGroupcommunicatedwith"inattemptingtodeterminethatalldocumentsrequestedintheDocumentProductionRequestshaveinfactbeenproduced."[15]ThenoticealsoincludedtopicareaswhichaskediftherewereanydocumentsinCitcoGroup'spossessionorcontrolresponsivetoparticularrequestsforproduction.[16]Duringthedeposition,PlaintiffsaskedanumberofquestionsregardingMr.Diver'sattemptstoconfirmtheaccuracyofcertaininterrogatoryresponses.CounselforCitcoGroupconsistentlyobjectedtothesequestionsasoutsidethetopicssetintheDepositionNotice,

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andcontendedthatMr.Diverhad"donenothingtoconfirmtheaccuracyorinaccuracyofanyinterrogatoryaskedofanydefendant."[17]

Withregardtothegatheringofdocuments,Mr.Divertestifiedthat

PaulWeiss,AndrewandvariousotherpeopleatPaulWeiss,hadoverallresponsibilityforcollectingandforsearchingallofthevariousdocuments.TheyworkedwithmyselfandNickBraham,whoistheGeneralCounselofCitco,toidentifyarepresentativeofeachofthedefendingcompanies,withtheexceptionofCFSSuissewhichnolongerexists.[18]Thosepeoplewhoareidentifiedundertookasearchofthearchives,thehardcopyfilesandalsoasearchofshareddrivesforanysoftcopydocumentsinrelationtoFletcheroranyoftheFletcherfunds.Inadditiontothat,themembersoftheCitcoITsecurityteam...RicardoMarrero,CoryLewisandanothergentlemancalledAudreyFyodorovconductedasearchagainstthe56searchtermsthatwereidentifiedagainstthe21custodiansthatwerenamed.[19]

Mr.Divertestifiedthat"[f]orthecompaniesthathadshareddrives,thesearchwasperformedbythelocalrepresentativeofthatdefendantcompany,inthelocationofthatdefendantcompany."[20]WithrespecttoCitcoBanking,Mr.Diverstatedthat"[a]nyfileswithintheshareddrivethatwereeitherFletcher-relatedorhadanameoftheFletcherFund"weresearchedand"alsojustageneralsearchoftheterm`Fletcher'"wasperformed.[21]Hardcopyarchiveswerealsosearched.[22]RegardingCFS,"agentlemancalledWeikertWeberatCFSCaymansearchedthearchivesofCFSCaymanforanyandallhardcopyfilesrelatedtoFletcherortheFletcherFunds....Inaddition,Weikertperformedasearchoftheofficestoensuretherewerenootherhardcopyfilesthatweren'tinthearchives....AndthenWeikertperformedasearchoftheshareddrives,onthesamebasis."[23]

PertheirRenewedMotiontoCompel,PlaintiffsassertthattheypreviouslypropoundedinterrogatoriestotheCitcoDefendantsinordertoidentifypersonswithknowledgeof"keyissues"inordertodetermineappropriatecustodians.[24]Plaintiffscontendthatdefendants'responsestotheseinterrogatories"wereincompleteandinaccurate"andthusresultedin"aflawedlistofcustodians"anda"flawedelectronicsearchfordocuments."[25]However,Plaintiffsdonotassertthataspecificcustodian(orevensearchterm)shouldbeadded.Instead,PlaintiffscontendthatMr.Diverconfirmedduringhisdepositionthat"oneemailcanbesenttoeveryoneintheCitcoorganizationandaskthemlimitedquestionsabouttheirpersonalknowledgeoftheissuesinthislawsuit"[26]andassertthat"[t]hegroupofCitcoentitiesandpersonsemployedbythemthathavepersonalknowledgeoftheKeyIssuescanbereadilyandeconomicallyidentifiedthroughonequestionnairetoallemployeesofCitcothroughadirectemail."[27]Inadditiontoemailingthisquestionnaire,PlaintiffscontendthatCitcoGroupshouldberequiredto"respondcompletelyandaccuratelytotheCustodianInterrogatoriestodeterminewhetherthecustodianlistonwhichtheelectronicsearcheswerebasedwereinfactcomplete,comprehensive,andaccurate."[28]Plaintiffsalsoassertthatthecourtshouldorderasearchofthe"individualbusinessandpersonalcomputersofpersonshavingpersonalknowledge"[29]aswellasa"searchoflocalnetworks"andhardcopydocumentsofCitcoTrustandCTC,[30]MillenniumFoundation,Richcourt,GlobalHawk,[31]"andallsubsidiariescontrolledbyCitcoGroup,Ltd.inwhichapositiveresponseisreceivedfromtheiremployee[inresponsetotheproposedemailquestionnaire]"aswellas"allcompanynetworksofcompanieswhichemployattorneyslistedontheprivilegelogofCitco."[32]

InoppositiontotheRenewedMotiontoCompel,theCitcoDefendantsreiteratethatDefendants"collecteddocumentsfromthethreegeneralsourceslitigantsordinarily...collectfrom:(a)hardcopyfilesofeachCitcoDefendantentity;(b)theshareddrivefilesofeachCitcoDefendantentity;and(c)emailfilesofthe21agreed-uponcustodiansusing56agreed-uponsearchterms."[33]TheCitcoDefendantsassertthatthey"arepreparedtoreviewtheirinterrogatoryresponsesandsupplementwhereappropriate,andarealso(astheyhavebeen)preparedtodiscusswithPlaintiffsadditionaldocumentcustodians(ifPlaintiffsidentifyany)...."[34]TheCitcoDefendantscontendthatnoneofthetopicssetforthinthecorporatedepositionnotice"involvedtheCitcoDefendants'identificationofCustodians"andthat"Mr.Diver...wasnotpreparedtotestifyonCitcoGroup'sinterrogatoryresponsessincePlaintiffsfailedtodesignatethoseresponsesasatopic."[35]TheCitcoDefendantsassertPlaintiffs'requestsforsearchesofshareddrives[36]andhardcopydocumentshavebeeneffectivelyalreadydone,andthatanyadditionalsearchesbasedonane-mailquestionnairetoallemployeeswouldbedisproportionaltotheneedsofthiscase.

II.LawandAnalysis

"Unlessotherwiselimitedbycourtorder,thescopeofdiscoveryisasfollows:Partiesmayobtaindiscoveryregardinganynonprivilegedmatterthatisrelevanttoanyparty'sclaimordefenseandproportionaltothe

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needsofthecase,consideringtheimportanceoftheissuesatstakeintheaction,theamountincontroversy,theparties'relativeaccesstorelevantinformation,theparties'resources,theimportanceofthediscoveryinresolvingtheissues,andwhethertheburdenorexpenseoftheproposeddiscoveryoutweighsitslikelybenefit.Informationwithinthisscopeofdiscoveryneednotbeadmissibleinevidencetobediscoverable."Fed.R.Civ.P.26(b)(1).Adeterminationofrelevancyistiedtoapplicablesubstantivelawandthenweighedagainstthesixproportionalityfactors.Anyinformationsoughtthatisnotrelevanttoaparty'sclaimordefenseisnotdiscoverable,regardlessofproportionality.Thecourtmustadditionallylimitthefrequencyorextentofdiscoveryifitdeterminesthat:"(i)thediscoverysoughtisunreasonablycumulativeorduplicative,orcanbeobtainedfromsomeothersourcethatismoreconvenient,lessburdensome,orlessexpensive;(ii)thepartyseekingdiscoveryhashadampleopportunitytoobtaintheinformationbydiscoveryintheaction;or(iii)theproposeddiscoveryisoutsidethescopepermittedbyRule26(b)(1)."Fed.R.Civ.P.26(b)(2)(C).

"Foramotiontocompel,`[t]hemovingpartybearstheburdenofshowingthatthematerialsandinformationsoughtarerelevanttotheactionorwillleadtothediscoveryofadmissibleevidence.'"MirrorWorldsTechnologies,LLCv.AppleInc.,CaseNo.6:13-cv-419,2016WL4265758,at*1(E.D.Tex.Mar.17,2016)(quotingSSLServs.,LLCv.CitrixSys.,Inc.,No.2-08-cv-158,2010WL547478,at*2(E.D.Tex.Feb.10,2010))."Oncethemovingpartyestablishesthatthematerialsrequestedarewithinthescopeofpermissiblediscovery,theburdenshiftstothepartyresistingdiscoverytoshowwhythediscoveryisirrelevant,overlybroadorundulyburdensomeoroppressive,andthusshouldnotbepermitted."MirrorWorldsTechnologies,LLC,2016WL4265758at*1.Seealso,Wymorev.Nail,No.5:14-cv-3493,2016WL1452437,at*1(W.D.La.April13,2016)("Onceapartymovingtocompeldiscoveryestablishesthatthematerialsandinformationitseeksarerelevantorwillleadtothediscoveryofadmissibleevidence,theburdenrestsuponthepartyresistingdiscoverytosubstantiateitsobjections.")(citingMcLeod,lexander,PowelandApffel,P.C.v.Quarles,894F.2d1482,1485(5thCir.1990));Riverov.SunbeamProducts,Inc.,CivilNo.08-591,2010WL11451127,at*4(W.D.Tex.Jan.12,2010)("Plaintiffs,whobeartheburdenofproofinsupportoftheirmotiontocompel....").

TheFederalRulesofCivilProcedureexplicitlydirectpartiestodiscuss"issuesaboutdisclosure,discovery,orpreservationofelectronicallystoredinformation..."earlyinthelitigationprocesswhenmakingtheirdiscoveryplan.FRCP26(f)(3)(C).Seealso,AdvisoryCommitteeNotestothe2006Amendments("Rule26(f)isamendedtodirectthepartiestodiscussdiscoveryofelectronicallystoredinformationduringtheirdiscovery-planningconference"andnotingthattheparties"mayidentifythevarioussourcesofsuchinformationwithinaparty'scontrolthatshouldbesearchedforelectronicallystoredinformation.").Arespondingpartyisgenerallyentitledtoselectthecustodiansmostlikelytopossessresponsiveinformation.See,MortgageResolutionServicing,LLCv.JPMorganChaseBank,N.A.,15CV0293,2017WL2305398,at*2(S.D.N.Y.May18,2017)("Absentagreementamongtheparties,then,therespondingpartyisentitledtoselectthecustodiansmostlikelytopossessresponsiveinformationandtosearchthefilesofthoseindividuals.")."Unlessthatchoiceismanifestlyunreasonableortherequestingpartydemonstratesthattheresultingproductionisdeficient,thecourtshouldplaynoroleindictatingthedesignofthesearch,whetherinchoosingsearchtools,selectingsearchterms,or...designatingcustodians."Id.Further,"`apartyseekingtocompelanotherpartytosearchthefilesofadditionalcustodiansbearstheburdenofestablishingtherelevanceofthedocumentsitseeksfromthosecustodians.'"Id.(quotingLightsquaredInc.v.Deere&Co.,No.13Civ.8157,2015WL8675377,at*5(S.D.N.Y.Dec.10,2015) ).Seealso,Enslinv.Coca-ColaCompany,14-6476,2016WL7042206,at*3(E.D.Pa.June8,2016)("AskingacourttocompelapartytosearchtheESIofadditionalcustodiansissimilartoaskingacourttocompelapartytoundertakeadditionaleffortstosearchforpaperdocuments.Ineithercase,therequestingpartyissecond-guessingtherespondingparty'srepresentationthatitconductedareasonableinquiryforresponsiveinformation,andineithercase,theburdenappropriatelylieswiththerequestingpartytoshowthattherespondingparty'ssearchwasinadequate.")(citingScottC.v.BethlehemAreaSch.Dist.,No.00-642,2002WL32349817,at*1(E.D.Pa.July23,2002)(refusingtocompelapartytoconductafurthersearchfordocumentsbecausetherequestingparty"ha[d]notpointedtoanyevidence"thattherespondingpartyhadfailedtoconductareasonablesearch)&TheSedonaConference,TheSedonaPrinciples43(2007)("Therequestingpartyhastheburdenonamotiontocompeltoshowthattherespondingparty'sstepsto...producerelevantelectronicallystoredinformationwereinadequate."));FordMotorCo.v.EdgewoodProperties,Inc.,CivilActionNo.06-1278,257F.R.D.418,427(D.N.J.May19,2009)("`[a]bsen[t]agreement,a[responding]partyhasthepresumption,underSedonaPrinciple6,thatitisinthebestpositiontochooseanappropriatemethodofsearchingandcullingdata.'")(citingTheSedonaConferenceBestPracticesCommentaryontheUseofSearchandInformationRetrievalMethodsinE-Discovery).[37]

Basedontheparties'correspondence,thepartiesagreedupon56searchtermsandthefollowing21documentcustodians:(1)AlbertvanNijen,(2)AngusDacker,(3)AracelisMartinez,(4)ChrisSmeets,(5)ErmannoUnternaechrer,(6)GabrielMagris,(7)LarryLuckmann,(8)MiklosUjhelyi,(9)RonaldIrausqin,(10)ShaunGale,(11)TrentGrant,(12)WiekertWeber,(13)KatieBernard,(14)YvesBloch,(15)DemetriaMoss,

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(16)NinaMichelsen,(17)JanOyens,(18)WilliamKeunen,(19)GilbertGrosjean,(20)EnricoLaddaga,(21)DenisMuys.[38]Plaintiffsstillhavenotexplainedwhythecustodiansandsearchtermsusedwereunreasonable.Moreover,althoughtheCitcoDefendantshavebeenwillingtoaddadditionalsearchtermsduringthecourseofthislitigation,andnoteinoppositiontotheRenewedMotiontoCompelthattheyare"preparedtodiscusswithPlaintiffsadditionaldocumentcustodians(ifPlaintiffsidentifyany),"[39]PlaintiffsfailedtoidentifyproposedadditionalcustodiansineithertheirRenewedMotiontoCompelorduringtheDecember12,2017statusconference.

Instead,PlaintiffsseekpermissionfromthiscourttoemaileveryoneineveryCitcoentitytoaskwhetheranyoneemployedbyanyCitcoentityhasknowledgerelevanttothislitigation,andthereafterrequiretheCitcoDefendantstoconductadditionalelectronicandhardcopysearchesfordocuments.Thatissimplyunreasonable,andinessenceisarequestfortheCitcoDefendantsto"gobacktosquareone"oftheirdocumentproductioneffortsdespitetheparties'agreementregardingcustodiansandsearchterms,theCitcoDefendantsapparentwillingnesstoconsideradditionalcustodiansandsearchterms,andPlaintiffsfailuretoidentifyorexplainthenecessityofanyadditionalcustodiansorsearchterms.Further,suchalargescalesearchraisesproportionalityconcernsand,especiallyinlightoftheparties'previousagreementsandefforts,wouldbeundulyburdensome.[40]See,Fed.R.Civ.P.26(b)(2)(C)(Thecourtmustlimitthefrequencyorextentofdiscoveryifitdeterminesthat:"(i)thediscoverysoughtisunreasonablycumulativeorduplicative,orcanbeobtainedfromsomeothersourcethatismoreconvenient,lessburdensome,orlessexpensive;(ii)thepartyseekingdiscoveryhashadampleopportunitytoobtaintheinformationbydiscoveryintheaction;or(iii)theproposeddiscoveryisoutsidethescopepermittedbyRule26(b)(1).");FordMotorCo.257F.R.D.at427("TheCourtfindsthatreinventingthewheelherewouldbeundulyburdensometoFord.ThegravamenofEdgewood'scomplaintisthatitsuspectsithasnotreceivedallofthedocumentstowhichitisentitled.Butsuchaconclusoryallegationpremisedonnefariousspeculationhasnotmovedseveralcourts,norwillitmovethisone,tograntburdensomediscoveryrequestslateinthegame.");InreBiometM2AMagnumHipImplantProductsLiabilityLitigation(MDL2391),12-MD-2391,2013WL1729682,at*2(N.D.Ind.April18,2013)(requesttoinstitutepredicativecodingmethodaftersignificantelectronicdiscoveryeffortsusingkeywordsearchingwasessentiallyarequestto"gobacktosquareone"andsat"uneasilywiththeproportionalitystandardinRule26(b)(2)(C).").[41]

"`[T]hereisnoobligationonthepartofarespondingpartytoexamineeveryscrapofpaperinitspotentiallyvoluminousfiles,"and"[i]nanerawherevastamountsofelectronicinformationisavailableforreview,...[c]ourtscannotanddonotexpectthatanypartycanmeetastandardofperfection.'"Enslin,2016WL7042206,at*3(citingTreppelv.BiovalCorp.,03Civ.3002,233F.R.D.363,374(S.D.N.Y.Feb.6,2006)&PensionComm.ofUniv.ofMontrealPensionPlanv.BancofAm.Sec.,05Civ9016,685F.Supp.2d456,461(S.D.N.Y.May28,2010)(abrogatedonothergrounds,Chinv.PortAuthorityofNewYork&NewJersey,685F.3d135(2dCir.2012)).Here,Plaintiffs'requeststrikestheundersignedasarequesttosomehowensurethateverysinglepotentiallyresponsivedocument(nomatterhowcumulativeorburdensometoobtain)shouldbeproduced.However,despitePlaintiffs'protestations,theyhavenotestablishedthatthesearchesconductedsofarwereunreasonable,andthecourt'sreviewofMr.Diver'sdepositiontestimonyshowsthattheCitcoDefendants'didmakereasonableeffortstoidentifyappropriatecustodiansandresponsivedocuments.TheundersignedassumesthattheCitcoDefendants,inkeepingwiththerepresentationssetforthintheopposition,willcontinuetobewillingtodiscussadditionalcustodiansandsearchtermswithPlaintiffs.

IV.Conclusion

Forthereasonssetforthherein,theRenewedMotiontoCompel[42]filedbyplaintiffs,Firefighters'RetirementSystem("FRS"),MunicipalEmployees'RetirementSystemofLouisiana("MERS"),andNewOrleansFirefighters'Pension&ReliefFund("NOFF")(collectively,"Plaintiffs")isDENIED.

[1]R.Doc.484.PlaintiffsweresubsequentlygrantedleavetofiletheirMemoranduminSupportoftheRenewedMotiontoCompelunderseal.See,R.Docs.489&490.

[2]R.Doc.454.

[3]R.Doc.500.

[4]R.Doc.1-3.

[5]R.Doc.1-3,34.

[6]R.Doc.1-3,41.

[7]R.Doc.1-3,34-45&18.LeveragedwasafeederfundwhichPlaintiffsallegewasformedprimarilytoinvest

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inamasterfund,FletcherIncomeArbitrage,Ltd.R.Doc.1-3,10.

[8]R.Doc.454.

[9]Plaintiffsstatedthat"[t]otheextenttheLouisianaFundsaresaddledwiththeobligationtoknowwhichareastotellCitcoGrouptosearch,CitcoGroupshouldhavebeenobligatedtorespond"tocertaininterrogatories"sothatitcouldhaveabetterunderstandingofthescopeofthesearch."R.Doc.454-2,p.9.PlaintiffspointedtoInterrogatories1-5issuedbyFRStoCitcoGroup.R.Doc.454-4.PerInterrogatoryNo.1,PlaintiffsaskedCitcoGrouptoidentify"allPersonsemployedorcompensatedbyDefendantorCitcothathavebeen,willbe,ormaybedesignatedasthecorporaterepresentative(s)...totestifyastothescopeandcompletenessofthesearchforthedocumentsrequested...."InInterrogatoryNo.2,PlaintiffssimilarlyaskedCitcoGrouptoidentifythecorporaterepresentative(s)"totestifytothelocationofthedocumentsrequested...."InterrogatoryNo.3asksCitcoGrouptoidentifyallpersonswithwhomdefendants"communicated...inattemptingtodeterminetheexistenceofthedocumentsrequested...."InterrogatoryNo.4asksCitcoGrouptoidentifyallpersonswithwhomdefendants"communicated...inattemptingtodeterminethelocationofthedocumentsrequested...."Finally,InterrogatoryNo.5asksCitcoGrouptoidentifyallpersonswithwhodefendant"communicated...todeterminethatalldocumentsrequestedintheDocumentProductionRequestshaveinfactbeenproduced."

[10]R.Doc.458,p.2.

[11]R.Doc.469,p.4.

[12]R.Doc.469,p.4.

[13]AcopyoftheentiredepositiontranscriptisattachedtoPlaintiffs'RenewedMotiontoCompel.R.Doc.484-4.

[14]R.Doc.484-3.

[15]R.Doc.484-3,topic17.

[16]R.Doc.484-3,topics18-28.

[17]See,R.Doc.484-4,p.29:4-6.

[18]ForCitcoGroup,Mr.DiverandGroupGeneralCounsel,NicholasBraham,met.R.Doc.484-4,pp.19:24-20:1.ForCitcoTechnology,DivermetwithBenJansen.R.Doc.484-4,p.20:5.ForCFS,DivermetwithWeikertWeber,andforCitcoBank,DivermetwithRonaldIrausquin.R.Doc.484-4,p.20:8&11.Mr.Diverfurthertestifiedthattherepresentativeofeachdefendantcompanyhelpedidentifycustodians.Custodianlaptopswerealsosearched.R.Doc.484-4,p.71:21-24.

[19]R.Doc.484-4,pp.58:19-59:12.

[20]R.Doc.484-4,p.79:12-15.CitcoGroupdoesnothaveashareddrive.Mr.DiverstatedthatforCitcoGroup,"e-mailsofthespecificcustodiansweresearchedandalsotheindividualsthemselvesthatarenamedascustodiansthatworkedfortheCitcoGroup;totheextentthattheyhadanyhardcopyfiles,theywerealsoproduced."R.Doc.484-4,p.80:14-18.

[21]R.Doc.484-4,p.89:8-10.

[22]R.Doc.484-4,p.93:19-21(explainingthatRonaldIrausquinidentifiedJonathanLuckmann,AracelisMartinez,andHeidiFriedemerwho"searchedthehardcopyarchives,whichareactuallyfilesstoredinabankvaultatCitcoBank'spremisesinCuracao.").

[23]R.Doc.484-4,pp.95:23-94:10.

[24]Inadditionininterrogatories1-5setforthabove,PlaintiffsassertthatonFebruary10,2017,theypropoundedwhattheynowtermas"CustodianInterrogatories""whichaskedtheCitcoGrouptoidentifypersonsthathadknowledgeofkeyissues...thatareeachpartoftheclaimsmadebytheLouisianaFunds...."R.Doc.490,p.2.Theseinterrogatoriesgenerallyseekidentificationofpersonswithknowledgeregardingspecificissues.CitcorespondedtotheseinterrogatoriesonMarch21,2017andforcertainresponsesidentifiedErmannoUnternaehrer,GabrieleMagris,ChristopherSmeetsand/orNicholasBraham.Forotherrequests,Citcoobjectedorstateditwasunawareofanypersonwithknowledge.R.Docs.484-10—484-12.

[25]R.Doc.490,p.4.

[26]R.Doc.490,p.7,n.8.

[27]R.Doc.490,p.17.

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©2018eDiscoveryAssistantLLC.NoclaimtooriginalU.S.GovernmentWorks.

[28]R.Doc.490,p.15.

[29]Mr.Divertestifiedthat"Citcopolicyisthatyouarenotallowedtousepersonale-mails—e-mailaddressestodoanywork-relatedactivities.So[personalemails]wouldnothavebeensearched."R.Doc.484-4,p.75:9-12.Mr.Diveralsotestifiedthatanylaptopsofcustodiansweresearched.R.Doc.484-4,p.71:21-24.

[30]Mr.DivertestifiedthatnorecordsweregatheredfromCitcoTrading,CTCCorporation,Millennium,orGlobalHawkbecausetheseweren'tdefendantcompanies.R.Doc.484-4,pp.86-87.

[31]Mr.DiverconfirmedduringthedepositionthatCitcosearched"Richcourtdocumentsthatremained"inCitco'spossessionafter"FletchermadethepurchaseinJuneof2008."R.Doc.484-4,p.98:9-12.However,Mr.Divertestifiedthat"[t]heserversthattheRichcourte-mailsareon,wentaspartoftheacquisition"andthereforewerenotinCitco'scontrolandthatCitcodoesnothaveabackupoftheRichcourtserveremails.R.Doc.484-4,pp98-99.

[32]R.Doc.490,p.16.

[33]R.Doc.500,p.3.

[34]R.Doc.500,p.11.

[35]R.Doc.500,pp.10-11.

[36]TheCitcoDefendantsreiteratethatforCitcoBankingandCFSCayman(whichapparentlyhaveshareddrivefilestocentrallysaveclientfiles),searchesofFletcher-relatedfoldersontheshareddriveswereperformed.R.Doc.500,p.6.TheCitcoDefendantsstatethatCitcoBankingdidnothaveanyFletcher-relatedfolders,butthatCitcoiscurrentlyrunningtheterm"Fletcher"acrosstheentireshareddrivetoensurenothingwasmissed.R.Doc.500,p.6.

[37]CourtsinthisCircuithaveexplainedthatthe"SedonaPrinciplesandtherelatedSedonacommentariesaretheleadingauthoritiesonelectronicdocumentretrievalandproduction."MatrixPartnersVIII,LLPv.NaturalResourceRecover,Inc.,CivilActionNo.08-547,2009WL10677430,at*5n.3(E.D.Tex.June5,2009);Kleppingerv.TexasDept.ofTransportation,2013WL12137773,at*3(S.D.Tex.Jan.24,2013)("Rule26providesverylittleguidanceondiscoveryofESI,andcourtshaveusedtheESIdiscoveryprinciplespublishedbytheSedonaConferenceasaguideinresolvingESIdiscoverydisputes.").

[38]R.Doc.497-1.

[39]R.Doc.497-1,p.11.

[40]InoppositiontotheInitialMotiontoCompel,theCitcoDefendantsattachedtheaffidavitofMr.Diver,whereinhestatesthatsearchingacrossallaffiliatedCitcoentitieswouldmeansearchingthefilesof235affiliatesandsubsidiariesandwouldinvolvesearching170terabytesofemails(whichtheCitcoDefendantsstateistheequivalentof400milliondocuments).R.Doc.458-1,R.Doc.458,p.5.PlaintiffsapparentlyseektolimitthepotentialscopeofreviewbysendinganinitialemailblasttoallCitcoemployees(andpresumablypastemployees).Thereisnoindicationthatthiswouldresultinalessburdensomeprocedure.

[41]WhilePlaintiffscomplainthatMr.Diverrefusedtoanswerquestionsregardingtheaccuracyofinterrogatoryresponses,theundersignedagreesthatsuchquestions(althoughreasonablywithinthescopeoftheOctober24,2017Orderallowingthecorporatedeposition)werenotraisedastopicsinthenoticeofdeposition.TheundersignedalsonotesthatGlennHassett,notMr.Diver,verifiedCitcoGroup'sresponsestowhatPlaintiffsnowcallthe"CustodianInterrogatories."R.Doc.484-10.

[42]R.Doc.484.

EndofDocument.

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