Federal Trade Commission v. Ideal Financial Solutions, Inc. et al, No. 2:2013cv00143 - Document 48 (D. Nev. 2013)

Court Description: PROTECTIVE ORDER Granting 42 Emergency MOTION for Protective Order. Signed by Magistrate Judge George Foley, Jr on 5/9/13. (Copies have been distributed pursuant to the NEF - MMM)
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Federal Trade Commission v. Ideal Financial Solutions, Inc. et al Doc. 48 1 Thomas W. McNamara mcnamarat@ballardspahr.com 2 655 West Broadway, Suite 1600 San Diego, California 92101-8494 3 Telephone: 619-696-9200 Facsimile: 619-696-9269 4 Receiver 5 Edward Chang (NV 11783) change@ballardspahr.com 6 Andrew Robertson (pro hac vice) robertsona@ballardspahr.com 7 Daniel Benjamin (pro hac vice) benjamind@ballardspahr.com 8 BALLARD SPAHR LLP 655 West Broadway, Suite 1600 9 San Diego, CA 92101 Tel.: 619-696-9200 10 Fax: 619-696-9269 11 Attorneys for Receiver 12 13 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 14 15 FEDERAL TRADE COMMISSION, Plaintiff, 16 17 v. IDEAL FINANCIAL SOLUTIONS, INC., a 18 corporation; ASCOT CROSSING, LLC, a limited liability company; BRACKNELL 19 SHORE, LTD., a limited liability company; CHANDON GROUP, INC., a corporation; 20 AVANIX, LLC, a limited liability company; FISCAL FITNESS, LLC, a limited liability 21 company; STEVEN SUNYICH, individually and as an officer and director of the corporate 22 defendants; MICHAEL SUNYICH, individually and as an officer and director of the corporate 23 defendants; CHRISTOPHER SUNYICH, individually and as an officer and director of the 24 corporate defendants; SHAWN SUNYICH, individually and as an officer and director of the 25 corporate defendants; MELISSA SUNYICH GARDNER, individually and as an officer and 26 director of the corporate defendants; and KENT BROWN, individually and as an officer and 27 director of the corporate defendants. 2:13-CV-0143-MMD-GWF [PROPOSED] PROTECTIVE AND CONFIDENTIALITY ORDER AS TO DOCUMENT PRODUCTION BY PAYMENT DATA SYSTEMS Defendants. 28 DMWEST #9699182 v3 Dockets.Justia.com 1 Upon consideration of the Receiver’s motion for a protective and confidentiality order 2 regarding document production by Payment Data Systems (“Producing Party”), and the Court 3 having found that the discovery of information that implicates third-party confidentiality rights 4 and/or that is confidential or proprietary has been requested in this action, and that the disclosure 5 and distribution of such information should be reasonably restricted, the Court finds that good 6 cause exists for the entry of this Order, and it is hereby ORDERED as follows: 7 8 I. DEFINITIONS A. their officers, directors, partners, members, principals or affiliates. 9 10 “Party” means any of the parties to this action, including the Receiver, and any of B. “Counsel” means counsel of record in this action for any of the parties to this action 11 and those attorneys’ stenographic, clerical, and paralegal employees, or outside 12 support personnel and services whose duties and responsibilities in the conduct of 13 this action require access to Confidential Material. 14 C. “Discovery Material” means: (1) any information, document, tangible thing, or response to discovery 15 requests pursuant to Fed. R. Civ. P. 33, 34, or 36,; 16 (2) any deposition testimony or transcript revealed during depositions upon oral 17 or written examination pursuant to Fed. R. Civ. P. 30, or 31; 18 (3) any document, thing, or premises made available for inspection or produced 19 to the Receiving Party pursuant to Fed. R. Civ. P. 26, 33, or 34; 20 21 (4) any document, thing, or premises made available for inspection or produced 22 to the Receiving Party in response to a subpoena pursuant to Fed. R. Civ. P. 23 45; and (5) any other similar materials, or portions thereof. 24 25 26 D. “Producing Party” means non-party Payment Data Systems, including its directors, employees, and agents. 27 28 DMWEST #9699182 v3 1 E. 1 “Receiving Party” means a party (including the Receiver) to this action, including 2 all employees, agents, and directors (other than Counsel) of the Party, who receives 3 Discovery Material from a Producing Party. F. 4 “CONFIDENTIAL” means any document, discovery response, testimony, or 5 information that the Producing Party reasonably believes embodies: (i) trade 6 secrets, proprietary, or other confidential business information; or (ii) information 7 invasive of an individual’s legitimate privacy interests. G. 8 “Confidential Material” means any Discovery Material, and any copies, abstracts, 9 summaries, or information derived from such Discovery Material, and any notes or 10 other records embodying or disclosing the contents of such Discovery Material, 11 that is designated as CONFIDENTIAL in accordance with section II below. 12 II. DESIGNATION OF CONFIDENTIAL MATERIAL 13 Any document, any information produced on magnetic disk or other computer-related 14 media, and any portion of oral testimony produced or given in this action that is asserted by 15 Producing Party to contain or constitute CONFIDENTIAL information shall be so designated by 16 Producing Party. 17 CONFIDENTIAL information shall be marked on its face with the following legend: The first page of each document or the front of each disk that contains 18 “CONFIDENTIAL” 19 Transcript pages containing or constituting CONFIDENTIAL information shall be marked 20 CONFIDENTIAL on each such page, and the transcript shall be marked confidential on its cover 21 page. 22 23 III. ACCESS TO CONFIDENTIAL MATERIAL A. Subject to section III(B), III(C), and III(D), in the absence of an order of the Court, 24 any CONFIDENTIAL information produced in accordance with the provisions of 25 section II above shall be used solely for purposes of the prosecution and defense of 26 this action and shall not be disclosed to or discussed with any person other than: (i) 27 Counsel for the Receiving Party; (ii) persons employed by, or who are independent 28 contractors of, the Receiving Party who are participating in the management of the DMWEST #9699182 v3 2 1 litigation and the preparation of this case for trial; (iii) outside experts or 2 consultants who are engaged for the purpose of this action by the Receiving Party 3 and such experts’ or consultants’ support personnel; (iv) the individual(s) who 4 authored, prepared, or received the information; (v) certified court reporters taking 5 testimony involving such CONFIDENTIAL information and their support 6 personnel; and (vi) the Court (including any trier of fact) in connection with the 7 proceedings in this action. 8 B. Outside Experts and Consultants. Subject to the provisions of this Protective 9 Order, all Confidential Material may be disclosed to any outside expert or 10 consultant who has agreed to be bound by the terms of this Protective Order by 11 signing an Acknowledgement form attached as Exhibit A. Executed copies of the 12 Acknowledgment form shall be exchanged between counsel promptly upon 13 request, and the absence of a signed Acknowledgment justifies the Producing 14 Party’s refusal to provide documents until a signed Acknowledgment is provided 15 by the Receiving Party. 16 C. Employees of a Party. Subject to the provisions of this Protective Order, all 17 Confidential Material marked CONFIDENTIAL may be disclosed to an Employee 18 of a Party. 19 D. Acknowledgment of Protective Order. Before obtaining access to any Confidential 20 Material covered by this Protective Order, any person who is authorized to have 21 access to Confidential Material pursuant to this Protective Order must have agreed 22 in writing to be bound by the terms of this Protective Order by signing an 23 Acknowledgement form attached as Exhibit A, an executed copy of which shall be 24 provided to the opposing party. 25 employees of a Party, or Counsel for a Party (including all employees, support 26 staff, or those of Counsel’s law firm or agency), or any recipient under Section IX, 27 all of whom may access Confidential Information without separately signing 28 Exhibit A. DMWEST #9699182 v3 3 This provision does not apply to Parties, E. 1 Disclosure Pursuant to Consent. Confidential Material also may be disclosed to 2 anyone so authorized by prior written consent of the Producing Party, and no Party 3 is restricted in any way by this Protective Order in disclosing its own Confidential 4 Material. F. 5 Parties’ Counsel may show Confidential Material in unredacted form to a witness if 6 that person has executed Exhibit A or otherwise authorized under this Protective 7 Order to have access to such document. Otherwise, prior to being shown to the 8 witness, the document shall be redacted to remove all information covered by Fed. 9 R. Civ. 5.2. G. 10 The limitations on disclosure contained in this Protective Order shall not apply to 11 documents or information that: (i) were in the possession of the Receiving Party 12 before disclosure by the Producing Party without a restriction from any Party to this 13 action, or (ii) are or become published or available in a manner not in violation of 14 this Protective Order 15 IV. COURT PROCEDURES If a document containing CONFIDENTIAL information is filed with the Court, it shall be 16 17 filed with one of the following notations: 18 Filed Under Seal - Contains CONFIDENTIAL Information 19 Subject to Protective Order Any papers containing Confidential Material shall indicate clearly what portions are 20 21 22 23 designated as CONFIDENTIAL. V. HANDLING OF CONFIDENTIAL MATERIAL A. Nothing herein shall restrict a person authorized to have access pursuant to 24 paragraph III(A) from making working copies, abstracts, digests, and/or analyses of 25 Confidential Material for use in connection with this action. Such working copies, 26 abstracts, digests, and analyses shall be deemed to have the same level of protection 27 as the original Confidential Material under the terms of this Protective Order. 28 Further, nothing herein shall restrict an authorized recipient from converting or DMWEST #9699182 v3 4 1 translating such information into machine-readable form for incorporation in a data 2 retrieval system used in connection with this action, provided that access to such 3 information, in whatever form stored or reproduced, shall be limited to authorized 4 recipients. 5 B. If the Producing Party through inadvertence produces any CONFIDENTIAL 6 document or thing without labeling, marking, or otherwise designating it as such in 7 accordance with the provisions of this Protective Order, the Producing Party may 8 give written notice to the Receiving Party that the document or thing produced is 9 deemed CONFIDENTIAL and should be treated as such in accordance with the 10 provisions of this Protective Order. The Receiving Party must treat such document 11 or thing with the noticed level of protection from the date such notice is received. 12 Promptly upon providing such notice to the Receiving Party, the Producing Party 13 shall provide the Receiving Party with another copy of the document or thing that 14 bears the new confidentiality designation under this Protective Order. 15 C. concerning all CONFIDENTIAL information produced by that Party. 16 17 A Party or present employee of a Party may be examined and may testify D. Non-parties may be examined and may testify concerning any document containing 18 CONFIDENTIAL information of a Producing Party that clearly appears on its face 19 or from other documents or testimony to have been prepared by, received by, 20 known by, or communicated to the non-party. 21 E. If no confidentiality designation of deposition testimony is made at the time of the 22 deposition, any transcript containing CONFIDENTIAL information shall be 23 designated as containing such information by no later than thirty (30) calendar days 24 after receipt of the transcript of the deposition. Otherwise, such transcript shall not 25 be deemed Confidential Material. 26 F. This Protective Order shall not prevent any Party from moving the Court for an 27 order that a non-party may be examined and may testify concerning any document 28 containing CONFIDENTIAL information of a Producing Party. DMWEST #9699182 v3 5 Prior to so 1 moving, the Party seeking to examine the non-party or have the non-party testify 2 may (but is not required to) instead seek the Producing Party’s agreement by 3 requesting, in writing, to examine the non-party or have the non-party testify and 4 shall identify the documents designated as about which it seeks to examine the non- 5 party or about which it seeks to have the non-party testify. In any motion, the 6 Producing Party shall have the burden of establishing before the Court the need to 7 prevent the non-party from being examined about or testifying about the 8 CONFIDENTIAL document. Alternatively, a Party may use the document in the 9 examination of a witness in court without further order of the Court after redacting 10 11 the information required by FRCP 5.2. VI. PROCEDURE TO CHALLENGE DESIGNATIONS 12 This Protective Order shall not prevent any Party from moving the Court for an order that 13 information designated as CONFIDENTIAL by Producing Party is not, in fact, CONFIDENTIAL 14 information. Prior to so moving, the Party seeking to reclassify the information shall seek the 15 Producing Party’s agreement by objecting, in writing, to the designation by specifying to 16 information at issue and the grounds for questioning the designation. The Producing Party shall 17 have ten (10) court days to respond to such request. In any motion, the Producing Party shall have 18 the burden of establishing before the Court the need for classification as CONFIDENTIAL. In 19 connection with any such motion, the Producing Party’s designation shall be given NO WEIGHT. 20 VII. RIGHT TO FURTHER RELIEF 21 Nothing in this Protective Order shall abridge the right of any person to seek judicial 22 modification or amendment of this Protective Order. 23 VIII. RIGHT TO ASSERT OTHER OBJECTIONS 24 25 26 This Protective Order shall not be construed as waiving any right to assert a claim of privilege, relevance, or other grounds for not producing Discovery Material. IX. RIGHTS OF THE FTC 27 Notwithstanding the foregoing, nothing in this Protective Order shall impose any 28 restrictions on the use or disclosure of Confidential Discovery Material by the FTC as provided DMWEST #9699182 v3 6 1 by: (1) the FTC’s Rules of Practice and any cases construing them, (2) Sections 6(f) and 21 of the 2 Federal Trade Commission Act, 15 U.S.C. §§ 46(f) and 57b-2, and any cases so construing them; 3 (3) any other legal obligation imposed on the FTC. 4 X. SURVIVAL OF OBLIGATIONS 5 The obligations created by this Protective Order shall survive the termination of this action 6 unless otherwise modified by the Court. The Court shall retain jurisdiction, even after termination 7 of this action, to enforce this Protective Order and to make such amendments and modifications to 8 this Protective Order as may be appropriate. 9 11 _____________________________ Miranda DuFOLEY, JR. GEORGE United States District Court Judge United States Magistrate Judge 12 DATED: May 9, 2013 10 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DMWEST #9699182 v3 7 1 Attachment A 2 Acknowledgment of Receipt of Protective and 3 Confidentiality Order and Contempt for Violation of Order 4 The undersigned hereby acknowledges receipt of a copy of the Protective Order (the 5 “Order”) entered by the Court in Federal Trade Commission v. Ideal Financial Solutions Inc. et. 6 al., Case No. 2:13-CV-0143-MMD-GWF. The undersigned states that he or she has read, fully 7 understands, and agrees to be bound by the provisions of said Order with respect to documents or 8 information designated “CONFIDENTIAL” including the prohibition on the communication of 9 any information contained in such documents or information except pursuant to the explicit terms 10 of the Order, and is aware that for any violation of the provisions of said Order, he or she is 11 subject to such penalties as the Court may direct. 12 acknowledges that the disclosure in any manner of “CONFIDENTIAL” information other than as 13 allowed by the Confidentiality Order will constitute a violation of an Order of the Court. The undersigned further expressly 14 15 16 Signature 17 18 19 Name (printed or typed) 20 21 22 Title 23 24 25 26 Date 27 28 DMWEST #9699182 v3 8