Cerco Bridge Loans 6 LLC v. Schenker

Background

Cerco Bridge Loans 6 LLC asked for permission to file a motion to quash—meaning cancel or set aside—subpoenas issued by defendants Gregg Schenker and Steven Hornstock. The subpoenas were served on Matthew Lubart, whom the letter identifies as Cerco’s primary corporate counsel, and Fox Rothschild LLP. Cerco said the subpoenas sought attorney-client communications and documents, including communications about the negotiation, drafting, and execution of the guaranty and loan documents.

Cerco stated that the parties met and conferred on June 21, 2024, but reached an impasse. Cerco argued that Peter Cervinka did not waive the attorney-client privilege during his deposition because he testified about negotiations and drafting, not about legal advice or confidential communications. Cerco also argued that the requested discovery was available from other sources, was not relevant to whether the guaranty should be enforced, and was unduly burdensome and prejudicial. The letter asked the court to quash the subpoenas, issue a protective order, and impose sanctions.

Court’s Action

The court ordered: “Defendants shall file a letter, not to exceed three pages, in response by July 1, 2024.” Judge Dale E. Ho also directed the clerk to close ECF No. 83. Based on the provided text, the court did not decide whether the subpoenas should be quashed, whether the attorney-client privilege applied, whether a protective order should issue, or whether sanctions were warranted.