Sound Around, Inc. v. Friedman

Background

The court had previously ordered the parties to set dates for individual fact depositions of three people and depositions under Federal Rule of Civil Procedure 30(b)(6) of three corporate defendants associated with Moises Friedman and Shulim Ilowitz. A Rule 30(b)(6) deposition is testimony given by a person designated to speak for a company about information known or reasonably available to that company.

The parties reported that they had not fully complied with the earlier order. They had scheduled Ilowitz’s and Friedman’s individual depositions for April 8 and 9, 2025. They had not agreed on dates for Levi Rottenberg, identified as the owner of Executive Services and Executive Laundry, LLC, or for the Rule 30(b)(6) depositions of ML Imports, Inc., MDF Marketing, Inc., and World Group Import, LLC.

Court’s Analysis

The defendants argued that the same people who would testify individually could also testify for the affiliated companies, and that the depositions should therefore occur at the same time with a seven-hour limit. The court explained that an individual deposition and a Rule 30(b)(6) deposition are different: an individual witness testifies based on personal knowledge, while a corporate representative testifies for the entity and must provide information reasonably available to it. The court also noted that parties sometimes combine the depositions when the individual’s testimony will be binding on the company, but additional time may be needed.

The court found that Friedman and Ilowitz had not agreed that their testimony would bind the affiliated companies. The defendants also had not explained why the corporate deposition topics would duplicate the questions asked in the individual depositions or why seven hours would be enough. The Executive defendants likewise had not stated that Rottenberg would testify both individually and for those entities or explained why seven hours would suffice.

Order

The court ordered the defendants to designate corporate witnesses for ML Imports, Inc., MDF Marketing, Inc., and World Group Import, LLC, to testify on April 10 and 11, 2025. Because the companies are closely held and the testimony may overlap, the court assumed that Friedman and Ilowitz would agree that their individual testimony would bind the affiliated companies. The court limited the three corporate depositions to a total of no more than 14 hours, separate from the seven hours allotted for each individual deposition, while allowing Sound Around to seek additional time if needed and supported by efficient use of the deposition time.

The court also assumed that Rottenberg would agree that his answers would bind Executive Services and Executive Laundry, LLC. It ordered his combined individual and Rule 30(b)(6) deposition to occur on March 26, 2025, in one day, subject to additional time upon a proper showing. Sound Around must make its corporate representative available for a Rule 30(b)(6) deposition on or before May 6, 2025, so that the defendants have at least one week to prepare for the preliminary-injunction hearing scheduled for May 13. The court adjourned the April 9 case-management conference and required the parties to submit a joint status letter by April 11.