Old Slip Benefits & Insurance Services, LLC v. Allstate Insurance Company

Background

Allstate moved under Federal Rule of Civil Procedure 37(a)(3) to compel answers and reopen the depositions of James Lukezic and Old Slip Benefits & Insurance Services, LLC. Lukezic had been deposed individually and as Old Slip’s designated witness under Rule 30(b)(6), which permits a company to designate a witness to testify about specified topics.

Allstate argued that Old Slip’s counsel obstructed the deposition through repeated speaking objections and instructions not to answer questions based on attorney work-product protection, relevance, and alleged privacy concerns. Allstate also argued that Lukezic was not prepared to testify about some noticed topics, including Old Slip’s formation, employees, ownership, and rent payments. Allstate requested a second deposition and reimbursement of the fees incurred in bringing the motion.

Parties’ Positions

Allstate contended that questions asking whether Lukezic reviewed documents or information to prepare for the deposition did not seek protected attorney strategy. It also argued that relevance and privacy generally were not proper reasons to instruct a witness not to answer, and that counsel’s speaking objections interfered with the examination. Allstate particularly disputed the refusal to answer questions concerning customer lists, ownership, affiliated entities, and the beneficiaries of a family trust.

Old Slip responded that asking which specific documents Lukezic reviewed could reveal counsel’s selection of materials and therefore attorney work product. It maintained that Lukezic answered numerous questions about the businesses, their customers, ownership, and his preparation, and that only limited questions were left unanswered. Old Slip also argued that customer information was confidential and involved third-party financial privacy, and that the identity of family-trust beneficiaries was private and irrelevant.

Court’s Ruling

Judge Jessica G. L. Clarke granted Allstate’s motion to compel. The court ruled that the yes-or-no questions on transcript pages 14:6–8, 19:25–20:2, and 65:22–66:2, concerning whether Lukezic reviewed particular documents or information to prepare for the Rule 30(b)(6) deposition, were not privileged. The court also ruled that Mr. Azrin’s instructions not to answer based on relevance and purported privacy concerns were inappropriate, as were the speaking objections.

The court reopened Plaintiff’s and Lukezic’s depositions for the limited purpose of addressing the matters at issue. It stated that Old Slip could designate testimony concerning confidential or private matters under the protective order in the case. Under Federal Rule of Civil Procedure 37(a)(5)(A), the court awarded Allstate its fees incurred in making the motion and directed the Clerk to terminate ECF No. 70.