Allstate Insurance Company v. Dassa, D.O.

Background

Counsel for defendants Arthur Kostanian, Sergey Denevich, and Skazka, LLC requested a pre-motion discovery conference under the court’s individual practices and Local Civil Rule 37.2. They anticipated moving for a protective order, which limits or prevents discovery, and/or to quash, meaning cancel or set aside, subpoenas issued to nonparties Yahoo, Inc., Google LLC, and TD Bank, N.A.

The defendants said the parties had discussed the subpoena disputes by telephone and email but had not resolved their disagreements about the subpoenas to Yahoo, Google, and TD Bank. The parties had agreed to narrow the scope of other subpoenas.

The subpoena dispute

The subpoenas to Yahoo and Google sought usage records and metadata for communications sent or received by Kostanian and Denevich beginning January 1, 2015. According to the defendants’ submission, Allstate clarified that the subpoenas would not produce the actual emails, subject lines, or email contents. The defendants argued that seeking information about every email interaction over nine years was a broad and invasive demand with little likely value.

The subpoena to TD Bank sought records concerning Skazka’s bank account from January 1, 2015, to the present. The defendants argued that the request sought every type of bank document and was not sufficiently connected to a party, claim, or defense other than Skazka. They also stated that Skazka used the account for business with dozens of clients.

Allstate argued that the subpoenas were relevant and proportional to the needs of the case. It said the TD Bank records could provide evidence relevant to allegations that Skazka illegally controlled medical facilities, including evidence concerning business finances. Allstate also argued that the Yahoo and Google data could identify communications showing possible coordination to solicit clients, provide unnecessary medical services, or submit fraudulent insurance bills. Allstate said it could use the data to identify particular communications and request them later.

Ruling

Judge Philip M. Halpern granted the application for a discovery conference on the anticipated motion to quash filed by Kostanian, Denevich, and Skazka. The court scheduled an in-person discovery conference for February 22, 2024, at 11:00 a.m. in Courtroom 520 of the White Plains Courthouse. The order did not grant or deny the anticipated motion to quash and did not decide the ultimate scope or enforceability of the subpoenas.