Sacerdote v. Retirement Plan Committee

Background

On February 6, 2024, Plaintiffs served Cammack LaRhette Advisors, LLC with a deposition notice under Federal Rule of Civil Procedure 30(b)(6). That rule permits an organization to designate one or more people to testify on the organization’s behalf about listed subjects. Cammack requested a pre-motion discovery conference and objected to the deposition notice. The Court held a conference on March 5, 2024, and received additional written submissions.

The Dispute

Cammack objected to Topics 3 through 6 and 8 because Plaintiffs allegedly sought pre-judgment discovery into Cammack’s finances and assets to assess its ability to pay a possible judgment. The opinion explains that courts generally do not allow discovery about a party’s financial condition or ability to satisfy a judgment before judgment unless the information is relevant to a claim in the case.

Plaintiffs argued that Cammack’s assets and financial condition were relevant to possible successor liability by Cammack’s owners or purchasers. The Court rejected that justification because no current claim involved a successor to Cammack, and discovery concerning entities that were not parties did not relate to an element of a claim in the action. Plaintiffs also did not show good cause for extraordinary pre-judgment asset discovery concerning Cammack’s dissolution during the litigation, particularly because Cammack had disclosed an insurance policy.

Ruling

The Court granted Defendant’s request for an order disallowing Plaintiffs’ Rule 30(b)(6) deposition. The order also directed Defendants to treat Topics 1 and 2 as interrogatories and provide written responses by no later than May 17, 2024. The opinion does not state that the underlying lawsuit was resolved by this discovery order. Judge Valerie Figueredo signed the order.