McKinney-Drobnis v. Massage Envy Franchising, LLC
Filing
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ORDER by Judge Kandis A. Westmore Regarding 83 85 Joint Discovery Letter. (kawlc2, COURT STAFF) (Filed on 10/24/2017)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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BAERBEL MCKINNEY-DROBNIS, et al.,
Plaintiffs,
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United States District Court
Northern District of California
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Case No. 16-cv-06450-MMC (KAW)
ORDER REGARDING JOINT
DISCOVERY LETTER
v.
MASSAGE ENVY FRANCHISING, LLC,
Re: Dkt. Nos. 83, 85
Defendant.
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Plaintiffs Baerbel McKinney-Drobnis, Joseph B. Piccola, and Camille Berlese filed the
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instant putative class action against Defendant Massage Envy Franchising, LLC, asserting claims
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related to Defendant's alleged unilateral increases of membership fees. (Second Amended Compl.
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¶ 3 ("SAC"), Dkt. No. 60.) On September 26, 2017, the parties filed a joint letter regarding the
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depositions of seven non-parties: Mr. Burton Drobnis, Ms. Kathleen Piccola, Ms. Angela Berlese,
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Ms. Lia Berlese, Mr. Chris Berlese, Mr. Robert Berlese, and Mr. Michael Damiani. (Joint Letter,
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Dkt. No. 83.) The Court deems the matter suitable for disposition without a hearing pursuant to
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Civil Local Rule 7-1(b). Having considered the papers filed by the parties, and for the reasons set
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forth below, the Court GRANTS Plaintiffs' request to quash the subpoena concerning Ms. Piccola,
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Ms. Angela Berlese, Ms. Lia Berlese, Mr. Chris Berlese, Mr. Robert Berlese, and Mr. Michael
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Damiani. The Court DENIES the request to quash the subpoena as to Mr. Drobnis, but will limit
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the scope of the deposition to issues affecting adequacy only.
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I.
BACKGROUND
Defendant operates a membership-based massage franchise that allows members to receive
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one massage per month for a monthly fee ranging between $39.00 to $59.00. (SAC ¶ 1.) To
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obtain a membership, customers execute a form Membership Agreement. For members paying
monthly, the Membership Agreements state in substantially similar language: "[y]our membership
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dues of $[X dollar amount] (not including any additional applicable taxes) are due on or after the
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__ day of each month hereafter until your membership expires or is terminated in accordance with
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this agreement." (SAC ¶ 1 (emphasis omitted).) For members paying in full for a given term, the
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Membership Agreements state a dollar amount due that day. Upon expiration of the initial term,
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membership is automatically renewed pursuant to the form Membership Agreements, which state
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in substantially similar language: "[f]ollowing the initial term, your membership will
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automatically continue on a month-to-month basis at $[X dollar amount] per month until your
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membership is canceled." (SAC ¶ 2 (emphasis omitted).) Plaintiffs assert that these provisions
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amount to "an express clause with an explicit, locked in amount that is to be paid each month"
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United States District Court
Northern District of California
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until membership is expired or terminated. (SAC ¶ 21.) Plaintiffs also allege that "each member
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of the Class is purportedly assured that the membership fee will never increase once [] they
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execute the agreement and begin making timely payments." (SAC ¶ 21.)
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Despite this alleged "prohibit[ion on] unilateral increases of the monthly membership dues,
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[Defendant] unilaterally increases (often without notice or forewarning) the monthly membership
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fees owed by its members . . . ." (SAC ¶ 22.) For example, Plaintiff McKinney-Drobnis asserts
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that in October 2007, she signed a standardized agreement which provided for a monthly
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membership fee of $59.00. (SAC ¶ 9.) In December 2013, Defendant unilaterally increased the
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membership fee to $59.99; Plaintiff McKinney-Drobnis states that she did not receive notice of the
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price increase and that the amount was so small that she did not notice the increase. (SAC ¶ 10.)
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Similarly, Plaintiff Piccola alleges that in June 2010 he signed a standardized agreement which
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provided for a monthly membership fee of $49.00. (SAC ¶ 11.) Defendant then unilaterally
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increased the membership fee to $49.99 in April 2014, and to $59.99 in February 2016. (SAC ¶
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12.) Plaintiff Piccola did not receive notice of the first $0.99 increase. Finally, Plaintiff Berlese
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states that in June 2011, she signed a standardized agreement which provided for a monthly
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membership fee of $39.00. (SAC ¶ 13.) Defendant then unilaterally increased the membership
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fee to $39.99 in March 2014, and to $55.00 in September 2016. (SAC ¶ 14.) Plaintiff Berlese
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alleges that she did not receive notice of the first $0.99 increase.
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In addition to the unilateral fee increases, Plaintiffs assert that Defendant seeks to make it
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"as 'painful' as possible for customers to cancel a membership." (SAC ¶ 23.) Specifically,
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Defendant requires customers to prepay for massages, which results in many customers having a
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"bank" of accrued massages that they must use before cancelling membership. (SAC ¶ 4.) If they
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do not use these accrued massages, they will lose the massages when they cancel. (SAC ¶¶ 4, 23.)
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Further, members cannot cancel during the initial term unless they have permanently moved more
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than 25 miles away from any Defendant location, or a physician certifies that the member is
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unable to physically receive massage services. (SAC ¶ 4.) After the initial term, cancellations
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require thirty days written notice, and only become effective thirty days after the member's last
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Northern District of California
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payment. (SAC ¶¶ 4, 23.)
Based on these allegations, Plaintiffs filed the instant putative class action. Plaintiffs bring
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claims for: (1) breach of contract and the implied covenant of good faith and fair dealing; (2)
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intentional interference with contractual relations; (3) violation of California's Consumer Legal
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Remedies Act, Cal. Civil Code §§ 1750 et seq.; (4) violations of California's Unfair Competition
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Law, Cal. Business & Professions Code §§ 17200 et seq.; and (5) declaratory relief.
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II.
LEGAL STANDARD
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Under Rule 26, in a civil action, a party may obtain discovery “regarding any non-
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privileged matter that is relevant to any party's claim or defense and proportional to the needs of
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the case considering the importance of the issues at stake in the action, the amount in controversy,
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the parties' relative access to relevant information, the parties' resources, the importance of the
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discovery in resolving the issues, and whether the burden or expense of the proposed discovery
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outweighs its likely benefit.” Fed. R. Civ. P. 26(b)(1). Additionally, the court must limit the
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frequency or extent of discovery if it determines that: “(i) the discovery sought is unreasonably
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cumulative or duplicative, or can be obtained from some other source that is more convenient, less
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burdensome, or less expensive; (ii) the party seeking discovery has had ample opportunity to
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obtain the information by discovery in the action; or (iii) the proposed discovery is outside the
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scope permitted by Rule 26(b)(1).” Fed. R. Civ. P. 26(b)(2)(C). Rule 45 also specifically
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provides that “the court for the district where compliance is required must quash or modify a
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subpoena that: (i) fails to allow a reasonable time to comply; (ii) requires a person to comply
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beyond the geographical limits specified in Rule 45(c); (iii) requires disclosure of privileged or
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other protected matter, if no exception or waiver applies; or (iv) subjects a person to undue
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burden.” Fed. R. Civ. P. 45(d)(3)(A).
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Federal Rule of Civil Procedure 45 governs discovery of non-parties by subpoena. Rule 45
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provides, among other things, that a party may command a non-party to testify at a deposition.
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Fed. R. Civ. P. 45(a)(1)(A)(iii). The scope of discovery through a Rule 45 subpoena is the same
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as the scope of discovery permitted under Rule 26(b). Beaver Cty. Employers Ret. Fund v. Tile
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Shop Holdings, Inc., No. 3:16-mc-80062-JSC, 2016 WL 3162218, at *2 (N.D. Cal. June 7, 2016)
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United States District Court
Northern District of California
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(citing Fed. R. Civ. P. 45 Advisory Comm.'s Note (1970); Fed. R. Civ. P. 34(a)).
“The Ninth Circuit has long held that nonparties subject to discovery requests deserve
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extra protection from the courts.” Lemberg Law LLC v. Hussin, No. 3:16-mc-80066- JCS, 2016
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WL 3231300, at *5 (N.D. Cal. June 13, 2016) (quotation omitted); see United States v. C.B.S.,
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Inc., 666 F.2d 364, 371-72 (9th Cir. 1982) (“Nonparty witnesses are powerless to control the
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scope of litigation and discovery, and should not be forced to subsidize an unreasonable share of
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the costs of a litigation to which they are not a party”). Courts in this district have consequently
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held that “[o]n a motion to quash a subpoena, the moving party has the burden of persuasion . . . ,
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but the party issuing the subpoena must demonstrate that the discovery sought is relevant.”
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Chevron Corp. v. Donziger, No. 3:12-mc-80237-CRB, 2013 WL 4536808, at *4 (N.D. Cal. Aug.
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22, 2013) (citation omitted); see also Optimize Tech. Solutions, LLC v. Staples, Inc., No. 5:14-mc-
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80095-LHK, 2014 WL 1477651, at *2 (N.D. Cal. Apr. 14, 2014) (“The party issuing the subpoena
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must demonstrate that the information sought is relevant and material to the allegations and claims
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at issue in the proceedings.” (quotation omitted)).
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III.
DISCUSSION
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A.
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Mr. Drobnis is Plaintiff McKinney-Drobnis's husband. Defendant asserts that a deposition
Burton Drobnis
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is warranted because Mr. Drobnis is represented by Plaintiffs' counsel. (Joint Letter at 4, 5.)
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Defendant also contends that Mr. Drobnis would have information about Plaintiff McKinney4
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Drobnis's notice or awareness about the fee increase because Mr. Drobnis checked the monthly
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credit card bills that contained the automatic membership charges. (Id. at 4; see also Joint Letter,
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Exh. 1 ("McKinney-Drobnis Dep.") at 44:1-25.) Defendant further argues that Mr. Drobnis has
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information about Plaintiff McKinney-Drobnis's adequacy as a class representative because he
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reviewed the complaint, explained it to her, and spoke to Plaintiffs' counsel, and that Plaintiff
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McKinney-Drobnis expected that Mr. Drobnis would continue to assist her in her role as a class
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representative. (Joint Letter at 4; McKinney-Drobnis Dep. at 250:6-253:12.) Finally, Defendant
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asserts that Mr. Drobnis's own experience as a former member of the Massage Envy location
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relates to typicality. (Joint Letter at 4.)
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Plaintiffs respond that the fact that Mr. Drobnis is represented by Plaintiffs' counsel does
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Northern District of California
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not justify a deposition. (Joint Letter at 2.) Further, Plaintiffs argue that awareness of any notice
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is not relevant because Defendant only argues that it is required to send notice of a fee increase,
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not that a customer must actually be aware of the increase. (Id.) With respect to adequacy,
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Plaintiffs state that the fact that Plaintiff McKinney-Drobnis asks her husband to assist in
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explaining the obscure terms in legal documents is not relevant to an adequacy inquiry, and that
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there is nothing in the record to suggest she is unduly influenced by her husband. Finally,
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Plaintiffs argue that Mr. Drobnis's own experience with Defendant does not warrant a deposition
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because "'[d]iscovery from absent class members is ordinarily not permitted.'" (Id. at 1 (quoting
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McPhail v. First Command Fin. Planning, Inc., 251 F.R.D. 514, 517 (S.D. Cal. 2008)).)
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In general, "[d]iscovery from absent class members [such as Mr. Drobnis] is ordinarily not
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permitted." Makaeff v. Trump Univ., LLC, Civil No. 10-CV-940-GPC (WVG), 2013 WL 990918,
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at *5 (S.D. Cal. Mar. 12, 2013). Discovery is not completely forbidden; federal courts in
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California have "allow[ed] discovery of absent potential class members when they are identified as
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witnesses, or submit declarations, or are represented by the plaintiffs' counsel." Id. at *6. Such
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limited circumstances may arise "where the proposed deponents have been identified as potential
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witnesses or have otherwise 'injected' themselves into the litigation." Antonietti v. Chipotle, Inc.,
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No. 06cv2671-BTM (WMc), 2011 WL 2003292, at *1 (S.D. Cal. May 23, 2011). For example, in
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Antonietti, the absent class members at issue had submitted declarations in support of the
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plaintiff's motion for class certification and had been identified as witnesses in the plaintiff's
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supplemental disclosures. Id. at *2. Likewise, in Mas v. Cumulus Media Inc., the district court
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rejected the absent class members' argument that they should automatically be insulated from
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further discovery because the individuals had been identified as witnesses in the plaintiff's initial
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disclosures and it appeared both would be offering testimony in support of the plaintiff's case.
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Case No. 10-cv-1396-EMC, 2010 WL 4916402, at *3 (N.D. Cal. Nov. 22, 2010). Finally, in
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Withers v. eHarmony, Inc., the defendant did not seek to depose the plaintiff's boyfriend because
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he was an absent or putative class member, but because he was "a key percipient witness with
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personal knowledge of plaintiff's experience with eHarmony," as his experiences being a "match"
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with the plaintiff was relevant to the plaintiff's individual claims. 267 F.R.D. 316, 321 (C.D. Cal.
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Northern District of California
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2010).
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Here, there is no showing that Mr. Drobnis has "inserted" himself into the litigation, such
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that a deposition is warranted. While he has assisted Plaintiff McKinney-Drobnis with
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understanding the litigation proceedings, Defendant does not suggest that Mr. Drobnis is a witness
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or that he will be testifying or providing a declaration in support of class certification or at trial.
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The fact that he could be a class member alone does not justify a deposition. Similarly, the fact
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that he is represented by Plaintiff's counsel in connection with the subpoenas at issue does not
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automatically make him a percipient witness. (See Dkt. No. 85, Exh. 5 at 1-2 n.1.)
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Similarly, the Court finds that Defendant does not adequately explain why notice of the fee
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increases is relevant or material in the instant case. While Defendant states that this is a key issue,
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Defendant provides no explanation for how this matters to the merits of the case, beyond stating
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that Plaintiffs claim that they receive no notice. (Joint Letter at 3.) The gravamen of the case,
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however, is that Defendant was not permitted to unilaterally increase the membership rate; it is not
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clear how notice or awareness would matter if, contractually-speaking, Defendant was not allowed
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to increase the membership rate in the first place. Moreover, Defendant appears to assert as its
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main defense that it is "a franchisor that does not own or operate any membership agreements,"
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and thus "it has not entered [into] membership agreements with Plaintiffs (or any putative class
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member), it therefore did not make any representations to Plaintiffs (or any putative class
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member), and no Plaintiff (or any putative class member) paid any membership fee to MEF."
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(Joint Letter at 3-4.) This would suggest that the issue of notice and awareness is not material to
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Defendant's own defenses.
The Court does find, however, that Defendant may depose Mr. Drobnis on the limited
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issue of Plaintiff McKinney-Drobnis's adequacy as a class representative. Plaintiff McKinney-
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Drobnis testified that she did not read the complaint, but that her husband likely went over it and
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then explained and translated it to her. (Dkt. No. 85, Exh. 7 ("McKinney-Drobnis Dep.") at
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232:16-233:25.) Mr. Drobnis also appears to have introduced Plaintiff McKinney-Drobnis to
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Plaintiffs' counsel, Attorney Kashima, and asked her to talk to Attorney Kashima. (McKinney-
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Drobnis Dep. at 54:17-24.) Plaintiff McKinney-Drobnis also testified that her husband spoke to
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Northern District of California
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Attorney Kashima on her behalf before Attorney Kashima sent out a letter on her behalf.1
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(McKinney-Drobnis Dep. at 200:13-201:21.) Such matters can affect Plaintiff McKinney-
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Drobnis's adequacy, if Mr. Drobnis has a substantial influence on Plaintiff McKinney-Drobnis's
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understanding of the facts of the case and the decision to participate in litigation. See Murray v.
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E*Trade Fin. Corp., 240 F.R.D. 392, 398 (N.D. Ill. 2006) ("the adequacy requirement places only
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a modest burden on a class representative to demonstrate an understanding of the basic facts
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underlying the claims, some general knowledge, and a willingness and ability to participate in
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discovery") (internal quotation omitted). A deposition on this limited topic is permissible.
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B.
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Ms. Piccola is Plaintiff Piccola's wife. As with Mr. Drobnis, Defendant asserts that a
Kathleen Piccola
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deposition is warranted because Ms. Piccola is represented by Plaintiffs' counsel. (Joint Letter at
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4.) Defendant also contends that Ms. Piccola has discoverable information about Plaintiff
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Piccola's experience as a member of Massage Envy, such as notice of the increases. Finally,
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Defendant argues that Ms. Piccola has information about her own experience as a member of a
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different Massage Envy location.
As discussed above, the fact that Ms. Piccola is an absent class member that is represented
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Plaintiff McKinney-Drobnis further testified that she did not know if she knew that the letter was
being sent out before it was sent. (McKinney-Drobnis Dep. at 201:18-21.)
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by Plaintiffs' counsel for the limited purpose of dealing with this subpoena does not justify a
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deposition. There is no showing Ms. Piccola is a percipient or key witness, or that Plaintiffs
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intend to use her declaration or testimony to support their case. Similarly, there is no explanation
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for why notice of the increases is relevant or material in this case. Therefore, the subpoena is
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quashed as to Ms. Piccola.
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C.
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Ms. Angela Berlese and Ms. Lia Berlese are Plaintiff Berlese's daughters. Both allegedly
Angela and Lia Berlese
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talked to Plaintiff Berlese about the price increases and the allegations in the complaint. (Joint
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Letter at 4.) Further, Plaintiff Berlese, Ms. Lia Berlese, and Ms. Angela Berlese were allegedly
offered the option to keep their existing membership after an announced August 2016 price
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Northern District of California
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increase. Defendant also contends that the testimony is discoverable to refute Plaintiffs'
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allegations that class members have no choice but to accept price increases. Finally, Defendant
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again suggests that their testimony is discoverable based on their own experience as members of a
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Massage Envy location.
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The Court rejects these arguments. There is no showing that the discussions about the
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price increases or allegations in the complaint have any effect on the merits of the case or Plaintiff
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Berlese's adequacy; the fact that conversations took place does not alone suggest that either
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daughter is a witness in this case. Further, Plaintiffs do not allege that class members have no
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choice but to accept price increases; rather, Plaintiffs allege that it is "painful" to cancel their
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membership due to the loss of their accrued massages. An offer to cancel the membership does
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not affect this loss of accrued massages. Finally, again, Ms. Angela Berlese's and Ms. Lia
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Berlese's status as absent class members alone does not warrant a deposition, without something
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more to suggest that they have injected themselves into this litigation. Therefore, the subpoena is
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as to Ms. Angela Berlese and Ms. Lisa Berlese is quashed.
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D.
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Mr. Chris Berlese is Plaintiff Berlese's son. Defendant contends that Plaintiff Berlese and
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Mr. Chris Berlese had communications about the allegations in the complaint. (Joint Letter at 4.)
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Defendant also argues that Plaintiff Berlese testified that Mr. Chris Berlese cancelled his
Chris Berlese
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membership following a price increase, when in fact he paid eight months at the increased rate.
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Defendant appears to suggest that this therefore relates to typicality, but does not explain how.
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The Court rejects these arguments. Again, there is no showing that discussions about the
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allegations in the complaint have any effect on the merits of the case or Plaintiff Berlese's
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adequacy, and does not otherwise suggest that Mr. Chris Berlese would be a witness in this case.
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Further, it is not clear how Mr. Chris Berlese's payment of the increased membership price, rather
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than immediately canceling, affects typicality or the merits of this case. Therefore, the subpoena
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as to Mr. Chris Berlese is quashed.
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E.
Robert Berlese
Mr. Robert Berlese is Plaintiff Berlese's husband. Again, Defendant alleges that Plaintiff
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Northern District of California
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Berlese and Mr. Robert Berlese discussed the allegations in the complaint. (Joint Letter at 4.) Mr.
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Robert Berlese also had conversations with Mr. Michael Damiani about Plaintiff Berlese's claims.
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(Id. at 4-5.) Defendant further argues that Mr. Robert Berlese would have information about
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notice of price increases or communications with the Massage Envy location where Plaintiff
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Berlese signed her membership agreement. (Id. at 5.) Finally, Defendant contends that Mr.
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Robert Berlese could testify about his decision not to become a member, which would refute
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Plaintiffs' claim that the agreements are contracts of adhesion. (Id.)
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The Court rejects these arguments. As with the Berlese children, there is no showing that
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discussions about the allegations in the complaint have any effect on the merits of the case or
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Plaintiff Berlese's adequacy, or otherwise suggest that Mr. Robert Berlese would be a witness in
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this case. Likewise, Defendant provides no explanation for why Mr. Robert Berlese's
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conversations with Mr. Damiani, Plaintiff Berlese's friend, would be discoverable. As discussed
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above, Defendant also fails to explain why notice of the price increases would be relevant or
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material in this case. Finally, the fact that Mr. Robert Berlese decided not to be a member is
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irrelevant to this case and does not refute Plaintiffs' claims that the membership agreements are
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adhesion contracts; an adhesion contract is "a standardized contract, drafted by the party of
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superior bargaining strength, that relegates to the subscribing party only the opportunity to adhere
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to the contract or reject it." Ting v. AT&T, 319 F.3d 1126, 1148 (9th Cir. 2003). There is no
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suggestion that individuals were forced against their wills to become members of Massage Envy;
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thus, Mr. Robert Berlese's decision not to become a member has no effect on Plaintiffs' allegations
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regarding the use of an adhesion contract. Therefore, the subpoena as to Mr. Robert Berlese is
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quashed.
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F.
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Mr. Damiani is Plaintiff Berlese's friend, who was a member of another Massage Envy
Michael Damiani
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location and had discussions with Mr. Berlese about Plaintiff Berlese's claims. (Joint Letter at 5.)
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Defendant suggests that Mr. Damiani has discoverable information about his own experience with
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Massage Envy.
The Court rejects these arguments. Defendant again provides no explanation for why the
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Northern District of California
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conversations with Mr. Berlese would have any relevance in the instant case. Further, again, the
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fact that Mr. Damiani is a putative class member does not justify the taking of his deposition
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without some showing that he has otherwise injected himself into this case. Therefore, the
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subpoena as to Mr. Damiani is quashed.
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IV.
CONCLUSION
For the reasons stated above, the Court GRANTS Plaintiffs' request to quash the subpoenas
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as to Ms. Piccola, Ms. Angela Berlese, Ms. Lia Berlese, Mr. Chris Berlese, Mr. Robert Berlese,
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and Mr. Damiani. The Court DENIES Plaintiffs' request to quash the subpoena as to Mr. Drobnis,
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but will limit the scope of the deposition to Plaintiff McKinney-Drobnis's adequacy only.
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IT IS SO ORDERED.
Dated: October 24, 2017
__________________________________
KANDIS A. WESTMORE
United States Magistrate Judge
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