Regions Bank v. Kaplan et al
Filing
738
ORDER granting in part and denying in part 707 Motion to Compel financial worth discovery. Signed by Judge Elizabeth A. Kovachevich on 5/12/2016. (JM)
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
REGIONS BANK, etc.,
Plaintiff,
v.
CASE NO. 8:12-CV-1837-T-17MAP
MARVIN I. KAPLAN, etc.,
et al.,
Defendants.
/
ORDER
This cause is before the Court on:
Dkt. 707
Dkt. 731
Third Motion to Compel Financial Worth Discovery
Response
The Court heard oral argument on Regions’ Third Motion to Compel Financial
Worth Discovery on May 12, 2016.
The Court is conducting a bench trial on the pending tort claims in the Corrected
Second Amended Complaint (Dkt. 671) against Defendants Marvin I. Kaplan, R1A
Palms, LLC, Triple Net Exchange, LLC, MK Investing, LLC and BNK Smith, LLC.
Regions is seeking the award of compensatory damages, plus costs, interest and
punitive damages.
The term “relevancy” under Fed. R. Civ. P. 26 is construed broadly to
“encompass any matter that bears on, or that reasonably could lead to other matter that
could bear on, any issue that is or may be in the case.” See Oppenheimer Fund. Inc. v.
Sanders. 437 U.S. 340, 351 (1978). Regions is seeking the award of punitive damages
in the pending claims. The Court finds that Defendant Kaplan’s financial net worth is
Case No. 8:12-CV-1837-T-17MAP
relevant. Where there is a claim for punitive damages, a defendant’s financial condition
becomes relevant because the wealth of the defendant is a factor for consideration in
determining the reasonableness of a punitive damage award. See Mvers v. Cent. Fla.
Invs.. Inc.. 592 F.3d 1201, 1216 (11th Cir. 2010); Gottwald v. Producers Group I. LLC.
2013 WL 1776154 at *3 (S.D. Fla. April 25, 2013); Solidavv. 7-Eleven. Inc.. 2013 WL
4537903 at *2 (M.D. Fla. Nov. 3, 2010).
The Court bears in mind that the purpose of an award of punitive damages is to
further a State’s legitimate interests in punishing unlawful conduct and deterring its
repetition. See BMW of N. Am.. Inc. v. Gore. 517 U.S. 559, 568 (1996). The imposition
of a punitive damage award is subject to constitutional limitations because the Due
Process Clause of the Fourteenth Amendment prohibits a state from imposing a
“grossly excessive" punishment on a tortfeasor. A punitive damage award is grossly
excessive for constitutional purposes where the award is out of proportion to a
defendant’s net worth. Proportionality is assessed by determining whether the award
bears some relationship to the defendant’s ability to pay, and does not result in a
defendant’s bankruptcy or financial devastation.
The Court does not determine an award of punitive damages in a vacuum. The
Court will make its determination, if any, in accordance with the guideposts identified in
BMW of N.A.. Inc.. supra, and within the permissible constitutional limits. To do so, the
Court will need to consider the evidence of Defendants’ financial net worth.
After consideration the Court grants Plaintiff’s Motion to Compel Financial Worth
Discovery in part and denies it in part:
1. Tax Returns
Defendants have produced Defendant Kaplan’s personal tax returns from 2013
2
Case No. 8:12-CV-1837-T-17MAP
to date. Defendants have produced the tax returns of R1A, TNE and BNK for 2014,
and the tax returns for 2015 have not been prepared.
The Motion to Compel is denied as moot as to the requested tax returns.
2. Documents reflecting the Value of Defendant Kaplan’s Interest in Entities
Listed in KAP-REG_0000 3856
The Court grants the Motion to Compel as to these Documents, which include all
responsive documents for the period 2012 to date reflecting the value of the financial
interest held by Defendant Kaplan in these entities individually or TBE. The Documents
include financial statements, tax returns, net worth statements, asset and liability
disclosures any other documents of the entities bearing on the value of these entities,
so that Defendant Kaplan’s interest may be determined.
The Court notes that a protective order is in place in this case.
3. Documents Concerning Payments to R1A, TNE and BNK in 2015
These documents include all documents relating to the payment of $761,514.14
into these entities, including copies of checks, the originator of the income wire
transfers, and documents explaining the nature of the underlying transaction.
The Court grants the Motion to Compel as to this issue.
4. Documents Concerning Payments from R1 A, TNE and BNK to Kathryn
Kaplan
These documents include all documents relating to these payments, and the
underlying transactions for which the payments were made.
3
Case No. 8:12-CV-1837-T-17MAP
The Court grants the Motion to Compel as to this issue.
5. Missing Account Statements, Items and Underlying Documents
Regions is seeking the identity of the drawer of a check in the amount of
$187,116.09 from Seaside Bank, a copy of the check, and the underlying documents
for the transaction. If the payor was a Kaplan Entity, Regions also seeks account
statements and items of the payor of the funds.
Regions seeks TNE account statements for its account at Seaside Bank prior to
2015. As to the deposited check in the amount of $18,600.00, Regions requests a copy
of the check, documents which reveal the identity of the payor, and all documents
associated with the underlying transaction. Regions further seeks all documents which
reveal the sender of a wire transfer of $109,726.10 on October 9, 2015, and all
documents associated with the underlying transaction.
The Court grants the Motion to Compel as to this issue. Accordingly, it is
ORDERED that the Motion to Compel Financial Worth Discovery is granted in
part and denied in part as moot. Defendants shall comply with this Order by
making immediate disclosure of the requested financial worth discovery.
4
Case No. 8:12-CV-1837-T-17MAP
/ ^7 03 .
DONE and ORDERED in Chambers in Tampa, Florida on this / ^ - dav of May,
2016.
rv
Copies to:
All parties and counsel of record
5
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?