National Credit Union Administration Board et al v. HSBC Bank US, National Association

Filing 416

ORDER denying 408 Motion to Compel. Plaintiff's motion to compel is DENIED. The Clerk of Court is directed to terminate the motion at ECF No. 408. (Signed by Magistrate Judge Sarah Netburn on 10/6/2020) (ras)

P arti es ar e r e q uir e d t o pr o vi d e e x p ert r e p orts o nl y f or t h os e e x p erts “ e m pl o y e d t o pr o vi d e
e x p ert t esti m o n y i n t h e c as e. ” F e d. R. Ci v. Pr o. 2 6 ( 2)( B) ( e m p h asis a d d e d). T h e r e p orts
Pl ai ntiffs s e e k w er e pr o d u c e d i n l a ws uits t h at d o n ot a d dr ess t h e b ell w et h er tr usts at iss u e a n d
w er e n ot pr o d u c e d b y e x p erts w h o will b e pr o vi di n g t esti m o n y i n t his c as e. T h us, t h e dis c o v er y
s o u g ht b y t h e Pl ai ntiffs c a n n ot b e pr o p erl y c at e g ori z e d as e x p ert dis c o v er y.
T o t h e e xt e nt t h e dis c o v er y s o u g ht is b ett er c h ar a ct eri z e d as f a ct dis c o v er y, it is b ot h
u nti m el y a n d u n w arr a nt e d. F a ct dis c o v er y cl os e d t hr e e y e ars a g o a n d Pl ai ntiffs h a v e n ot
est a blis h e d g o o d c a us e t o r e o p e n f a ct dis c o v er y f or t his p ur p os e. Pl ai ntiffs ar g u e t h at t h e
r e q u est e d dis c o v er y is “ hi g hl y r el e v a nt ” i n t his c as e, s p e cifi c all y cl ai mi n g t h at t h e r e p orts s h e d
li g ht o n D ef e n d a nt’s “ o v er all a w ar e n ess ” of “t h e p er v asi v e d ef e cts a n d f u n d a m e nt al fl a ws i n
D e uts c h e B a n k S P -s u p pli e d l o a ns. ” S e e E C F N o. 4 0 2, Pl.’s M ot. at 1, 4.
T his “ o v er all a w ar e n ess ” is i m m at eri al t o t h e cl ai ms at iss u e, h o w e v er, b e c a us e t h e e x p ert
r e p orts r e q u est e d d o n ot c o n c er n t h e s p e cifi c tr usts i n t his c as e. I n t h e R M B S c o nt e xt, Pl ai ntiffs
m ust “ d e m o nstr at e br e a c h o n a l o a n-b y -l o a n a n d tr ust-b y -tr ust b asis. ” Bl a c k R o c k v. W ells F ar g o,
2 4 7 F. S u p p. 3 d 3 7 7, 3 8 9 ( S. D. N. Y. 2 0 1 7), o bj e cti o ns o v err ul e d W L 3 6 1 0 5 1 1 ( S. D. N. Y. A u g.
2 1, 2 0 1 7). I n d e e d, J u d g e S c h ofil e d h as r ul e d alr e a d y t h at “t h e ‘ dis c o v er y or r e c ei pt of n oti c e’
r e q uir e m e nt m ust r e q uir e H S B C t o h a v e i nf or m ati o n a b o ut a s p e cifi c l o a n, r at h er t h a n
g e n er aliz e d k n o wl e d g e or n oti c e e xtr a p ol at e d fr o m ot h er l o a ns . ” E C F N o. 3 1 4, M ar c h 1 9, 2 0 1 8
Or d er at 5, ( e m p h asis a d d e d) (r e c o nsi d er ati o n d e ni e d E C F

N o. 3 3 5 at 1 – 2). F urt h er m or e, t his

C o urt h as m a d e cl e ar t h at dis c o v er y r e q u ests “r el at e d t o e v e nts o utsi d e t h e C o v er e d Tr usts w o ul d
n ot tri g g er a d ut y o n t h e p art of t h e tr ust e e t o i n v esti g at e l o a ns wit hi n t h e C o v er e d Tr usts. ”
Bl a c k R o c k v. D e uts c h e B a n k , 1 4-c v - 0 9 3 6 7 (J M F)( S N), E C F. N o. 2 8 6, J u n. 2 0, 2 0 1 7 Or d er at 4 –
5. E v e n if t h e r e q u est e d r e p orts ar e pr o b ati v e of D ef e n d a nt’s “ o v er all a w ar e n ess ” of “ p er v asi v e

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d ef e cts a n d f u n d a m e nt al fl a ws ” i n D e uts c h e B a n k’s l o a ns, t h at is i m m at eri al t o a s p e cifi c d ut y t o
i n v esti g at e t h e l o a ns at iss u e i n t his c as e.
A c c or di n gl y, Pl ai ntiff’s m oti o n t o c o m p el is D E NI E D. T h e Cl er k of C o urt is dir e ct e d t o
t er mi n at e t h e m oti o n at E C F N o. 4 0 8.
S O O R D E R E D.

D A T E D:

O ct o b er 6, 2 0 2 0
N e w Y or k, N e w Y or k

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