Securities and Exchange Commission v. AIC, Inc. et al

Filing 114

ORDER granting in part and denying in part Document 91 Motion to Compel filed by the Securities and Exchange Commission. Signed by Magistrate Judge H Bruce Guyton on July 23, 2013. (RLK)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF TENNESSEE
AT KNOXVILLE
SECURITIES AND EXCHANGE COMMISSION, )
)
Plaintiff,
)
)
v.
)
)
AIC, Inc., et al.,
)
)
Defendants.
)

No. 3:11-CV-176
(VARLAN/GUYTON)

MEMORANUDM AND ORDER
This case is before the undersigned pursuant to 28 U.S.C. § 636, the Rules of this Court,
and the referral of the District Judge. Now before the Court is a Renewed Motion to Compel
Discovery [Doc. 91] filed by the Securities and Exchange Commission (“SEC”). The Motion to
Compel is fully briefed and ripe for adjudication.
Pursuant to Rule 37 of the Federal Rules of Civil Procedure, a party may move the Court
to enter an order compelling an inspection of documents, where a party has failed to permit such
inspection. See Fed. R. Civ. P. 37(a)(3)(B)(iv). In the instant motion, the SEC moves the Court
to enter an order directing the AIC Defendants to: (1) segregate, set aside, and make available
boxes of documents previously marked for copying by counsel for the SEC; (2) certify that as to
those boxes no documents have been inserted or removed; (3) further certify that the order of the
documents and the condition of the boxes have not been altered or disturbed; (4) make
themselves available, on reasonable notice and at a reasonable time, to receive those boxes to be
returned by the Commission; and (5) provide a written confirmation of compliance with
discovery obligations, as previously ordered by the Court.

The AIC Defendants have responded in opposition to the Renewed Motion to Compel
stating that the boxes at issue were made available to the SEC’s courier and that the SEC is in
possession of many of the documents. The AIC Defendants state that the boxes and documents
have not been altered or disturbed. Finally, the AIC Defendants represent that Mr. Skaltsounis is
available to assist representatives of the SEC in retrieving and returning the documents. [Doc.
99].
The Court has reviewed all of the parties’ filings [Docs. 91, 99, 100], along with the
background of this discovery dispute [see Docs. 69, 70, 82, 85]. Based on this review, the Court
finds that the Renewed Motion to Compel [Doc. 91] is well-taken, in part. It is, therefore,
GRANTED IN PART and DENIED IN PART, as follows:
1. The SEC’s request that the AIC Defendants segregate, set aside, and make available
boxes of documents previously marked for copying by counsel for the SEC is
GRANTED. The AIC Defendants shall locate the thirteen boxes that are at issue. These
boxes shall be made available to the SEC, its counsel, or its designated agent at an agreed
date and time no later than August 5, 2013. The boxes shall be made available at a
reasonable location in Richmond, Virginia, and in a manner that does not pose any undue
burden on the SEC or its agent in retrieving the boxes.
2. The parties will also agree to a date and time for the boxes to be returned and a
reasonable location for returning the documents.
3. Mr. Skaltsounis will make himself available to assist representatives of the SEC in
retrieving and returning the documents.
4. The SEC’s request for certain certifications that the content of the boxes have not been
altered is DENIED. Counsel has certified the same in the AIC Defendants’ response.

2

This response, which is governed by Rule 11 of the Federal Rules of Civil Procedure, is a
sufficient.
5. The request that the AIC Defendants provide a written confirmation of compliance with
discovery obligations is GRANTED. As directed in the Court’s previous Memorandum
and Order [Doc. 85], the AIC Defendants, through counsel or appropriate agent, shall
certify, in writing, that all requested documents in the Defendant’s possession, control, or
custody have been produced or made available to the SEC. This certification shall be
filed on or before August 9, 2013.
IT IS SO ORDERED.
ENTER:
s/ H. Bruce Guyton
United States Magistrate Judge

3