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EXHIBIT 42
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MINUTES FORM 90 Initials of Deputy Clerk: jhCIVIL -- GEN 1
UNITED STATES DISTRICT COURTCENTRAL DISTRICT OF CALIFORNIA
3470 Twelfth Street, Riverside, CA 92501
CIVIL MINUTES -- GENERAL
Case No. CV 04-08400-SGL (RZx) Date: September 26, 2008
Title: JOANNE SIEGEL, an individual; and LAURA SIEGEL LARSON; an individual -v-WARNER BROS. ENTERTAINMENT INC., a corporation; TIME WARNER INC., acorporation; DC COMICS INC., a corporation; and DOES 1-10
===========================================================================PRESENT: HONORABLE STEPHEN G. LARSON, UNITED STATES DISTRICT JUDGE
Jim Holmes None PresentCourtroom Deputy Clerk Court Reporter
ATTORNEYS PRESENT FOR PLAINTIFFS: ATTORNEYS PRESENT FOR DEFENDANTS:
None present None present
PROCEEDINGS: ORDER REGARDING ESCROW DOCUMENTS
The Court has been called upon to resolve a dispute over the disposition of certaindocuments (hereinafter escrow documents) in the possession of attorney Mr. David Eisen at the
law firm Arnold & Porter. Given the passage of time, some background is in order.
In June, 2006, three employees at Warner Bros. Entertainment, Inc. (including thecompanys then general counsel, Mr. John Schulman) received packages containing documentsrelating to the present litigation (the aforementioned escrow documents) from an anonymoussource. The documents in question contained embarrassing and potentially questionable conductby plaintiffs counsel in this case. The Vice President for Warner Bros., Mr. Wayne Smith,thereafter undertook the following steps: (1) He reviewed each document but ceased such reviewwhen it became apparent that the document was privileged, (2) contacted plaintiffs counsel andadvised him that the documents had been received, and (3) refrained from using any information inthe documents unless and until there was either an agreement with opposing counsel or the court
had determined how to proceed with the documents disposition. Moreover, Mr. Smith and Mr.Schulman further decided to turn the documents over to a neutral third party pending resolution ofthe disposition of the escrow documents, either pursuant to the agreement of the parties or orderof the Court.
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MINUTES FORM 90 Initials of Deputy Clerk: jhCIVIL -- GEN 2
Magistrate Judge Zarefsky was the discovery judge in this matter at the time the escrowdocuments in question were received by company employees at Warner Bros. On June 30, 2006,the escrow documents were turned over to the escrow agent. The escrow agent thereafter Bates-stamped a set of the escrow documents and then sent a copy of the same to plaintiffs counsel, Mr.Toberoff. The originals remained in the agents possession in escrow.
On August 7, 2006, defendants served a request on plaintiffs for the production of theescrow documents, requesting, in particular, [a]ll Writings referenced in the July 5, 2006 letterfrom [the escrow agent] to, among others, Marc Toberoff, Esq. and which were attached to orenclosed with the July 18, 2006, letter from [the escrow agent] to Marc Toberoff, Esq. Plaintiffsthereafter filed a response on September 6, 2006. Subsequently, in connection with anotherdiscovery matter, Magistrate Judge Zarefsky ordered that plaintiffs produce all privilege logs,including any revisions, by September 29, 2006. In the subsequently-produced privilege log,plaintiffs counsel allegedly did not assert privilege in the escrow documents. At this point,defendants filed a motion to compel plaintiffs and their counsel to produce all non-privilegedescrow documents not identified on any privilege log.
Defendants motion to compel was heard by Magistrate Judge Zarefsky on April 30, 2007.During the hearing, plaintiffs counsel asserted that, except for two documents, all of the escrowdocuments had been either previously produced to defendants or had been listed on a privilegelog:
COURT: The question is: Have you otherwise produced [thedocuments]? Thats all thats all at issue, isnt it?
MR. TOBEROFF: I have, your Honor. I have put in a declarationunequivocally that even though Im not obliged to do so, and jumpthrough hoops of having to respond and own up to documents stolenfrom my legal files, an obligation that does not apply to the defendantsin this case and does not apply to parties under Rule 34, I nonethelesswent through every single one of those documents, which they, insteadof returning the originals, returned to me with Bate stamps, checked itagainst our production, and found two documents that were non-privileged that hadnt been produced that consisted of letters fromplaintiffs to DC Comics, which I produced.
COURT: See, your declaration doesnt quite say that, Mr.Toberoff. I read your declaration.
MR. TOBEROFF: The intention of the declaration is to sayexactly what Im saying now; that I went through my files, not just theplaintiffs files, which is all the motion pertains to, but all my files, all thethird-party witness files
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MINUTES FORM 90 Initials of Deputy Clerk: jhCIVIL -- GEN 3
COURT: Forgive me for interrupting. Your declaration does saythat. What your declaration doesnt say is that you went through these,lets call them [escrow] documents, even though that may not be anaccurate statement, you went through these [escrow] documents, andthat you verified that each of the [escrow] documents either had been
produced or had been listed on the privilege log. It doesnt say that.
MR. TOBEROFF: That is the case, your Honor, and that wascertainly my intention to say that, and Im saying that now.
COURT: All right, then we can get that cleared up immediately.
MR. TOBEROFF: Id be happy to take an oath and say that,because that is precisely what I did.
That during the hearing, Magistrate Judge Zarefsky, noting that
the previously provided declaration was unclear, issued the followingOrder:
COURT: Now I told you, Mr. Toberoff, that I saw a little wiggleroom in your declaration. You tell me you didnt mean for there to beany. So, heres what Im going to do. Not later than May 7th, thats aweek from today, I want you to submit a declaration that does identifyby the Bates numbers of the escrow documents and the correspondingBates numbers of documents already produced, those among theescrow documents which are unprivileged and have already beenproduced.
So, you take the Bates numbers of the escrow documents andsay, Here are the corresponding Bates numbers of the documents that have already b
and correspond to the listings on the privilege log of the documents which have not been producedbecause they were privileged. All right? So, put that in your declaration.
Then the escrow holder . . . is to return to the plaintiffs anydocuments which are identified in the declaration as being privilegedand having been identified on the privilege logs.
The others can be delivered to trial counsel for defendantsbecause theyre either unprivileged, or, if they were privileged, privilegehas been waived because they werent listed on the privilege log
. . . .
Do you understand what Ive ordered you to put in the
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MINUTES FORM 90 Initials of Deputy Clerk: jhCIVIL -- GEN 4
declaration?
MR. TOBEROFF: I do, your Honor.
(emphasis added). Magistrate Judge Zarefsky then repeated the outline of his Order to plaintiffs
counsel towards the end of the hearing: Privileged documents get returned. The privilegedocuments that were listed on the privilege log get returned. The others get sent to defensecounsel. (emphasis added).
On May 21, 2007, plaintiffs counsel produced the declaration required by Magistrate JudgeZarefsky. The declaration asserted privilege for the first time for a number of documents in escrowthat had neither been listed previously on a privilege log nor had been previously produced. Thatplaintiffs counsels declaration went beyond the bounds of Magistrate Judge Zarefskys order wasmade plain by a cover letter attached to his May 21, 2007, declaration: Any documents notidentified in my declaration as listed in a privilege log or as previously produced to defendants areto be produced to defendants, with the exception of the clearly privileged litigation communications
identified in my declaration. (emphasis added).
Not surprisingly a dispute quickly ensued between the parties over whether plaintiffscounsels declaration sought to exclude from production to defendants categories of escrowdocuments ordered to be produced by Magistrate Judge Zarefskys Order. The matter waspresented to this Court when Magistrate Judge Zarefsky had to step aside from serving as thediscovery judge in this matter due to attend to personal matters.
The Court ordered the escrow agent to submit the particular escrow documents in question(the ones plaintiffs counsel was asserting privilege for the first time) for an in camera review andordered plaintiffs counsel to submit a declaration setting forth the grounds for any claim ofprivilege relating to said documents. Both steps were eventually done and the Court is now in thepossession of both.
Upon reflection the Court finds that plaintiffs counsels newly asserted claims for privilegeare not well-taken. Pursuant to Magistrate Judge Zarefskys order, any claim of privilege notpreviously asserted before that Order was deemed waived. Although plaintiffs suggest that sucha reading of Magistrate Judges order as not a fair one and lacks common sense, the language ofhis order is clear and unambiguous: Any escrow document not matching up to the privilege log orthe declarations list of previously-produced documents was to be produced to defendants; anyassertion of privilege to such documents to be produced was deemed waived. That plaintiffscounsel may have a basis to assert such privilege or otherwise challenge the propriety ofproducing such material on relevance grounds, etc., is inapposite. If plaintiffs wished to press suchnew claims of privilege or any other basis for challenging production of the same, Magistrate JudgeZarefskys Order deemed them waived. What plaintiffs counsel should have done at that point topreserve such assertions was to appeal Magistrate Judge Zarefskys Order to this Court, inparticular that section of his Order deeming any previously un-asserted grounds of privilege to bewaived. Plaintiffs did not do so, and the time to appeal Magistrate Judge Zarefskys Order to this
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CV 04-08400-SGL (RZx)JOANNE SIEGEL, an individual; and LAURA SIEGEL LARSON; an individual v WARNER BROS.ENTERTAINMENT INC., a corporation; TIME WARNER INC., a corporation; DC COMICS INC., acorporation; and DOES 1-10MINUTE ORDER of September 26, 2008
MINUTES FORM 90 Initials of Deputy Clerk: jhCIVIL -- GEN 5
Court has long since expired. See Local Rule 72-2.1.
Magistrate Judge Zarefskys Order is now the law of the case in this matter. Plaintiffsargument that the parties had reached an agreement beforehand that any post-litigation attorney-client communications did not have to be listed in a privilege log to preserve its privilege status is,as explained in defendants supplemental declaration to the Courts Order, simply mistaken.
Accordingly, pursuant to the terms of Magistrate Judge Zarefskys Order, the escrow agentis ORDERED to produce to defendants counsel forthwith any escrow document not previouslylisted in a privilege log or as having been previously been produced. That is to say, the escrowagent is to match up the escrow documents with the privilege log entries and productiondocuments listed in Mr. Toberoffs May 21, 2007, declaration. Thus, the nine documents producedby the escrow agent to the Court for in camera review are to be produced to defendants counselas those documents were not previously identified in a privilege log provided by plaintiffs.
IT IS SO ORDERED.
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427
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431
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DECLARATION OF ADAM RONAN, MD
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Marc Toberoff (State Bar No. 188547)Nicholas C. Williamson (State Bar No. 231124)Keith G. Adams (State Bar No. 240497)TOBEROFF & ASSOCIATES, P.C.2049 Century Park East, Suite 2720
Los Angeles, California, 90067Telephone: (310) 246-3333Fax: (310) [email protected]
Attorneys for Defendants Mark WarrenPeary, as personal representative of theEstate of Joseph Shuster, Jean Adele Peavy,Joanne Siegel, Laura Siegel Larson
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA - WESTERN DIVISION
DC COMICS,Plaintiff,
vs.
PACIFIC PICTURES CORPORATION;
IP WORLDWIDE, LLC; IPW, LLC;
MARC TOBEROFF, an individual;
MARK WARREN PEARY, as personal
representative of the ESTATE OF
JOSEPH SHUSTER; JEAN ADELE
PEAVY, an individual; JOANNESIEGEL, an individual; LAURA
SIEGEL LARSON, an individual,
and DOES 1-10, inclusive,
Defendants.
Case No: CV 10-03633 ODW (RZx)
Hon. Otis D. Wright II, U.S.D.J.Hon. Ralph Zarefsky, U.S.M.J.
DISCOVERY MATTER
DECLARATION OF ADAMRONAN, MD, IN OPPOSITIONTO PLAINTIFFS MOTION TOINITIATE DISCOVERY ANDTAKE IMMEDIATE, LIMITEDDISCOVERY OF TWOELDERLY WITNESSES
Complaint filed: May 14, 2010Trial Date: None Set
Date: September 20, 2010Time: 10:00 a.m.Place: Courtroom 11
Case 2:10-cv-03633-ODW-RZ Document 64-4 Filed 09/13/10 Page 1 of 3 Page ID #:5024
EXHIBIT 44434
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1DECLARATION OF ADAM RONAN, MD
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DECLARATION OF ADAM RONAN
I, Adam Ronan, declare as follows:
1. I am a resident of New Mexico, and am a Medical Doctor (MD),licensed to practice medicine in New Mexico. The facts set forth herein are known to
me of my own firsthand knowledge and, if called as a witness, I could and would
testify competently to such facts under oath.
2. I received my medical degree from the Medical College of Wisconsin,and then completed my medical training at the Loyola University Medical Center and
the University of Chicago Medical Center. I underwent fellowship training at the
Loyola University Medical Center. I am board-certified in Internal Medicine,
Echocardiography, Vascular Interpretation and Nuclear Cardiology.
3. I currently practice at the New Mexico Heart Institute, located at 502Elm Street NE, Albuquerque, NM, 87102.
4. Jean Adele Peavy is under my care.5. Jean suffered a stroke in May, 2009. Due to her stroke, she has an
aphasia. Due to this condition, Jean has difficulty speaking and also has difficulty
understanding spoken words. When I last saw Jean on August 5, 2010, she also
suffered from atrial fibrillation and hypertension.
6. I understand that a deposition involves providing live testimony before acourt reporter and often a videographer. I further understand that, in the absence of a
protective order, a deposition can last several hours, with only limited breaks, that it
involves sitting for long periods, and that it is often stressful for the deponent, who is
asked to recall numerous events and to review many documents.
7. It is my professional medical opinion that Jean is likely unable from aneurological standpoint to participate in a legal deposition due to her aphasia. As
Jean is the victim of a recent stroke, the stress of a second deposition may also pose a
///
///
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28DC COMICS RENEWED OPP. TO DEFS
RENEWED MOTION TO
DISMISS/STRIKE THIRD & SIXTH CLAIMS
DANIEL M. PETROCELLI (S.B. #097802)[email protected]
MATTHEW T. KLINE (S.B. #211640)[email protected]
CASSANDRA L. SETO (S.B. #246608)[email protected]
OMELVENY & MYERS LLP1999 Avenue of the Stars, 7th FloorLos Angeles, CA 90067-6035Telephone: (310) 553-6700Facsimile: (310) 246-6779
PATRICK T. PERKINS (admittedpro hac vice)[email protected]
PERKINS LAW OFFICE, P.C.1711 Route 9DCold Spring, NY 10516Telephone: (845) 265-2820Facsimile: (845) 265-2819
Attorneys for Plaintiff DC Comics
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
DC COMICS,
Plaintiff,
v.
PACIFIC PICTURESCORPORATION, IP WORLDWIDE,LLC, IPW, LLC, MARC TOBEROFF,an individual, MARK WARRENPEARY, as personal representative ofthe ESTATE OF JOSEPH SHUSTER,JEAN ADELE PEAVY, an individual,JOANNE SIEGEL, an individual,LAURA SIEGEL LARSON, anindividual, and DOES 1-10, inclusive,
Defendants.
Case No. CV 10-3633 ODW (RZx)
PLAINTIFF DC COMICSRENEWED OPPOSITION TODEFENDANTS JOANNE SIEGEL
AND LAURA SIEGELLARSONS RENEWED MOTIONTO DISMISS AND/OR STRIKEPLAINTIFFS FIRST AMENDEDCOMPLAINT PURSUANT TOFED. R. CIV. P. 12(b)(6)(DOCKET NO. 147) (RE: THIRDAND SIXTH CLAIMS FORRELIEF)
Hon. Otis D. Wright II
Hearing Date: TBDHearing Time: TBD
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DC COMICS RENEWED OPP. TO DEFS
RENEWED MOTION TO
DISMISS/STRIKE THIRD & SIXTH CLAIMS
Hartzheim v. Valley Land & Cattle Co., 153 Cal. App. 4th 383, 389 (2007);
Sullivan v. Little Hunting Park, Inc., 396 U.S. 229, 239 (1969) (The existence of a
statutory right implies the existence of all necessary and appropriate remedies.).
Where, as here, Congress has demonstrated its clear intent to create such a right,
supra at 7-10, the beneficiary of this right has standing to enforce it, CBOCS West,
Inc. v. Humphries, 553 U.S. 442, 457 (2008). Congress intent to confer such a
right can be inferred from the language and focus of the statute, its legislative
history, and its purpose, Touche Ross & Co. v. Redington, 442 U.S. 560, 575-76
(1979)all of which supports DC Comics third and sixth claims. Supra at 7-10.
IV. DC COMICS CLAIMS ARE NOT TIME-BARRED.
Third Claim. Defendants argue that DC Comics third claim is time-barred
because DC Comics knew about the Pacific Pictures agreements no later than
November 15, 2006, yet filed suit six months after the three-year limitations period
ended in November 2009. Mot. at 10. Not only does this assertion raise factual
questions, defendants are mistaken on the law and in describing DCs actual claim.
DC Comics third claim expressly is premised on defendants continuing
course of conduct, which violated and continues to violate DC Comics rights underthe Copyright Actand will continue to harm DC Comics though 2013 and
beyond. FAC 3, 101, 169-70. The statute of limitation only commences when
such a continuing harm ceases. E.g., Suh v. Yang, 987 F. Supp. 783, 795 (N.D. Cal.
1997) (continuing wrong doctrine delays accrual); Flowers v. Carville, 310 F.3d
1118, 1126 (9th Cir. 2002); Wyatt v. Union Mort. Co., 24 Cal. 3d 773, 788 (1979).
What DC Comics seeks in this case is a declaration bringing this course of
misconduct to a haltinvalidating all illicit consent agreements between and
among the Toberoff defendants and the Siegel and Shuster heirs. Defendants say
nothing about the continuing harm that DC Comics expressly alleges, FAC 3,
101, 169-70; instead, they misrepresent DCs complaint and focus exclusively on
the Pacific Pictures agreements, Mot. at 10. But these agreements still affect DC
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DC COMICS RENEWED OPP. TO DEFS
RENEWED MOTION TO
DISMISS/STRIKE THIRD & SIXTH CLAIMS
Comics rights today, supra at 2-4, are part of a pattern of misconduct, and all such
agreements will continue to harm DC through 2013 unless judicially declared void.
In addition, as DC Comics complaint makes clear, Toberoffs overall pattern
of misconduct only came to light when Judge Larson ordered the Toberoff Timeline
produced to DC Comics in December 2008less than two years ago. FAC 102-
04. The discovery rule postpones accrual of a cause of action until the plaintiff
discovers the facts underlying its claims. E.g., Polar Bear Prods., Inc. v. Timex
Corp., 384 F.3d 700, 707 (9th Cir. 2004);Norgart v. Upjohn Co., 21 Cal. 4th 383,
393 (1999). Defendants factual assertion that DC Comics knew of its claim no
later than November 2006without any explanation how DC Comics receipt of
the Pacific Pictures agreements put it on notice of defendants continuing and
multi-faceted course of interferenceis not proper argument on a Rule 12 motion.
Cf. In re Rubber Chems. Antitrust Litig., 504 F. Supp. 2d 777, 789 (N.D. Cal. 2007)
(statute-of-limitations question cannot be resolved on motion to dismiss because it
requires determination of fact-intensive issues); Fox v. Ethicon Endo-Surgery, Inc.,
35 Cal. 4th 797, 810 (2005) (statute of limitations normally a question of fact).
Important facts about Toberoffs misconduct only came to light as recently as thisyear, infra at 16-19, and doubtless more still will be uncovered in discovery.
Sixth Claim. Knowing the discovery rule is a fatal to their statute-of-
limitation arguments, defendants assert the rule does not apply to DC Comics sixth
claim for unfair competition. Mot. at 10. Defendants cite Stutz Motor Car of Am.
v. Reebok Intl, 909 F. Supp. 1353 (C.D. Cal. 1995), for this point, but shortly after
Stutz was decided, the California Supreme Court and Ninth Circuit both said it was
an open question whether the discovery rule applies. Grisham v. Philip Morris
U.S.A., Inc., 40 Cal. 4th 623, 635 n.7 (2007);Betz v. Trainer Wortham & Co., 236
Fed. Appx. 253, 256 (9th Cir. May 11, 2007). Since then, courts have held that the
discovery rule does apply in 17200 cases when fraud is alleged, as here. E.g.,
Broberg v. Guardian Life Ins. Co. of Am., 171 Cal. App. 4th 912, 920-21 (2009)
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DC COMICS RENEWED OPP. TO DEFS
RENEWED MOTION TO
DISMISS/STRIKE THIRD & SIXTH CLAIMS
consideration. This inquiry into a partys intent is an issue of fact. Id. at1251.
DCs sixth claim for unfair competition is based in part on the illegal agreements
Toberoff engineered. FAC 187-88. Defendants assert that because DC Comics
learned of the consent agreements during a Court-ordered settlement mediation
on May 2, 2008, such communications are absolutely privileged. Mot. at 17.
This argument fails for three reasons. First, defendants ignore the PPC and
IP Worldwide Agreements, which contain the same illicit consent provisionsand
were never at issue in the mediation. Thus, the sixth claim survives. Bylin Heating
Sys., Inc. v. M & M Gutters, LLC, 2008 WL 744706, at *5 (E.D. Cal. March 18,
2008) (denying Rule 12 motion when defense applied only topartof claim).
Second, DC Comics does not sue defendants based on their conduct at the
May 2008 mediation or any related communication. The gravamen of DCs claim
is contracts that illegally traffic in its rights. Because defendants are not being
sued for speaking words that revealed their misdeeds, their reliance on litigation-
privilege cases involving conduct atsettlement talks is misplaced. Mot. at 16-18.
Third, defendants cannot immunize their consent agreements by asserting
they are clearly communications made in the course of judicial or quasi-judicialproceedings. Mot. at 18. The agreements are rights-impairing contracts
designed to harm DCs and the heirs intereststheir purpose is not to advance
legitimate issues of public concern or litigation objectives, no matter what
defendants may now say to escape liability. Defendants assertions about their
intent are at best contested issue[s] of fact, unfit for resolution now. Supra at 25.
IX. CONCLUSION
Defendants motion should be denied.
Dated: March 21, 2011 Respectfully Submitted,
By: /s/ Daniel M. PetrocelliDaniel M. Petrocelli
CC1:846319
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DC reserves all rights.
Very truly yours,
/s/ Matthew T. Kline
Matthew T. Klineof OMELVENY & MYERS LLP
cc: Daniel M. Petrocelli, Esq.
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