Majab Development, LLC v. Petro Welt Trading
CourtDistrict Court of Appeal of Florida
Date FiledJune 11, 2021
Docket2D20-2901
StatusPublished
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Full Opinion
DISTRICT COURT OF APPEAL OF FLORIDA
SECOND DISTRICT
MAJAB DEVELOPMENT, LLC, A FLORIDA LIMITED LIABILITY
COMPANY,
Petitioner,
v.
PETRO WELT TRADING GES.M.B.H, AN AUSTRIAN LIMITED
LIABILITY COMPANY; PETRO WELT TECHNOLOGIES AG, AN
AUSTRIAN STOCK CORPORATION; TRADING HOUSE KATOIL LLC,
A RUSSIAN LIMITED LIABILITY COMPANY; KATKONEFT LLC, A
RUSSIAN LIMITED LIABILITY COMPANY; KATOBNEFT LLC, A
RUSSIAN LIMITED LIABILITY COMPANY; AND KATOIL-DRILLING
LLC, A RUSSIAN LIMITED LIABILITY COMPANY,
Respondents.
No. 2D20-2901
June 11, 2021
Petition for Writ of Certiorari to the Circuit Court for Collier County;
Elizabeth V. Krier, Judge.
Gary M. Carman and Richard F. Danese of GrayRobinson, P.A.,
Miami; and Kristie Hatcher-Bolin of GrayRobinson, P.A., Lakeland,
for Petitioner.
Richard G. Salazar and Chance Lyman of Buchanan, Ingersoll &
Rooney, P.C., Tampa; and Oleg Stolyar and Robert Catalano of Loeb
& Loeb, LLP, Los Angeles, California, for Respondents.
KHOUZAM, Chief Judge.
Majab Development, LLC, a defendant below, has filed a
petition for writ of certiorari seeking to quash an order granting in
part a motion by the plaintiffs, Petro Welt Trading Ges.m.b.H and
other associated entities (collectively, "Petro"), to compel the
deposition of Majab's corporate representative. We grant the
petition only to the limited extent that the trial court overruled
certain privilege objections raised by Majab without any
accompanying findings or analysis. Otherwise, the petition is
denied.
BACKGROUND
Petro has sued Majab and Edward Brinkmann, Majab's sole
manager and employee, alleging a complex international scheme
dating back more than a decade. Petro raises a variety of claims
including fraud, conversion, civil theft, and civil RICO violations.
In connection with Majab's corporate representative's
deposition, various disagreements arose regarding the adequacy of
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its designee's preparation and certain privilege objections by Majab.
Petro thereafter filed a motion to compel, asserting that Majab's
representative was unprepared to testify as to a number of noticed
topics and that Majab's counsel had raised inappropriate privilege
objections and instructions not to answer. As relevant here, Petro's
motion asked the court (I) to compel Majab to produce a corporate
representative who was adequately prepared to testify as to the
designated areas of inquiry and (II) to overrule certain privilege
objections.
The identified privilege objections fell into two categories.
First, Petro claimed Majab had improperly asserted privilege
objections regarding nonprivileged factual information and
documents that had been provided to the corporate representative
by counsel or accountants. Second, Petro claimed Majab had
improperly asserted a privilege over communications that occurred
in the presence of a third party—Mr. Brinkmann's mother (Mrs.
Brinkmann).
After a hearing, a magistrate judge entered a recommended
order finding that Majab's corporate representative "appeared to be
unprepared to testify on several topics," and "[i]n fact, . . . could not
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answer basic questions" on some topics. The magistrate also found
that Majab's counsel had "instructed [the corporate representative]
not to answer a number of questions during the deposition citing
privilege grounds because documents were given to [her] by
[Majab]'s counsel or accountant."
The magistrate recommended granting Petro's motion. On the
adequacy of preparation, she recommended ordering Majab to
"produce a corporate representative adequately prepared to testify
as to the designated areas of inquiry." And she made a blanket
recommendation to overrule all of Majab's privilege objections
identified by Petro, without differentiating between them. Majab
thereafter filed exceptions to the recommended order, but after
another hearing, the trial court largely denied Majab's exceptions
and adopted these rulings. At no point in these hearings or orders
did the magistrate or the trial court specifically address the privilege
objections regarding communications allegedly disclosed to Mrs.
Brinkmann.
ANALYSIS
The order on review contains two relevant rulings. First, it
directs Majab to produce a corporate representative who is
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adequately prepared to testify about Petro's noticed areas of inquiry.
Second, it overrules each of Majab's privilege objections specifically
addressed in Petro's motion.
With respect to the former, we conclude that Majab has not
established entitlement to certiorari relief and decline to quash that
ruling without further comment. The same is true for the decision
to overrule the category of Majab's privilege objections for
documents or information funneled through counsel or
accountants. However, because the court never specifically
addressed the privilege objections for communications allegedly
disclosed to Mrs. Brinkmann before making a blanket ruling
overruling all of the privilege objections challenged by Petro, we
quash the order to the limited extent it overrules this discrete
category of privilege objections.
"[R]eview by certiorari is 'appropriate when a discovery order
departs from the essential requirements of law, causing material
injury to a petitioner throughout the remainder of the proceedings
below and effectively leaving no adequate remedy on appeal.' "
Morgan, Colling & Gilbert, P.A. v. Pope, 798 So. 2d 1, 2 (Fla. 2d DCA
2001) (quoting Allstate Ins. Co. v. Langston, 655 So. 2d 91, 94 (Fla.
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1995)). Ordering discovery of privileged material is commonly
recognized as establishing irreparable harm for the purpose of
obtaining certiorari relief. E.g., Progressive Am. Ins. Co. v. Herzoff,
290 So. 3d 153, 156 (Fla. 2d DCA 2020) (acknowledging that
discovery of "cat out of the bag" material "satisfies the jurisdictional
requirements for certiorari relief").
Further, "[i]t may be a departure from the essential
requirements of the law when the trial court requires production of
documents—without explanation—despite objections that statutory
protections apply." Harborside Healthcare, LLC v. Jacobson, 222
So. 3d 612, 616 (Fla. 2d DCA 2017) (citing Bartow HMA, LLC v.
Kirkland, 171 So. 3d 783, 785 (Fla. 2d DCA 2015)); see also E. Bay
NC, LLC v. Estate of Djadjich by and Through Reddish, 273 So. 3d
1141 (Fla. 2d DCA 2019) (same). "That is, where the trial court fails
to specifically address whether claimed statutory privileges apply,
leaving this court 'to guess at the basis for the discovery of each
document' and as to whether the trial court even considered the
objection, certiorari relief may be warranted." Harborside, 222 So.
3d at 616 (quoting Kirkland, 171 So. 3d at 786-87).
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Here, unlike Majab's objections regarding information and
documents received from accountants or counsel, neither the trial
court's order nor the magistrate's recommendation that it adopted
contains findings or analysis regarding the discrete category of
privilege objections for communications allegedly disclosed to Mrs.
Brinkmann. Nor did the judge or magistrate ever expressly address
this request at the hearings. Consequently, the order "leave[s] this
court to guess as to whether the trial court even considered the
statutory objections raised by" Majab before overruling them.
Estate of Djadjich, 273 So. 3d at 1145 (citing Harborside, 222 So. 3d
at 616).
In the narrow context of this case—particularly where Majab's
corporate representative deposition has yet to be completed and it is
unclear whether Majab's counsel also represents Mrs. Brinkmann—
overruling this category of privilege objections without any findings
or analysis warrants certiorari relief.1 We accordingly quash the
order only to the extent its blanket ruling on the privilege objections
1 Whether the facts of this case establish a waiver of that
statutory privilege is a question for the trial court in the first
instance that is not resolved by the limited record in this certiorari
proceeding.
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challenged by Petro includes those regarding conversations in the
presence of Mrs. Brinkmann.
Petition denied in part and granted in part.
MORRIS and SMITH, JJ., Concur.
Opinion subject to revision prior to official publication.
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