Motion To Compel Compliance With Post-Judgment Subpoena Duces Tecum Granted Against Former Law Firm Retained By Committee Of Independent Directors

On August 23, 2024, Justice Andrew Borrok granted a judgment creditor’s post-judgment subpoena deuces tecum against the law firm, Steptoe LLP. In Altium Growth Fund, L.P., et al., v. Tingo Group Inc., Index No. 651910/2023, Steptoe LLP was retained by the Committee of Independent Directors of the judgment debtor to investigate claims of fraud by the company and its CEO. Steptoe LLP did not directly represent the judgment debtor, but the firm objected to the production of documents on the grounds of privilege. The Court granted the motion to compel, finding that no privilege attached to the sought-after documents and no opposition had been filed. It explained:

In their moving papers, the Judgment Creditors argue that the requested documents were not privileged and that even if they were privileged, any privilege was waived when the Committee sent the documents to Tingo or when they were received from Tingo . . . . To wit, the Judgment Creditors argue that because Steptoe did not represent Tingo, the documents are not protected by the attorney client privilege, work product doctrine and the common interest exception does not apply because where a special committee shares confidential information with the alleged wrongdoers that the committee was entrusted to investigate the common interest privilege does not apply.

The attorneys at Schlam Stone & Dolan frequently advise clients concerning both pre- and post-judgment subpoenas. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.