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HomeMy WebLinkAbout3. City of Renton's Opposition to Tracfone's Motion to Compel Audit File1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {KZS2363491.DOCX;1/07851.000003/ } RESPONDENT CITY OF RENTON’S OPPOSITION TO TRACFONE’S MOTION TO COMPEL AUDIT FILE - 1 OGDEN MURPHY WALLACE, P.L.L.C. 901 Fifth Avenue, Suite 3500 Seattle, Washington 98164-2008 Tel: 206.447.7000/Fax: 206.447.0215 BEFORE THE HEARING EXAMINER OF THE CITY OF RENTON RE: TracFone Wireless, Inc. Administrative Appeal RESPONDENT CITY OF RENTON’S OPPOSITION TO TRACFONE’S MOTION TO COMPEL PRODUCTION OF AUDIT FILE I. INTRODUCTION The City of Renton (“the City”) opposes the TracFone Wireless Inc.’s (“TracFone”) Motion to Compel (“the Motion”). Without providing any authority for its litany of complaints, TracFone’s Motion seeks to compel information already produced by the City and impermissibly seeks to limit relevant testimony. For the reasons set forth below, the City requests that the Hearing Examiner deny TracFone’s Motion. II. STATEMENT OF THE FACTS The City and Tax Recovery Services, LLC’s (“TRS”) have produced all reasonably relevant materials to TracFone. Approximately 11 months ago, the City filed its Proposed Discovery Plan. In it, it stated: C. TracFone has requested, and the City has agreed to produce, the audit file for TracFone maintained by Taxpayer Recovery Services, LLC for the City. The City expects to provide the audit file as soon as possible. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {KZS2363491.DOCX;1/07851.000003/ } RESPONDENT CITY OF RENTON’S OPPOSITION TO TRACFONE’S MOTION TO COMPEL AUDIT FILE - 2 OGDEN MURPHY WALLACE, P.L.L.C. 901 Fifth Avenue, Suite 3500 Seattle, Washington 98164-2008 Tel: 206.447.7000/Fax: 206.447.0215 Respondent City of Renton Proposed Discovery Plan, p. 2. Shortly thereafter, the City produced TRS’s Audit File as it was kept in the ordinary course of business. Declaration of Tamara Crisp (“Crisp Decl.”) at ¶ 3. Over the following months, TracFone shifted its focus from the merits of this case to the format and contents of this Audit File. Despite maintaining that TRS produced the full Audit File in the same manner in which it was created and maintained, it repeatedly obliged by TracFone’s requests to add additional information, such as invoices between TRS and the City, as well requests regarding the format of the materials, such as adding Bates numbering. Crisp Decl. at ¶ 4. In total, the City supplemented the Audit File an additional six times based on TracFone’s requests for additional files. Crisp Decl. at ¶ 5. TRS and the City have exceeded its obligations under the rules of discovery. Despite this, TracFone continues to insist that more information must exist, without any authority or any evidence to support it. TracFone’s latest request on January 13, 2021, the subject of this Motion, sought (1) complete copies of all correspondence to and from TracFone; and (2) the dates each version of different schedules were created. Crisp Decl. at Ex. A. While the City and TRS were under no obligation to comply with this request, in a showing of good faith and to move this matter forward, TRS responded to TracFone with the information requested on January 22, 2021. See Crisp Decl., at Exs. B-D. TRS provided TracFone with a narrative response, explaining the content and creation date of each Schedule, a chart delineating all prior email issues with TRS’s explanation and timestamps, as well as all remaining emails requested by TracFone. See Crisp Decl., ¶ 8 (explaining that TRS has produced all responsive documents). TRS and the City have produced all potentially relevant materials as well as the specific information and materials sought in its Motion. Despite this, TracFone filed its Motion to Compel seeking the information already produced by the City and TRS. / / / / / / / / / 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {KZS2363491.DOCX;1/07851.000003/ } RESPONDENT CITY OF RENTON’S OPPOSITION TO TRACFONE’S MOTION TO COMPEL AUDIT FILE - 3 OGDEN MURPHY WALLACE, P.L.L.C. 901 Fifth Avenue, Suite 3500 Seattle, Washington 98164-2008 Tel: 206.447.7000/Fax: 206.447.0215 III. ISSUE PRESENTED Should the Hearing Examiner deny TracFone’s Motion and refuse to grant the relief requested therein where TracFone’s Motion seeks to compel information already produced by the City, where the City has supplemented TRS’s Audit file six times to conform to TracFone’s litany of requests and complaints, and where TracFone fails to cite any authority or law that authorizes its requests? Yes IV. ARGUMENT AND LEGAL AUTHORITY A. The City Has Fulfilled its Discovery Obligations and Provided TracFone with Fulsome Responses and Information. Washington Civil Rule 34 applies the discovery and the production of documents. Specifically, CR 34 (3)(F) states in pertinent part: Producing the Documents or Electronically Stored Information. Unless otherwise stipulated or ordered by the court: (i) A party who produces things, electronically stored information, or documents for inspection shall produce them as they are kept in the usual course of business… Civil Rule 34(3)(F). The City has exceeded this requirement. It produced the Audit File as it was kept in the usual course of TRS’s business. Despite this, TracFone requested additional information that TRS did not keep in its Audit File. TRS and the City repeatedly agreed to TracFone’s expanded, follow-up requests and updated its production an additional six times. The arguments advanced by TracFone suffer from several flaws. Most notably, TracFone seeks to compel information and materials that have previously been provided to TracFone by TRS on January 22, 2021. As explained above, after a litany of requests by TracFone regarding the contents and form of the Audit File, to which the City and TRS all obliged, TracFone most recently sought complete copies of all correspondence to and from TracFone and the creation date of several Schedules. TRS responded with the specific information requested: Thank you so much for putting your requests in writing; it makes us able to move forward and fulfill your requests in a much more thorough and timely way. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {KZS2363491.DOCX;1/07851.000003/ } RESPONDENT CITY OF RENTON’S OPPOSITION TO TRACFONE’S MOTION TO COMPEL AUDIT FILE - 4 OGDEN MURPHY WALLACE, P.L.L.C. 901 Fifth Avenue, Suite 3500 Seattle, Washington 98164-2008 Tel: 206.447.7000/Fax: 206.447.0215 Regarding the schedules, hopefully the following will be helpful to you: ExcelPrelim3Renton Tracfone.xls goes with the email that has the timestamp Thu, Aug 10, 2017 at 12:27 PM. No other ExcelPrelim3Renton Tracfone.xls spreadsheets were sent in the email trail between TracFone and TRS. Since there are apparently multiple spreadsheets with this name, the proper one shows interest in the amount of $114,308.43. It will show 50% for May 2013 denoting interest that is calculated through the end of August 2017. This one is in Batch 5, in the Miscellaneous file, under the name "Attachments to emails between TRS and TracFone 2." There is a second ExcelPrelim3Renton Tracfone.xls spreadsheet uploaded in the 5th Batch, outside of the subfolder, that has the same interest amount, calculated from through the same month: No change between these two. I am guessing that, in another batch, Renton provided an attachment named ExcelPrelim3Renton Tracfone.xls because it was an attachment to an email from TRS to Renton. You will be able to see on the date stamp for the email that the interest update was done in early October 2019. Renton had requested that TRS send them a copy with updated interest, and unfortunately TRS neglected to change the name at that point. This interest amount is $152,556.67, the same as the spreadsheet with the clarifying AA name I speak of below. Regarding the schedules including the suffixes A and AA, as you may recall from my second deposition, we created, for clarity, the spreadsheets below in order to be able to have unique designations for spreadsheets that differ: ExcelPrelim3Renton TracFoneA.xls has interest of $142,259.04, using 69% for May 2013, denoting interest that is calculated through the month of March 2019. I believe this is the spreadsheet sent out in hardcopy with the assessment. ExcelPrelim3Renton TracFone (higher interest)AA.xls, with interest of $152,556.67, using 76% for May 2013 denoting interest that is calculated through the month of October 2019. I believe this is the spreadsheet (though renamed) that was requested by Renton, but never sent to TracFone. In response to the question regarding the dates the schedules were created, all three of the above spreadsheets have creation dates early to mid-fall of 2020. The reasons for this are mentioned above. When we changed the interest on the spreadsheet, it was saved without changing the name, and this copied over the earlier spreadsheet. Then, when we became aware of the confusion this caused, we began downloading the earlier spreadsheets that had actually been sent out by email (sent August 10, 2017, and on October 15, 2019), and renamed the one that matched our assessment letter, giving it the suffix A. These processes improved the naming convention, but gave the creation date for each to be in the fall of 2020. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {KZS2363491.DOCX;1/07851.000003/ } RESPONDENT CITY OF RENTON’S OPPOSITION TO TRACFONE’S MOTION TO COMPEL AUDIT FILE - 5 OGDEN MURPHY WALLACE, P.L.L.C. 901 Fifth Avenue, Suite 3500 Seattle, Washington 98164-2008 Tel: 206.447.7000/Fax: 206.447.0215 You can get an approximate idea of the dates for these spreadsheets by looking at the months of interest charged, and the date stamps of any emails involved. We have also included two attachments. One is a PDF named, because I started work on it on the 17th, "TracFone TRS Renton More Emails 1-17-21.pdf". It is a PDF of all of the emails I found that were left out of the already submitted "TracFone TRS Renton Audit Emails All.doc." None had attachments. In all but one of these, I was able to do the redacting in the manner you requested without unnecessarily revealing inappropriately other business. The other attachment is a table of "Email Issues, Explanations and Notes." This table was made as I looked over the Documentation Sheet (ie the updates combined) very carefully to see if there were emails referenced that were mis-dated, or had some other issue which might have led to confusion if it was not cleared up. Crisp Decl. at Ex. B. TRS ended this communication by stating: “If you have questions or issues regarding any of these submittals, please contact me and CC Kari Sand.” Crisp Decl. at Ex. B. TracFone did not follow up. Now, in its Motion, TracFone appears to allege that TRS’s thorough and complete response is somehow insufficient. TRS and the City have produced all information and materials it has within its possession that is reasonably responsive to TracFone’s request. Crisp Decl. at ¶ 8. The City has thus fulfilled its requirements under the discovery rules and is not in possession of any other reasonably responsive information. Crisp Decl. at ¶ 8. While TracFone may be frustrated by this fact, the City and TRS cannot produce information or materials that do not exist or are not in its possession or control. B. TracFone’s Request to Limit TRS From Testifying is Improper and Unwarranted. Finally, as an “alternative” request not offered until the last sentence of its motion, TracFone seeks to preclude relevant testimony from TRS in both the Hearing and from other Motions practice. TracFone offers no legal authority for such an extreme request. This request is not authorized under the law nor is it appropriate given the City’s and TRS’s compliance with TracFone’s litany of requests. The City therefore requests that the Hearing Examiner deny this request. / / / / / / 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {KZS2363491.DOCX;1/07851.000003/ } RESPONDENT CITY OF RENTON’S OPPOSITION TO TRACFONE’S MOTION TO COMPEL AUDIT FILE - 6 OGDEN MURPHY WALLACE, P.L.L.C. 901 Fifth Avenue, Suite 3500 Seattle, Washington 98164-2008 Tel: 206.447.7000/Fax: 206.447.0215 V. CONCLUSION Given the City has fully satisfied its discovery obligations and previously produced the specific documents and information sought in TracFone’s Motion to Compel, this Motion is unjustified and frivolous, and therefore must be denied. DATED this 12th day of February 2021. OGDEN MURPHY WALLACE, PLLC By /s/Kari L. Sand Kari L. Sand, WSBA #27355 Julia Norwood, WSBA #52876 Attorneys for Respondent City of Renton ksand@omwlaw.com 901 Fifth Avenue, Suite 3500 Seattle, WA 98164-2008 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {KZS2363491.DOCX;1/07851.000003/ } RESPONDENT CITY OF RENTON’S OPPOSITION TO TRACFONE’S MOTION TO COMPEL AUDIT FILE - 7 OGDEN MURPHY WALLACE, P.L.L.C. 901 Fifth Avenue, Suite 3500 Seattle, Washington 98164-2008 Tel: 206.447.7000/Fax: 206.447.0215 CERTIFICATE OF SERVICE I, Kenya Owens, an employee of Ogden Murphy Wallace, PLLC, certify that on the date below, I filed and served the Respondent City of Renton’s Opposition of Tracfone’s Motion to Compel Audit File via email on the following parties: TracFone Wireless, Inc. Scott Edwards Lane Powell, PC 1420 5th Avenue, Suite 4200 Seattle, WA 98101 EdwardsS@LanePowell.com Grant S. Degginger Lane Powell, PC 1420 5th Avenue, Suite 4200 Seattle, WA 98101 DeggingerG@LanePowell.com I declare under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct. Executed at Seattle, Washington this 12th day of February, 2021. /s/Kenya Owens Kenya Owens Legal Assistant