Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-02160/USCOURTS-caed-2_07-cv-02160-3/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Other Contract

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LITTLER MENDELSON 

A P ROFESSIONAL C ORPORATION

2520 Venture Oaks Way 

Suite 390 

Sacramento, CA 95833.4227 

916.830.7200 

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STIPULATION AND ORDER RE CLAW-BACK AGREEMENT 

FIRMWIDE:85518800.1 037725.1011 

Kenneth R. O'Brien, Bar No. 072128 

Aaron D. Crews, Bar No. 235381 

LITTLER MENDELSON 

A Professional Corporation 

2520 Venture Oaks Way 

Suite 390 

Sacramento, CA 95833.4227 

Telephone: 916.830.7200 

Attorneys for Defendants 

AMERICAN PROPERTY DEVELOPMENT, INC., 

AMERICAN CAPITAL HOMES, INC. 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

JAMES C. DONOVAN, 

Plaintiff, 

v. 

AMERICAN CAPITAL GROUP, INC., a 

Washington Corporation, AMERICAN 

PROPERTY DEVELOPMENT, INC., a 

Washington Corporation, AMERICAN 

CAPITAL HOMES, INC., a Washington 

Corporation, ROGER WILLIAM KUULA, 

an individual, GREG BORREGO, an 

individual, and DOES 1 through 20, 

inclusive, 

Defendants. 

Case No. 2:07-CV-02160-GEB-DAD 

STIPULATION AND ORDER RE 

“CLAW-BACK” AGREEMENT 

Complaint Filed: September 7, 2007 

Trial Date: August 18, 2009 

The Parties, by and through their respective Counsel, pursuant to FRCP 26(b)(5), do 

hereby agree and stipulate as follows: 

The parties anticipate they will produce a substantial number of documents in 

electronic format in this matter. Despite their best efforts to remove from these productions 

documents subject to the attorney-client privilege, the attorney work-product doctrine, and other 

legally recognized privileges, the parties recognize that given the volume of documents to be 

produced and the electronic format in which they were received and will be produced, it is virtually 

impossible, without the expenditure of an unreasonable amount of resources, to ensure that every 

document subject to a claim of privilege or the attorney work-product doctrine will not be produced. 

Case 2:07-cv-02160-GEB-DAD Document 23 Filed 06/16/08 Page 1 of 4
LITTLER MENDELSON 

A P ROFESSIONAL C ORPORATION

2520 Venture Oaks Way 

Suite 390 

Sacramento, CA 95833.4227 

916.830.7200 

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STIPULATION AND ORDER RE CLAW-BACK AGREEMENT

(NO. ) 

FIRMWIDE:85518800.1 037725.1011 2. 

Accordingly, the parties do hereby agree and stipulate as follows: 

1. The parties will take reasonable steps, including a reasonable review of the 

documents to be produced prior to production, to ensure that all electronic documents and 

information subject to a legally recognized claim of privilege are removed from the documents to be 

produced to the opposing party prior to production. 

2. The inadvertent production of information subject to a legally recognized 

claim of privilege to an opposing party shall in no way prejudice or constitute a waiver of, or 

estoppel as to, any claim of privilege, work-product or other ground for withholding production of 

such information to which the Producing Party would otherwise be entitled. 

3. If any document produced by a party is on its face subject to the attorneyclient privilege or the attorney work-product doctrine, the Receiving Party shall immediately notify 

the Producing Party that it has discovered documents believed to be privileged, identify the 

documents by bates number range or hash value range, and will return all copies of such documents, 

along with any notes, abstracts or compilations of the content thereof, within 14 days of their 

discovery by the Receiving Party. The Receiving Party shall confirm in writing to the Producing 

Party that it has complied with the foregoing provisions. 

4. If the Producing Party intends to assert a claim of privilege over documents 

identified and returned by the Receiving Party pursuant to Paragraph 3 hereinabove, the Producing 

Party shall, within 5 court days of Receiving Party’s notification, inform the Receiving Party of such 

intention in writing and provide Receiving Party an updated privilege log, reflecting the claimed 

privilege and the basis for it, pursuant to Federal Rule of Civil Procedure 26 (b)(5)(A). 

5. The Receiving Party’s return of such privileged documents shall not act as a 

waiver of that Party’s right to seek the returned documents via discovery on grounds the documents 

are not in fact subject to a viable claim of privilege. Nor will it act as a waiver of the Receiving 

Party’s right to seek to compel the production of the returned documents. However, the Receiving 

Party is prohibited and estopped from arguing the Producing Party’s inadvertent production of the 

documents in this matter acts as a waiver of applicable privileges. The parties agree that a privileged 

document inadvertently produced in discovery may be submitted to the court with a proposed sealing 

Case 2:07-cv-02160-GEB-DAD Document 23 Filed 06/16/08 Page 2 of 4
LITTLER MENDELSON 

A P ROFESSIONAL C ORPORATION

2520 Venture Oaks Way 

Suite 390 

Sacramento, CA 95833.4227 

916.830.7200 

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STIPULATION AND ORDER RE CLAW-BACK AGREEMENT

(NO. ) 

FIRMWIDE:85518800.1 037725.1011 3. 

order in conformity with Local Rule 39-141, pending a determination of the claim of privilege by 

appropriate motion. 

6. If, during the course of this litigation, a Producing Party determines it has 

inadvertently produced a document protected from discovery by a legally recognized claim of 

privilege or the application of the attorney work-product doctrine, the Producing Party may notify 

the Receiving Party of such inadvertent production in writing. The Producing Party’s written notice 

shall identify the document inadvertently produced by bates number range or hash value range, the 

privilege claimed, and the basis for the assertion of the privilege. It shall also demand the return of 

the inadvertently produced documents. After receiving such written notification, the Receiving 

Party must promptly return the specified information and any copies it has, along with any notes, 

abstracts or compilations of the content thereof; must not use or disclose the information until the 

claim of privilege is resolved by the parties or the Court, and must take reasonable steps to retrieve 

the information if the Receiving Party disclosed it to third parties before being notified of its 

privilege and/or protected status. The parties agree that a privileged document inadvertently 

produced in discovery may be submitted to the court with a proposed sealing order in conformity 

with Local Rule 39-141, pending a determination of the claim of privilege by appropriate motion. 

However, if the Receiving Party presents the information to the Court for a determination of the 

claim of privilege, the Receiving Party is prohibited and estopped from arguing the Producing 

Party’s inadvertent production of the documents in this matter acts as a waiver of applicable 

privileges. 

7. Upon the return of privileged documents inadvertently produced, the Producing 

Party will, within 5 days of receiving the returned documents, provide Receiving Party an updated 

privilege log, reflecting the claimed privilege and the basis for it, pursuant to Federal Rule of Civil 

Procedure 26 (b)(5)(A). 

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Case 2:07-cv-02160-GEB-DAD Document 23 Filed 06/16/08 Page 3 of 4
LITTLER MENDELSON 

A P ROFESSIONAL C ORPORATION

2520 Venture Oaks Way 

Suite 390 

Sacramento, CA 95833.4227 

916.830.7200 

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STIPULATION AND ORDER RE CLAW-BACK AGREEMENT

(NO. ) 

FIRMWIDE:85518800.1 037725.1011 4. 

IT IS SO STIPULATED: 

Dated: June 13, 2008 

/s/ 

JAMES T. CAHALAN 

CAHALAN & ASSOCIATES 

Attorneys for Plaintiff 

JAMES C. DONOVAN 

Dated: June 13, 2008 

/s/ 

Kenneth R. O'Brien 

Aaron D. Crews 

LITTLER MENDELSON 

A Professional Corporation 

Attorneys for Defendants 

AMERICAN PROPERTY DEVELOPMENT, 

INC., AMERICAN CAPITAL HOMES, INC., 

ROGER KUULA, GREG BORREGO 

IT IS SO ORDERED: 

DATED: June 13, 2008. 

Ddad1/orders.civil/donovan2160.stipord(2) 

Case 2:07-cv-02160-GEB-DAD Document 23 Filed 06/16/08 Page 4 of 4