Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_13-cv-01710/USCOURTS-caed-2_13-cv-01710-8/pdf.json

Nature of Suit Code: 430
Nature of Suit: Banks and Banking
Cause of Action: Civil Miscellaneous Case

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 AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

KEVIN D. HUGHES 

CA State Bar No. 188749 

LINDA J. KIM 

CA State Bar No. 181122 

TISDALE & NICHOLSON, LLP 

2029 Century Park East, Suite 900 

Los Angeles, CA 90067 

Telephone: (310) 286-1260 

Facsimile: (310) 286-2351 

Email: khughes@t-nlaw.com 

 lkim@t-nlaw.com 

Attorneys for Defendants Robert Ching, 

Eugene Even, Donald Leforce, Ellis Matthews, 

Luther McLaughlin, Robert Morgan, James 

Rickards, Gary Strauss, Hubert Townshend, 

John Coger and Keith Robbins 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

FEDERAL DEPOSIT INSURANCE 

COMPANY AS RECEIVER FOR BUTTE 

COMMUNITY BANK, 

Plaintiff, 

v. 

ROBERT CHING, EUGENE EVEN, DONALD 

LEFORCE, ELLIS MATTHEWS, LUTHER 

McLAUGHLIN, ROBERT MORGAN, JAMES 

RICKARDS, GARY STRAUSS, HUBERT 

TOWNSHEND, JOHN COGER AND KEITH 

ROBBINS, 

Defendants. 

CASE NO.: 2:13-cv-01710-KJM-EFB

Assigned to the 

Hon. Kimberly J. Mueller 

AMENDED PROTECTIVE ORDER 

REGARDING CONFIDENTIALITY AND 

NON-DISCLOSURE 

[COURT MODIFICATION SHOWN IN 

STRIKEOUT/UNDERLINE FORMAT] 

 

This Court has concluded that there are compelling reasons to enter a protective order 

regarding confidentiality and non-disclosure in order to facilitate the production of discovery 

materials in this case and to balance the need to protect the disclosure of sensitive customer 

personal and financial information and regulatory information without requiring the FDIC-R 

Case 2:13-cv-01710-KJM-EFB Document 92 Filed 08/20/15 Page 1 of 12
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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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to incur the burden and expense of having to review each document line-by-line to redact 

potentially sensitive information. The protective order regarding confidentiality and nondisclosure ("Protective Order") will significantly reduce the cost of production and will 

expedite the production of discovery materials in this case. Accordingly, pursuant to Fed. R. 

Civ. P. 26(c), it is hereby 

ORDERED and ADJUDGED that this Protective Order shall govern the production 

and handling of information exchanged by FDIC-R and Defendants (hereinafter individually 

referred to as a "Party" or together as the "Parties") in these proceedings, as well as 

Confidential Material (as defined below) produced by non-parties if designated as such by 

the producing party (which includes non-parties under paragraph 4 below). 

1. Purpose. This Protective Order is entered for the purpose of the Parties (and 

non-parties, as applicable) exchanging confidential documents and information in connection 

with this litigation. The Protective Order is necessary because some documents exchanged 

hereunder contain information protected from disclosure by law, including private and 

protected financial information about consumers (such as protected by the Gramm-LeachBliley Act (Pub. L 106-102)), confidential regulatory information, or commercially sensitive 

information, disclosure of which could result in violation of law, or harm to individual 

consumers or the Parties or non-parties if applicable. 

2. Definition of Confidential Material. For purposes of this Protective Order, 

"Confidential Material" shall mean certain documents, records, and information composed or 

stored in written, electronic, digital, or any other medium, provided by any Party or by nonparties pursuant to this Protective Order, and to any information identifying any names, 

addresses, account information, personal information (such as social security number, date of 

birth, and any other personal identification information} recognized by law as, or required to 

be maintained as, confidential, including, without limitation, the following: 

(a) Regulatory: Confidential Material related in any way to the regulation 

or supervision of the Bank, in whatever form, whether preliminary or final, including 

reports of examination or inspection, regulatory correspondence, reports, orders, 

Case 2:13-cv-01710-KJM-EFB Document 92 Filed 08/20/15 Page 2 of 12
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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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memoranda, or agreements by, from or with the FDIC in its corporate capacity, the 

Office of Thrift Supervision ("OTS"), or any other federal or state regulatory 

authority, and any documents containing confidential information obtained from any 

documents and records related to the supervision or regulation of the Bank. The 

Parties understand and agree that the release of such regulatory information may 

require approval from independent government agencies, and that no regulatory 

documents, however obtained, will be disclosed to third parties not covered by this 

Protective Order. 

(b) Statutory: Confidential Material includes documents that are 

confidential pursuant to the Freedom of Information Act, 5 U.S.C. §552, 12 C.F.R. 

Part 309, the laws of the State of California, or any other applicable federal or state 

laws. 

(c) Bank and Bank Customers: Confidential Material related to the 

Bank, its customers, any trading company involved in placing orders for commodities 

futures or options, or any other. entity, including: Automated Clearing House items or 

transactions, chargebacks, merchant processing, bank account information, signature 

cards, bank statements, general ledger entries, deposit or reserve information, 

commodity trading statements, loans and lending transactions, loan applications, 

financial statements and credit reports, business and personal state and federal income 

tax forms, correspondence, and related loan documentation relating to any extension 

of credit or loan to any borrower. Examples of "Confidential Material," without 

limitation, include documents containing a customer's account number, credit card 

number, personal identification number, account balance, information relating to a 

deposit account, loan, or borrower relationship and loan application materials, and 

documents or information that contain the customer's name, address, social security 

number, date of birth or other similar identifying information. 

(d) Receivership: Confidential Material related to the receivership of the 

Bank, including any information on loss or estimates of such loss on the Bank's assets 

not publicly available. Notwithstanding the provisions of paragraph 6(a) — (k), no 

such Confidential Material shall be disclosed to any person or entity known to have 

any current or prospective interest in such assets, whether or not that person or entity 

would otherwise be allowed access to documents and information under the terms of 

this Protective Order. This subparagraph (d), however, does not prevent such 

documents from being shared with experts or others listed in paragraphs 6(a) — (i). 

Notwithstanding the foregoing paragraphs (a) — (d), no party is estopped or in any 

way prevented from later challenging the confidentiality designation of any document. 

3. Confidential Designation and Treatment of Confidential Material.

Documents provided by any Party pursuant to this Protective Order that are deemed and 

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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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denominated by any Party as "Confidential" pursuant to this Protective Order shall be 

deemed to be Confidential Material, unless and until that designation is challenged pursuant 

to paragraph 4, below. Confidential Material may be designated as such by affixing to the 

material the legend "Confidential," including by affixing that legend to the exterior of a CDROM containing such materials. The failure to designate any documents with such legend 

shall not constitute a waiver by any Party of the right to assert that such documents contain 

protected Confidential Material. In the event that any Party produces Confidential Material 

without designating it as such, the producing Party may notify the receiving Parties that the 

documents or information should have been designated Confidential Material, and the Parties 

will treat the documents as Confidential Material under this Protective Order. Confidential 

Material shall only mean and shall be limited to the documents produced in this litigation. In 

the event a Party obtains a duplicate copy of a document produced in discovery in this 

litigation from a publicly available source the party acquiring the document shall not be 

required to comply with the terms of this Order regarding the use of the duplicate document 

and the use of such duplicate document shall not be subject to the provisions of the Order. 

4. Any non-party producing documents in this litigation may avail itself of the 

confidential treatment provided for in this Protective Order for its documents, information or 

testimony by following the procedures provided herein as if it were a Party. A non-party 

state agency or department producing unredacted documents under the confidentiality 

designation shall be deemed not to be “disclos[ing]” “personal information” pursuant to 

California Civil Code section 1798.24 or other provision of the California Information 

Practices Act. Any non-party that wishes to produce documents subject to this provision 

agrees to be bound by the terms and conditions of this Protective Order and agrees that any 

disputes or issues relating to the application, interpretation, or use of the Protective Order 

will be resolved in the United States District Court for the Eastern District of California. 

5. Challenge of Confidentiality Designation. A Party shall not be obligated to 

challenge the propriety of a designation of confidentiality at the time made, and a failure to 

do so shall not preclude a subsequent challenge thereto. In the event that any Party disagrees 

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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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at any stage of these proceedings with the confidentiality designation by the producing Party, 

the Parties shall first try to dispose of such dispute in good faith on an informal basis. If after 

fifteen (15) days the dispute cannot be resolved, the Party objecting to the designation may, 

at any time thereafter, seek appropriate relief from the Court in which this action is pending. 

The challenged designation shall be maintained and shall remain in full force and effect 

pending the Court's determination on the challenged designation. 

6. Non-disclosure of Confidential Material. All Confidential Material provided 

pursuant to this Protective Order is provided solely and exclusively for purposes of litigating 

this action. Absent further written agreement between the Parties of further court order, all 

such materials shall be maintained confidential pursuant to this Protective Order and shall 

not be disclosed, discussed, or in any way divulged to any person for any other purpose, 

except as permitted under this Protective Order. 

7. Exceptions for Non-disclosure. The Parties agree that the Confidential 

Material shall be used only to investigate, analyze, litigate, and resolve this action. The 

Parties may disclose Confidential Material received pursuant to this Protective Order to the 

following persons or entities, provided that each person or entity, required to do so, complies 

with paragraph 7 below: 

(a) counsel signing this Protective Order (together with any employees of 

counsel) engaged byany Party to assist or participate in the evaluation and resolution 

of the FDIC-R Claims; 

(b) vendors, consulting experts, testifying experts and consultants engaged by 

any Party to assist or participate in the investigation, analysis and defense of the 

FDIC-R Claims; 

(c) insurers, reinsurers, regulators, auditors, or other entities to whom 

Defendants may be required to respond or report to in the ordinary course of business 

regarding the subject matter of the FDIC-R Claims; 

(d) the individual Defendants in this action; 

(e) other Bank officers, directors, employees, independent contractors, or 

outside accountants or auditors who performed work for the Bank; 

Case 2:13-cv-01710-KJM-EFB Document 92 Filed 08/20/15 Page 5 of 12
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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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(f) FDIC (in any of its capacities) personnel, including, but not limited to, 

its Chairman, Board of Directors, attorneys, investigators, senior executives, and 

others) conducting ,assisting, monitoring, reviewing, or making determinations with 

regard or related to the FDIC-R Claims, or the action; 

(g) any witness or third party contacted by counsel for a party to investigate 

this case, whether such witness or third party will or will not testify at trial or in 

deposition, in this action; provided, however, that no disclosure of Confidential 

Material to such persons shall be made unless and until the witness or third party has 

executed-the agreement to maintain confidentiality. 

(h) Court officials involved in this action including court reporters, certified 

translators or interpreters, and other Court personnel as are necessarily incident to 

the conduct of discovery, the preparation for the trial or the trial itself; and 

(i) officers, employees, representatives and agents of the Party that produced 

the Confidential Material may see any and all Confidential Material produced by that 

Party. 

In no event shall any Confidential Material be disclosed to any party, by consent or 

by identification in the foregoing list, without such person first having executed the 

appropriate acknowledgements and agreements required herein. Notwithstanding this 

paragraph 6, Confidential Material pursuant to paragraph 2(d) shall not be disclosed to any 

person or entity known to have any current or prospective interest in Bank assets, whether or 

not that person or entity would otherwise be allowed access to documents and information 

under the terms of this Protective Order, without seeking and obtaining the permission of 

the Court in this action. 

8. Protective Order Certificate. Confidential Material may only be disclosed to 

persons or entities identified in subparagraphs 6(a) — (g) and (i) (j) after that person or entity 

agrees to be bound by this Protective Order and signs a written Acknowledgment and 

Agreement To Be Bound, in the form attached as Attachment A. The. Parties shall keep all 

of their respective Acknowledgments and Agreements To Be Bound containing original 

signatures. 

Case 2:13-cv-01710-KJM-EFB Document 92 Filed 08/20/15 Page 6 of 12
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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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9. Demands by Others for Confidential Materials. If any other person or entity 

demands, by subpoena or other judicial process, or by operation of law production of 

documents produced and marked as Confidential pursuant to this Protective Order, the Party 

receiving such demand shall promptly notify the producing Party of such demand. At its 

option, the producing Party may elect to challenge the demand and assert any applicable 

protections. The objecting Party shall notify the other Parties hereto and issuing court or 

tribunal of its challenge as required by law, the subpoena, or other judicial process. The 

burden of proving that Confidential Material is entitled to protection from disclosure shall lie 

with the Party making the claim. When such a challenge is made, the Party who received the 

demand shall not produce any Confidential Material in the absence of consent by the 

producing Party or an order by the issuing court or tribunal compelling production. 

10. No Waiver of Objections to Use; Filing Under Seal. The Parties hereto shall 

not contend or assert that a Party's production of Confidential Material pursuant to this 

Protective Order in any way acts as a waiver of any privilege, work product doctrine, or 

discovery or evidentiary objections by the producing Party, or otherwise entitles the 

receiving Party to obtain or use Confidential Material in a manner contrary to this Protective 

Order. In the event any party, who has designated a document (the "Designating Party") as 

Confidential Material pursuant to this Order, wishes to file under seal the Confidential 

Material, the Designating Party shall first consult with the Non-Designating Party to 

determine whether agreement may be reached on an informal basis. After consulting with the 

Non-Designating Party the Designating Party shall file a motion with the Court 

demonstrating good cause for the sealing with a request that the Confidential Material be 

filed under seal pursuant to Court rules and remain under seal until such time as the Court 

orders otherwise. The Court will then determine whether the document should be filed under 

seal and enter an appropriate order. In the event a Non-Designating Party wants to include in 

a court filing Confidential Material, which will not be the subject of a motion by the NonDesignating Party seeking the Court's permission to file the document under seal, the NonDesignating Party must give the Designating Party at least three days advance notice to allow 

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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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the Designating Party to file its own motion seeking a court determination of whether the 

document should be filed under seal. (If the Designating Party in the previous sentence is a 

non-party state agency or department, the Non-Designating Party must give that non-party 

state agency or department at least ten court days advance notice to file its own motion 

seeking a court determination of whether the document should be filed under seal). The 

Non-Designating Party must not file the Confidential Material with the Court until the Court 

has ruled upon the Designating Party's motion to file under seal. In the event the Designating 

Party fails to file a motion to seal within three days (or ten days in the case of a state 

Designating Party) after notification by the Non-Designating Party of its intent to file 

Confidential Material, the Non-Designating Party shall not then be required to file the 

Confidential Material under seal. Any Confidential Material the court orders filed under seal 

shall remain under seal until such time as the Court orders otherwise. 

11. Reservation of Rights. Nothing in this Protective Order confers upon the 

Parties any further right or access to documents or information not provided by the other 

Parties, including but not limited to any documents a Party withholds on the basis of any 

applicable privilege or immunity, regardless of whether such withheld documents may 

otherwise qualify as Confidential Material if produced rather than withheld. With respect to 

Confidential Material produced, each Party reserves its rights under this Protective Order, 

and otherwise under law. Any documents withheld on this basis or any other basis must be 

identified on a privilege log to be provided by the Party asserting the privilege or other 

protection within two weeks of the date the documents would have been produced had it not 

been privileged or otherwise protected from disclosure. 

12. Return of Documents. Within ninety (90) days after final adjudication of this 

action, including any resolution through settlement, unless otherwise agreed to in writing by 

Counsel for all Parties, the Parties shall either: (a) assemble and return all Confidential 

Materials, including all copies thereof, to the producing Party, or (b) certify in writing that all 

such information has been destroyed or will be maintained as Confidential until destroyed 

pursuant to any document or data destruction procedures applicable to such material. 

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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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13. Remedies. To enforce rights under this Protective Order or in the event of an 

alleged violation of this Protective Order, the Parties shall first seek to resolve the alleged 

violation through prompt and reasonable discussion. In the event such efforts fail to promptly 

resolve the alleged violation, the Parties reserve the right to seek relief from the Court in the 

action for, inter alia, money damages, injunctive relief, or any other relief as appropriate. 

Upon request by the producing Party, the receiving Party will provide appropriate certificates 

with respect to disposition of the Confidential Materials. 

14. No Waiver of Privileges; Inadvertent Production Procedure. The Parties do 

not waive any privilege, including any attorney-client privilege, work product doctrine, or 

any other applicable privilege they might have with respect to any of the documents and 

information produced, nor do the Parties waive the right to challenge any assertion of 

privilege by entering into this Protective Order. With respect to the FDIC, in any of its 

capacities, these privileges include, but are not limited to, any privilege that the Bank may 

have had or any federal or state regulatory agency may hold. The Parties' production of 

Confidential Material is not intended to, and shall not, waive or diminish in any way the 

confidentiality of such material or its continued protection under the attorney-client 

privilege, work product doctrine, or any applicable privilege as to any other third party. 

Furthermore, in the event that a Party inadvertently produces attorney client privileged or 

otherwise privileged documents or information, or other documents protected by law from 

disclosure even under a Protective Order, and if the Party subsequently notifies the receiving 

Party that the privileged documents or information should not have been produced, the 

receiving Party shall immediately return the originals and all copies of the inadvertently 

produced privileged documents and information. Nothing in this Protective Order shall 

prevent the FDIC from using any Confidential Material that it produces to the Defendants in 

any of its capacities for any lawful purposes. In addition, with regard to privileged and/or 

otherwise protected documents, Federal Rule of Evidence 502 is hereby expressly 

incorporated into this Protective Order. 

15. Binding Effect; Assignment. The Protective Order shall be binding upon and 

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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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inure to the benefit of the Parties hereto, their affiliates, their representatives, and the Parties' 

respective successors or assigns. No Party may assign any right or delegate any duty under 

this Protective Order other than to an affiliate without the other Party's prior written consent. 

16. Notice. All notices required to be given under the Protective Order shall be in 

writing and delivered to the addressees set forth below. Notice shall be sent by overnight 

delivery or registered or certified mail, return receipt requested, and shall be considered 

delivered and effective three days after mailing. 

If to FDIC-R: Schiff Hardin LLP 

233 South Wacker Drive, Suite 6600 

Chicago, Illinois 60606 

Attn: Lawrence H. Heftman, Esq. 

If to Defendants: Tisdale & Nicholson, LLP 

2029 Century Park East, Suite 900 

Los Angeles, California 90067 

Attn: Kevin D. Hughes , Esq. 

DONE AND ORDERED this 19 day of August 2015. 

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AMENDED PROTECTIVE ORDER REGARDING CONFIDENTIALITY AND NON-DISCLOSURE 

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ATTACHMENT A 

ACKNOWLEDGMENT AND AGREEMENT TO BE BOUND 

I hereby acknowledge that I have been provided and have read a copy of that certain 

Amended Protective Order Regarding Confidentiality and Non-disclosure Order (the 

"Protective Order"), a copy of which is annexed hereto, and that I understand the terms 

thereof. I submit to the jurisdiction of the United States District Court for the Eastern 

District of California in matters relating to the Protective Order. I understand that any 

Confidential Material within the meaning of the Protective Order shown to me is 

confidential, shall be used by me only as provided in the Protective Order, and shall not be 

disclosed by me unless expressly permitted under the Protective Order. I agree to be bound 

by and abide by the terms of the Protective Order. I will return any such Confidential 

Material provided to me and will not retain any copies of Confidential Material, including 

any notes or other documents generated that include any content from the Confidential 

Material, pursuant to the terms of the Protective Order. 

Name: ___________________________ Date: _______________, 2015 

(signature) 

Telephone: ________________ 

(business) 

____________________________ 

(printed) Telephone: _________________ 

(home) 

Title: _____________________________ 

Telephone: _________________ 

Company: __________________________ (cell)

Address: ____________________ 

City: _______________________ 

State/Zip Code: _______________ 

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