EXHIBIT 1

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 1 of 17
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R.O. and K.M., 

V. 

ASSIGNED TO THE HONORABLE G. HELEN 

HEARING DATE: JUNE 28, 2018, AT ·O 

WITH ORAL ARG 

SUPERIOR COURT OF THE ST ATE OF WASHINGTON 

FOR PIERCE COUNTY 

NO. 17-2-04897-1 

Plaintiffs, .Ee• IF! l,Sl!D REVISED] 

MEDALIST HOLDINGS, INC., et al., 

COMBINED ORDER GRANTING 

PLAINTIFFS' MOTION TO COMPEL, 

PLAINTIFFS' MOTION FOR 

SANCTIONS, DA VIS WRIGHT 

TREMAINE'S NOTICE OF INTENT TO 

WITHDRAW, AND NOTICE OF 

LODGING OF IN CAMERA 

DECLARATION AND MOTION TO 

SEAL 

Defendants. 

THESE MATTERS came before the Court on (1) Plaintiffs' Motion to Compel 

Compliance with Court's Order and Motion to Preserve Evidence, (2) Plaintiffs' Motion for 

Sanctions Against Backpage Defendants, (3) the Notice of Intent to Withdraw filed by Davis 

Wright Tremaine, and ( 4) Notice of Lodging of In Camera Declaration and Motion to Seal 

filed by Davis Wright Tremaine. The Court heard oral argument from the parties, reviewed 

the existing record, and reviewed the materials submitted by the parties, including the 

following: 

II 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 1 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 2 of 17
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Plaintiffs' Motion to Compel Compliance with Court's Order and Motion to Preserve 

Evidence 

(1) Plaintiffs' Motion to Compel Compliance with Court's Order and Motion to 

Preserve Evidence, including the Declaration of Michael T. Pfau submitted in 

support thereof; 

(2) Defendants' Opposition to Plaintiffs' Motion to Compel Compliance with Court's 

Order and Motion to Preserve Evidence, including the Declaration of Eric Stahl 

submitted in support thereof; 

(3) Plaintiffs' Reply in Support of Plaintiffs' Motion to Compel Compliance with 

Court's Order and Motion to Preserve Evidence, including the Declaration of 

Michael T. Pfau submitted in support thereof; 

(4) Supplemental Declaration of Michael T. Pfau in Support of Plaintiffs' Motion to 

Compel Compliance with Court's Order and Motion to Preserve Evidence; and 

Plaintiffs' Motion for Sanctions Against Backpage Defendants 

(1) Plaintiffs' Motion for Sanctions Against Backpage Defendants, including the 

Declaration of Michael T. Pfau submitted in support thereof; 

(2) Defendants' Request for Extension and Opposition to Plaintiffs' Motion for 

Sanctions, including the Declaration of Eric M. Stahl submitted in support thereof; 

(3) Plaintiffs' Reply in Support of Plaintiffs' Motion for Sanctions and Plaintiffs' 

Opposition to Defendants' Motion for Extension, including the Declaration of 

Michael T. Pfau submitted in support thereof; and 

Notice of Intent to Withdraw Filed by Davis Wright Tremaine and Notice of Lodging of 

In Camera Declaration and Motion to Seal filed by Davis Wright Tremaine 

(1) Notice oflntent to Withdraw filed by Davis Wright Tremaine LLP; 

(2) Supplement to Notice oflntent to Withdraw filed by Davis Wright Tremaine LLP; 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 2 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 3 of 17
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(3) Plaintiffs' Objections to Backpage Defendants' Counsel's Notice of Intent to 

Withdraw; 

(4) Notice of Lodging of In Camera Declaration and Motion to Seal filed by Davis 

Wright Tremaine, LLP, as well as the documents that Davis Wright Tremaine filed 

with the Court for in camera review; 

(5) The Declaration of James C. Grant Regarding Davis Wright Tremaine's Notice of 

Intent to Withdraw; 

(6) Plaintiffs' Opposition to the Notice of Lodging of In Camera Declaration and 

Motion to Seal filed by Davis Wright Tremaine, including the Declaration of Jason 

P. Amala submitted in support thereof; and 

The Court has also considered the following materials regarding the contents and 

presentation of this Order: 

(1) Medalist Defendants' Objections to Plaintiffs' Proposed Combined Order; 

(2) Plaintiffs' Response to Medalist Defendants' Objections to Plaintiffs' Proposed 

Combined Order; and 

Based on the Court's review of the foregoing and the existing record, and for the 

reasons the Court articulated at the hearing in open court on May 23, 2018, 1 for the reasons 

stated below, and for the reasons stated in Plaintiffs' briefing, the Court enters the following 

findings and conclusions. The Court adopts its findings and conclusions from that hearing as 

if fully articulated in this written order, which is intended to memorialize and supplement the 

Court's findings and conclusions. 

1 A copy of the Verbatim Transcript of Proceedings from May 23, 2018, is attached hereto as Exhibit 1. The 

Court adopts its findings and conclusions from that hearing as if fully articulated in this written order, which is 

intended to memorialize and supplement the Court's findings and conclusions. 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 3 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 4 of 17
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Plaintiffs' Motion to Compel Compliance with Court's Order and Motion to Preserve 

Evidence 

Plaintiffs' Motion to Compel Compliance with Court's Order and Motion to Preserve 

Evidence is GRANTED as to the "Backpage Corporate Defendants,"2 and discovery 

sanctions are imposed, as set forth below, should those defendants fail to comply with this 

Order. In support of this ruling, the Court makes the following findings and conclusions: 

1. On January 12, 2018, the Court entered the Order Granting Plaintiffs' Motion 

to Compel Full and Complete Responses from Backpage Corporate Defendants with Regards 

to Discovery Requests Outlined in Appendix A ("January 12th Order"). 

2. The Backpage Corporate Defendants failed to comply with the January 12th 

Order or otherwise make reasonable efforts to substantially comply with the January 12th 

Order, including but not limited to the production of responsive documents on a rolling basis. 

The limited documents that were produced by the Backpage Corporate Defendants did not 

comprise the scope of relevant documents covered in the January 12th Order. 

3. The Backpage Corporate Defendants' failure to comply with the Court's 

January 12th Order was willful and was not substantially justified under the circumstances. 

The claim by Davis Wright Tremaine that it could not comply with the Court's January 12th 

Order without. first. reviewing the entire set of responsive documents for privilege is 

unsupported. ,A,te e ds@ftse rJemonstrat@s (1) tHat fl'l:Hsh of th.e materials have air@~' l>eeR 

~ieweel for })rivilege in the context of other similar litigation; and (2) '1lat Davis Wrighr 

Ti:@maiae has vetted the docnmems for privilege, p@r }.4r, F@ff@r. 

2 Consistent with the January 12th Order, the "Backpage Corporate Defendants" include Medalist Holdings, Inc.; 

Leeward Holdings, LLC; Camarillo Holdings, LLC; Dartmoor Holdings, LLC; Backpage.com, LLC; UGC Tech 

Group CV; Website Technologies, LLC; Atlantische Bedrijven, CV; Amstel River Holdings, LLC; Lupine 

Holdings, LLC; Kickapoo River Investments, LLC; CF Holdings GP, LLC; and CF Acquisitions, LLC. 

COMBINED ORDER GRANTING PL TFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 4 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

' 

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4. The Backpage Corporate Defendants' failure to comply with the Court's 

January 12th Order has caused undue delay and has substantially prejudiced Plaintiffs' ability 

to prepare for the trial scheduled to begin October 16, 2018. 

5. The Court has considered lesser sanctions than those set forth below, including 

lesser monetary sanctions, but finds that lesser sanctions would not suffice in deterring these 

defendants from continued noncompliance with the Court's prior Order. 

7. 

Based on the foregoing, the Court hereby ORDERS as follows: 

1. Within 60 days of this Order, the Backpage Corporate Defendants shall 

produce to Plaintiffs the approximately 1.2 million responsive documents identified by Eric 

Stahl in his letter dated March 20, 2018, which was attached as Exhibit 2 to the Declaration of 

Michael T. Pfau in Support of Plaintiffs' Motion to Compel Compliance with Court's Order 

and Motion to Preserve Evidence. 

2. If the defendants fail to produce the approximately 1.2 million responsive 

documents referenced above within 60 days of this Order, the defendants will be sanctioned in 

the amount of $1.00 per document for every 14 days of noncompliance with this Order. 

COMBINED ORDER GRANTING PLTFFS' PFAU COCHRAN VERTETIS AMALA PLLC 

MOT TO COMPEL, MOT FOR SANCTIONS, 403 Columbia St. Suite soo 

Seattle, Washington 98104 

NOTICE OF WITHDRAW AL, & MOT Phone: (206) 462-4334 Fax: (206) 623-3624 

TO SEAL - 5 of 16 http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 6 of 17
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3. Within 60 days of this Order, the Backpage Corporate Defendants shall 

produce any remaining documents responsive to the January 12th Order that are in their 

possession, which includes documents in the possession of Davis Wright Tremaine and other 

legal counsel who represents any of these defendants. 

4. To the extent the defendants assert that responsive 

attorney/client privil e or work product 

the attorney/client :g 

Defendant Ferrer on April 5, 2018, or ecause such records were 

5. To the extent additional records exist that defendants assert are subject to the 

attorney/client privilege or work product doctrine, defendants shall provide Plaintiffs with a 

privilege log that includes the basis for how the defendants defined their "control group" as to 

each withheld record. The log shall be sufficiently detailed so that Plaintiffs are able to 

determine whether the asserted privilege is valid as to each record, including whether any 

privilege may have been waived based on who sent or received the record. The privilege log 

shall also include the date of the record, the time of the record (where available), who 

authored the record, who received the record, and a general description of the record. A 

privilege log shall be produced contemporaneously with the records that are produced 

pursuant to this Order. 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 6 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 7 of 17
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6. Defendants and Davis Wright Tremaine shall secure and continue to preserve 

all electronic evidence in their possession, including the two terabytes of data that Davis 

Wright Tremaine previously identified as described in Plaintiffs' motion. Defendants and 

Davis Wright Tremaine shall also duplic~Z-~~~~~fnld1:;-it in trust, 

1i* RF srrd tJ Gs rt • with a neutral third party approved by the Court, within 60 days after 

this Order is entered. Unless the parties agree otherwise at the hearing on this Order, the 

Court approves John Cooper of W AMS as the approved neutral third party. The purpose of 

duplicating the data is to ensure that the Court's existing order can be honored, and in the 

event the federal government desires to seize the data, a copy will remain available for this 

litigation. 

7. 

Plaintiffs' Motion for Sanctions Against Backpage Defendants 

Plaintiffs' Motion for Sanctions Against Backpage Defendants is GRANTED as to 

all defendants. In support of this ruling, the Court makes the following findings and 

conclusions: 

1. The CEO of defendant Backpage.com, defendant Carl Ferrer, recently pled 

guilty to a range of crimes and admitted the following relevant facts: 

In 2004, I co-founded the website www.Backpage.com ("Backpage"), along 

with M.L. [Michael Lacey] and J.L. [James Larkin]. Backpage eventually 

became the second-largest classified advertising in the world, during its 14 

years of existence, has derived the great majority of its revenue from fees 

charged in return for publishing advertisements for 'adult' and 'escort' 

services. 

COMBINED ORDER GRANTING PLTFFS' · 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAW AL, & MOT 

TO SEAL - 7 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

• 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 8 of 17
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I have long been aware that the great majority of these advertisements 

are, in fact, advertisements for prostitution services (which are not 

protected by the First Amendment and which are illegal in 49 states and 

in much of Nevada). Acting with this knowledge, I conspired with other 

Backpage principals (including but not limited to M.L., J.L., S.S., D.H., 

A.P., and J.V.) to find ways to knowingly facilitate state-law prostitution 

crimes being committed by Backpage customers. For example, I worked 

with my co-conspirators to create 'moderation' processes through which 

Backpage would remove terms and pictures that were particula~ly 

indicative of prostitution and then publish a revised version of the ad. 

Such editing did not, of course, change the essential nature of the illegal 

service being offered in the ad-it was merely intended to create a veneer of 

deniability for Backpage. These editing practices were one component of 

an overall, company-wide culture and policy of concealing and refusing to 

officially acknowledge the true nature of the services being offered in 

Backpage's 'escort' and 'adult' ads. 

In addition to conspiring to knowingly facilitate the state-law prostitution 

offenses being committed by BacRpage's customers, I also conspired with 

other Backpage principals (including but not limited to M.L., J.L., S.S., D.H., 

A.P., and J.V.) to engage in various money laundering offenses. Since 2004, 

Backpage has earned hundreds of millions of dollars in revenues from 

publishing "escort" and "adult" ads. Over time, many banks credit card 

companies, and other fmancial institutions refused to do business with 

Backpage due to the illegal nature of its business. In response, I worked with 

my co-conspirators to fmd ways to fool credit card companies into believing 

Backpage-associated charges were being incurred on different websites, to 

route Backpage-related payments and proceeds through bank accounts held in 

name of seemingly unconnected entities, ... and to use cryptocurrencyprocessing companies ... for similar purposes. 

2. Defendant Ferrer's plea agreement admits the existence of an overriding 

conspiracy to facilitate illegal sex trafficking beginning in 2004 and persisting through March 

2018. This timeframe covers when Plaintiffs allege they were marketed and sold for sex on 

Backpage.com, and when the plaintiffs in the J.S. litigation allege they were marketed and sold 

for sex on Backpage.com. Defendant Ferrer's guilty plea contains admissions that are highly 

consistent with the allegations of Plaintiffs in this case, and with the allegations of the plaintiffs 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 8 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 9 of 17
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in the J.S. litigation, yet the defendants in both cases expressly denied those allegations. ~ 

~mil also implicates all named defeadaa.ts as 00 eonspiratei;s. 

3. .:fi:1c defendants have not provided any convincing evidence, including swum 

testimony or atber evichmoe, to refute the s weffi statements m defendant Fen et 's guilty pie~ 

.......,..--

~or ..,e !I,e sefcnJants rileei an /irifoer lH Ekis ease to refine :Plaintiff>' a)], gati ,m 

4. The evidence presented by Plaintiffs demonstrates that the Back.page Corporate 

Defendants collectively operated and owned the back.page.com website and have acted 

collectively in all relevant respects throughout the course of this litigation, including but not 

limited theirresponses to Plaintiffs' discovery requests. 

5. Defendant Ferrer's guilty plea admits that "moderation processes" were 

implemented to remove terms and images indicative of prostitution in order to "create a veneer 

of deniability for Backpage." Defendant Ferrer further admits that the defendants engaged in 

"various money laundering offenses" in order to realize "hundreds of millions of dollars" in 

revenue from the illegal conduct facilitated on the Backpage.com website. 

6. The above admissions by Defendant Ferrer are central to Plaintiffs' claims and 

allegations against the defendants as set forth in the First Amended Complaint. Further, the 

admissions in Defendant Ferrer's guilty plea directly contradict the defendants' responses to 

several interrogatories, requests for admission, and requests for production propounded by 

Plaintiffs in this litigation as outlined in Plaintiffs' briefing. 

7. Based on the foregoing, the Court finds that the defendants have engaged in prelitigation misconduct. Defendants have knowingly undertaken a pattern of misconduct over 

several years to deny claims asserted by Plaintiffs and similarly situated plaintiffs in the JS. 

litigation, which Defendant Ferrer's plea agreement confirms were true. Accordingly, the 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 9 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw .con\ 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 10 of 17
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defendants' conduct in this litigation in responding to the claims and discovery requests 

propounded by Plaintiffs has not been grounded in fact. 

8. Based on the foregoing, the Court further finds that defendants have committed 

procedural bad faith by engaging in vexatious conduct throughout this litigation designed to 

necessitate undue delay and force Plaintiffs to incur significant costs in pursuing their claims. 

For example, defendants' denials in response to Plaintiffs' discovery requests were untruthful 

and submitted for the improper purpose causing unnecessary delay and increasing the costs of 

litigation, as demonstrated by Defendant Ferrer's guilty plea. 

9. Defendants' misconduct and procedural bad faith has severely prejudiced 

Plaintiffs, causing undue delay and needlessly increasing the costs of litigation. Defendants 

misconduct and procedural bad faith has also wasted judicial resources. 

10. The Court finds that sanctions are warranted in order to deter the defendants 

from engaging in future misconduct, to punish the defendants for the misconduct described 

above, and to compensate Plaintiffs for the costs they were forced to incur as a result of the 

misconduct. The Court has considered the punitive, compensatory, and educational impact of 

the sanctions set forth below in light of the misconduct engaged in by the defendants. The 

Court has also considered the financial status of the defendants in fashioning the sanctions set 

forth below. ~~eeiH.eall~1, tbe Coui:t take~ 11ote of the report issued by the U.S. Senate's 

~mcnt Snbcornmittee OH lftVestigatiens, whieh states iliat Baekpage.G-Qm.' s gross rev@HH11ts 

..w0r0 $135 millieH: as of 2014 atrd rhe company's domestic ope1atioas 3,11ei:e purchased iu 2.Q.l..S. 

...fm$~2e milliU1T.'3

~ , 

3 See STAFF REP. OF s. PERM. SUBCOMM. ON INVESTIG., 114TH CONG., BACKPAGE.COM'S KNOWING 

FACILITATION OF ONLINE SEX TRAFFICKING (Comm. Print 2017) (available at 

COMBINED ORDER GRANTING PLTFFS' PFAU COCHRAN VERTETIS 1\MALA PLLC 

MOT TO COMPEL, MOT FOR SANCTIONS, 403 Columbia st. Suite soo 

Seattle, Washington 98104 

NOTICE OF WITHDRAWAL, & MOT Phone: (206) 462-4334 Fax: (206J 623-3624 

TO SEAL - 10 of 16 http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 11 of 17
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11. The Court has considered whether alternative lesser sanctions would suffice, 

including lesser monetary sanctions than those set forth below. The Court concludes, however, 

that the sanctions set forth below are the least severe sanctions necessary to fulfill the purposes 

of sanctions underlying CR 11. The Court's conclusion is based on (1) the extent and duration 

of defendants' bad-faith misconduct, which has spanned many years, (2) the serious prejudicial 

effect suffered by Plaintiffs as a result of defendants' misconduct, which includes the significant 

amount of time and resources they have spent pursuing discovery i0 19F0:ve aUegatig:es ~ 

BefeH:eafl.t Ferrer :BGW concedes jn bis guilt¥ plea,.time and reionrces tbat could have be0R speftt 

feettsing 011 ~thc1 diseovety and ptepttri:ttg fer t.ria+, (3) the litigation costs the defendants' 

misconduct has caused Plaintiffs to incur along with the needless waste of judicial resources, 

• 

12. 

Based on the foregoing, the Court ORDERS as follows: 

1. The defendants are jointly sanctioned in the amount of $200,000.00 

($100,000.00 per Plaintiff). This amount shall be paid to the trust account of Plaintiffs' counsel 

within 30 days of this Order. 

2. Plaintiffs are awarded their reasonable attorney's fees and costs that were 

necessitated by defendants' misconduct. Within 30 days of the entry of this Order, Plaintiffs 

https://www .hsgac.senate.gov/imo/media/doc/Backpage%20Report%202017.01.10%20FINAL.pdf, last visited 

June 15, 2018). 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAW AL, & MOT 

TO SEAL -11 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

· http://www.pcvalaw.com 

' 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 12 of 17
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shall file a separate motion that requests the awarded attorney's fees and costs and shall special 

set the motion for a date approved by the Court. 

3. 

Notice of Intent to Withdraw Filed by Davis Wright Tremaine and Notice of Lodging of In 

Camera Declaration and Motion to Seal filed by Davis Wright Tremaine 

The Notice of Intent to Withdraw filed by Davis Wright Tremaine was timely objected 

to by Plaintiffs. Accordingly, withdrawal may be obtained only by order of the court pursuant 

to CR 71(c)(4). The Notice of Intent to Withdraw pertains to twelve of the seventeen 

defendants jointly represented by Davis Wright Tremaine in this litigation ( collectively, the 

tw.elve defendants are referred to herein as the "Backpage.com Defendants").4 Defense counsel 

does not seek to withdraw from representing the five remaining Defendants ( collectively, the 

five defendants are referred to herein as the "Medalist Defendants").5 

Based on the Court's in camera review of the supporting materials submitted by Davis 

Wright Tremaine, including the Grant Declaration, Davis Wright Tremaine's request to 

withdraw with respect to the Backpage.com Defendants is GRANTED, subject to the 

conditions set forth in this Order. The Court further concludes that continued representation of 

the Medalist Defendants by Davis Wright Tremaine is impermissible pursuant to the Rules of 

Professional Conduct. The Court hereby DISQUALIFIES Davis Wright Tremaine, Davis 

4 Namely, Defendants Carl Ferrer, Backpage.com, L.L.C., Dartmoor Holdings, L.L.C.,, IC Holdings, L.L.C., 

UGC Tech Group C.V., Website Technologies, L.L.C., Atlantishe Bedrijven C.V., Amstel River Holdings, 

L.L.C., Lupine Holdings, L.L.C., Kickapoo River Investments, L.L.C., CF Holdings GP, L.L.C., and CF 

Acquisitions, L.L.C. (collectively "Backpage.com Defendants"). 

5 Namely, Defendants Medalist Holdings, Inc., Leeward Holdings, L.L.C., Camarillo Holdings, L.L.C., Michael 

Lacy, and James Larkin (collectively "Medalist Defendants"). 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 12 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 13 of 17
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Wright Tremaine's attorneys, Eric Stahl, and James Grant, from continuing to represent any 

parties in this litigation, including the Medalist Defendants, subject to the conditions set forth in 

this Order. In support of this ruling, the Court makes the following findings: 

1. Defendant Carl Ferrer effectively revoked his consent allowing defense counsel 

to jointly represent the multiple Defendants in this lawsuit because of material changes in 

circumstances arising, in part, out of the federal criminal proceedings implicating several of the 

Backpage.com and Medalist Defendants. This lack of consent is expressly stated in Mr. 

Ferrer's April 24, 2018 letter to the attorneys at Davis Wright Tremaine. 

2. The federal criminal proceedings are substantially related to the facts and claims 

in this litigation . ..f~ , aami;lr:; J,pth pu11,eecli1'gs im1111Pe Che ceti..tfiil allegat10R Uiat derutidant:,o 

knowingl-y faeilitMea sex !rnffickjng aai.l mitteit sex-tr::rftlt'R'fhg on 1.'tie hack.page.com website 

.J;ht:oug,a vMieit:ts means sttefl as the :as@ "moderatim't" 13roe0ss@s • ..DefefteMtt Feffer's gHil,t;y plea., 

Several of tbe Medalist Defetttltm.ts are canenrly drmged as co-defendants in tfle fedet!tl 

eriBllllftl r,roeeedings, nmd@riHg thei1 intetests matetially adverse to *1e iftter@sts of ~ck l&err@f 

-aHd, by extension, the Dad.page.com Defendtmts. 

3. Defense counsel has jointly represented all defendants in numerous lawsuits 

acro.ss the country that are also substantially related to the facts and claims in this litigation and 

the federal criminal proceedings. These past and current representations are relevantly 

interconnected such that defense counsel is familiar with both the Backpage.com Defendants' 

and Medalist Defendants' pattern of conduct as it relates to the claims in this litigation. 

4. Given the above, the Court concludes that there is a high possibility that Davis 

Wright Tremaine, Davis Wright Tremaine's attorneys, Eric Stahl, and James Grant will 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 13 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 14 of 17
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encounter an impermissible conflict of interest jeopardizing the effective administration of 

justice if they continue to represent the Medalist Defendants in this litigation. 

5. The Court further concludes that the Back.page.com Defendants' interest to 

preserve the confidences previously disclosed to Davis Wright Tremaine, Davis Wright 

Tremaine's attorneys, Eric Stahl, and James Grant combined with the high possibility that Davis 

Wright Tremaine, Davis Wright Tremaine's attorneys, Eric Stahl, and James Grant will 

encounter conflict if allowed to continue representing the Medalist Defendants, outweighs the 

Medalist Defendants' interest in maintaining defense counsel as their attorneys in this litigation. 

6. 

Based on the foregoing, the Court ORDERS as follows: 

1. Davis Wright Tremaine's request to withdraw is granted with respect to the 

Back.page.com Defendants. 

2. Davis Wright Tremaine is disqualified from continuing to represent any other 

parties in this litigation, including the Medalist Defendants. 

3. Davis Wright Tremaine may continue to represent the Medalist Defendants only 

insofar as is necessary to secure the interests of the Medalist Defendants pursuant to the 

obligations set forth in the Rules of Professional Conduct. To this end, Davis Wright Tremaine 

shall file a status report with the Court, served upon all parties, within 30 days of this Order and 

every 30 days thereafter, detailing· their progress in securing the interests of Medalist 

Defendants until such time as representation ceases. 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 14 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 15 of 17
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4. The Motion to Seal filed by Davis Wright Tremaine regarding the Declaration of 

James C. Grant: 

[ ] is granted in part. Pursuant to GR 15(c)(3) and applicable law, Davis Wright 

Tremaine is directed to submit a redacted version of the Grant Declaration for 

Court approval within 5 court days of this Order. Davis Wright Tremaine shall 

redact only those portions of the Grant Declaration subject to the attorney-client 

privilege. Any proposed redactions shall not include unprivileged materials, such 

as joint defense agreements or retainer agreements or any communications no 

longer privileged because of the waiver executed by Defendant Ferrer on April 5, 

2018. The Court will approve, reject, or modify the redactions and file the final 

redacted version of the Grant Declaration in the court record. The original, 

unredacted version of the Grant Declaration will remain under seal. 

P{' is granted. 

[ ] 

DONE IN OPEN COURT thi~y of June 2018. 

THE HONORABLE G. HELEN WHITENER 

PRESENTED BY: 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAW AL, & MOT 

TO SEAL -15 ofl6 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 16 of 17
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PF AU COCHRAN VERTETIS AMALA PLLC 

By: 

c ae . Pfau, WSBA # 24649 

· ael@pcvalaw.com 

Jason P. Amala, WSBA # 37054 

jason@pcvalaw.com 

Vincent T. Nappo, WSBA # 44191 

vincent@pcvalaw.com 

Ryan J.P. Dyer, WSBA # 48016 

rdyer@pcvalaw.com 

Attorneys for Plaintiffs 

COMBINED ORDER GRANTING PLTFFS' 

MOT TO COMPEL, MOT FOR SANCTIONS, 

NOTICE OF WITHDRAWAL, & MOT 

TO SEAL - 16 of 16 

PFAU COCHRAN VERTETIS AMALA PLLC 

403 Columbia St. Suite 500 

Seattle, Washington 98104 

Phone: (206) 462-4334 Fax: (206) 623-3624 

http://www.pcvalaw.com 

Case 2:18-cr-00422-DJH Document 216-1 Filed 07/12/18 Page 17 of 17