UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

WELLS FARGO BANK, N.A.,

Plaintiff,

v. Case No: 09-11249

Honorable David M. Lawson

MPC INVESTORS, LLC, DOMINIC MOCERI, Magistrate Judge Mona K. Majzoub

GERALD CARNAGO, FRANCIS V. MOCERI,

MARIANO MOCERI, PETER K. BURTON, 

ROBERT M. KATZMAN, LAURENCE R. 

GOSS, STEVEN BENTLEY, SALVATORE J.

PALAZZOLO, SEBASTIAN D. PALAZZOLO,

GREGORY A. CARNAGO, and DOMINIC J. 

MOCERI,

ORDER ADOPTING REPORT

Defendants, AND RECOMMENDATION,

GRANTING PLAINTIFF’S

MOTION TO CONTINUE 

v. HEARING AND

EXPEDITE HEARING, AND

CHARLES SCHWAB & CO., INC., and BANK GRANTING IN PART AND

OF AMERICA, NA, DENYING IN PART

DEFENDANTS’ MOTIONS TO

Garnishees, QUASH SUBPOENAS

and

GREGORY A CARNAGO and GERALD 

CARNAGO,

Cross-Plaintiffs,

v.

LAURENCE R GOSS, STEVEN BENTLEY, 

SALVATORE J PALAZZOLO, SEBASTIAN 

D PALAZZOLO, PETER K BURTON, and 

ROBERT M KATZMAN,

Cross-Defendants.

_____________________________________/
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ORDER ADOPTING REPORT AND RECOMMENDATION, GRANTING PLAINTIFF’S

EMERGENCY MOTION TO CONTINUE HEARING ON OBJECTIONS TO

GARNISHMENT AND FOR EXPEDITED HEARING ON MOTIONS TO QUASH, AND

GRANTING IN PART AND DENYING IN PART DEFENDANTS GERALD AND

GREGORY CARNAGO’S MOTIONS TO QUASH SUBPOENA

Presently before the Court is the report issued on August 2,, 2010 by Magistrate Judge

Mona K. Majzoub pursuant to 28 U.S.C. § 636(b). Judge Majzoub recommended granting this

plaintiff’s emergency motion to continue the hearing on the defendants’ objections to the

garnishment and for an expedited hearing on the defendants’ motions to quash, and granting in

part and denying in part defendants Gerald and Gregory Carnago’s motions to quash the

subpoenas. The magistrate judge concluded that the defendants had failed to demonstrate a

potential violation of privilege sufficient to quash the subpoena. However, Judge Majzoub did

conclude that several of the requests in the subpoenas were overly broad and recommended

several modifications to narrow the plaintiffs’ document requests. Rep. & Rec. at 5-7. Judge

Majzoub also recommended that the defendants be required to produce these documents by

August 23, 2010, that defendant Gregory Carnago be ordered to sit for his creditor’s examination

by August 30, 2010, and that defendant Gerald Carnago be ordered to sit for his creditor’s

examination by September 6, 2010.

Although the magistrate judge’s report explicitly stated that the parties to this action may

object to and seek review of the recommendation within fourteen days of service of the report,

no objections have been filed. The parties’ failure to file objections to the report and

recommendation waives any further right to appeal. Smith v. Detroit Federation of Teachers

Local 231, 829 F.2d 1370, 1373 (6th Cir. 1987). Likewise, the failure to object to the magistrate

judge’s report releases the Court from its duty to independently review the motion. Thomas v.
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Arn, 474 U.S. 140, 149 (1985). However, the Court agrees with the findings and conclusions of

the Magistrate Judge.

Accordingly, it is ORDERED that the Magistrate Judge’s Report and Recommendation

[dkt # 319] is ADOPTED.

It is further ORDERED that the plaintiff’s emergency motion to continue the hearing on

the objections to garnishment and to expedite the hearing on the defendants’ motions to quash

[dkt # 300] is GRANTED.

It is further ORDERED that defendants’ Gerald and Gregory Carnago’s motions to

quash [dkt # 297 & 298] are GRANTED IN PART AND DENIED IN PART.

It is further ORDERED that the plaintiffs’ subpoenas are modified to require defendants

Gerald and Gregory Carnago to produce the following documents on or before August 23,

2010:

1. All records since January 1, 2009 of all bank accounts and money

market accounts, including, but not limited to, account statements, deposits,

checks and wire transfers, of every kind in which you have any ownership or any

financially beneficial interest, including checking accounts, savings accounts,

trust accounts and certificates of deposit.

2. All records of all real estate you own or in which you reside

full-time or part-time.

3. [Gerald Carnago subpoena] All records since January 1, 2004 of

the Gerald J. Carnago Trust dated April 25, 1972, as amended, along with

initiating and amending documents of the original Trust, and all records since

January 1, 2004 of any and all trusts in which you have or claim an actual or

potential financial interest, either as trustee or beneficiary or remainderman or

otherwise, including irrevocable trusts, totten trusts, trust accounts and land trust.

[Gregory Carnago subpoena] All records since January 1, 2004 of

the Gregory A. Carnago Trust dated October 11, 2000, as amended, along with

initiating and amending documents of the original Trust, and all records since

January 1, 2004 of any and all trusts in which you have or claim an actual or

potential financial interest, either as trustee or beneficiary or remainderman or

otherwise, including revocable trusts, totten trusts, trust accounts and land trust. . .

.
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5. All records of your accounts receivable - i.e., all records with

regard to parties who owe you or the other judgment debtors in this action any

money, including, but not limited to, any disposition of such accounts receivables.

. . . 

7. All records of personal property you currently own or in which you

claim a financial interest in excess of $1,000.

8. All records of any and all other assets of any kind you currently

own or in which you claim a financial interest in excess of $1,000.

9. Your Federal Income Tax Returns for 2008 and 2009; and if any

extension has been requested and/or granted for 2009, all records of the same. . . . 

12. Any and all records pertaining to gifts or other transfers of

property in which you held a financial interest in excess of $1,000 to any person

in the last six years.

13. Any and all documents pertaining to loans made in the last six

years to you or secured by real or personal property owned by you. . . .

17. [Gerald Carnago subpoena] Any and all records of the Bank of

America Account No. XXXXXXXX8104, including, but not limited to all bank

statements and records showing all deposits into the account, since January 1,

2008.

19 [Gerald Carnago Subpoena] and 14 [Gregory Carnago subpoena]. Any

and all financial statements given by you or someone on your behalf to any

financial institution or brokerage house, since January 1, 2007.

It is further ORDERED that defendant Gregory Carnago shall sit for a creditor’s

examination on or before August 30, 2010, at a date and time to be agreed upon by the parties.

It is further ORDERED that defendant Gerald Carnago shall sit for a creditor’s

examination on or before September 6, 2010, at a date and time to be agreed upon by the

parties.

s/David M. Lawson 

DAVID M. LAWSON

United States District Judge

Dated: August 18, 2010
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PROOF OF SERVICE

The undersigned certifies that a copy of the foregoing order was served

upon each attorney or party of record herein by electronic means or first

class U.S. mail on August 18, 2010.

s/Teresa Scott-Feijoo 

TERESA SCOTT-FEIJOO