Opinion ID: 684066
Heading Depth: 2
Heading Rank: 3

Heading: The Cobb Federal Subpoena

Text: 21 Our holding that the San Jacinto subpoena is unenforceable has no bearing on the validity of the Cobb Federal subpoena. Unlike the situation surrounding the San Jacinto subpoena, the RTC has filed no litigation regarding Grant Thornton's work for Cobb Federal. Nonetheless, we remand the District Court's order enforcing the Cobb Federal subpoena for further proceedings. The District Court's enforcement order directed Grant Thornton to produce either the subpoenaed documents or a privilege log with respect to any documents for which Grant Thornton asserts attorney-client or work product privileges. Grant Thornton may pursue its claims of privilege on remand. In addition, Grant Thornton argues that, as the records of a partnership, the documents sought in the Cobb Federal subpoena are equivalent to personal records, and thus are subject to the articulable suspicion requirement of Walde. Because we believe this claim requires an inquiry into the nature of the privacy interest held by Grant Thornton's individual partners in the partnership's documents, see Bellis v. United States, 417 U.S. 85, 92-93, 94 S.Ct. 2179, 2185-86, 40 L.Ed.2d 678 (1974) (discussing factors relevant to existence of privacy interest in records of organized, institutional activity) (internal quotations omitted), we also remand this claim for factual development before the District Court.III. CONCLUSION 22 We hold that the RTC lacks statutory authority to subpoena financial and insurance information for the sole purpose of determining the cost-effectiveness of litigation once suit is filed against the subpoena recipient. Thus, we reverse the District Court's order enforcing the San Jacinto subpoena. With regard to the Cobb Federal subpoena, we find that Grant Thornton's claims that the subpoena violates its privilege and privacy rights require factual development. We therefore remand these claims for further proceedings before the District Court. 23 So ordered.