Highmore Financing Co. I, LLC v. The Greig Companies, Inc.
1:21-cv-11021
S.D.N.Y.Jun 5, 2023Background
- Plaintiff Highmore Financing sued defendants alleging a scheme to defraud it of supplier credit used to buy tech equipment; amended complaint noted that Euler Hermes had evaluated the same financials and approved coverage.
- Storbyte defendants served subpoenas on non-party Euler Hermes seeking document production and a deposition in New York City; an earlier attempt to serve by email was declined.
- Euler Hermes moved to quash, arguing the subpoenas exceed the 100-mile geographical limits of Fed. R. Civ. P. 45, are unduly burdensome, and that defendants cannot press non-party discovery while contesting personal jurisdiction.
- Euler Hermes submitted a sworn affidavit stating all employees with relevant knowledge are employed and reside in or around Owings Mills, Maryland (more than 100 miles from NYC).
- Storbyte defendants contended Euler Hermes regularly transacts business in New York and thus is subject to subpoenas there.
- The Court granted the motion to quash, concluding the Rule 45 geographical limit was dispositive and did not resolve the waiver/undue-burden arguments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the subpoenas exceed Rule 45's 100-mile geographic limit | Euler Hermes: subpoenas require compliance beyond 100 miles because relevant employees are in Owings Mills, MD | Storbyte: Euler Hermes has a New York office/regular business there so subpoenas are proper | Court: Quash/modify subpoenas; no relevant individuals within 100 miles, so subpoenas improper |
| Whether the subpoenas are unduly burdensome and whether defendants waived jurisdictional defenses by pursuing them | Euler Hermes: subpoenas are unduly burdensome; defendants should waive jurisdictional defenses or withdraw subpoenas | Storbyte: dispute jurisdiction separately; subpoenas can proceed | Court: Did not decide undue-burden/waiver issues because geographic limit was dispositive |
Key Cases Cited
- Jones v. Hirschfeld, 219 F.R.D. 71 (S.D.N.Y. 2003) (movant bears burden of persuasion on a motion to quash)
- Price Waterhouse LLP v. First Am. Corp., 182 F.R.D. 56 (S.D.N.Y. 1998) (Rule 45’s 100-mile limitation applies to the actual individuals who would be deposed)