61 F. Supp. 3d 1
D.D.C.2014Background
- CFTC and TEN entered a 2005 consent order requiring TEN to stop offering off-exchange binary options to U.S. customers.
- CFTC and Intrade allegedly continued to offer prohibited options until November 2012, prompting the current suit.
- CFTC served RFIs and RFPs; TEN/Intrade objected, citing Irish Data Protection Act (Irish DPA) and personal data concerns.
- Defendants asserted a foreign government compulsion defense under Irish law to withhold PII.
- The court denied the protective order and granted the motion to compel production and interrogatory responses.
- The court ordered production of all responsive documents and a deposition of Ronald Bernstein within specified deadlines.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Irish DPA prohibits transfer of PII to the U.S. in this litigation | Irish DPA permits transfers for legal proceedings. | Irish DPA forbids transfer absent adequate safeguards and international agreement. | Irish DPA transfer exception applies; production compelled. |
| Whether RFPs/RFIs were properly targeted and within scope | Requests seek documents related to the contracts and issues in the complaint. | Objections of breadth/irrelevance and DPA protectiveness barred production. | Requests narrowed and production required; defences overruled. |
| Whether defendants must produce sources rather than curated data extracts | CFTC is entitled to source documentation, not summaries. | Data extracts in a spreadsheet suffice. | Defendants must provide source documentation; unfettered access required. |
| Whether to compel deposition of Bernstein regarding document location | Bernstein location and witnesses should be identified for deposition. | Irish DPA issues prevented deposition timing. | Deposition of Bernstein compelled within 10 days. |
Key Cases Cited
- Food Lion Inc. v. United Commercial Workers Int’l Union, 103 F.3d 1007 (D.C.Cir.1997) (broad scope of discovery)
- Brune v. Internal Revenue Serv., 861 F.2d 1284 (D.C.Cir.1988) (scope and limits of discovery)