EFTA00723196.pdf

IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT AND FOR PALM BEACH COUNTY, FLORIDA CASE NO. 502008ca028051XXXXMB AB Plaintiff, -vs- JEFFREY EPSTEIN, Defendant. HEARING BEFORE THE HONORABLE DONALD HAFELE Thursday, November 19, 2009 8:54 a.m. - 9:12 p.m. Palm Beach County Courthouse West Palm Beach, Florida 33401 Reported By: Pamela J. Sullivan, RPR, FPR, CLR Prose Court Reporting Agency, Inc. (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (501.333.772-1552) 9dc762.9-7266452b4e18-d64aff543d4b EFTA00723196  Page 2 Page 4 1 APPEARANCES: 1 firm imploded about two weeks ago this past 2 On be ofMr. Edwards: 2 Monday -- or a week ago this pest Monday. Three of 3 G. MICHAEL ICEENAN, ESQUIRE G. MICHAEL KEENAN, P.A. 3 the cases, of the Epstein cases resided within that 4 1532 Old Okeechobee Road 4 firm, at least that are filed cases. And Suite 103 5 Mr. Edwards, Mr. Berger and Mr. Adler have shown 5 West Palm Beach, Rent 33401 6 on their behalf, on behalf of the Plaintiffs in 561.6840601 7 those particular cases. 6 7 8 The news media has reported it as well, and 8 On behalfof the Defendant: 9 it's been confirmed through Herb Stettin, who is 9 ROBERT D. CRAYON, JR., ESQUIRE 10 the chief restructuring officer, former judge down MICHAEL J. PIKE, ESQUIRE 11 in Miami, that the FBI and the Feds took, through 10 BURMAN, CRITTON, rirrnER & COLEMAN, LLP, ESQUIRE 303 Banyan Boulevard 12 search warrants, approximately 40 boxes. Thirteen 11 Suite 400 13 of them were boxes that related to, quote, West Palm Bach, Florida 33401 14 Epstein-related matters. 12 561 842 2820 15 There are a number of issues. Apparently, 13 14 16 the Epstein cases were showcased by Mr. Rothstein, 15 17 and whomever else, who we don't know at this point 16 18 in time, to either sell the case, sell a potential 17 19 case, sell a structured settlement, whatever. We 18 20 don% know whether — who the lawyers were that 1.9 20 21 were involved, if any, other than Mr. Rothstein. 21 22 We don't know what the firm attempted to sell; 22 23 although, we have seen now documents that have been 23 24 posted on blogs that said that the firm was giving 24 25 25 guarantees, that the firm had these crack former Page 3 Page 5 1 PROCEEDINGS 1 police officers and sheriffs officers to go out 2 2 and to investigate and get, so to speak, the dirt. 3 THE COURT: The motion I have before me now 3 We know that they — that he did wiretapping. 4 is Epstein's motion for protective order to 4 And we also know that he forged an order by 5 prohibit inappropriate deposition questions. 5 Judge Marra in Federal Court, among other items. 6 MR. CRITTON: None of the other materials got 6 What we do know is that they, more likely than not, 7 to you, Your Honor? 7 sold an interest either in settled or nonsettled THE COURT: No. 8 cases. Of course, I will now represent to the 9 MR. KEENAN: Judge, Michael Keenan, on behalf 9 Court there are no settled cases, so therefore 10 of Mr. Edwards. 10 that's not something they could have sold. 11 We did file a motion for protective order and 11 They may have reached an agreement to share 12 a motion for stay in this case on behalf of 12 either attorney's fees or proceeds that the 13 Mr. Edwards. And I have a copy of that, if I may 13 Plaintiffs may receive in the cases. The 14 approach, Your Honor. 14 Plaintiffs may have assigned causes of action, 15 MR. CRITTON: I think you have it in front of 15 which the Court may be aware of is inappropriate. 16 you, Your Honor. 16 You can't assign a personal injury cause of action, 17 THE COURT: I see it. 17 et cetera. 18 MR. CRITTON: Judge, if I can give you just a 18 THE COURT: Well, why does that concern me 19 little background. There's a motion for 19 and not the Florida Bar and the Federal and State 20 preservation. I think that the least important 20 authorities? 21 motion, at least for purposes of today, is the 21 MR. CRITTON: Because if LM or EW, for 22 inappropriate deposition. And I know we've got a 22 purposes of this case, assigned a portion — all or 23 bunch of people here. 23 a portion of their causes of action, then under 24 So as the Court probably has read in the 24 Florida law, you can't assign a personal injury 25 media, the Rothstein, Rosenfeldt and Adler, PA, law 25 action; therefore, their cases would be dismissed. 2 (Pages 2 to 5) (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (501.333.772.1552) 9cle702a94266452b-5•18403401543d4b EFTA00723197  Page 6 Page 8 THE COURT: Well, are there any such 1 the records. 2 allegations even remotely made by anybody relative 2 Mr. Edwards - and I'll let him speak and/or 3 to the individual Plaintiffs, as opposed to 3 Mr. Keenan. To the extent that Mr. Edwards 4 Mr. Rothstein, individually? Likewise, are there 4 acquires any documents with regard to his two any such allegations against any other members of 5 clients, at least for State Court purposes, all we 6 the fimi at this point? 6 would ask is the Court enter a pCbC,t ration order. 7 MR. CRITTON: Well, no. But nobody knows, 7 And I think we can work out language that's 8 because nobody has seen those documents. And, in 8 appropriate. 9 fact, what I also provided to the Court is we filed 9 Not that we're entitled to the documents, not 1.0 an emergency motion for preservation of evidence in 10 that they don't have any objection, but merely that Federal Court, which has been granted by the 11 they preserve the evidence. Bairr it's going to 12 Federal Court. They considered it both an 12 take us some time to unravel whether, in fact — 3 emergency and that it was appropriate to preserve 13 whether and if there was inappropriate conduct, who 14 evidence. 14 did it, what the effects may be, whether there may 15 And conversations I had with Mr. Keenan, who 15 be, not only conflict issues, but that the 16 represents Mr. Edwards here, is — and with 16 Plaintiffs may have assigned causes of action 17 Mr. Edwards, is to the extent that he has any 17 because they sold a portion of their settlement so 18 files, !would say that the Federal Court order 18 that they could get money up front and therefore 19 would be applicable. And the chief restructuring 19 not settle. And we would ask that that also be 20 Officer, who has control apparently of all 20 done. 21 financial matters and all files, is agreeable to 21 I had Mr. Edwards set for a deposition today. 22 preserving evidence. You know, he's -- 22 There was a protective order that was filed by 23 THE COURT: Who is Jay Howell, and what is 23 Mr. Keenan. I think we've pretty much — Fm 24 his relationship with this case, Mr. Edwards? 24 agreeable to not doing his deposition today. And 25 MR. EDWARDS: He's a referring attorney on 25 Mr. Keenan has filed, and fillet him speak for Page 7 Page 9 1 the case, but he has no -- he's in Jacksonville and 1 himself — 2 he has no knowledge. 2 MR. KEENAN: He's doing great, Judge. 3 THE COURT: When you say referring attorney, 3 MR. CRITTON: But pretty much we've agreed 4 though, I mean, if I may go into this briefly, was 4 to and depending on the Court — we're agreeable 5 he the one who actually signed the clients up, or 5 to a 30-day stay with regard to the EW and the LM 6 was it your fine that took care of all the 6 cases, because apparently Mr. Edwards has no access 7 contractual relationships with the clients? 7 to those files. We're not waiving our right to o MR. EDWARDS: It was actually my thin, prior depose Mr. Edwards. But similar to what the Court 9 to my becoming an employee of RRA. So it was the 9 order is in the Federal Court, if we can work that 0 law office and Brad Edwards that signed the clients 10 out, is Mr. Stettin asked for 45 days. Now, the 1 up, and the clients were referred by a Jacksonville 11 Court said if Mr. Edwards and I can work out the :2 attorney, Jay Howell. 12 Federal Court scheduling deadline, that they'll .3 THE COURT: Okay. I don't want to get into 13 give Mr. Stettin 45 days, or certainly more than 14 anything further that you may be uncomfortable 14 that. 5 with, but certainly to the extent that any veteran 15 If we agree to a stay, then the Court 16 lawyer/judge sees the situation as I do, I 16 presently has EW and LM set for trial, I think, on 7 certainly empathize with the situation. And we'll 17 the March or the April docket. And we would also 18 leave it at that 18 ask them — and I think Mr. Edwards can speak to 19 MR. CRITTON: Judge, I think, from a 19 that issue — said that if you could move us back 20 practical standpoint, with regard to the 20 one docket or 30 days or 45 days, whatever that 21 preservation of evidence, the Federal Court order 21 timeframe is, if in fact the Court is inclined to 22 takes care of the Federal Court did not deal 22 enter a stay with regard to these two cases. 23 with Mr. Edwards at all; although, he was agreeable 23 So I apologize for stealing Mr. Keenan's 24 to entering into a preservation order, because they 24 thunder. But I thought it was substantial that 25 said it appears that Mr. Stettin was in control of 25 there was agreement at least on those issues. But AMV,..•• ••••Aga OVay.4.44.1 .44.44.•• •••••.Yy •frAp.eee.ni rsket, 3 (Pages 6 to 9) (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (601433.7724682) 9de702a9-7266452b-Be18.d64at1543d4b EFTA00723198  Page 10 Page 12 1 I also don't want to waive disposition on a 1 the current situation, I do not have a secretary, 2 deposition question. That's one issue I'd like to 2 staff, computers, printers -- 3 get resolved, too. But I know you've got a million 3 THE COURT: Well, that's all right 4 people here. 4 considering -- 5 THE COURT: Yes. 5 MR. EDWARDS: -- or the ability to respond to 6 MR. KEENAN: Judge, on behalf ofMr. Edwards 6 anything. 7 who is here, Mr. Edwards and Mr. Critton can try to 7 THE COURT: My personal empathy — I mean, 8 work out the language on an order for the 8 once we see how this all turns out, I don't know. 9 preservation of evidence. I think that's where 9 But, again, I certainly can understand the 10 we're at right now. 10 circumstances to a degree, and I know it's very 1 Mr. Edwards, his access to the files, of 11 difficult to deal with it on a personal level, 12 course, is restricted, because the files are either 12 13 with Mr. Stettin, with the bankruptcy trustee, or 13 MR. EDWARDS: Thank you. 14 with the Federal officers. So we can work that out 14 THE COURT: And I'm sure Mr. Critton feels 15 with Mr. Critton, I think. And I think that was 15 the same way, although he may not be able to say it 16 his suggestion, and that would be fine. 16 publicly. 17 In terms of the stay, I think we have an 17 In any event, it seems like, at least from 18 agreement in the protective order that — to enter 18 what I'm hearing, is that the parties have agreed 19 an order with respect to the deposition of 19 to the basics of this. The only thing that Fm 20 Mr. Edwards today, and to stay the case for 30 20 hesitant about doing is if I enter a stay, is to, 21 days. 21 at the same time, reset it on a trial docket. 22 And Mr. Critton is correct that we would -- 22 My 2010 calendar is not coming up. They 23 it would only be fair that we have everything 23 changed out my laptop for some reason, and I don't 24 pushed back 30 days. And that really would be 24 have my 2010 calendar here in front ofme. I think 25 practical, because, again, Mr. Edwards doesn't have 25 that you said that the case is currently on the Page 11 Page 13 1 possession of the files, and, hopefully, his office 1. docket call for -- what? 2 will be up and running within -- 2 MR. PIKE: March or April. 3 MR. EDWARDS: Two weeks. 3 MR. CRITTON: March or April. 4 MR. AN: -- within two weeks, and he'll 4 THE COURT: April. Okay. 5 be able to get back into the case and have a 5 MR. CRITTON: Both — and this would be 6 secretary and the support staff you need to be able 6 applicable to EW and I -M. 7 to actually represent a client. So I think we're 7 THE COURT: Yeah. And I just -- I don't 8 in agreement on those issues. a think we — I think that is the last docket that wo 9 MR. EDWARDS: And, Your Honor, just to 9 set cases on at this time. So, usually, I'll have 10 clarify, certain portions of the physical paper 10 those days in my head as to what the docket dates 11 file I do have stored in a warehouse facility, 11 are. 12 ready to move into the new law firm, once the new 12 But I suspect the next docket, I think, if 13 law firm is up and running, and, certainly, to the 13 I'm not mistaken, the next docket call is — I 14 extent that -- Pm willing to preserve the portions 14 don't want to say it because I'm not really sure. 15 of the file I have access to. 15 I think it's in March — the end of March docket 16 Now, KRA ran in a paperless world, and 16 call or something along those lines, or the 17 there's a digital aspect of the file that l do not 17 beginning of April. I just don't have it - 18 have access to. And, apparently, based on 18 MR. CRITTON: That's us, unfortunately. 19 Mr. Critton's assertions, the FBI and/or 19 That's where we are. 20 US Attorney's office which may be in possession of 20 THE COURT: All right. So it would probably 21 a portion of various files, including this one. I 21 be the next time the case would be set would likely 22 don't 'mow that to be true. 22 be during the June docket. But what I would like 23 Soto the extent that I have access to any 23 to do is wait until at least the 30-day time period 24 portion of any documents, I will be willing to 24 runs before we do anything to put it on a docket. 25 preserve it. And just so Your Honor is apprized of 25 I can tell you right now that it's nicely 4 (Pages 10 to 13) (561) 832-7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (501.333.772-1552) 9dc762a94256.452b43e18-d6Ordl543d4b EFTA00723199  Page 14 Page 16 1 that it won't matter, meaning that whether we do it 1 heard -- 2 today or in 30 days, when Fm more comfortable 2 MR. CRITTON: I understand. 3 after the expiration of the stay, that you'll still 3 THE COURT: — relative to any of the other 4 be on that same docket. And if not, you know, I'll 4 cases that are outstanding that are not being 5 adjust it in one or two combinations. litigated by Mr. Edwards, then that's up to you. 6 MR. CRITTON: The only comment I'd nuke is 6 MR. CRITTON: We'll put a couple of orders 7 LM, who was supposed to show up for her medical 7 together and provide those to the Court. Is that 8 exam, didn't show up last week. She was supposed 8 acceptable? 9 to give a deposition on Wednesday. She didn't show THE COURT: Yes. You've got those here, and 10 up, and I don't know whether Mr. Edwards couldn't 10 these envelopes here. 11 get ahold ofher or whether they didn't send her 11 So I'll defer on that, pending the expiration 12 notification. But Pm behind the eight ball with 12 of the stay as to LM and EW. 13 those - 13 MR. EDWARDS: Thank you, Your Honor. 14 TIM COURT: Like I said, Ill take that all 14 THE COURT: All right. Take it easy. Nice 15 into consideration, you know, when the time comes. 15 to see you. 16 What you will do is you'll move to set the case for 16 (Whereupon, the hearing was concluded at 17 trial with the Court and have a hearing on it, in 17 9:12 am.) 18 lieu ofjust sending a renotico, so that I can, you 18 19 know, hear any objections that there may be to the 19 20 setting of the case on the trial docket, in light 20 21 of all of this rather unusual matter that's going 21. 22 on here. 22 23 MR. CRITTON: So its off the docket, he'll 23 24 file a motion again to reset it, and then we'll 24 25 come in front of the Court? 25 Page 15 Page 17 1 THE COURT: Right. 1 2 MR. CRITTON: All right. 2 3 THE COURT: And 1presume we'll deal with 3 CERTIFICATE 4 this case and these cases in the sante fashion, at 4 5 least in principle, as the Federal Court has 5 THE MATE OF FLORIDA COUNTY OF PALM BEACH. 6 already decided. I don't think that there's a need 6 7 to upset the apple cart or do anything that would 7 8 be inconsistent with the Federal Court's 8 I,PAMELA J. SULLIVAN, Registered Professional 9 determination that's already been made. 9 Reporter, State ofFlorida at large, certify that I was 10 All right. So the issue relative to the 10 authorized to and did stenographically report the 11 deposition questions can also wait, because I do 11 foregoing proceedings and that the transcript is a true 12 have other matters that I need to get to. Because 12 and complete record ofmy stenographic notes. 13 if we're going to do the stay, then there's not 13 Dated this 30th day ofNovember, 2009. 14 going to be any depositions taken, at least 14 15 probably until the beginning ofnext year, in light 15 16 of the Christmas holidays, I would suspect 16 17 MR. CRITTON: The only place it will come up, PAMELA J. SULLIVAN; R, CLR 18 17 and Ell file it, because Pin getting the same 18 19 issues, with the other state court. 19 20 THE COURT: Right. But I'm not here for 20 21 that. 21 22 MR. CRITTON: I understand. 22 23 THE COURT: You only moved under these two 23 24 cases, and not under any of the other cases. If 24 25 you want to file a similar motion and have it 25 5 (Pages 14 to 17) (561) 832 -7500 PROSE COURT REPORTING AGENCY, INC. (561) 832-7506 Electronically signed by Pamela Sullivan (5014327724552) 9dc782.9-7268452b-8•18484401543d4b EFTA00723200