1009.pdf

NOT A CERTIFIED COPY Filing# 62481523 E-Filed 10/05/2017 08:50:35 PM JEFFREY EPSTEIN, Plaintiff, V. SCOTT ROTHSTEIN, individually, BRADLEY J, EDWARDS, Individually, and L.M., individually. Defendants. ------------~/ IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA CASE NO.502009CA040800XXXXMBAG JUDGE: HAFELE DEFENDANT/COUNTER-PLAINTIFF JEFFREY EPSTEIN'S MOTION FOR SANCTIONS PURSUANT TO VIOLATION OF CONFIDENTIAL SETTLEMENT AGREEMENT AGAINST PLAINTIFF/COUNTER-DEFENDANT BRADLEY J, EDWARDS AND HIS COUNSEL Plaintiff/Counter-Defendant Jeffrey Epstein ("Epstein"), by and through his undersigned counsel, hereby files this Motion requesting that the Court Sanction Defendant/Counter-Plaintiff Bradley J. Edwards ("Edwards") and his co-counsel in this case, Jack Scarola ("Scarola"), for their flagrant violation of the confidentiality agreements between Epstein and Edwards' s clients L.M., E.W., and Jane Doe, as well as enter an Order of entitlement to costs and attorneys' fees in favor of Epstein and against Edwards and Scarola. In support thereof, Epstein states: INTRODUCTION As this Court is aware, Edwards represented three clients in civil suits against Epstein; E.W., L.M., and Jane Doe. Each of these parties entered into a Settlement Agreement and General Release ("Agreement") in July 2010. As an express term and condition thereof, each party agreed to confidentiality provisions, to which each party and his or her attorneys were bound. The germane portions of each of the Agreements provides as follows: 4. Reciprocal Confidentiality. The Parties agree that the amount of this settlement shall be kept strictly confidential and shall not be disclosed at any 1 Tonja Haddad, P.A.• 315 SE 7 th Street, Fort Lauderdale, FL 33301 • 954.467.1223 FILED: PALM BEACH COUNTY, FL, SHARON R. BOCK, CLERK, 10/05/2017 08:50:35 PM NOT A CERTIFIED COPY time to any third party, except: (a) to the extent required by law or rule; (b) to the extent necessary in connection with medical treatment, legal, financial, accounting or tax services, or appropriate tax reporting purposes ( only if necessary); or (c) in response to a validly issued subpoena from a governmental or regulatory agency. Any third party who is advised of the settlement amount must acknowledge that such third party is aware of this confidentiality provision and is bound by it, including the provisions contained in this Settlement Agreement relating to the enforcement of this confidentiality provision. The Parties further agree that the Parties shall not provide any copy, in whole or in part, or in any form, of this Settlement Agreement to any third party, except to the extent required by law or rule or in response to a validly issued subpoena from a governmental or regulatory agency. Moreover, neither this Settlement Agreement, nor any copy hereof, nor the terms hereof shall be used or disclosed in any court, arbitration, or other legal proceedings, except to enforce the provisions of this Settlement Agreement. If any of the Parties are served with a valid subpoena, court order, government agency order or subpoena, or other compulsory legal process, pursuant to which disclosure of this Settlement Agreement, the settlement amount, or other terms hereof is requested, or production of the Settlement Agreement is requested, the Party so served shall give counsel for the other Party notice thereof within five (5) days of such service and, prior to making any such disclosure, shall give counsel to such other Party at least ten (10) days to commence necessary proceedings to obtain a court order preventing, limiting, or otherwise restricting such disclosure, provided that the Subpoena or order does not require compliance in less than 15 days. Should compliance be less than 15 days, the Party to whom the request is made shall use their best efforts to request additional time for compliance. 5. Enforcement. This Settlement Agreement shall be governed by the laws of the State of Florida. In the event of litigation arising out of a dispute over the interpretation of this Settlement Agreement, the prevailing party shall be entitled to recover its cost of litigation, including attorneys' fees and other reasonable costs of litigation. The Parties (and any third party) agree that the courts of the 15th Judicial Circuit of Palm Beach County shall have exclusive jurisdiction over the subject matter and shall have personal jurisdiction over the Parties (and third parties). In the event of an enforcement matter, the First Parties (and any third party family member) agree that Bradley J. Edwards is authorized to accept service for them, and Robert D. Critton, Jr. is authorized to accept service for Jeffrey Epstein. First and Second Parties expressly acknowledge and agree that if either First or Second Parties allege that a breach of the confidentiality provision has occurred, the aggrieved First or Second Parties may seek an appropriate remedy with the Court. If the Court finds a breach of the confidentiality provision set forth above, the Court shall determine the amount of the award. Equitable remedies are not relinquished by virtue of this provision; nor does either Party relinquish the right to pursue any other 2 Tonja Haddad, P.A.• 315 SE 7 th Street, Fort Lauderdale, FL 33301 • 954.467.1223 NOT A CERTIFIED COPY legal or equitable damages to which (s)he may be entitled as a result of the other Party's breach, including, but not limited to, prevailing party costs, to include attorneys' fees. See Agreements, which will be provided to the Court in camera. In this case, Edwards not only disclosed the amounts for which these cases were settled in his Opposition to Epstein's Motion for Summary Judgment, see Opposition Motion filed by Edwards, pp. 3-4 (Filing Number 61965438), but also attached, as an Exhibit to his own Motion, Edwards's unverified answers to Epstein's Interrogatories, in which he again discloses the confidential amounts for which the cases settled; in direct contravention to both the Interrogatories posed to him and the Agreements by which he is bound 1 . Moreover, Scarola provided direct commentary to the press regarding the confidential Agreements (including his usual derogatory and insulting annotations about Epstein and his counsel) and his disclosure of this information in Court papers. See Palm Beach Daily News Article dated October 3, 2017, which will be provided to the Court in camera. Such commentary is also a violation of the Agreements. See Agreements. Consequently, and as demonstrated more fully below, sanctions and attorneys' fees are warranted. MEMORANDUM OF LAW It is rudimentary that settlement agreements "are favored as a means to conserve judicial resources [and] Courts will enforce them when it is possible to do so." Spiegel v. H. Allen Holmes, Inc., 834 So. 2d 295, 297 (Fla. 4th DCA 2002) (citing Long Term Mgmt., Inc. v. Univ. Nursing Ctr., Inc., 704 So.2d 669, 673 (Fla. 1st DCA 1997)). Likewise, "[i]t is well settled law 1 Indeed, the only responses Edwards provided in these unverified Answers to Interrogatories that were not solely objections or assertions of privilege were self-serving responses that were clearly not called for by the interrogatories; to wit: the amounts of settlement received from the Epstein cases and an assertion that Edwards was not a partner at RRA. Moreover, even if this Court can believe that Edwards had any question at all regarding the propriety of disclosing this information, the Agreements provide the procedure he is to follow; which he did not do. See Agreements. 3 Tonja Haddad, P.A.• 315 SE 7 th Street, Fort Lauderdale, FL 33301 • 954.467.1223 NOT A CERTIFIED COPY that '[a] stipulation properly entered into and relating to a matter upon which it is appropri