Aaron Charney, Biglaw, Charles Stillman, Daniel Alterman, David Braff, Gay, Technology, Zachary Fasman

Sullivan & Cromwell v. Charney: Hearing Highlights (Part 1)

onFebruary 8, 2007 at 12:09 PM

We got enough material from this morning’s hearing in Sullivan & Cromwell v. Charney to fill several posts. Eventually we’ll do something for more organized (and fashion-focused).
For now, in no particular order, here are some highlights. We will update this list until we feel this post is “complete” (and then we’ll open a new thread).
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1. In addition to Zachary Fasman of Paul Hastings, Sullivan & Cromwell is now represented by Charles Stillman — a veteran litigator described by the New York Times as “known for representing clients with intricate legal difficulties.” S&C would seem to fit the bill.
Stillman took the lead in speaking for S&C at this morning’s hearing. Zach Fasman spoke only a handful of times. S&C litigation head David Braff, although seated at counsel table, was completely silent (and sans feather boa).
2. Plaintiff Aaron Charney was nowhere to be found at today’s hearing. Darn! We wanted to see him in the flesh. But his absence is understandable — some awkward moments would have arisen had he been around to be questioned (or, if not questioned, at least stared at during the many moments of factual ambiguity).
3. One of the juiciest details, as nicely summarized by Lavi Soloway:

Last Wednesday January 31 there was a secret settlement meeting at which Charney was offered an undisclosed sum in return for which he promised, among other things, to destroy the hard drive on his personal, home computer. The destruction of that hard drive moved to the center of the debate. Aaron Charney has been ordered to submit an affidavit to the court regarding the hard drive and the status of documents that were allegedly in his possession.

But no settlement was reached (as one could tell from the fact that a hearing took place today). And now Charney — who, at the time of the secret settlement meeting, was still pro se — is represented, once again, by counsel.
3. On the issue of the hard drive, Daniel Alterman, on behalf of Charney, represented to the court that the hard drive of his client’s personal computer had been “destroyed.” Charney has been ordered to provide greater information to the court about this (as noted above).
4. It seems, reading between the lines, that Justice Charles Ramos — who had the case initially — did grant a TRO to S&C last week. But he didn’t give them everything they wanted, “scratching out” various aspects of their request.
As far as we could tell, the upshot of the TRO was for Charney to not divulge any secrets or client confidences of S&C. This explains his sudden shyness towards press inquiries. Justice Ramos punted a bunch of other issues raised in the TRO, such as custody of documents, to Justice Fried.
5. Justice Bernard Fried is taking over both the S&C case against Charney and Charney’s original anti-discrimination action against S&C. Both actions will be handled by Justice Fried going forward.
6. Briefing schedule on the OSC: (a) Charney’s opposition to S&C’s Order to Show Cause (i.e., the preliminary injunction motion) is due on March 1 (and Charney will cross-move for some relief of his own on that date); (b) S&C’s response to the cross-motion is due two weeks later, on March 15; (c) Charney’s reply on the cross-motion is due one week later, on March 22; and (d) the next hearing on the Order to Show Cause will be held on March 27, at 11 AM, before Justice Fried.
7. Schedule for the pleadings: S&C’s Answer to Charney’s original Complaint — or, more likely, its motion to dismiss under CPLR 3211 — is due next week (apparently Tuesday, but there was some dispute over this).
8. Other procedural rulings: (a) discovery cutoff is February 5, 2008; (b) Note of Issue (placing the case on the trial calendar) set for February 12, 2008.
9. Rulings about S&C original documents: (a) various original S&C documents that Charney submitted to the Court, which S&C wants back, will be returned to S&C; (b) S&C will copy them and provide copies to the Court; and (c) next week — on Valentine’s Day, as noted by the Court — Charney must submit an affidavit or affirmation concerning S&C documents.
10. Rulings about the hard drive on Aaron Charney’s personal computer: (a) by the end of the day today, Charney must submit an affidavit or affirmation to the Court describing what happened to the “destroyed” hard drive; (b) if the hard drive has been merely erased, rather than physically destroyed, it must be produced to Judge Fried tomorrow; (c) if it still exists, a forensic computer expert will examine it, as requested by S&C.
11. Finally, Justice Fried entered a general preservation order, requiring all parties to preserve all documents relevant to these two cases (including attorney-client privileged documents).
Okay, that’s it for this post. Further commentary will appear in a new thread.
P.S. Comment wherever you like — this thread, the earlier thread, future threads. Commenting here at ATL has always been anarchic (which is why we love it so).