1 Judge Beth M. Andrus 2 3 4 5 6 7 IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON FOR KING COUNTY BELLEVUE SQUARE, LLC, No. 15-2-27043-5 SEA 8 9 10 11 12 13 Plaintiff, ORDER GRANTING GLOBAL BARISTAS US, LLC’S MOTION FOR CONTEMPT IN PART vs. GLOBAL BARISTAS US, LLC, a Washington limited liability company, and BSQUARED CONSTRUCTION, INC., a Washington corporation, Defendants. 14 THIS MATTER having come before the Court Global Baristas US, LLC’s Motion for 15 Contempt on April 27, 2018. The Court heard the oral argument of counsel and considered the 16 following: Global Baristas US, LLC’s Motion for Contempt, Declaration of Susan Machler in 17 Support of Motion for Contempt, Declaration of Simeon J. Osborn in Support of Motion for 18 Contempt, (Proposed) Order Granting Motion for Contempt, Response to Motion for Contempt, 19 Declaration of David Nold in Support of Response to Motion for Contempt, Global Baristas US, 20 LLC’s Reply in Support of Motion for Contempt, Declaration of Susan Machler in Support of 21 Global Baristas US, LLC’s Reply in Support of Motion for Contempt, Declaration of Jenine 22 Michaelis re Service of the Replay and Declaration of Susan Machler, and the Contempt of Court 23 statute, found at RCW 7.21 et seq. 24 25 26 ORDER GRANTING GLOBAL BARISTAS US, LLC’S MOTION TO APPOINT REFEREE AND FOR PROTECTIVE ORDER - 1 OSBORN M ACHLER 2025 First Avenue, Suite 1200 Seattle, WA 98121 206-441-4110 (Tel) 206-441-4220 (Fax) 1 2 Based on the forgoing, the Court FINDS: 3 1. On August 25, 2017, during a supplemental proceeding hearing, the court granted 4 an oral Protection Order limiting the plaintiff’s use of any information gained during the 5 supplemental proceedings including any information discovered prior to the August 25, 2017, 6 hearing for any purposes other than collecting on the judgment (the “Order”). The oral Order 7 was then captured in writing and signed by the Court on September 6, 2017. All supplemental 8 proceedings ended in December 2017, as the judgments that were the subject of the supplemental 9 proceedings were paid. 10 11 12 2. Information had been obtained in the supplemental proceedings that had not previously been obtained in discovery. 3. David Nold gave a copy of a deposition dated July 21, 2017, obtained in the 13 supplemental proceedings, to a reporter of the Puget Sound Business Journal and to a reporter for 14 the Seattle Times. The disclosure of this deposition transcript was not for the purposes of 15 collecting a money judgement. The judgment was satisfied, and therefore, David Nold’s 16 disclosure to the journalists violated the Order. 17 4. Mr. Nold also gave a copy of the July 21st deposition transcript to disciplinary 18 counsel of a Bar Association. 19 in confidential submittal to law enforcement or to a Bar Association violated the Order. 20 5. There is no determination by the court that disclosure of material The Court considered Mr. Nold’s argument that the term “no information 21 discovered” as stated in the Order does not mean “no documents produced,” and does not find 22 this contention credible—“information” is not synonymous with “documents.” A reasonably 23 sophisticated commercial litigation attorney knows that there is a difference. 24 25 26 ORDER GRANTING GLOBAL BARISTAS US, LLC’S MOTION TO APPOINT REFEREE AND FOR PROTECTIVE ORDER - 2 OSBORN M ACHLER 2025 First Avenue, Suite 1200 Seattle, WA 98121 206-441-4110 (Tel) 206-441-4220 (Fax) 1 6. Mr. Nold’s disclosure of the July 21st deposition transcript to the Puget Sound 2 Business Journal and to the Seattle Times was an intentional act, and therefore is contempt of 3 court under RCW 7.21.010(1)(b); intentional disobedience of a court order. 4 5 6 7. The Court finds Mr. Nold in contempt of court for intentionally disclosing the July 21st deposition transcript to the Puget Sound Business Journal and to the Seattle Times. 8. RCW 7.21.030 allows for the Court to impose remedial sanctions against 7 individuals for intentional violations of a court order. Specifically, RCW 7.21.030(3) grants the 8 Court authority to order the person found in contempt of court to pay another party’s reasonable 9 attorney’s fees and costs as a result of the contempt proceedings. 10 11 9. RCW 7.21.030(2)(c) also allows the Court to enter an order to ensure compliance with any prior order of this Court. 12 Therefore, the Court ORDERS the following: 13 1. Within 14 calendar days, David Nold, all members of his law firm, and the clients 14 that they represented in this case, will disgorge to defendants any and all documents produced by 15 the defendant or the parent company of Global Baristas, LLC, and disgorge any and all copies of 16 depositions taken of Michael Avenatti, including all electronic copies, and including any copies 17 attached to any correspondence with law enforcement or bar associations. 18 19 20 21 22 23 2. Mr. Nold will file an affidavit with this Court certifying that he and his law firm have completed the ordered disgorgement. 3. Mr. Nold shall personally pay reasonable costs and fees to defendant arising from the contempt proceedings. 4. The Defendants shall file a Fee Petition on the six-day calendar within 14 calendar days of April 27, 2018. 24 25 26 ORDER GRANTING GLOBAL BARISTAS US, LLC’S MOTION TO APPOINT REFEREE AND FOR PROTECTIVE ORDER - 3 OSBORN M ACHLER 2025 First Avenue, Suite 1200 Seattle, WA 98121 206-441-4110 (Tel) 206-441-4220 (Fax) 1 DONE IN OPEN COURT this 10th day of May, 2018. 2 Electronic signature attached __________________________________________ JUDGE BETH M. ANDRUS 3 4 PRESENTED BY: 5 OSBORN MACHLER 6 7 8 9 10 /s/ Susan Machler Simeon J. Osborn, WSBA No. 14484 Susan Machler, WSBA #23256 2025 First Avenue, Suite 1200 Seattle, WA 98121 Phone: 206-441-4110 Facsimile: 206-441-4220 Attorneys for Defendant Global Baristas US, LLC 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ORDER GRANTING GLOBAL BARISTAS US, LLC’S MOTION TO APPOINT REFEREE AND FOR PROTECTIVE ORDER - 4 OSBORN M ACHLER 2025 First Avenue, Suite 1200 Seattle, WA 98121 206-441-4110 (Tel) 206-441-4220 (Fax) King County Superior Court Judicial Electronic Signature Page Case Number: Case Title: BELLEVUE SQUARE VS GLOBAL BARISTAS US ET ANO Document Title: ORDER CONTEMPT Signed by: Date: Beth Andrus 5/10/2018 1:17:55 PM 15-2-27043-5 Judge/Commissioner: Beth Andrus This document is signed in accordance with the provisions in GR 30. Certificate Hash: D92F76D12132FF531AF16720A721F097AC7A50B6 Certificate effective date: 7/29/2013 12:26:48 PM Certificate expiry date: 7/29/2018 12:26:48 PM Certificate Issued by: C=US, E=kcscefiling@kingcounty.gov, OU=KCDJA, O=KCDJA, CN="Beth Andrus:dE53Hnr44hGmww04YYhwmw==" Page 5 of 5