antitrust,koh,help."no poach"...

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTESGENERAL Case No. CV-13-04253-MWF (AJWx) Date: May 21, 2014 Title: Eunice Huthart -v- News Corporation, et al.

______________________________________________________________________________ CIVIL MINUTESGENERAL 1

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Present: The Honorable MICHAEL W. FITZGERALD, U.S. District Judge Deputy Clerk: Court Reporter: Rita Sanchez Not Reported Attorneys Present for Plaintiff: Attorneys Present for Defendant: None Present None Present Proceedings (In Chambers): ORDER GRANTING DEFENDANTS MOTION TO

DISMISS FOR FORUM NON CONVENIENS [41], DENYING MOTION TO INTERVENE AS MOOT [61], AND DENYING EX PARTE APPLICATION TO CONTINUE MOTION TO INTERVENE AS MOOT [65]

This matter is before the Court on the Motion to Dismiss Under FRCP Rules

12(b)(2), 12(b)(6), and for Forum Non Conveniens (the Motion), filed by Defendants News Corporation (News Corp.), NI Group Limited f/k/a News International Limited (NI), and News Group Newspapers Limited (NGN). (Docket No. 41). The Court read and considered the papers filed on this Motion, and held a hearing on February 24, 2014. Following additional briefing, the Court GRANTS the Motion.

The underlying facts here do not seem to be in dispute, at least by these parties. It appears, and certainly is alleged, that Plaintiff Eunice Huthart has suffered a grotesque invasion of her privacy. This harm arose for no reasons other than Hutharts successfully pursuing a demanding career associated with Los Angeles and having a friend who likewise is at the summit of success in an industry associated with Los Angeles. Nonetheless, for the reasons explained in this Order, the Court concludes that Huthart must obtain her relief from the courts of England and Wales.

Background

Case 2:13-cv-04253-MWF-AJW Document 66 Filed 05/21/14 Page 1 of 22 Page ID #:2069

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On June 13, 2013, Huthart initiated this action by filing a Complaint in this Court. (Docket No. 1). The Complaint alleges that Huthart is a citizen of the United Kingdom and resides in Liverpool, England. (Compl. 4). But between early January 2004 to mid-June 2004, and from mid-March 2005 to mid-May 2005, Huthart lived and worked in Los Angeles, California as a professional stunt double for actress Angelina Jolie. (Compl. 4). The Complaint alleges that during this time period, various British media companies, primarily agents working for two British newspapers, The Sun and News of the World, unlawfully intercepted her voice-mail messages on cellular telephone systems to obtain information about Jolie. (Compl. 11, 12, 16-21, 45-68). The Complaint alleges that these actions were part of a large-scale hacking scheme (Compl. 11-44), which have received much media attention and will be referred to in this Order as the Hacking Scheme.

The Complaint alleges six claims: (1) violation of the Stored Communications Act, 18 U.S.C. 2701, 2707; (2) violation of the Wiretap Act, 18 U.S.C. 2510, 2511, 2520; (3) violation of the California Constitution, art. I, 1; (4) violation of California Penal Code 630, 631, 632, 632.7, 637(2)(a); (5) violation of California Civil Code 1708.8(b), 1708.8(d), 1708.8(e); and (6) a common law claim for intrusion into private affairs.

On September 20, 2013, Defendants filed this Motion. On December 10, 2013, Huthart filed an Opposition to Defendants Motion to Dismiss (the Opposition). (Docket No. 49). On January 22, 2014, Defendants filed a Reply in Support of Defendants Motion to Dismiss (the Reply). (Docket No. 54). The briefs complied with the deadlines and page limits set by this Court. (See Docket Nos. 40, 47).

After the hearing on February 24, 2014, the Court ordered supplemental briefing on two issues: (1) whether Englands managed litigation system set up to deal with claims arising from the Hacking Scheme, the Mobile Telephone Voicemail Interception Litigation (MTVIL), would accept Hutharts claim; and (2) whether Huthart would otherwise be able to bring a lawsuit in the regular civil litigation system in England. (Docket No. 56).


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On March 17, 2014, Defendants filed a Supplemental Briefing Pursuant to the Courts February 25, 2014 Order (Defendants Brief). (Docket No. 57). That same day, Huthart also filed a Supplemental Memorandum of Position and Authorities in Opposition to Defendants Motion to Dismiss (Hutharts Brief). (Docket No. 58). Both briefs were timely filed.

Evidentiary Objections

Both sides have submitted numerous evidentiary objections. (See Docket Nos. 50-1, 50-2, 50-3, 50-4, 50-5, 50-6, 54-9, 54-10, 54-11, 54-12). Most of these objections are not aimed at the evidence relevant to the forum non conveniens analysis, on which this Order turns. To the extent that the objections are relevant to the forum non conveniens analysis, they challenge very specific details for lack of foundation. However, the Hacking Scheme and the investigations and legal proceedings related to it are set forth in sufficient detail in the Complaint itself. Moreover, these events have been the subject of significant media attention worldwide. Furthermore, it does not appear that the parties dispute Hutharts access to the regular civil litigation system of England, as opposed to the specialized venues established to address the Hacking Scheme. Accordingly, the Courts analysis and conclusion would have not differed, regardless of whether the objections were sustained are overruled.

Therefore, both parties objections are OVERRULED as moot.

Requests for Judicial Notice

Pursuant to Federal Rule of Evidence 201, the Court may take judicial notice of a fact that is not subject to reasonable dispute because it: (1) is generally known within the trial courts territorial jurisdiction; or (2) can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned. Fed. R. Evid. 201(b).

Defendants filed two requests for judicial notices: (1) Request for Judicial Notice in Support of Motion to Dismiss (Defendants First Request) (Docket No. 41-


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8), and (2) Request for Judicial Notice in Support of Defendants Reply in Support of Motion to Dismiss (Defendants Second Request). (Docket No. 54-1). Of the documents for which Defendants seek judicial notice, only two are relevant to the forum non conveniens analysis.

First, Exhibit 1 of the Declaration of Christa Jane Band (the Band Declaration) (Docket No. 41-2) is a court order in the consolidated litigation in England relating to the Hacking Scheme. (Band Decl., Ex. 1). Because that litigation is related to this one, the Court order is appropriate for judicial notice. See United States v. Howard, 381 F.3d 873, 876 n.1 (9th Cir. 2004) (citing United States v. Wilson, 631 F.2d 118, 119 (9th Cir. 1980)) (stating that a court may take judicial notice of court records in another case).

Second, Exhibit 2 of the Band Declaration is the Terms of Reference of the Leveson Inquiry, which investigated the Hacking Scheme. (Band Decl., Ex. 2). Exhibit 2 was taken from the Leveson Inquirys website, and is appropriate for judicial notice. See Matthews v. Natl Football Council, 688 F.3d 1107, 1113 & n.5 (9th Cir. 2012) (taking judicial notice of relevant statistics available on the NFLs website); OToole v. Northrop Grumman Corp., 499 F.3d 1218, 1225 (10th Cir. 2007) (It is not uncommon for courts to take judicial notice of factual information found on the world wide web.).

Therefore, Defendants First Request is GRANTED as to these two Exhibits. The remainder of Defendants First Request and Defendants Second Request is DENIED as irrelevant.

On December 10, 2013, Huthart filed a Request for Judicial Notice in Opposition to Motion to Dismiss (Hutharts Request). (Docket No. 49-1). Of the documents for which Huthart seeks judicial notice, items 1-7, 13, and 15 are relevant to the forum non conveniens analysis. These documents consist of relevant public documents found online and documents filed in relevant litigation. For the reasons stated above, both of these categories of documents are appropriate for judicial notice.


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Therefore, Hutharts Request is GRANTED as to items 1-7, 13, and 14. The remainder of Hutharts Request is DENIED as irrelevant.

Motion to Dismiss

The Motion seeks dismissal of this action on four grounds: (1) forum non conveniens; (2) lack of personal jurisdiction, under Federal Rule of Civil Procedure 12(b)(2), as to NI and NGN, which are citizens of the United Kingdom; (3) failure to state a claim, under Rule 12(b)(6), as to News Corp., on the ground that the Complaint fails to establish a basis to pierce the corporate veil; and (4) failure to state a claim, under Rule 12(b)(6), on the grounds that two of the statutes governing Hutharts claims do not apply to extraterritorial conduct, three of her claims lack sufficient factual allegations, and all claims are time-barred. (Mot. at 6-7).

This Court can examine the merits of the forum non conveniens argument before addressing the jurisdictional issues. The Supreme Court has stated:

We hold that a district court has discretion to respond at once to a defendants forum non conveniens plea, and need not take up first any other threshold objection. In particular, a court need not resolve whether it has authority to adjudicate the cause (subject-matter jurisdiction) or personal jurisdiction over the defendant if it determines that, in any event, a foreign tribunal is plainly the more suitable arbiter of the merits of the case.

Sinochem Intl Co. Ltd. v. Malaysia Intl Shipping Corp., 549 U.S. 422, 425, 127 S. Ct. 1184, 167 L. Ed. 2d 15 (2007). Because the proposed alternative forum in this action is England, the appropriate analysis is the forum non conveniens doctrine, as opposed to a motion to transfer pursuant to 28 U.S.C. 1404. See Atl. Marine Constr. Co., Inc. v. U.S. Dist. Court for W. Dist. of Tex., 571 U.S. __, 134 S. Ct. 568, 580 (2013) (stating that 1404 is the appropriate mechanism when the transferee forum is within the federal court system,


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but that courts should apply the doctrine of forum non conveniens in cases seeking transfer to a nonfederal forum); Sinochem Intl, 549 U.S. at 430 (same).

Under the forum non conveniens doctrine, the party moving to dismiss bears the burden of showing that (1) there is an adequate alternative forum for this action, and (2) the balance of private and public interest factors favors dismissal. See Sinochem Intl, 549 U.S. at 429 (summarizing the legal standard for forum non conveniens).

Adequate Alternative Forum

The first requirement for a forum non conveniens dismissal is that an adequate alternative forum is available to the plaintiff. Lueck v. Sundstrand Corp., 236 F.3d 1137, 1143 (9th Cir. 2001). The Supreme Court has held that an alternative forum ordinarily exists when the defendant is amenable to service of process in the foreign forum. Id. Moreover, [t]he foreign forum must provide the plaintiff with some remedy for [her] wrong in order for the alternative forum to be adequate. Id.

Here, England provides an adequate alternative forum.

With regard to jurisdiction and service of process, England would have jurisdiction over NI and NGN because they are incorporated, registered, and headquartered in England. (Declaration of Craig Wyndham Orr QC 22-24 (the Orr Declaration) (Docket No. 41-4)). England would also have jurisdiction over News Corp., the only non-English Defendant, because it has agreed to waive any challenge to personal jurisdiction in the English courts. (Orr Decl. 25; see also Mot. at 8). Moreover, it appears that England may have jurisdiction over News Corp., even if it did not submit to personal jurisdiction there. (Orr Decl. 26-27).

With regard to the entity consenting to personal jurisdiction, Defendants explain that on June 28, 2013, News Corp. separated into two independent publicly traded companies. (Declaration of Gerson A. Zweifach 2 (the Zweifach Declaration) (Docket No. 41-7)). The entity named in the Complaint, News Corp., changed its name to 21st Century Fox, Inc. (21st Century) and continued to be the parent


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company of most of News Corp.s entertainment-related entities. (Zweifach Decl. 2). A new company was also created bearing the name News Corporation (New News Corp.) and became the parent company of most of News Corp.s news media-related entities. (Zweifach Decl. 2). News Corp.s successor, 21st Century, agrees to waive any challenge to personal jurisdiction. (Zweifach Decl. 3).

In the supplemental briefing, Huthart argues for the first time that she cannot bring her claims against all Defendants in England because the real party in interest is not 21st Century, but New News Corp., which did not consent to jurisdiction. (Hutharts Brief at 2-4). Huthart argues that the print media entities involved in the Hacking Scheme are now attributed to New News Corp., that it can be inferred that the bulk of relevant documentary evidence is maintained by New News Corp., and that Securities and Exchange Commission filings confirm that New News Corp. is liable for civil claims arising out of the hacking scheme. (Hutharts Brief at 3).

In response, Defendants filed an Objection to Plaintiffs Supplemental Memorandum and Request to File Supplemental Declaration (Defendants Objection) on March 21, 2014, after the deadline for supplemental briefing. (Docket No. 59). Defendants object to Hutharts insinuation that Defendants misled the Court when they asserted that 21st Century would consent to personal jurisdiction. (Defendants Objection at 1). Defendants explain that 21st Century was the entity that consented to personal jurisdiction because News Corp., the defendant named in the Complaint, essentially became 21st Century. (Id.). Defendants also request leave to file the Second Declaration of Gerson A. Zweifach (the Second Zweifach Declaration) (Docket No. 59-1), attesting that if Huthart also sues New News Corp. in England, New News Corp. would consent to personal jurisdiction. (Second Zweifach Decl. 3; see also Defendants Objection at 2).

Huthart, in turn, objects to the Defendants Objection and the Second Zweifach Declaration because they were filed after the deadline for supplemental briefing. (See Plaintiffs Objection to Defendants March 21, 2014 Filing and Request That It Be Stricken from the Record at 2 (Docket No. 60)).


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While Huthart is correct that these documents were filed late, the Court refrains from striking them and permits the filing of the Second Zweifach Declaration. Defendants Objection responded to a new argument in Hutharts Brief, which was arguably outside the scope of the supplemental briefing. Moreover, the Court would have likely asked for a response from Defendants to clarify which is the correct entity to consent to personal jurisdiction. The Court also notes that this issue could have been raised in the Opposition because the first Zweifach Declaration was filed with the Motion. However, the Court does not treat the issue as waived. Rather, it is resolved for the reasons stated.

In any event, there appears to be no dispute at this point that both 21st Century and New News Corp. would be willing to submit to personal jurisdiction in England. Therefore, Huthart would be able to sue all Defendants in England. Contrary to Hutharts contention (see Opp. at 6), the adequate alternative forum requirement will be satisfied when the defendant is amenable to process in the other jurisdiction. Piper Aircraft Co. v. Reyno, 454 U.S. 235, 255, n. 22, 102 S. Ct. 252, 70 L. Ed. 2d 419 (1981) (quoting Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 507, 67 S. Ct. 839, 91 L. Ed. 1055 (1947), superseded by statute on other grounds).

It further appears that England can provide some remedy to Huthart. Defendants described two avenues in England specifically created to handle claims related to the Hacking Scheme: (1) a voluntary compensation scheme, and (2) the MTVIL system in the English High Court. (Mot. at 4).

Huthart has submitted the Declaration of Mark Lewis (the Lewis Declaration) (Docket No. 49-3), which establishes that the first avenue is now closed. (Lewis Decl. 7). Therefore, the Court does not consider the voluntary compensation scheme as an available venue.

Huthart also argues that the second avenue, the MTVIL, is unavailable to her. (Hutharts Brief at 5). The MTVIL is a managed litigation system that was instituted in the English courts to deal with claims arising from the Hacking Scheme. (Declaration of Hugh Tomlinson 7 (the Tomlinson Declaration) (Docket No. 58-3);


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see also Band Decl. 4-8; Third Declaration of Craig Wyndham Orr QC 4-5 (the Third Orr Declaration) (Docket No. 57-2)). The MTVIL provides consolidated case management, expedited discovery from the London Metropolitan Police Service and NGN, mechanisms to obtain discovery from third parties, early assessment of claims, and procedures for managing litigation costs. (Band Decl. 7). All cases filed in the English civil courts that fall within the scope of the MTVIL are automatically referred to the MTVIL. (Id.). Based on the criteria for MTVIL claims (Third Orr Decl. 5), Hutharts claims likely fall within the scope of the MTVIL.

The litigation of claims in the MTVIL has proceeded in tranches. The current tranche of claims, Tranche 2, closed on January 31, 2014. (Tomlinson Decl. 10-11). Huthart also asserts that the managing judge for the MTVIL is disinclined to further extend the cut-off date for Tranche 2, and no new claims can join Tranche 2. (Hutharts Brief at 5 (citing Tomlinson Decl. 11-12)). Moreover, the MTVIL has not yet created a Tranche 3. (Tomlinson Decl. 16). If Huthart were to file claims in the English courts that fell within the scope of the MTVIL, her claims would be stayed pending the resolution of the Tranche 2 claims. (Tomlinson Decl. 13-15; see also Third Orr Decl. 8-9). Defendants assert that Huthart would nonetheless be able to apply to the court to lift the stay and to have her claim included with the Tranche 2 claims set for trial on October 1, 2014. (Third Orr Decl. 9).

The above facts do not demonstrate that the MTVIL is unavailable to Huthart. They simply indicate that if Hutharts claims were referred to the MTVIL, their resolution may be delayed because they were filed after Tranche 2 closed. Huthart has cited no legal authority establishing that such a stay or delay of resolution renders a forum inadequate.

Even if the MTVIL is no longer open to Huthart, Defendants have established that the regular civil litigation processes of the courts of England and Wales remain open to Huthart. (Reply at 4). Defendants expert attests that [i]f a claim does not qualify for inclusion in the MTVIL, it will be able to be brought in any division of the High Court in the normal way. (Third Orr Decl. 7). In fact, Huthart acknowledges that it is technically correct that if no MTVIL Tranche 3 is established, then [she] can


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file suit in the English Civil Court Proceedings. (Hutharts Brief at 6). However, Huthart objects that proceeding in the regular civil court would be the litigation equivalent of purgatory because her claims would be stayed pending the resolution of MTVIL claims. (Hutharts Brief at 7 & n.4). As noted above, the fact or possibility that Hutharts claims might be stayed does not render England an unavailable or otherwise inadequate forum. In our court system, for example, claims are routinely stayed to facilitate efficient administration, to avoid duplicative actions, and for other docket management reasons. Such stays do not mean that our courts are closed to those claims.

Therefore, Defendants have established that both the English court system and the MTVIL are available to Huthart to bring her claims. Moreover, England would provide some remedy for Hutharts claims, as discussed below.

English law recognizes claims for breach of confidence and misuse of private information. (Orr Decl. 11-16). Under English law, remedies for these claims include compensatory damages, account of profits, and injunctive relief. (Orr Decl. 17). Moreover, England has enacted a number of statutes, which prohibit the interception of communications over telecommunication systems, the unauthorized disclosure of personal data, and the unauthorized accessing of data held on a computer. (Orr Decl. 18). Therefore, English law provides some remedy for Hutharts injuries.

Huthart argues that the MTVIL is an inadequate forum because it is structured to address claims against NGN and Glenn Mulcaire (who is the main NGN investigator implicated in the Hacking Scheme), whereas she has also alleged claims against NI and News Corp. (Hutharts Brief at 8). However, Defendants have established that claims against NI and News Corp. would not be barred from the MTVIL, so long as Hutharts claims meet the basic criteria. (Third Orr Decl. 6; see also Third Declaration of Christa Jane Band 6 (Docket No. 57-3) (noting that other claimants in the MTVIL have named defendants in addition to NGN and Mulcaire)).

Huthart also argues that the MTVIL is inadequate because its system of paired settlement offers is designed to favor early settlement and creates a disincentive for


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claimants to go to trial. (Opp. at 5; Lewis Decl. 16-24). However, the fact that the MTVIL incentivizes early settlement demonstrates that some remedy is available to Huthart, and nothing indicates that this remedy would be so inadequate as to constitute no remedy at all. Moreover, Huthart could simply choose to proceed in the general civil court system, which does not appear to operate under the paired settlement system.

Huthart also argues that English law offers no remedy for a significant portion of her claims. (Hutharts Brief at 7-8). In particular, she argues that England provides no cause of action to hold NI and News Corp. directly liable because they knew or should have known about NGNs hacking activity, failed to stop NGNs hacking, and participated in the cover-up of the hacking. (Hutharts Brief at 8; Tomlinson Decl. 20). Again, this argument could have been raised in the Opposition, but was not.

On the merits, this argument appears to be more artful, than substantive. Huthart has not explained what she means, or what claim for relief under American law would hold NI and News Corp. directly liable for such actions. The Complaint does not allege a separate claim for relief specifically asserting that NI and News Corp. are liable for activities that they knew or should have known about, failed to stop, or participated in covering up. Rather, it seems the gravamen of the Complaint is that all Defendants participated in the Hacking Scheme. Each claim is alleged against all Defendants, and many of the claims turn on intentional or willful conduct. (See, e.g., Compl. 75, 76, 78, 81, 83, 100-104, 120). Therefore, based on the allegations in the Complaint, it appears that there would be liability against all Defendants for their actions. Hutharts expert, Hugh Tomlinson, is certainly well credentialed. (See Tomlinson Decl. 3-4). But he has not opined, nor would the Court find it credible if he did, that if all the allegations in the Complaint were true, NI and News Corp. would escape liability under English law. In light of the Complaints allegations that all Defendants committed the alleged acts, it is immaterial that there is no cause of action in England to hold NI and News Corp. liable for activities they knew or should have known about, failed to stop, or participated in covering up.


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Huthart also argues that England is an inadequate forum for her claims under the Stored Communications Act and the Wiretap Act. (Opp. at 4). In the supplemental briefing, Huthart further explains that the Stored Communications Act permits a claim for unauthorized accessing, obtaining, interfering with, or preventing access to a stored wired communication, without requiring that the person committing such acts actually obtain or listen to the content of the wire communication. (Hutharts Brief at 9). In contrast, [n]o cause of action independent of actually listening to the communication or otherwise obtaining the content of the communication exists in England and Wales. (Tomlinson Decl. 22). Therefore, Huthart argues that she cannot litigate the subject matter of her claim in England. (Hutharts Brief at 9).

The Court is likewise not persuaded that Huthart would be unable to litigate the subject matter of her claims in England. The Complaint alleges that Mulcaire and other unidentified investigators working for Defendants reset the pin number and password on the voicemails of their targets, and then used and exploited the unlawfully-obtained information to note, record and/or transcribe voice-mail messages. (Compl. 19). Mulcaire and other unidentified investigators then provided the direct mobile numbers, passwords, and pin numbers to NGN journalists to enable them to hack and/or listen to, or to read transcripts of voice-mail messages of targets. (Compl. 20). Mulcaire and others used the information in these voice-mail messages in the preparation of articles or stories to be published by the Sun and News of the World. (Compl. 19, 20). The Complaint then alleges that Mulcaire and other investigators and journalists engaged in the above activities with regard to Hutharts cellphone, intercepting her voice-mail messages in order to obtain the private and confidential information on them. (Compl. 54).

In other words, the subject matter of Hutharts claim is not limited to the allegation that Defendants and their agents simply accessed or interfered with her voicemails. Rather, those allegations are part and parcel of a scheme, in which Defendants and their agents are alleged to have intercepted and obtained the information in Hutharts voicemails to use such information in tabloid stories. Tellingly, the Ninth Circuit has described the offense of accessing a communication under the Stored Communications Act as a lesser included offense of the offense of


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intercepting a communication under the Wiretap Act. United States v. Smith, 155 F.3d 1051, 1058 (9th Cir. 1998). Defendants have established that English law provides a cause of action for the unauthorized interception of communications under the Regulation of Investigatory Powers Act of 2000. (Orr Decl. 18).

Huthart analogizes this case to Phoenix Canada Oil Co. Limited v. Texaco, Inc., 78 F.R.D. 445, 456 (D. Del. 1978), in which the court found Ecuador to be an inadequate forum, in part, because no remedy existed under Ecuadorian law for two of three legal theories advanced by the complaint. (See Hutharts Brief at 7-8). However, the Court does not find Phoenix analogous. Here, it appears that England does not recognize only one of six claims for relief in the Complaint. Even so, that one claim is intertwined with and could be considered a lesser included offense of another claim, interception of communications, which is recognized under English law.

Therefore, the fact that Huthart may not have an additional claim against Defendants for accessing her voicemails does not render England inadequate. See Gemini Capital Group, Inc. v. Yap Fishing Corp., 150 F.3d 1088, 1092 (9th Cir. 1998) ([T]he fact that Plaintiffs could not assert a RICO cause of action under Yap or FSM [Federated States of Micronesia] law does not preclude a forum non conveniens dismissal.). It is generally irrelevant that the courts in the other jurisdiction may apply substantive law that is less favorable to Huthart. Piper Aircraft, 454 U.S. at 249 (stating that dismissal may not be barred solely because of the possibility of an unfavorable change in law). The district court [i]s not required to ask whether Plaintif[f] could bring this lawsuit in [the alternate forum], but rather, whether [the alternate forum] offers a remedy for their losses. Lueck, 236 F.3d at 1143 (finding that New Zealand was an adequate alternative foreign, where New Zealand law did not permit Plaintiffs to maintain the exact suit as in the United States, but New Zealand nonetheless provided a remedy for Plaintiffs loses). There is simply no evidence that the remedy available in England would be so clearly inadequate or unsatisfactory, that it is no remedy at all. Lueck, 236 F.3d at 1143 (quoting Lockman Found. v. Evangelical Alliance Mission, 930 F.2d 764, 768 (9th Cir. 1991)).


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Accordingly, Defendants have established that England is an adequate alternative forum for Hutharts claims.

Private Interest Factors

Given the existence of an adequate alternative forum, a district court must consider the balance of private and public interest factors to determine whether to dismiss on grounds of forum non conveniens. Lockman Found., 930 F.2d at 769.

[U]nless the balance [of private and public interest factors] is strongly in favor of the defendant, the plaintiffs choice of forum should rarely be disturbed. Gulf Oil, 330 U.S. at 508. However, a foreign plaintiffs choice of forum merits less deference than that of a plaintiff who resides in the selected forum, and the showing required for dismissal is reduced. Lueck, 236 F.3d at 1145; see also Piper Aircraft, 454 U.S. at 255 (stating that the presumption in favor of the plaintiffs choice of forum . . . applies with less force when the plaintiff or real parties in interest are foreign); Gemini Capital, 150 F.3d at 1091-92 (holding that the plaintiffs decision to sue in Hawaii was properly accorded less deference than if Hawaii had been his true home forum). Moreover, a truly foreign plaintiff (i.e., someone who is not a United States citizen or resident) is accorded less deference than an American citizen suing in a state other than his state of residence. Boston Telecommcns Group, Inc. v. Wood, 588 F.3d 1201, 1207 (9th Cir. 2009). But even as to such quintessentially foreign plaintiffs, it is clear that less deference is not the same thing as no deference. Id.

Huthart is a citizen and resident of the United Kingdom. (Compl. 4; Declaration of Eunice Huthart 2 (the Huthart Declaration) (Docket No. 49-2)). She, however, has worked in Los Angeles, California on numerous occasions and is the sole owner of a California corporation. (Huthart Decl. 3, 4). Accordingly, the Court accords some deference to Hutharts choice of forum, but it is less deference than would be accorded if Huthart were a United States citizen or a California resident.

Courts consider the following private interest factors: (1) the residence of the parties and the witnesses; (2) the forums convenience to the litigants; (3) access to


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physical evidence and other sources of proof; (4) whether unwilling witnesses can be compelled to testify; (5) the cost of bringing witnesses to trial; (6) the enforceability of the judgment; and (7) all other practical problems that make trial of a case easy, expeditious and inexpensive. Lueck, 236 F.3d at 1145 (quoting Gulf Oil, 330 U.S. at 508).

First, with regard to the residence of the parties and witnesses, this factor weighs

in favor of England. Huthart herself, her husband, her daughter, and current and former NGN employees involved in the alleged hacking are located in England. (Compl. 45, 50-51; Band Decl. 18; Mot. at 12). Huthart argues that other potential witnesses, such as Jolie and employees of her California company, are located in California. (Opp. at 8; Huthart Decl. 14).

[A] courts focus should not rest on the number of witnesses or quantity of evidence in each locale. Rather, a court should evaluate the materiality and importance of the anticipated [evidence and] witnesses testimony and then determine[] their accessibility and convenience to the forum. Lueck, 236 F.3d at 1146.

It appears that the most important witnesses are NGNs current and former employees who were allegedly involved in and/or knew about the hacking because they would be crucial to establishing Defendants liability. Similarly, the most important evidence is that collected by the London Metropolitan Police Service since it connects Defendants agents to the Hacking Scheme. For example, the Complaint alleges that Hutharts name, cellular telephone number, her account number, and/or her PIN number appear on four separate pages of notes recovered by the London Metropolitan Police Service from the home of an investigator who was working for NGN. (Compl. 16, 17, 52).

While Huthart argues that Jolie and employees of her California company are relevant to establishing how the intercepted voice messages harmed her business relationships (Opp. at 8), it would appear that Huthart could also testify about the harm


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to her business relationships. Therefore, these witnesses appear to be less important than the NGN employees.

Even according some deference to Hutharts choice of forum, it appears that the first factor weighs in favor of England.

Second, with regard to the forums convenience to the litigants, this factor is neutral. While it appears that the two United Kingdom Defendants would be inconvenienced to some degree if forced to litigate here, as opposed to England, Defendants have not addressed this factor head-on. (See Mot. at 12 (stating only that the UK is clearly the most convenient forum for this litigation)). Moreover, given Hutharts residence in England, the Court cannot assume that litigation in this forum would be convenient for her. When the [plaintiffs] home forum has been chosen, it is reasonable to assume that this choice is convenient. When the plaintiff is foreign, however, this assumption is much less reasonable. Piper Aircraft, 454 U.S. at 255-56.

Given the lack of information regarding the forums convenience to either party, the second factor provides little help in the analysis.

Third, with regard to access to sources of proof, this factor weighs in favor of England. It appears that most of the relevant documents and physical evidence are located in England, including files recovered by the London Metropolitan Police Service, contracts between private investigators and NGN, and documents relating to British news stories that allegedly published information taken from Hutharts cellphone. (Compl. 16, 17, 31, 60-65; Band Decl. 15-17).

It is true that the Ninth Circuit has deemphasized the inconvenience of transporting witnesses and documents overseas, due to advances in technology. See Gates Learjet Corp. v. Jensen, 743 F.2d 1325, 1336 (9th Cir. 1984) ([A] district court should keep in mind that the increased speed and ease of travel and communication . . . makes, especially when a key issue is the location of witnesses, no forum as inconvenient [today] as it was in 1947, when the Supreme Court decided Gilbert.). However, Defendants have established that they cannot simply scan and upload to a


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database the documents relevant to this action. (Reply at 10). Instead, a number of the documents relevant to this litigation are being held by the London Metropolitan Police Service, and obtaining those documents would require applications to English courts. (Id.). Accordingly, it would appear more burdensome and difficult to obtain these documents for litigation in this forum, when some of those documents are already being used in litigation in England. Moreover, Huthart has not shown that any documents or other key pieces of evidence are located in California. (See Opp. at 9 n.6 (stating only vaguely that [e]vidence may also exist in the U.S.)).

Accordingly, this factor weighs in favor of England.

Fourth, with regard to the ability to compel unwilling witnesses, this factor weighs in favor of England. As indicated above, most of the witnesses relevant to this action are located in United Kingdom and appear to be citizens of the United Kingdom. Accordingly, they are outside of this Courts subpoena power. See Fed. R. Civ. P. 45(b)(2) & (3) (providing for service of a subpoena in the United States, or service of a subpoena on a United States national or resident who is in a foreign country).

Additionally, a party can carry its burden in showing that unwilling witnesses exist by providing circumstantial evidence . . . that an ongoing criminal investigation provid[es] a major disincentive to voluntary testimony. Duha v. Agrium, Inc., 448 F.3d 867, 877 (6th Cir. 2006) (quoting First Union Natl Bank v. Banque Paribas, 135 F. Supp. 2d 443, 450 (S.D.N.Y. 2001)). Here, it appears that potential witnesses in this action are being criminally prosecuted in England for their involvement in the Hacking Scheme, as alleged in the Complaint and as established by Defendants. (Compl. 16, 27, 29, 37; Second Declaration of Jonathan B. Pitt, Exs. 9 & 10 (Docket No. 54-6)). Conversely, the parties have not identified any unwilling witnesses who are not subject to the compulsory process in England.


Fifth, with regard to the cost of bringing witnesses to trial, this factor weighs in favor of England. As indicated above, the majority of the witnesses and virtually all of


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the most important witnesses in this action are located in the United Kingdom. While it seems likely that some of those witnesses, including Huthart, her family, and Jolie, can access this forum with relative ease, this forum appears to be less accessible to NGNs former and current employees, especially those facing criminal charges.


Sixth, with regard to the enforceability of judgment, this factor appears neutral. Neither side has raised arguments that a judgment in this forum would be more or less enforceable than one in England.

Seventh, with regard to other practical problems that make trial easy, expeditious, and inexpensive, this factor weighs in favor of England. Each case is unique, and thus, the details of Hutharts specific claims likely differ to some degree from other claims related to the Hacking Scheme. Nonetheless, because the courts in England are experienced in handling other claims related to the Hacking Scheme, and the English courts have the authority to subpoena documents from the London Metropolitan Police Service and to compel unwilling witnesses located there to testify, it appears likely that litigation in England would be more efficient. See Lueck, 236 F.3d at 1147 (Given the existence of the related proceedings [in New Zealand], it is all the more clear that the private interest factors weigh in favor of dismissal.); Creative Tech., Ltd. v. Aztech Sys. Pte., Ltd., 61 F.3d 696, 703 (9th Cir. 1995) (affirming the district courts finding that all other factors that render trial of the case expeditious and inexpensive weighed in favor of dismissal because a parallel action in the High Court of Singapore was further advanced than the United States action).

Therefore, five factors weigh in favor of England, two factors are neutral, and no factors weigh in favor of this forum. The private factors thus strongly favor of England.

Public Interest Factors

Courts also consider the following public interest factors: (1) local interest of lawsuit, (2) the courts familiarity with governing law, (3) burden on local courts


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and juries, (4) congestion in the court, and (5) the costs of resolving a dispute unrelated to this forum. Lueck, 236 F.3d at 1147. The only factor truly at issue is the local interest factor.

First, with regard to local interest, California has some identifiable interest in

this action, but that interest is outweighed by the other factors pointing to England as the appropriate site for litigation.

Both parties agree that England has a strong interest in this action. (Mot. at 15-

16; Opp. at 12). Huthart is a United Kingdom citizen, and two Defendants are United Kingdom entities. (Compl. 4, 6, 7). A number of the potential witnesses are in the United Kingdom. The information obtained through the alleged hacking was published in British newspapers. Accordingly, England has devoted substantial efforts to addressing the Hacking Scheme: the London Metropolitan Police Service has conducted multiple criminal investigations; numerous individuals have been arrested and charged in England; England established the voluntary compensation scheme and the MTVIL system specifically for claims arising from the Hacking Scheme; and the Parliament of the United Kingdom has conducted numerous hearings on the phone hacking. (See Mot. at 15-16).

Although Huthart objects to the manner in which Defendants introduced

evidence regarding the events described above, Huthart does not dispute that the underlying events occurred. In fact, Huthart references the above events in her Complaint. (Compl. 11, 16, 23, 25, 27, 30-32, 36-37, 40, 60, 61).

It is clear from the resources and activity devoted to addressing the Hacking

Scheme that England has a very high interest in this action. See, e.g., Lueck, 236 F.3d at 1141, 1147 (finding that the interest in New Zealand regarding this suit is extremely high, where the action related to a crash involving a New Zealand airline carrying New Zealand passengers in New Zealand, and a New Zealand commission investigated the causes and circumstances of the accident).


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Huthart argues that California also has an interest in this litigation because her voicemail messages were hacked not only when she was in England, but also when she was in Los Angeles. (Opp. at 12-13; Compl. 49). Huthart also argues that while she was in Los Angeles, her voicemails were stored temporarily on facilities in the United States and then transmitted on United States-based networks to the United Kingdom. (Opp. at 37). Defendants dispute that any United States networks or facilities were used in the alleged hacking. (Reply at 12, n. 18). Defendants argue that even while Huthart was in Los Angeles, her voicemails were stored in servers owned and maintained in the UK by the UK provider Vodafone, and that her voicemails were accessed from the UK, by UK citizens working for a UK publication owned by NGN. (Mot. at 15).

The Court need not resolve this factual dispute to determine this Motion. Even

assuming that Hutharts messages were stored temporarily in the United States and transmitted using United States-based networks, this activity does not create a sufficiently strong interest to outweigh the private interest factors and Englands strong interest in this action. See Vivendi SA v. T-Mobile USA Inc., 586 F.3d 689, 694 (9th Cir. 2009) (holding that the local interest in the case was tenuous where the only asserted connection to the United States was the use of U.S. wires in various communications between the parties); see also Piper Aircraft, 454 U.S. at 261 (finding that [t]he American interest in this accident [was] simply not sufficient to justify the enormous commitment of judicial time and resources that would inevitably be required if the case were to be tried here, where the action related to an airplane accident in Scotland, the pilot and all decedents heirs were Scottish citizens, and British authorities had investigated the accident, even though Defendants were American manufacturers); In re Air Crash Over Mid-Atl. on June 1, 2009, 760 F. Supp. 2d 832, 846 (N.D. Cal. 2010) (finding that [t]he American interest . . . ensuring the quality of component parts on aircraft and protecting the rights of two American citizens, is real and legitimate but less significant than the French interest, where an Air France flight left Brazil for France carrying a plurality of French citizens and just two Americans living abroad at the time of the crash).


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Accordingly, while California has some minimal interest in this action, that interest does not justify the burden that litigation in this action would impose on this court system and the local jury. Second, with regard to the courts familiarity with the governing law, this factor is neutral at best. Huthart argues that she has brought claims under federal and California state law, and that this Court is more familiar with those laws, than an English court. (See Opp. at 16). However, Huthart relies on case law that interprets a choice-of-law clause. (See Opp. at 15 (citing Wash. Mutual Bank v. Superior Court, 24 Cal. 4th 906, 919, 103 Cal. Rptr. 2d 320 (2001)). No such choice-of-law agreement is present here. If this action were dismissed and brought in England, it appears that English courts would most likely apply English law under Englands choice-of-law rules. (Second Declaration of Craig Wyndham Orr QC 29-34 (the Second Orr Declaration) (Docket No. 54-5)). However, even if the English courts were to find that federal or California state law applied, it appears that the English Courts are accustomed to applying foreign laws, including those of the United States. (Second Orr Decl. 35).

Third, with regard to court congestion, this factor also does not aid the Courts analysis. Defendants have provided some data as to the congestion of the Central District of California. (See Mot. at 16). While the MTVIL system in England would appear to provide a more efficient mechanism for resolving Hutharts claims, her claims could possibly be stayed for some time if filed in the MTVIL. (Tomlinson Decl. 13-15; see also Third Orr Decl. 8-9). The parties have provided no information about the congestion of the general civil litigation system in England. Accordingly, the Court cannot determine the real issue, which is not whether a dismissal will reduce a courts congestion but whether a trial may be speedier in another court because of its less crowded docket. Gates Learjet, 743 F.2d at 1337. Moreover, administrative considerations such as docket congestion are given little weight in this Circuit in assessing dismissal under forum non conveniens. See id. (The forum non conveniens doctrine should not be used as a solution to court


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congestion; other remedies, such as placing reasonable limitations on the amount of time each side may have to present evidence, are more appropriate.).

Even giving some deference to Hutharts choice of forum and acknowledging that California has a minimal interest in this action, the private interest factors and Englands interest in this action weigh strongly in favor of dismissal.

The Motion is GRANTED.

The Motion to Intervene (Docket No. 61) filed by Brad Greenspan, and Defendants Ex Parte Application to Continue Motion for Intervention of Brad Greenspan Pending the Courts Determination on Defendants Motion to Dismiss (Docket No. 65) are both DENIED as moot.

This Order shall constitute notice of entry of judgment pursuant to Federal Rule of Civil Procedure 58. Pursuant to Local Rule 58-6, the Court ORDERS the Clerk to treat this Order, and its entry on the docket, as an entry of judgment.

IT IS SO ORDERED.


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EX PARTE APPLICATION LEGAL02/34840112v1

Louis A. Karasik (Cal. Bar # 100672) Alston & Bird LLP 333 South Hope Street, 16th Floor Los Angeles, CA 90071-3004 Telephone: (213) 576-1148 Facsimile: (213) 576-1100 Email: [email protected]

Brendan V. Sullivan (Pro Hac Vice) Tobin J. Romero (Pro Hac Vice) Joseph M. Terry (Pro Hac Vice) Jonathan B. Pitt (Pro Hac Vice) Williams & Connolly LLP 725 Twelfth Street, N.W. Washington, DC 20005 Telephone: (202) 434-5000 Facsimile: (202) 434-5029 Email: [email protected]

Counsel for Defendants News Corporation, NI Group Limited f/k/a News International Limited, News Group Newspapers Limited

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

EUNICE HUTHART,

Plaintiff,

v.

NEWS CORPORATION, NI GROUP LIMITED f/k/a NEWS INTERNATIONAL LIMITED, NEWS GROUP NEWSPAPERS LIMITED, and JOHN and JANE DOES 1-10,

Defendants.

) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Case No. CV 13-4253 MWF (AJWx)

Honorable Michael W. Fitzgerald

DEFENDANTS EX PARTE APPLICATION TO CONTINUE MOTION FOR INTERVENTION OF BRAD GREENSPAN PENDING THE COURTS DETERMINATION ON DEFENDANTS MOTION TO DISMISS

[Filed concurrently with Declaration of Louis A. Karasik and [Proposed] Order] Date: TBD Time: TBD Courtroom: 1600 Complaint Filed: June 13, 2013


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1 EX PARTE APPLICATION

LEGAL02/34840112v1

TO ALL PARTIES AND THEIR COUNSEL OF RECORD: PLEASE TAKE NOTICE that Defendants News Corporation, NI Group

Limited, and News Group Newspapers Limited (collectively Defendants) hereby apply ex parte to continue the June 30, 2014 hearing on the pro se motion to intervene filed on May 2, 2014 by Brad Greenspan (Greenspan), pending the Courts determination on Defendants Motion to Dismiss the underlying action. If the Motion to Dismiss, which presently is under submission after supplemental briefing filed by the parties on March 17, 2014, is granted, Greenspans intervention motion will be moot.

As set forth more fully in the accompanying Memorandum of Points and Authorities and the Declaration of Louis A. Karasik filed concurrently herewith, a continuance of the hearing and the time for filing any opposition papers by Defendants regarding Greenspans pro se motion will promote judicial economy and avoid potentially unnecessary proceedings to address the many defects apparent on the face of Greenspans rambling and incoherent pleadings. Greenspan seeks to intervene to air accusations against California State Senators and United States Congressman for allegedly participating in vague, undefined conspiracies with companies such as Google, Yahoo, AOL, JP Morgan and many others, including News Corp., related in some way to News Corp.s acquisition of MySpace nearly ten years ago. If Defendants pending Motion to Dismiss is granted, Greenspans motion to intervene will be moot because there will be no underlying action, and thus no proceeding in which Greenspan might seek to intervene. A postponement may thus avoid the Court having to hear an unnecessary motion and avoid the necessity of Defendants responding to the pleadings submitted by Greenspan, promoting judicial economy for all parties and the Court. A continuance of this matter would not prejudice Greenspan, particularly since he is pursuing substantially similar claims in a lawsuit filed in the Delaware Court of Chancery. In contrast, if Defendants were


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required to oppose Greenspans motion prior to a decision on the Motion to Dismiss, they would be forced to incur fees and costs to detail the many reasons the pro se motion fails to state grounds to intervene1costs that would be unnecessary in the event that this Court rules that this case should be dismissed under the doctrine of forum non conveniens.

/// /// /// /// /// /// /// /// ///

This Application is being made pursuant Local Rule 7-19 and this Courts courtroom procedures and standing order. Notice of this Application was provided to Plaintiffs counsel by telephone call on May 15, 2014, and Plaintiffs counsel advises that Plaintiff does not joint the ex parte and intends to oppose the motion to intervene. (Declaration of Louis A. Karasik (Karasik Decl.), 7.) The only contact information provided in Greenspans papers are a mailing address, so Defendants attempted to provide notice of this Application to Greenspan by attempting to hand deliver a letter to that address on May 16, 2014. (Karasik Decl.,

1 Among other things, Greenspans intervention pleadings violate Federal Rule of

Civil Procedure Rule 8, fail to state any coherent much less cognizable claim for relief, lack any nexus to the claims pursued by plaintiff Huthart, consist of rambling allegations of conspiracy untethered to any facts or legal theories and are barred by the statute of limitations and the existence of a pending action in Delaware where Greenspan has filed substantially the same disjointed allegations.


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8.) The address provided by Greenspan was a rented mailbox, and we were advised by the proprietor that it was canceled over a year ago for nonpayment.

Dated: May 19, 2014

ALSTON & BIRD LLP

By: /s/Louis A. Karasik Louis A. Karasik (Bar # 100672)


WILLIAMS & CONNOLLY LLP

By: /s/Brendan V. Sullivan Brendan V. Sullivan (pro hac vice) Tobin J. Romero (pro hac vice) Joseph M. Terry (pro hac vice) Jonathan B. Pitt (pro hac vice)



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MEMORANDUM OF POINTS AND AUTHORITIES I. INTRODUCTION

Defendants News Corporation, NI Group Limited, and News Group Newspapers Limited (collectively Defendants) make this Ex Parte Application in order to avoid the premature and potentially unnecessary briefing and consideration of a frivolous pro se motion to intervene filed by Brad Greenspan. Specifically, Defendants seek a continuance of the motion to intervene until such time as the Court rules on Defendants Motion to Dismiss the underlying action, which, if granted, would render moot Greenspans motion to intervene and spare the Court and the parties from the burden of considering and briefing Greenspans meritless and unintelligible motion.

Plaintiff Eunice Huthart (Huthart or Plaintiff) filed her complaint on June 13, 2013. The suit concerns allegations of voicemail hacking that occurred in the United Kingdom. Defendants filed a Motion to Dismiss Hutharts complaint on September 20, 2013. 2 (See Declaration of Louis A. Karasik (Karasik Decl.), 2.) The Motion to Dismiss came on for hearing on February 24, 2014. (Id.) Supplemental briefing related to the issue of forum non conveniensand specifically whether Huthart could bring her claims in Englandwas ordered on February 25, 2014 and was concluded in March 2014. (Id.) The matter remains under submission.

Pro se litigant Greenspan filed a purported motion to intervene and related papers on May 2, 2014.3 His pleadings were served on counsel for Defendants in

2 Defendants Motion to Dismiss refers to the Motion to Dismiss Case Under

FRCP Rules 12(b)(2), 12(b)(6) and for Forum Non Conveniens and supporting papers filed by Defendants on September 20, 2013. See Huthart v. News Corporation et al., Case No. CV 13-4253 MWF (AJWx), Dkt. No. 41.

3 Greenspans motion papers consist of a Notice of Motion to Intervene (Dkt.

No. 61), a Memorandum in Support (Dkt. No. 62), Declaration of Brad Greenspan in Support (Dkt. No. 63), and a Proof of Service by Mail (Dkt. No. 64), all filed on May 2, 2014. Greenspan additionally served on Defendants local counsel a proposed

(cont'd)


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Los Angeles, but not on Defendants lead counsel, the Williams & Connolly firm in Washington, D.C. (Karasik Decl., 3.) The matter has been set for hearing on June 30, 2014.

Greenspans motion to intervene has nothing to do with Hutharts complaint. Greenspan does not allege he is the victim of any voicemail hacking or any allegedly wrongful conduct by Defendants similar to that complained of by Huthart. (Karasik Decl., 4.) Rather, Greenspan appears to allege, though the incoherent nature of his allegations makes it difficult to discern, that he has been harmed by a vast conspiracy involving everything from allegedly wrongful employment practices by technology companies like Google, Intel and Yahoo to the bribery of and misconduct by California State Senators and United States Congressmen. The intervention papers advance convoluted claims that all of this misconduct is related in some fashion to News Corp.s acquisition in 2005 of Intermix Media Inc., which owned and operated several websites including MySpace. (See Exh. A to Karasik Decl., Greenspans Complaint in Intervention at 3:20-67:24.) This is not the first time Greenspan has filed claims on that subject: Greenspan was the founder of E-Universe, the predecessor of Intermix; his claims challenging News Corp.s acquisition of MySpace and several other attempts to raise challenges to that transaction have been dismissed over the years by both state and federal courts. The first dismissal of Greenspans challenges to the MySpace transaction was in 2006. See Greenspan v. Intermix Media, Inc., Case No. B196434, 2008 WL 4837565 (Cal. App. Nov. 10, 2008)) (affirming 2006 dismissal of individual and shareholder actions brought by Greenspan challenging the MySpace transaction). The next attempt to challenge the transaction was rejected in Brown v. Brewer, Case No. 2:06-cv-3731 (C.D. Cal.), where the federal court in 2010 dismissed Greenspan as a putative class member ________________________

(cont'd from previous page) Complaint in Intervention, attached to the Karasik Declaration, that has not been filed with the Court.


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from a shareholder derivative action challenging the merger, and in 2011 denied Greenspans motion to intervene in that matter. (Karasik Decl., 5; Exhibits B and C.) Though Greenspans involvement in these matters has been concluded for several years, Greenspan most recently filed a pro se complaint on April 22, 2014 in the Delaware Court of Chancery, naming News Corp. and twenty other defendants in a pleading that advances the same or similar conspiracy claims found in the intervention papers, all tied to the acquisition of Intermix in 2005. See Greenspan v. News Corp. et al., Case No. 9567 (Del. Ch. April 22, 2014). (Karasik Decl., 5; Exh. D.) The apparent purpose of the proposed intervention is to air Greenspans views that hacking incidents in the UK show that News Corp. has engaged in bad actsalbeit wholly unrelated to those of which he complains. See Dkt. No. 62, Greenspan Memorandum in Support of Motion to Intervene at 5:1-18.

As detailed below, if Defendants pending Motion to Dismiss is granted, Greenspans intervention will be moot. Ex parte relief to postpone Greenspans further pursuit of his incoherent intervention proceeding will promote the interests of judicial economy and avoid potentially unnecessary proceedings. II. JUDICIAL ECONOMY IS ACHIEVED BY CONTINUING THE

INTERVENTION MOTION BECAUSE GREENSPANS MOTION WILL BE MOOT IF THE UNDERLYING ACTION IS DISMISSED The Court may issue ex parte relief extending the time within which an act is

required or allowed to be done upon a showing of good cause. Fed. R. Civ. P. 6(b). Good cause is broadly construed in a manner that affords the Court broad discretion to manage its calendar. Ahanchian v. Xenon Pictures, Inc., 624 F.3d 1253, 1259 (9th Cir. 2010); Danjaq LLC v. Sony Corp., 263 F.3d 942, 961 (9th Cir. 2001) (noting that a court has broad discretion in granting continuances). [R]equests for extensions of time made before the applicable deadline has passed should normally . . . be granted in the absence of bad faith on the part of the party seeking relief or


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prejudice to the adverse party. Ahanchian, 624 F.3d at 1259. (internal citations omitted.) Here, the deadline to oppose Greenspans intervention has not passed, the applying Defendants have not acted in bad faith, and there is no prejudice to Greenspan. Good cause exists for a continuance of Greenspans motion to intervene because it would promote the most efficient use of the Courts and the parties resources. A postponement of the matter would give the court time to rule on Defendants pending motion to dismiss before the parties are forced to incur the cost of responding to Greenspans convoluted motion. If Defendants Motion to Dismiss is granted, Greenspans intervention would be moot because a prerequisite for intervention is the existence of an underlying action. See Hartley Pen Co. v. Lindy Pen Co., 16 F.R.D. 141, 146 (S.D. Cal. 1954) (A pending suit within federal jurisdiction is by definition prerequisite to intervention.); see also Arakaki v. Cayetano, 324 F.3d 1078, 1083 (9th Cir. 2003) (intervention inappropriate where underlying claim dismissed).

An application for a continuance of a hearing is the type of routine

administrative relief that is particularly appropriate on an ex parte basis. See In re Intermagnetics Am., Inc., 101 B.R. 191, 193-94 (C.D. Cal. 1989) (noting that legitimate ex parte applications . . . may be necessary when a party seeks a routine order such as adjusting the hearing date of a motion). This Motion simply seeks to ensure the proper sequencing of motions. There is no prejudice to Greenspan from a continuance. See Fuller v. Amerigas Propane, Inc., C 09-2493TEH, 2009 WL 2390358 at*1 (N.D. Cal. Aug. 3, 2009) (no prejudice in connection with a short delay). Indeed, there is no possible prejudice to Greenspan, because he does not need to intervene in this matter to raise his assertions: he has already filed a lawsuit in Delaware advancing these very claims. Defendants, by contrast, would be significantly prejudiced if forced to respond at this time to Greenspans motion, especially if Defendants substantive opposition is mooted by the subsequent


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dismissal of the case on Defendants pending Motion to Dismiss. See In re Apple iPhone 3G Products Liab. Litig., C 09-02045 JW, 2010 WL 9517400 at *2 (N.D. Cal. Dec. 9, 2010) (holding that prejudice to defendants and to the court of moving forward with proceedings that could be mooted by other proceedings supported a stay). And in the event that the Motion to Dismiss is denied, Greenspans Motion to Intervene may be properly addressed at that time.4 /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// ///

4 As noted in the ex parte application, Plaintiffs intend to oppose Greenspans

purported motion, and if opposition is required, Defendants will show that Greenspans motion fails to state any grounds to intervene, fails to state a cognizable claim, is rife with rambling and frivolous allegations of vast conspiracies, seeks to re-litigate Greenspans oft rejected challenges to News Corp.s acquisition of MySpace almost a decade ago, and is barred by the statute of limitations and by the existence of a pending action in Delaware where Greenspan is advancing the same claims that are the subject of the proposed intervention.


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III. CONCLUSION Good cause exists for a continuance because a postponement of the

intervention motion would allow the Court to rule on Defendants pending Motion to Dismiss without requiring the parties or the Court to expend time and effort to respond to a motion that could be rendered moot. Defendants respectfully request that this Court postpone any hearing on Greenspans motion in order to promote judicial economy and minimize prejudice to Defendants.

Dated: May 19, 2014

ALSTON & BIRD LLP







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CERTIFICATE OF SERVICE

I declare that I am over the age of eighteen (18) and not a party to this action. My business address is 333 South Hope Street, 16th Floor, Los Angeles, CA 90071-1410.

On May 19, 2014, I served the following document(s): EX PARTE APPLICATION on the following parties in case CV 13-4253 MWF (AJWx) via either Notice of Electronic Filing generated by the Courts CM/ECF system, pursuant to the Courts local rules.

I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.

/s/ Louis A. Karasik Attorney for Defendant


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PROOF OF SERVICE

I, Louis A. Karasik, declare:

I am employed in the County of Los Angeles, State of California. My business address is Alston + Bird LLP, 333 South Hope Street, Sixteenth Floor, Los Angeles, CA 90071. I am over the age of eighteen years and not a party to the action in which this service is made.

On May 19, 2014, I served the document(s) described as EX PARTE APPLICATION on the interested parties in this action by enclosing the document(s) in a sealed envelope addressed to the parties as listed as follows:

Brad D. Greenspan 264 South La Cienega Blvd.

Unit 1216 Beverly Hills, CA 90211

BY MAIL: I am "readily familiar" with this firm's practice for the collection and the processing of correspondence for mailing with the United States Postal Service. In the ordinary course of business, the correspondence would be deposited with the United States Postal Service at 333 South Hope Street, Los Angeles, California 90071 with postage thereon fully prepaid the same day on which the correspondence was placed for collection and mailing at the firm. Following ordinary business practices, I placed for collection and mailing with the United States Postal Service such envelope at ALSTON + BIRD LLP, 333 South Hope Street, Los Angeles, California 90071.

[Federal] I declare under penalty of perjury that the foregoing is true and correct.

Executed on May 19, 2014, at Los Angeles, California.

/s/ Louis A. Karasik

Louis A. Karasik


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EX PARTE APPLICATION LEGAL02/34840112v1

Louis A. Karasik (Cal. Bar # 100672) Alston & Bird LLP 333 South Hope Street, 16th Floor Los Angeles, CA 90071-3004 Telephone: (213) 576-1148 Facsimile: (213) 576-1100 Email: [email protected]

Brendan V. Sullivan (Pro Hac Vice) Tobin J. Romero (Pro Hac Vice) Joseph M. Terry (Pro Hac Vice) Jonathan B. Pitt (Pro Hac Vice) Williams & Connolly LLP 725 Twelfth Street, N.W. Washington, DC 20005 Telephone: (202) 434-5000 Facsimile: (202) 434-5029 Email: [email protected]


UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

EUNICE HUTHART,

Plaintiff,

v.

NEWS CORPORATION, NI GROUP LIMITED f/k/a NEWS INTERNATIONAL LIMITED, NEWS GROUP NEWSPAPERS LIMITED, and JOHN and JANE DOES 1-10,

Defendants.

) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Case No. CV 13-4253 MWF (AJWx)

Honorable Michael W. Fitzgerald

DEFENDANTS EX PARTE APPLICATION TO CONTINUE MOTION FOR INTERVENTION OF BRAD GREENSPAN PENDING THE COURTS DETERMINATION ON DEFENDANTS MOTION TO DISMISS

[Filed concurrently with Declaration of Louis A. Karasik and [Proposed] Order] Date: TBD Time: TBD Courtroom: 1600 Complaint Filed: June 13, 2013


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TO ALL PARTIES AND THEIR COUNSEL OF RECORD: PLEASE TAKE NOTICE that Defendants News Corporation, NI Group

Limited, and News Group Newspapers Limited (collectively Defendants) hereby apply ex parte to continue the June 30, 2014 hearing on the pro se motion to intervene filed on May 2, 2014 by Brad Greenspan (Greenspan), pending the Courts determination on Defendants Motion to Dismiss the underlying action. If the Motion to Dismiss, which presently is under submission after supplemental briefing filed by the parties on March 17, 2014, is granted, Greenspans intervention motion will be moot.

As set forth more fully in the accompanying Memorandum of Points and Authorities and the Declaration of Louis A. Karasik filed concurrently herewith, a continuance of the hearing and the time for filing any opposition papers by Defendants regarding Greenspans pro se motion will promote judicial economy and avoid potentially unnecessary proceedings to address the many defects apparent on the face of Greenspans rambling and incoherent pleadings. Greenspan seeks to intervene to air accusations against California State Senators and United States Congressman for allegedly participating in vague, undefined conspiracies with companies such as Google, Yahoo, AOL, JP Morgan and many others, including News Corp., related in some way to News Corp.s acquisition of MySpace nearly ten years ago. If Defendants pending Motion to Dismiss is granted, Greenspans motion to intervene will be moot because there will be no underlying action, and thus no proceeding in which Greenspan might seek to intervene. A postponement may thus avoid the Court having to hear an unnecessary motion and avoid the necessity of Defendants responding to the pleadings submitted by Greenspan, promoting judicial economy for all parties and the Court. A continuance of this matter would not prejudice Greenspan, particularly since he is pursuing substantially similar claims in a lawsuit filed in the Delaware Court of Chancery. In contrast, if Defendants were


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required to oppose Greenspans motion prior to a decision on the Motion to Dismiss, they would be forced to incur fees and costs to detail the many reasons the pro se motion fails to state grounds to intervene1costs that would be unnecessary in the event that this Court rules that this case should be dismissed under the doctrine of forum non conveniens.

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This Application is being made pursuant Local Rule 7-19 and this Courts courtroom procedures and standing order. Notice of this Application was provided to Plaintiffs counsel by telephone call on May 15, 2014, and Plaintiffs counsel advises that Plaintiff does not joint the ex parte and intends to oppose the motion to intervene. (Declaration of Louis A. Karasik (Karasik Decl.), 7.) The only contact information provided in Greenspans papers are a mailing address, so Defendants attempted to provide notice of this Application to Greenspan by attempting to hand deliver a letter to that address on May 16, 2014. (Karasik Decl.,

1 Among other things, Greenspans intervention pleadings violate Federal Rule of

Civil Procedure Rule 8, fail to state any coherent much less cognizable claim for relief, lack any nexus to the claims pursued by plaintiff Huthart, consist of rambling allegations of conspiracy untethered to any facts or legal theories and are barred by the statute of limitations and the existence of a pending action in Delaware where Greenspan has filed substantially the same disjointed allegations.


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8.) The address provided by Greenspan was a rented mailbox, and we were advised by the proprietor that it was canceled over a year ago for nonpayment.

Dated: May 19, 2014

ALSTON & BIRD LLP







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MEMORANDUM OF POINTS AND AUTHORITIES I. INTRODUCTION

Defendants News Corporation, NI Group Limited, and News Group Newspapers Limited (collectively Defendants) make this Ex Parte Application in order to avoid the premature and potentially unnecessary briefing and consideration of a frivolous pro se motion to intervene filed by Brad Greenspan. Specifically, Defendants seek a continuance of the motion to int

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