throbber

`
`Case 5:18-md-02834-BLF Document 742-1 Filed 04/22/22 Page 1 of 7
`
`
`
`J. DAVID HADDEN (CSB No. 176148)
`dhadden@fenwick.com
`SAINA S. SHAMILOV (CSB No. 215636)
`sshamilov@fenwick.com
`MELANIE L. MAYER (admitted pro hac vice)
`mmayer@fenwick.com
`TODD R. GREGORIAN (CSB No. 236096)
`tgregorian@fenwick.com
`RAVI R. RANGANATH (CSB No. 272981)
`rranganath@fenwick.com
`FENWICK & WEST LLP
`Silicon Valley Center
`801 California Street
`Mountain View, CA 94041
`Telephone:
`650.988.8500
`Facsimile:
`650.938.5200
`
`Counsel for AMAZON.COM, INC.,
`AMAZON WEB SERVICES INC., and
`TWITCH INTERACTIVE, INC.
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`SAN JOSE DIVISION
`
`IN RE: PERSONALWEB TECHNOLOGIES,
`LLC ET AL., PATENT LITIGATION,
`
`AMAZON.COM, INC., and AMAZON WEB
`SERVICES, INC.,
`Plaintiffs,
`
`v.
`PERSONALWEB TECHNOLOGIES, LLC and
`LEVEL 3 COMMUNICATIONS, LLC,
`Defendants.
`
`
`
`PERSONALWEB TECHNOLOGIES, LLC and
`LEVEL 3 COMMUNICATIONS, LLC,
`Plaintiffs,
`
`v.
`
`TWITCH INTERACTIVE, INC.,
`
`Defendant.
`
`Case No.: 5:18-md-02834-BLF
`Case No.: 5:18-cv-00767-BLF
`Case No. 5:18-cv-05619-BLF
`DECLARATION OF TODD R.
`GREGORIAN IN SUPPORT OF
`OPPOSITION OF AMAZON.COM,
`INC., AMAZON WEB SERVICES, INC.,
`AND TWITCH INTERACTIVE, INC.
`TO SECOND MOTION TO
`WITHDRAW AS COUNSEL BY
`STUBBS ALDERTON & MARKILES,
`LLP
`
`
`
`GREGORIAN DECL. ISO OPPOSITION
`TO MOTION TO WITHDRAW AS COUNSEL
`
`
`
`
`CASE NOS.: 5:18-md-02834-BLF;
`5:18-cv-00767-BLF; 5:18-cv-05619-BLF
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`ATTORNEYS AT LAW
`
`FENWICK & WEST LLP
`
`
`
`
`

`

`Case 5:18-md-02834-BLF Document 742-1 Filed 04/22/22 Page 2 of 7
`
`
`
`I am a partner at Fenwick & West LLP and counsel to Amazon.com, Inc., Amazon
`1.
`Web Services, Inc. and Twitch Interactive, Inc. (collectively, “Amazon”) in this matter. I submit
`this declaration in support of the Opposition of Amazon.com, Inc., Amazon Web Services, Inc.,
`and Twitch Interactive, Inc. to Second Motion to Withdraw as Counsel by Stubbs Alderton &
`Markiles, LLP. I have personal knowledge of the facts set forth in this declaration.
`Mr. Kevin Bermeister is the Chairman and CEO of Brilliant Digital Entertainment,
`2.
`Inc. (“BDE”). Attached as Exhibit 1 is a true and accurate copy of Mr. Bermeister’s LinkedIn
`profile showing that he is an executive at BDE. Mr. Bermeister is also a director of Monto Holdings
`Pty Ltd (“Monto”). Attached as Exhibit 2 is a true and accurate copy of a publicly available
`company profile showing that he is an executive at Monto. Both BDE and Monto are insider-
`investors in PersonalWeb Technologies, LLC (“PersonalWeb”).
`On May 21, 2021, the California Superior Court ordered that the receiver Robb
`3.
`Evans & Associates LLC (“Robb Evans”) has exclusive control of PersonalWeb and the
`PersonalWeb collateral (which consisted primarily of this litigation and PersonalWeb’s other patent
`litigations which have since concluded) in the Order for Ex Parte Immediate Appointment of a
`Receiver. Attached as Exhibit 3 is a true and correct copy of this order.
`The California Superior Court also entered a separate injunction against
`4.
`PersonalWeb’s employees, agents, etc. as well as its creditors, to prevent interference with
`PersonalWeb and the receiver’s control of the PersonalWeb estate. (Dkt. 717-6.) Since that time,
`the insider-investors directed by Mr. Bermeister, the receiver’s counsel, and the Stubbs Alderton &
`Markiles, LLP (“SAM”) attorneys of record for PersonalWeb, have each used the injunction to
`threaten Amazon and to try to prevent it from taking additional discovery in this case.
`a. On September 2, 2021, Mr. Michael Bubman, counsel for the receiver Robb
`Evans, threatened Amazon with contempt sanctions for purportedly
`violating the Superior Court receivership and preliminary injunction orders
`for continuing to pursue valid post-judgment discovery from PersonalWeb
`under this Court’s orders. Attached as Exhibit 4 is a true and correct copy
`of this correspondence.
`GREGORIAN DECL. ISO OPPOSITION
`TO MOTION TO WITHDRAW AS COUNSEL
`
`
`CASE NOS.: 5:18-md-02834-BLF;
`5:18-cv-00767-BLF; 5:18-cv-05619-BLF
`
`1
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`ATTORNEYS AT LAW
`
`FENWICK & WEST LLP
`
`
`
`

`

`Case 5:18-md-02834-BLF Document 742-1 Filed 04/22/22 Page 3 of 7
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`b. On September 14, 2021, Mr. Jeffrey Gersh of SAM committed to taking
`additional steps to make PersonalWeb comply with this Court’s orders to
`provide documents and interrogatory responses. Mere hours later, however,
`Mr. Gersh did an about-face and refused to do so, contending that Amazon’s
`insistence that PersonalWeb comply with this Court’s orders violates the
`Superior Court preliminary injunction. Attached as Exhibit 5 is a true and
`correct copy of this correspondence. But when the parties had appeared
`before the Magistrate Judge on the motion to compel compliance concerning
`this very discovery on July 20, 2021, Mr. Gersh raised no such objection.
`Amazon out of an abundance of caution had informed the Court of the
`pending receivership action. (See Dkt. 707 at 5:12-17.) Mr. Gersh addressed
`the receivership but elected not to assert any objection to discovery based on
`it. (See id. at 7:19-8:1.)
`c. On February 4, 2022, Mr. Bubman again threatened Amazon with contempt
`sanctions for requesting that the receiver not make any further payments out
`of the PersonalWeb estate until the appellate court resolves Amazon’s
`pending motion for a stay. Attached as Exhibit 6 is a true and correct copy
`of this correspondence.
`d. On March 3, 2022, both Mr. Michael Fletcher and Mr. Bruce Poltrock,
`counsel for the insider-investors BDE, Europlay Capital Advisors, LLC,
`Claria Innovations, LLC, and Monto (collectively, “Insiders”), threatened
`Amazon with contempt sanctions for pursuing discovery from several of
`these Insiders. Attached as Exhibit 7 is a true and correct copy of this
`correspondence. The Magistrate Judge later ordered the Insiders to produce
`documents over their objections based on the Superior Court receivership
`and injunction. (Dkt. 293 (18-cv-00767-BLF).)
`Amazon moved to intervene in the Superior Court proceeding to protect its rights in
`5.
`the PersonalWeb estate and to clarify its rights and obligations with respect to the receivership so
`
`GREGORIAN DECL. ISO OPPOSITION
`TO MOTION TO WITHDRAW AS COUNSEL
`
`
`2
`
`CASE NOS.: 5:18-md-02834-BLF;
`5:18-cv-00767-BLF; 5:18-cv-05619-BLF
`
`ATTORNEYS AT LAW
`
`FENWICK & WEST LLP
`
`
`
`

`

`Case 5:18-md-02834-BLF Document 742-1 Filed 04/22/22 Page 4 of 7
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`that it does not face the risk of a contempt proceeding (no matter how baseless) going forward. On
`November 17, 2021, the Superior Court denied Amazon’s motion to intervene, even though Insiders
`and PersonalWeb did not oppose the motion, ruling that Amazon did not have “a sufficient
`interested [sic] in the current litigation to justify this Court granting intervention.” Attached as
`Exhibit 8 is a true and correct copy of this order.
`On December 7, 2021, Amazon filed an amended notice of lien as the Superior Court
`6.
`suggested that was a way that Amazon could enforce this Court’s judgment. Attached as Exhibit
`9 is a true and correct copy of this amended lien. The lien is inadequate to protect Amazon’s rights
`however, as the ongoing payments to attorneys and the Insiders’ claims will exhaust the
`PersonalWeb estate.
`On December 13, 2021, Amazon moved for a stay pending appeal before the
`7.
`Superior Court seeking to preclude entry of the stipulated judgment between Insiders and
`PersonalWeb and to preclude any further distribution of PersonalWeb cash or assets to Amazon’s
`detriment. Attached as Exhibit 10 is a true and correct copy of this motion. The Superior Court
`will hear the stay motion on April 27, 2022.
`On January 14, 2022, Amazon filed a petition for a writ of supersedeas for a similar
`8.
`stay pending appeal before the Second Appellate District, Court of Appeal of the State of
`California. Attached as Exhibit 11 is a true and correct copy of this motion.
`On March 25, 2022, Amazon filed its opening brief before the Second Appellate
`9.
`District Court of Appeal of the State of California, seeking to reverse the Superior Court order
`denying leave to intervene. Attached as Exhibit 12 is a true and correct copy of this brief. This
`appeal remains pending.
`SAM’s motion to withdraw raises significant questions about SAM’s and the
`10.
`PersonalWeb representatives’ conduct in this case over the last year. In mid-February 2022, I twice
`emailed Mr. Michael Bubman, counsel for the receiver Robb Evans, to inquire about Robb Evans’
`role in managing PersonalWeb and the PersonalWeb collateral (i.e., this litigation). On February
`14, 2022, I memorialized a recent telephone conversation with Mr. Bubman, wherein Mr. Bubman
`on behalf of Robb Evans: (i) refused to provide the receiver’s monthly financial reports to Amazon
`
`GREGORIAN DECL. ISO OPPOSITION
`TO MOTION TO WITHDRAW AS COUNSEL
`
`
`3
`
`CASE NOS.: 5:18-md-02834-BLF;
`5:18-cv-00767-BLF; 5:18-cv-05619-BLF
`
`ATTORNEYS AT LAW
`
`FENWICK & WEST LLP
`
`
`
`

`

`Case 5:18-md-02834-BLF Document 742-1 Filed 04/22/22 Page 5 of 7
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`(as California Rule of Court 3.1182 requires), (ii) confirmed that Robb Evans is not aware of any
`assets in the PersonalWeb estate other than its litigation claims, and (iii) stated that Robb Evans
`has provided “big picture” direction to PersonalWeb’s attorneys about the litigations, but the
`receiver has not had any input concerning discovery matters and has not directed SAM concerning
`compliance with this Court’s orders to PersonalWeb to turn over documents and to answer
`interrogatories. Mr. Bubman did not respond to this email to dispute these facts.
`Two days later, on February 16, 2022, I emailed Mr. Bubman to request that he clarify
`whether Robb Evans has allowed the Insiders to provide any input and direction into the
`PersonalWeb litigations. Mr. Bubman did not respond to that email either.
`Attached as Exhibit 13 is a true and correct copy of this correspondence.
`In early-mid April 2022, Mr. Michael Sherman, counsel for PersonalWeb, twice
`11.
`emailed Mr. Bubman. Mr. Sherman, apparently for the first time, and nine months after the
`deadline for PersonalWeb to comply with the Court’s orders, asked whether Robb Evans would
`secure PersonalWeb’s compliance with this Court’s post-judgment orders. Attached as Exhibit 14
`is a true and correct copy of this correspondence. Mr. Sherman’s emails do not explain SAM’s
`failure to disclose Mr. Bermeister’s interference with the receivership to either this Court or the
`Superior Court for nearly a year. They also do not explain SAM’s nine-month delay in asking for
`the receiver’s assistance in complying with this Court’s orders. And they do not disclose any of
`SAM’s past communications with the receiver concerning the additional loans PersonalWeb
`secured in the meantime from Mr. Bermeister and the Insiders in order to make new payments to
`SAM. At any rate, I am not aware of any response to Mr. Sherman’s April 2022 email
`correspondence to Mr. Bubman.
`On April 7, 2022, Amazon filed its opposition to SAM’s parallel motion to withdraw
`12.
`before the United States Court of Appeals for the Federal Circuit. Attached as Exhibit 15 is a true
`and correct copy of this brief.
`The receiver Robb Evans is based within the state of California and thus subject to
`13.
`this Court’s jurisdiction under its civil contempt authority, which extends to individuals and entities
`in the state of California under Federal Rule of Civil Procedure 4.1(b). Attached as Exhibit 16 is
`GREGORIAN DECL. ISO OPPOSITION
`CASE NOS.: 5:18-md-02834-BLF;
`TO MOTION TO WITHDRAW AS COUNSEL
`5:18-cv-00767-BLF; 5:18-cv-05619-BLF
`
`
`4
`
`ATTORNEYS AT LAW
`
`FENWICK & WEST LLP
`
`
`
`

`

`Case 5:18-md-02834-BLF Document 742-1 Filed 04/22/22 Page 6 of 7
`
`
`
`a true and correct copy of a print-out of Robb Evans’ website showing that it is based in Alhambra,
`California (last accessed April 19, 2022).
`The documents identified in Exhibit G to the Sherman Declaration (Dkt. 728-4) are
`14.
`within the scope of the Court’s discovery orders and Amazon’s post-judgment requests for
`production, namely, at least:
`
`- Request For Production (“RFP”) No. 3: All documents concerning contracts or
`agreements to which PersonalWeb is or ever has been a party, a beneficiary, a successor
`in interest, or a predecessor in interest. ;
`
`- RFP No. 4: All documents concerning contracts or agreements ever in the possession of
`PersonalWeb. ;
`
`- RFP No. 5: All documents concerning contracts or agreements for the benefit of
`PersonalWeb. ;
`
` -
`
` RFP No. 12: All documents concerning the authority of any person to act on behalf of
`PersonalWeb (including but not limited to authority to sign or execute documents,
`authority to make payments or transfers, authority to receive or dispose of any item or
`matter, authority to bind, authority to supervise actions, or authority to engage in any
`conduct).
`
`- RFP No. 27: All documents concerning any debt collection efforts against or by
`PersonalWeb. ;
`
`
`
`RFP No. 35: All documents concerning any interests of PersonalWeb in any things of
`value. ; and/or
`
`- RFP No. 42: All documents concerning communications with any accountant, auditor,
`tax professional, asset protection advisor, financial institution, creditor, debt collector,
`in relation to PersonalWeb.
`
`
`
`
`
`(See Dkt. 689-2 at 6-7, and 9-11.)
`On February 2, 2022, I spoke by telephone with David Parker, ethics counsel for
`15.
`SAM, who advised me that he believed SAM would have no objection to this Court retaining ju-
`risdiction over SAM for purposes of possibly imposing sanctions even if this Court allows SAM
`to withdraw.
`
`
`
`GREGORIAN DECL. ISO OPPOSITION
`TO MOTION TO WITHDRAW AS COUNSEL
`
`
`5
`
`CASE NOS.: 5:18-md-02834-BLF;
`5:18-cv-00767-BLF; 5:18-cv-05619-BLF
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`ATTORNEYS AT LAW
`
`FENWICK & WEST LLP
`
`
`
`

`

`Case 5:18-md-02834-BLF Document 742-1 Filed 04/22/22 Page 7 of 7
`
`
`
`I declare under penalty of perjury under the laws of the United Sates that the foregoing is
`true and correct. Executed in San Francisco, California on this 22nd day of April, 2022.
`
`
`
`
`\-------------------------------------------------
`Todd R. Gregorian
`
`GREGORIAN DECL. ISO OPPOSITION
`TO MOTION TO WITHDRAW AS COUNSEL
`
`
`6
`
`CASE NOS.: 5:18-md-02834-BLF;
`5:18-cv-00767-BLF; 5:18-cv-05619-BLF
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`ATTORNEYS AT LAW
`
`FENWICK & WEST LLP
`
`
`
`

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket