In an opinion yesterday, Magistrate Judge Gorenstein rejected the Bank of China’s attempt to withhold from discovery documents that the bank claimed were privileged because they relate to “Suspicious Activity Reports” (or SARs) that financial institutions must file with regulators to alert them of suspicious customer behavior. Federal regulations state that “any information that would reveal the existence of a SAR” is generally confidential.  The bank established a process for investigating suspicious conduct, and the culmination of the process is a committee vote as to whether or not to file a SAR.  According to the bank, “documents produced at each step of this process are protected by the SAR privilege since they result from the implementation of BOC’s policies and procedures for the filing of SARs.” Judge Gorenstein disagreed.
Continue Reading Judge Gorenstein Rejects Broad Version of Bank Privilege to Withhold Documents Related to “Suspicious Activity Reports”

In an opinion today, Judge Scheindlin granted the State of Israel’s motion to quash, on sovereign immunity grounds, a subpoena to a former Israeli national security official, Uzi Shaya.  The underlying case accuses the Bank of China of aiding and abetting a 2006 suicide bombing in Israel, and Mr. Shaya allegedly had knowledge of the Bank of China funding terrorism.  Judge Scheindlin ruled that Israel had standing to object, and that its objections were valid:
Continue Reading Judge Scheindlin Rules That Sovereign Immunity Protects Former Israeli Security Official From Deposition

In an opinion today, Judge Scheindlin ruled that Bank Hapoalim, a non-party Israeli bank, was required to produce a Rule 30(b)(6) witness to testify about information originating in Israel:

Even if Hapoalim is a non-party witness and all of the documents or knowledgeable persons are in Jerusalem, compliance with the 30(b)(6) subpoena is not

In an opinion today, Judge Scheindlin ruled that Bank of China must produce certain withheld documents in a case accusing the bank of aiding and abetting a 2006 suicide bombing in Israel.  Judge Scheindlin rejected Bank of China’s argument that communications involving unlicensed Chinese in house counsel, who need not be licensed under Chinese law yet often give legal advice, should be protected since they are the “functional equivalent” of attorneys:
Continue Reading Judge Scheindlin Rejects Privilege for Unlicensed In-House Counsel Claimed to Be “Functional Equivalent” of Attorneys in China

In an opinion today, Magistrate Judge Gorenstein quashed a Rule 30(b)(6) subpoena that Bank of China (“BOC”) served on the New York branch of the Israeli bank Hapoalim concerning events in Israel, because the subpoena would have required a witness within the Rule 45 jurisdictional territory to gather information from witnesses outside the territory:
Continue Reading Judge Gorenstein Rules That Nonparty Receiving Rule 30(b)(6) Subpoena Need Not “Educate” Local Witness With Information Outside Jurisdiction