Judge Jesse Furman
Valentini and foreign trust Windsor International Co. repeatedly failed to produce discovery contrary to an April 2013 order and a discovery protocol, "so ordered" in March, requiring them to provide Citicorp Financial Services and its codefendants documents related to, among other things, an action against Valentini in Brazil and his prior investments in Brazilian debt and securities. Defendants sought discovery sanctions under Federal Rule of Civil Procedure 37(b)(2) and security for costs under Local Rule 54.2. The court required Valentini—and Windsor—to pay attorney's fees and costs defendants incurred because of Valentini's unjustified delays. In addition to an obligation to produce materials under their control plaintiffs had a culpable state of mind as they and counsel were at least negligent in filing property search for and producing responsive documents in a timely manner. Further, counsel had a duty to advise plaintiffs of their discovery obligations and to ensure production of relevant documents. Despite finding it appropriate that Windsor post a security bond, the court found defendants did not explain their requested $750,000 amount. Thus they were required to submit a memorandum addressing the bond's amount.
