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Second Joint Motion Requesting Modification of the… — Oto Analytics, LLC v. Benworth Capital Partners PR LLC (Dkt. 227)

No. 3:23-cv-01034-GMM · Doc. 227 · Docket on CourtListener

Summary

A Second Joint Motion Requesting Modification of the Case Management Order, filed April 4, 2025 as Document 227 in Federal Reserve Bank of San Francisco v. Benworth Capital Partners PR, LLC, No. 3:23-cv-01034-GMM, in the U.S. District Court for the District of Puerto Rico. The Reserve Bank and defendants Benworth Capital Partners PR LLC, Benworth Capital Partners LLC, Bernardo Navarro and Claudia Navarro jointly ask the court to modify the Third Amended CMO (ECF No. 219). The motion recounts the court's March 24, 2025 orders granting the Motions to Compel and its April 2, 2025 opinion and order denying a motion to dismiss (ECF No. 225). It proposes moving completion of fact discovery from May 9, 2025 to June 9, 2025, setting August 8, 2025 for fact depositions and moving the conclusion of all discovery to December 15, 2025. The seven-page motion closes with a certificate of service.

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      Case 3:23-cv-01034-GMM           Document 227         Filed 04/04/25    Page 1 of 7




                       IN THE UNITED STATES DISTRICT COURT
                         FOR THE DISTRICT OF PUERTO RICO

 FEDERAL RESERVE BANK OF SAN Civil No. 23-01034 (GMM)
 FRANCISCO,

 Plaintiff,

 v.

 BENWORTH CAPITAL PARTNERS
 PR, LLC; BENWORTH CAPITAL
 PARTNERS,    LLC;   BERNARDO
 NAVARRO and CLAUDIA NAVARRO,

 Defendants.


               SECOND JOINT MOTION REQUESTING MODIFICATION
                      OF THE CASE MANAGEMENT ORDER

        COME NOW Plaintiff Federal Reserve Bank of San Francisco (the “Reserve Bank”) and

Defendants Benworth Capital Partners PR LLC (“Benworth PR”), Benworth Capital Partners LLC

(“Benworth FL”), Bernardo Navarro (“Mr. Navarro”), and Claudia Navarro (together with Mr.

Navarro, the “Navarros”; collectively, “Defendants”; together with the Reserve Bank, the

“Parties”) by and through undersigned counsel, and respectfully request that this Court modify the

operative court deadlines for the following reasons:

        1.     On September 3, 2024, the Court issued a Case Management Order (ECF No. 161,

the “CMO”), establishing the pretrial schedule for this matter.

        2.     On October 30, 2024, the Parties filed a Joint Status Report (ECF No. 178),

requesting the Court’s approval to extend the deadlines in the CMO for (i) substantial completion

of document discovery and (ii) responses to Defendants’ document requests, in light of delays in

the discovery process. On October 31, 2024, the Court issued an Amended Case Management

Order (ECF No. 179, the “Amended CMO”).
       Case 3:23-cv-01034-GMM                 Document 227           Filed 04/04/25        Page 2 of 7




         3.      On December 2, 2024, the Parties filed another Joint Status Report (ECF No. 181)

highlighting concerns about the ongoing discovery process, including Plaintiff’s concern that

Defendants were not on track to meet the discovery deadlines in the Amended CMO.

         4.      On December 16, 2024, the Court held a Status Conference to address the Parties’

concerns. See ECF No. 190.

         5.      On December 17, 2024, in light of the matters discussed at the Status Conference

and in the Joint Status Report (ECF No. 181), the Court issued a further Amended Case

Management Order (ECF No. 191, the “Second Amended CMO”) further adjusting the operative

discovery deadlines.

         6.      On March 4, 2025, the Parties filed a Joint Motion Requesting Modification of the

Case Management Order (ECF No. 216, the “First Joint Motion”) highlighting concerns regarding

compliance with the Second Amended CMO in light of several unresolved key discovery issues

and Plaintiff’s then-pending Motions to Compel discovery from Defendants relating to (i) entities

owned or controlled by the Navarros (ECF Nos. 182, 188), and (ii) accounting data from

Defendants’ QuickBooks database (ECF No. 200, collectively with ECF Nos. 182 and 188, the

“Motions to Compel”). On March 5, 2025, the Court granted the First Joint Motion, further

adjusting the operative discovery deadlines (ECF No. 219, the “Third Amended CMO”).1

         7.      On March 24, 2025, the Court entered orders granting the Motions to Compel (ECF

Nos. 223, 224) and requiring Defendants to produce documents (as it relates to ECF Nos. 182 and

184) or meet and confer to discuss a mode of compliance (as it relates to ECF No. 200) on or

before April 11, 2025.



1
    The Parties noted the Court’s entry of the Third Amended CMO, as well as unresolved key discovery issues in
    the Joint Status Report dated March 5, 2025 (ECF No. 221).


                                                        2
        Case 3:23-cv-01034-GMM                   Document 227            Filed 04/04/25          Page 3 of 7




         8.       On March 31, 2025, the Parties met and conferred regarding certain unresolved key

discovery issues (including those referenced in the First Joint Motion) and compliance with

Court’s orders granting the Motions to Compel. At this time, such discussions remain ongoing.2

         9.       On April 2, 2025, the Court entered an opinion and order (ECF No. 225) denying

Benworth FL’s motion to dismiss the Reserve Bank’s complaint (ECF No. 169), which was joined

by Benworth PR and the Navarros (ECF No. 170). Defendants’ answers and affirmative defenses

to the Reserve Bank’s complaint, which are due on April 16, 2025, will further define the scope

of the issues and discovery in this case.

         10.      For the foregoing reasons, and because of the likelihood of additional discovery-

related issues arising out of compliance with the Motions to Compel and Defendants’ forthcoming

answers and affirmative defenses, the Parties have conferred and agreed to jointly propose further

modifications to the Third Amended CMO that will accommodate the complexities and

uncertainties related to the unresolved discovery matters and avoid prejudicing the Parties. The

jointly proposed modifications are as follows:


         Event                                     Current                   Proposed Deadline
                                                   Deadline
         Completion of fact discovery              May 9, 2025               June 9, 2025
         (other than depositions)
         Exchange of final privilege               N/A                       June 23, 2025
         logs
         Completion of fact depositions            N/A                       August 8, 2025
         Deadline for Parties to                   June 16, 2025             No later than August 15,
         disclose experts and expert                                         2025, parties to submit to
         witness summaries as required                                       Court a schedule as it
         by Fed. R. Civ. P. 26(a)(2)                                         pertains to expert
                                                                             disclosures and submission
                                                                             of reports


2
    For additional details regarding such discussions, the Parties refer the Court to the Joint Status Report filed
    contemporaneously herewith.


                                                            3
      Case 3:23-cv-01034-GMM            Document 227         Filed 04/04/25      Page 4 of 7




       Deadline for Parties to             July 28, 2025       Pursuant to schedule
       disclose expert reports as                              submitted no later than
       required by Fed. R. Civ. P.                             August 15, 2025
       26(a)(2)(B)
       Deadline for Parties to submit      August 26, 2025     Pursuant to schedule
       rebuttal expert reports                                 submitted no later than
                                                               August 15, 2025
       Conclusion of all discovery         September 15,       December 15, 2025
                                           2025
       Deadline to file dispositive        October 14, 2025January 29, 2026
       motions
       Deadline to file oppositions to October 29, 2025 February 14, 2026
       dispositive motions
       11.    The requested modifications are necessary due to the factors as discussed herein,

which justify additional time to ensure a fair and thorough discovery process.

       12.     First, in light of ongoing discovery-related discussions and potential contingencies

that may arise from compliance with the Motions to Compel as well as additional discovery that

may arise in connection with Defendants’ forthcoming answers and affirmative defenses, the

Parties propose bifurcating the deadlines for completion of fact discovery and the completion of

fact depositions, as well as a modest enlargement from the current May 9, 2025 deadline for both.

The proposed deadline for fact depositions, which is effectively co-extensive with the completion

of fact discovery, is commensurate with the enlargement previously granted by the Court. See

Second Amended CMO (extending deadline for completion of fact discovery from March 7, 2025

to May 9, 2025, a total of 63 days).

       13.     Second, as depositions rely on the completion of fact discovery, the Parties propose

submission of a separate expert-only schedule following completion of fact discovery and

depositions (with an outside date of August 15, 2025) to potentially avoid the need to seek

adjustment of the overall case schedule.




                                                 4
      Case 3:23-cv-01034-GMM           Document 227        Filed 04/04/25      Page 5 of 7




       14.     Finally, the remaining deadlines for conclusion of all discovery and the filing of

dispositive motions and the oppositions thereto have been enlarged by approximately the same

amount as the proposed enlargement of the deadline for conclusion of fact discovery.

       15.     Furthermore, the extension of the deadlines will not prejudice any Party, as these

modifications are being jointly proposed in the interest of fairness and judicial economy.

       16.     For these reasons, the Parties respectfully request that the Court grants this joint

motion and, accordingly, enters an order modifying the Third Amended CMO.

       Respectfully submitted in San Juan, Puerto Rico on April 4, 2025.


     O’NEILL & BORGES LLC                                 FERRAIUOLI LLC

     By: /s/ Antonio L. Roig Lorenzo                      By: /s/ Roberto A. Cámara Fuertes
     Antonio L. Roig Lorenzo                              Roberto A. Cámara Fuertes
     USDC-PR No. 207712                                   USDC-PR 219002
     Salvador J. Antonetti Stutts                         Jaime A. Torrens-Davila
     USDC-PR No. 215002                                   Monica Del Pilar Ramos-Benitez
     Ubaldo M. Fernández Barrera                          Ferraiuoli LLC
     USDC-PR No. 224807                                   PO Box 195168
     Aníbal A. Román Medina                               San Juan, PR 00919-5168
     USDC-PR No. 308410                                   (787) 766-7000
     250 Muñoz Rivera Ave., Ste. 800                      (787) 766-7001
     San Juan, PR 00918-1813                              rcamara@ferraiuoli.com
     (787) 764-8181                                       jtorrens@ferraiuoli.com
     antonio.roig@oneillborges.com                        mramos@ferraiuoli.com
     salvador.antonetti@oneillborges.com
     ubaldo.fernandez@oneillborges.com
     anibal.roman@oneillborges.com

     CLEARY GOTTLIEB STEEN &
     HAMILTON LLP

     Thomas S. Kessler (admitted pro hac vice)
     One Liberty Plaza
     New York, New York 10006
     (212) 225-2000
     tkessler@cgsh.com

     Attorneys for the Federal Reserve Bank of
     San Francisco

                                                 5
Case 3:23-cv-01034-GMM   Document 227   Filed 04/04/25     Page 6 of 7




                                        KOZYAK TROPIN &
                                        THROCKMORTON

                                        Dwayne Robinson
                                        Michael R. Lorigas
                                        Rasheed K. Nader
                                        2525 Ponce de Leon Boulevard,
                                        9th Fl.
                                        Miami, Florida 33134
                                        (305) 372-1800
                                        drobinson@kttlaw.com
                                        mlorigas@kttlaw.com
                                        rnader@kttlaw.com

                                        Attorneys for Benworth Capital
                                        Partners LLC and Bernardo
                                        Navarro



                                        CASELLAS ALCOVER &
                                        BURGOS, P.S.C.

                                        By: /s/ Carla S. Loubriel
                                        Carla S. Loubriel
                                        USDC-PR 227509
                                        Ricardo F. Casellas
                                        USDC-PR 203114
                                        208 Ponce de Leon Ave.
                                        Popular Center Bldg. Suite 1400
                                        Hato Rey, PR 00918
                                        (787) 756-1400
                                        cloubriel@cabprlaw.com
                                        rcasellas@cabprlaw.com

                                        Attorneys for Defendants
                                        Benworth Capital Partners PR
                                        LLC and Claudia Navarro




                               6
      Case 3:23-cv-01034-GMM           Document 227        Filed 04/04/25     Page 7 of 7




                               CERTIFICATE OF SERVICE

       I certify that on April 4, 2025, I filed a copy of the foregoing document using the Court’s

CM/ECF system, which will automatically generate a Notice of Electronic Filing to all counsel of

record in this matter.



                                                    s/ Aníbal A. Román Medina




                                                7


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