Opinion

FuboTV Inc. v. The Walt Disney Company

Court
District Court, S.D. New York
Filed
Jun 5, 2024
Cited by
0 cases

The opinion

KELLOGG, HANSEN, TODD, FIGEL & FREDERICK, P.L.L.C.

SUMNER SQUARE

I6I5 M STREET, N.W.

SUITE 400 SS

WASHINGTON, D.C. 20036-3215 USDC SDNY

(202) 326-7900 DOCUMENT

FACSIMILE: ELECTRONICALLY FILED

(202) 326-7999

DOC #:

May 31, 2024 DATE FILED:_ (6/05/2024

Via CM/ECF

The Honorable Margaret M. Garnett

United States District Court for the Southern District of New York

40 Foley Square, Room 2102

New York, NY 10007

Re: fuboTV Inc., et al. v. The Walt Disney Company, et al., No. 24-cv-1363

Dear Judge Garnett:

Fubo respectfully requests that the Court compel Defendants to produce text messages

between or among document custodians concerning topics relevant to Fubo’s preliminary

injunction (PI) motion. Text messages between these top executives are likely to reveal candid

(and therefore highly probative) communications about Defendants’ Jomt Venture (JV).

Defendants do not dispute their custodians communicated over text, instead arguing that producing

those texts would pose an undue burden. But litigants routinely produce text messages in civil

litigation (and courts routinely compel the production of such communications). Defendants have

offered no basis to shield them from discovery here—particularly since Defendants do not deny

that the key executives who designed and negotiated the JV communicated over text. Defendants’

burden arguments ring hollow given that they are billion-dollar corporations and Fubo has already

agreed to limit the parties’ productions to text messages involving at least two custodians.

Background: Fubo’s RFPs seek “communications regarding the Joint Venture” and

similar topics. Fubo’s RFPs incorporate the uniform definition of “communication” set forth in

Local Civil Rule 26.3(c)(1), which defines that term to mean “the transmittal of information (in

the form of facts, ideas, inquiries, or otherwise).” Ex. 1 at 2. New York federal courts applying

this uniform definition have routinely held that text messages are discoverable “communications”

under Rule 26. See infra at p. 2. Defendants’ own RFPs to Fubo expressly made clear that

Defendants considered “communications” to include “telephone or message logs.” And when

Defendants served their responses and objections to Fubo’s RFPs, they did not object to producing

text messages or chats (despite asserting many other objections). See Ex. 2 (Disney); Ex. 3 (Fox);

Ex. 4(WBD).

Over the next two weeks, the parties negotiated a set of custodians from whom they would

produce responsive documents and communications. At no time did Defendants express that they

KELLOGG, HANSEN, TODD, FIGEL & FREDERICK, P.L.L.C.

The Honorable Margaret M. Garnett

May 31, 2024

Page 2

would limit this custodial production to certain categories of electronic communications. On May

23, Fubo asked Defendants to confirm that they (like Fubo) were planning to produce chat and text

messages as Well as emails. Six days later, Defendants informed Fubo for the first time that, while

they would produce chat messages, they refused to produce text messages. In the interest of

reaching a compromise, Fubo offered to limit its request to text messages between custodians in

this case. Defendants did not respond to Fubo’s offer.!

Argument: This Court should require Defendants to produce relevant text messages

between custodians in this case, limited to: (a) one-on-one texts between custodians; and (b) group

texts where at least two custodians are included.

This Court’s Local Rules broadly define the term “communication” to mean “the

transmittal of information (in the form of facts, ideas, inquiries, or otherwise).” Local Civil Rule

26.3. Text messages fall squarely within this straightforward definition. Accordingly, courts in

this Circuit treat text messages in the same way they treat other forms of electronic

communication (such as emails and chats) and routinely compel litigants to produce their text

messages. See, e.g., Al Thani v. Hanke, 2022 WL 1684271, at *1 (S.D.N.Y. May 26, 2022)

(granting motion to compel production of text messages); Thomas v. City of New York, 336

F.R.D. 1, at *5 (E.D.N.Y. 2020) (same); Gunning v. New York State Just. Ctr. for Prot. of People

With Special Needs, 2022 WL 783226, at *9 (N.D.N.Y. Mar. 15, 2022) (same); Alexander v.

Priv. Prot. Servs., Inc., 2023 WL 1779544, at *4 (S.D.N.Y. Feb. 6, 2023); cf Walker v. Carter,

2015 WL 9450843, at *1 (S.D.N.Y. Dec. 23, 2015) (granting sanctions for failure to produce text

messages).

Text messages between the custodians in this case are particularly likely to offer key

insights into Defendants’ negotiation of and strategy for the JV. Defendants’ custodians are all

high-level executives and include the primary negotiators and decision-makers with regard to the

JV. There can be no dispute that—for example—texts between Disney CEO Bob Iger and Fox

CEO Lachlan Murdoch about the JV could be centrally relevant to the PI trial in August. Indeed,

texts are a particularly rich source of evidence because corporate executives are often more candid

over informal modes of communication than they are over email.

Here, moreover, Defendants kept their plans for the JV tightly under wraps until its

announcement, keeping even its largest industry partners, such as the NFL and the NBA, in the

' The parties discussed this issue via email correspondence on May 23, 24, 29, 30, and

31. Fubo has offered multiple times to meet and confer on this issue and Defendants have

ignored that offer, even after being informed that Fubo intended to seek relief from the Court.

Given the compressed schedule, Fubo filed this motion.

KELLOGG, HANSEN, TODD, FIGEL & FREDERICK, P.L.L.C.

The Honorable Margaret M. Garnett

May 31, 2024

Page 3

dark.” A tight-knit group of executives thus negotiated this deal quickly and under a cloak of

secrecy, making it even more likely they relied on texts to facilitate fast-paced negotiations.

Defendants have not denied that their custodians’ text messages include responsive

information relevant to the PI hearing. On the contrary, Defendants have agreed to produce other

message-based forms of communication, such as Microsoft Teams messages. Yet Defendants

refuse to produce text messages on the grounds that: (a) Fubo waited too long to raise the issue;

and (b) producing texts would pose an undue burden. Neither point is persuasive. As noted,

Fubo’s discovery requests applied this Court’s uniform definition of “communication,” which

encompasses text messages (as Defendants’ own discovery requests to Fubo recognize). Absent

an objection from any of the Defendants, Fubo had no reason to know they were refusing to collect

and produce the same text messages Defendants demanded from Fubo. And when Fubo sought

confirmation that Defendants would produce texts, Defendants waited six days to respond; any

time crunch is one of Defendants’ making.? See Sage Prods., LLC v. Chemrite Copac, Inc., 2021

WL 5299789, at *1, 3 (N.D. Ill. Nov. 12, 2021) (granting motion to compel text message

production “in the final weeks of nearly two years of discovery” because there was likely to be

relevant evidence and the seeking party’s “document requests defined ‘communicate’ and

‘document’ in very broad terms’’).

Defendants’ burden arguments ring hollow compared against the clear relevance of texts

between the key witnesses for the PI trial. And again, Fubo is only seeking relevant texts between

custodians in this case—a limited universe, given the small number of custodians for each party.

Defendants can hardly claim producing this narrow subset of texts presents an undue when they

are among the richest corporations in the United States, with large law firms at their disposal.

Order Granting Compl. Counsel’s Mot. to Compel, /n re Kroger Co./Albertsons Cos., Inc., Dkt.

No. 9428 (F.T.C. May 22, 2024) at 3 (compelling parties in the Kroger-Albertson merger to

produce texts, where the Defendants have billions in revenues and “multiple law firms litigating

this matter”). Indeed, Fubo—a much smaller company—will produce responsive texts from its 10

custodians on the same basis as Defendants, should the Court grant Fubo’s motion.

? Joe Flint & Isabella Simonetti, Streaming Venture From ESPN, Fox and Warner

Blindsides Sports Leagues, Wall Street J. (Feb. 7, 2024), https://www.wsj.com/business/media/

streaming-venture-from-espn-fox-and-warner-blindsides-sports-leagues-e6clfbec; see also Alex

Weprin, Hollywood Moguls Try a Quarterback Sneak, Hollywood Reporter (Feb. 26, 2024),

https://perma.cc/EQ6M-BXSL (noting “[t]he surprise by [Defendants’] league and distribution

partners underscored how quickly the deal came together.”).

> The Court has set a June 7 date for the “substantial completion” of document

productions, see Dkt. 140, but text messages typically represent a small fraction of overall

records compared to emails. Fubo would thus have no objection if the parties produced text

messages within a reasonable timeframe after June 7, should the Court grant Fubo’s motion.

KELLOGG, HANSEN, TODD, FIGEL & FREDERICK, P.L.L.C.

The Honorable Margaret M. Garnett

May 31, 2024

Page 4

Respectfully submitted,

/s/ Thomas G. Schultz

Mark C. Hansen (admitted pro hac vice)

Joseph S. Hall (SDNY Bar No. JH2612)

Thomas G. Schultz (admitted pro hac vice)

Joshua Hafenbrack (admitted pro hac vice)

Gavan W. Duffy Gideon (admitted pro hac vice)

Rachel T. Anderson (admitted pro hac vice)

KELLOGG, HANSEN, TODD, FIGEL

& FREDERICK, P.L.L.C.

1615 M Street NW

Suite 400

Washington, DC 20036

Tel.: (202) 326-7900

Fax: (202) 326-7999

Email: mhansen@kellogghansen.com

jhall@kellogghansen.com

tschultz@kellogghansen.com

jhafenbrack@kellogghansen.com

geideon@kellogghansen.com

randerson@kellogghansen.com

Counsel for Plaintiffs fuboTV Inc. and fuboTV

Media Inc.

Given the narrowly tailored nature of discovery relevant to the Preliminary Injunction

Hearing, the fast-approaching deadline for substantial completion of document productions,

Fubo's delay in confirming with Defendants (despite numerous meet-and-confers regarding

electronic discovery methods) that text messages were understood to be included in the

definition of "communication" in their Requests for Production, and the significant burden

that a collection and review of text messages on such an expedited timeline would present for

Defendants, Fubo's Motion to Compel at Dkt. No. 179 is HEREBY DENIED. This Order

is without prejudice to Fubo's ability to seek text messages in the course of normal, broader

discovery post-PI Hearing, should such discovery go forward.

SO ORDERED. Dated June 5, 2024.

ka

UNITED STATES DISTRICT JUDGE

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.