1 2 3 4 5 6 E-FILED Nena W. Wong (Bar No. 162570) LAW OFFICES OF NENA W. WONG 6080 Center Drive, Suite 600 Los Angeles, California 90045 Telephone: 310-704-6603 Facsimile: 310-689-2339 May 2, 2013 3:03 PM David H. Yamasaki Chief Executive Officer/Clerk Superior Court of CA, County of Santa Clara Case #1-09-CV-143298 Filing #G-53530 By R. Nelson, Deputy Attorneys for Plaintiff/Cross-Defendant PHOEBE MICRO, INC., a California corporation and Cross-Complainants/Cross-Defendants PETER LUI and RUBY LUI 7 8 SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 COUNTY OF SANTA CLARA 10 11 12 13 14 15 16 17 18 19 20 21 Coordination Proceedings Special Title (Rule 3.550) Judicial Council Coordinated Proceeding FRY’S ELECTRONICS PURCHASING CASES Case No.: JCCP 4589 Included Actions: NOTICE OF MOTION OF PETER LUI, RUBY LUI AND PHOEBE MICRO, INC. TO: (1) BIFURCATE TRIAL, (2) EXTEND DISCOVERY, AND (3) CONTINUE TRIAL ON BIFURCATED CLAIMS Fry’s Electronics, Inc. v. EliteGroup Computer Systems, Inc. Superior Court of California County of Santa Clara Case No. 1-09-CV-143298 Lead Data International, Inc. v. Fry’s Electronics, Inc. Superior Court of California County of Santa Clara Case No. 1-09-CV-133292 Phoebe Micro Inc. v. Fry’s Electronics, Inc. Superior Court of California County of Santa Clara Case No. 1-09-CV-137828 24 ProMedia Technologies, Inc. v. Fry’s Electronics, Inc. Superior Court of California County of San Diego Case No. 37-2009-00085407-CU-BC-CTL 25 PHOEBE MICRO, INC., a California corporation, 22 23 Plaintiff, 26 27 28 [Filed Concurrently With: 1. Memorandum of Points and Authorities of Peter Lui, Ruby Lui and Phoebe Micro, Inc. in Support of Motion to: (1) Bifurcate Trial, (2) Extend Discovery, and (3) Continue Trial on Bifurcated Claims; and 2. Declaration of Nena W. Wong in Support of Motion of Peter Lui, Ruby Lui and Phoebe Micro, Inc. to: (1) Bifurcate Trial, (2) Extend Discovery, and (3) Continue Trial on Bifurcated Claims; and 3. Request for Judicial Notice in Support of Motion of Peter Lui, Ruby Lui and Phoebe Micro, Inc. to: (1) Bifurcate Trial, (2) Extend Discovery, and (3) Continue Trial on Bifurcated Claims] [Also Filed Concurrently with: (1) Motion for Sanctions, and (2) Motion for Review of April 18, 2013 Discovery Referee Order] v. Date: May 24, 2013 1 PETER LUI, RUBY LUI AND PHOEBE MICRO, INC, MOTION TO BIFURCATE TRIAL, EXTEND DISCOVERY AND CONTINUE TRIAL ON BIFURCATED CLAIMS FRY’S ELECTRONIC PURCHASING CASES (JCCP 4589) E-FILED: May 2, 2013 3:03 PM, Superior Court of CA, County of Santa Clara, Case #1-09-CV-143298 Filing #G-53530 1 2 3 FRY'S ELECTRONICS, INC., a California corporation; PC INTERNATIONAL, LLC, a California limited liability company; AUSAF UMAR SIDDIQUI a/k/a OMAR SIDDIQUI; JOHN FRY, RANDY FRY, DAVID FRY, KATHY KOLDER, and DOES 5 through 100, inclusive, 4 Time: Dept: Judge: 9:00 a.m. 1 Hon. James P. Kleinberg Complaint Filed: March 20, 2009 Trial Date: September 30, 2013 Defendants. 5 6 7 TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD: 8 PLEASE TAKE NOTICE that on May 24, 2013, at 9:00 a.m., or as soon thereafter as this 9 matter may be heard, before the Honorable James P. Kleinberg in Department 1 of the Superior 10 Court of California for the County of Santa Clara, located at 191 North First Street, San Jose, 11 California 95113, Cross-Complainants/Cross-Defendants PETER LUI and RUBY LUI 12 (collectively, the “Luis”), and Plaintiff/Cross-Defendant PHOEBE MICRO, INC. (“Phoebe”) 13 will and do hereby move this Court for an order: 1. 14 Bifurcating trial on: (a) the Luis’ Amended Cross-Complaint against Fry’s 15 Electronics, Inc. (“Fry’s”) and the Fry’s Founders (defined to include Cross-Defendants John 16 Fry, Randy Fry, David Fry and Kathy Kolder); (b) Phoebe’s Third Amended Complaint against 17 Fry’s; and (c) Fry’s Third Amended Cross-Complaint against the Luis and Phoebe (collectively, 18 the “Bifurcated Claims”), from the other complaints in the matters consolidated and coordinated 19 under Fry’s Electronics Purchasing Cases, Judicial Council Coordinated Proceeding No. 4589. 20 In the alternative, the Luis and Phoebe seek bifurcation and extension of discovery, at a 21 minimum, of the Luis’ Amended Cross-Complaint against Fry’s and the Fry’s Founders, or such 22 other bifurcation of claims as the Court deems appropriate; 2. 23 Extending discovery for six months from August 2, 2013 to February 2, 2013 to 24 allow the Luis time to conduct discovery on their Amended Cross-Complaint following the 25 lifting of stay on their discovery; and 3. 26 27 to April 2014. 28 / / / Continuing trial on the Bifurcated Claims for six months from September 30, 2013 2 PETER LUI, RUBY LUI AND PHOEBE MICRO, INC. MOTION TO BIFURCATE TRIAL, EXTEND DISCOVERY AND CONTINUE TRIAL ON BIFURCATED CLAIMS FRY’S ELECTRONIC PURCHASING CASES (JCCP 4589) E-FILED: May 2, 2013 3:03 PM, Superior Court of CA, County of Santa Clara, Case #1-09-CV-143298 Filing #G-53530 1 These Motions are made pursuant to the following legal authority: 2 1. The Motion to Bifurcate Trial is made pursuant to Code of Civil Procedure section 3 1048 on the grounds that bifurcating the Luis’ and Phoebe’s claims is necessary to avoid 4 prejudice, to preserve the Luis’ and Phoebe’s due process rights and to promote expedition and 5 efficiency in the litigation. Fry’s had waited three years into this consolidated litigation before 6 deciding to sue the Luis, at that time just five months prior to trial.. After being sued, the Luis 7 sought and received leave to file a Cross-Complaint and the trial date was continued to 8 September 30, 2013. (Prior to the initial May 3, 2013 demurrer hearing on the Luis’ Cross- 9 Complaint, the Luis filed an Amended Cross-Complaint in April 2013 to incorporate new 10 allegations from key depositions held in March 2013.) Since the Luis were sued, however, Fry’s 11 has objected to every single individual request in all sets of discovery propounded by the Luis 12 and, by misleading the Discovery Referee, improperly obtained a stay on discovery prohibiting 13 the Luis from conducting discovery to pursue their now Amended Cross-Complaint until the May 14 24, 2013 hearing on the demurrer their Amended Cross-Complaint. After this stay is lifted, the 15 Luis would only have two months’ time to conduct discovery prior to the August 2, 2013 16 Discovery cut-off date, resulting in a gross violation of the Luis’ due process rights. Bifurcating 17 the trial on the Luis/Phoebe claims, which differ from the other complaints in this coordinated 18 action, would avoid injustice, preserve due process rights and promote the expedition and 19 efficiency of litigation by allowing the complaints of other parties in the coordinated action to 20 proceed and not suffer from the delay caused by Fry’s suing the Luis so late in the litigation and 21 then prohibiting the Luis from conducting discovery until the eve of trial. 22 2. The Motion to Extend Discovery is made pursuant to Code of Civil Procedure 23 Section 2024.050 on the grounds that Fry’s and the Fry’s Founders have abused the discovery 24 process to obtain a stay of discovery on the Luis’ Amended Cross-Complaint until a hearing on 25 their demurrer to the Luis’ Amended Cross-Complaint on May 24, 2013. If the demurrer is 26 overruled, the Luis would have only about two (2) months to conduct discovery prior to the 27 August 2, 2013 discovery cut-off date; 28 / / / 3 PETER LUI, RUBY LUI AND PHOEBE MICRO, INC. MOTION TO BIFURCATE TRIAL, EXTEND DISCOVERY AND CONTINUE TRIAL ON BIFURCATED CLAIMS FRY’S ELECTRONIC PURCHASING CASES (JCCP 4589) E-FILED: May 2, 2013 3:03 PM, Superior Court of CA, County of Santa Clara, Case #1-09-CV-143298 Filing #G-53530 1 3. The Motion to Continue Trial is made pursuant to California Rules of Court Rule 2 3.1332(a), which allows the Court to continue trial where, as here, the delay sought is only six 3 months and is sought to allow the recently-sued Luis the ability to conduct discovery and prepare 4 for trial once the stay on their ability to conduct discovery is lifted. Continuing the trial is also 5 necessary to avoid prejudice to the Luis as under the current schedule, they would only have two 6 months time to conduct any discovery on their Amended Cross-Complaint once the discovery 7 stay is lifted. 8 This Motion is based upon this Notice of Motion and Motion, the Memorandum of Points 9 and Authorities, the Request for Judicial Notice, the Declaration of Nena W. Wong, all papers, 10 records and documents on file in this case, and such oral arguments as the Court may permit at 11 the time of hearing. 12 13 DATED: May 2, 2013 LAW OFFICES OF NENA W. WONG 14 15 16 17 18 19 By: Nena W. Wong Attorneys for Plaintiff/Cross-Defendant PHOEBE MICRO, INC., a California corporation, and CrossComplainants/Cross-Defendants PETER LUI and RUBY LUI 20 21 22 23 24 25 26 27 28 4 PETER LUI, RUBY LUI AND PHOEBE MICRO, INC. MOTION TO BIFURCATE TRIAL, EXTEND DISCOVERY AND CONTINUE TRIAL ON BIFURCATED CLAIMS FRY’S ELECTRONIC PURCHASING CASES (JCCP 4589)