Metropolitan Cooperative Association and Metropolitan Cooperative Association, Reorganized

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
METROPOLITAN COOPERATIVE
ASSOCIATION,
Debtor.
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Case No. 08-00527
(Chapter 11)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION AND ORDER RE MYNH’S MOTION
TO SHORTEN TIME FOR DEBTOR’S RESPONSES TO DISCOVERY
On August 6, 2008, the day after the filing of the petition
commencing this case, M Y New Hampshire, LLC (“MYNH”), a creditor
of the debtor, Metropolitan Cooperative Association (“MCA”),
filed a motion seeking the appointment of a trustee. 	That motion
is set for hearing on September 3, 2008. 	MYNH has also filed a
motion seeking to shorten the time for the debtor MCA to respond
to its request for production of documents, specifically,
requesting that the debtor be ordered to produce documents by
August 28, 2008. 	MYNH’s request for production of documents
seeks:
DOCUMENT REQUEST NO. 1: All Documents and
Communications related in any way to the Property from
January 1, 2005 through the present, including but not
limited to all Books and Records, leases, subleases,
assignments, mortgages, loan documents, easements,
The Memorandum Decision and Order below is hereby
signed. Dated: August 25, 2008.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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ownership, management, by-laws, conveyances,
disposition of assets, incurrence of debts or
liabilities, use and occupancy agreements, and
agreements of any kind.
DOCUMENT REQUEST NO. 2: All Documents and
Communications evidencing the shareholders, Members and
Tenants with respect to the Property from January 1,
2005 through the present.
DOCUMENT REQUEST NO. 3: All Documents and
Communications evidencing the identity of the members
of the Board of Directors for the Debtor from January
1, 2005 through the present.
DOCUMENT REQUEST NO. 4: All Documents and
Communications relating to any and all fees, rents
and/or assessments, revenue and income which the Debtor
has received from its Members and or Tenants from
January 1, 2005 through the present.
DOCUMENT REQUEST NO. 5: All Documents and
Communications relating to any and all Expenditures
made by the Debtor from January 1, 2005 through the
present.
DOCUMENT REQUEST NO. 6: All Documents and
Communications relating to payments made by the Debtor
to The Adams National Bank and/or the Lender pursuant
to the Loan from November, 2005 through the present.
DOCUMENT REQUEST NO. 7: All Documents and
Communications relating to the Debtor’s tax returns for
2005 through 2008.
The debtor responded to the motion by stating that:
8. . . . [T]he discovery is overly broad and
burdensome, and therefore objectionable, on the
following grounds, among others:
a. The discovery seeks production of
documents which pre-date the acquisition of
the real property at issue here by MCA. The discovery
seeks documents from January 1, 2005, onward; MCA did
not acquire the property until November 2005.
b. The sheer volume of documents required to
comply with the request is burdensome, especially given
the brevity of the time period within which the
production is to be made.
9. Notwithstanding yet subject to the foregoing,
MCA shall make every effort to comply as fully as
circumstances permit to produce documents within its
dominion, custody and control by the deadline sought by
MYNH.
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1 	I say “generally appears reasonably calculated” instead
of “is reasonably calculated” not because I have spotted any
category of documents as to which the discovery is not reasonably
calculated to lead to the discovery of admissible evidence, but
because the debtor has not had an opportunity to identify any
such categories, if any such categories exist.
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The motion to appoint a trustee raises allegations of misconduct
in the debtor’s operation of its business. 	Accordingly, the
discovery generally appears reasonably calculated to lead to the
discovery of admissible evidence with respect to the pending
motion to appoint a trustee. 1 	As to the debtor’s first
objection, to the extent that the discovery seeks documents which
pre-date the acquisition of the real property at issue here by
the debtor, the discovery, in effect, does not (to that extent)
seek documents.
The debtor’s second objection is that the sheer volume of
documents requested is burdensome to comply with. 	The requested
documents, however, are the operational records of the debtor for
the less than three years the debtor asserts it has been in
business, and the motion to appoint a trustee rests on
allegations of misconduct in the operation of the debtor’s
business. 	The debtor does not contend that the documents are not
readily at hand. 	They may be voluminous, but the burden of going
through the documents will, for the most part, be on MYNH, as the
debtor should generally be aware of what is located in particular
files without the necessity of examining each of those files.
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However, the request does cover almost three years of
business records, and a myriad of types of documents, such that
the request may involve a substantial volume. 	In addition, MYNH
has requested that the production occur in Baltimore instead of
in Washington, D.C. where the debtor is located. 	The debtor is
entitled to insist that the examination of the documents take
place at its business premises or at the office of its counsel,
provided that the debtor makes arrangements for MYNH to obtain
copies of requested documents at a reasonable charge, or, if MYNH
prefers, permits MYNH to utilize portable photocopying equipment
to make copies.
It is accordingly
ORDERED that the debtor shall produce the requested
documents by close of business on August 28, 2008 (other than
those to which it raises specific objection--such as attorney
client privilege or that a specific category of documents is not
reasonably calculated to lead to the discovery of admissible
evidence--in a response to the request filed by the same
deadline, but the court will not look favorably on assertions of
frivolous objections). 	It is further
ORDERED that the debtor may insist that the production of
documents occur at its offices or at the offices of its counsel,
and in that event, the examination and copying of documents shall
occur at a time specified by MYNH commencing no sooner than the
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5	O:\TEEL\Judge Temp Docs\Metropolitan Cooperative Association memorandum decision and order regarding the motion to shorten discovery response time.wpd
start of business on August 28, 2008, with the debtor to make
arrangements for MYNH to obtain copies of requested documents at
a reasonable charge, or, if MYNH prefers, permit MYNH to utilize
portable photocopying equipment to make copies.
[Signed and dated above.]
Copies to: Debtor; Debtor’s attorney; Aryeh Stein, Esq.; Richard
W. Luchs, Esq.; Office of United States Trustee.
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