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CASE NO. 22-55737

UNITED STATES COURT OF APPEALS


FOR THE NINTH CIRCUIT

NOUVEL, LLC,

Petitioner-Appellee,

v.

MONDO BONGO, LLC, WILLIAM B. PITT, and


WARREN GRANT,

Respondents-Appellants.

Appeal From the United States District Court,


Central District of California
Case No. 2:22-mc-00004-MCS-CFE

EMERGENCY MOTION UNDER CIRCUIT RULE 27-3


APPELLANTS’ MOTION FOR STAY PENDING APPEAL

RELIEF REQUESTED BY AUGUST 17, 2022

William Savitt (admission forthcoming) Laura W. Brill (195889)


Sarah K. Eddy (admission forthcoming) KENDALL BRILL & KELLY LLP
Adam Goodman (admission forthcoming) 10100 Santa Monica Blvd., Suite 1725
WACHTELL, LIPTON, ROSEN & KATZ Los Angeles, CA 90067
51 West 52nd Street Telephone: (310) 556-2700
New York, NY 10019
Telephone: (212) 403-1000 

Attorneys for Respondents-Appellants Mondo Bongo, LLC,


William B. Pitt, and Warren Grant
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Pursuant to Federal Rule of Appellate Procedure 8(a)(2) and Circuit Rule

27-3, Appellants Mondo Bongo, LLC, William B. Pitt, and Warren Grant

(“Appellants”) submit this emergency motion for an immediate stay of the District

Court’s July 22, 2022 Order Accepting the Report & Recommendation, to avoid

significant and irreparable harm to Appellants pending appeal.

CIRCUIT RULE 27-3 CERTIFICATE

The undersigned counsel, Laura W. Brill, certifies on behalf of Appellants as

follows:

I. Counsels’ Contact Information

Counsel for Appellee Nouvel, LLC can be reached as follows:

Keith R. Hummel
CRAVATH, SWAINE & MOORE LLP
Worldwide Plaza
825 Eighth Avenue
New York, NY 10019
Telephone: (212) 474-1000
Facsimile: (212) 474-3700
khummel@cravath.com

James Lee (192301)


Enoch Liang (212324)
Joe Tuffaha (253723)
LTL ATTORNEYS LLC
300 South Grand Avenue, Suite 1400
Los Angeles, CA 90071
Telephone: (212) 474-1000
Facsimile: (212) 474-3700
james.lee@ltlattorneys.com
enoch.liang@ltlattorneys.com
joe.tuffaha@ltlattorneys.com

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Counsel for Appellants can be reached as follows:

Laura W. Brill (195889)


KENDALL BRILL & KELLY LLP
10100 Santa Monica Blvd., Suite 1725
Los Angeles, CA 90067
Telephone: (310) 556-2700
Facsimile: (310) 556-2705
lbrill@kbkfirm.com

William Savitt (admission forthcoming)


Sarah K. Eddy (admission forthcoming)
Adam Goodman (admission forthcoming)
WACHTELL, LIPTON, ROSEN & KATZ
51 West 52nd Street
New York, NY 10019
Telephone: (212) 403-1000
Facsimile: (212) 403-2000
wdsavitt@wlrk.com
skeddy@wlrk.com
algoodman@wlrk.com

II. Relief Sought in the District Court

This appeal concerns an application for discovery under 28 U.S.C. § 1782,

filed by Nouvel on January 7, 2022. Ex. 1 (App. for an Order Pursuant to 28

U.S.C. § 1782) (“App.”)). Following the grant of that application on an ex parte

basis on January 12, 2022, Ex. 2 (Ex Parte Order Granting App.), Nouvel served

subpoenas on Appellants. On March 17, 2022, Appellants moved to quash. Ex. 3

(Memo. of P&A in Support of Mot. (“Mot.”)). Nouvel filed its opposition on May

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6, 2022, Ex. 4 (Memo. of P&A in Opp. to Mot. (“Opp.”)), and Appellants replied

on May 20, 2022, Ex. 5 (Reply in Further Support of Mot. (“Reply”)).

Appellants’ motion to quash was referred to the Honorable Charles Eick,

who issued a Report and Recommendation advising the District Court to deny it on

June 8, 2022. Ex. 6 (“R&R”). Appellants filed objections to the R&R, Ex. 7

(Objections to the R&R) (“R&R Objections”)), and Nouvel replied, Ex. 8

(Response to R&R Objections) (“R&R Response”)). In a July 22, 2022 order, the

District Court rejected Appellants’ objections and denied Appellants’ motion to

quash. Ex. 9 (“Order”). In addition, the order denied Appellants’ request for a

stay pending appeal. Id. at 4.

III. Facts Showing Existence and Nature of the Emergency

On July 28, 2022, Nouvel’s counsel sent a letter to Appellants’ counsel

demanding that Appellants complete their production of documents responsive to

the subpoenas and provide a privilege log by August 15, 2022. Ex. 10 (Letter from

K. Hummel to Counsel to Appellants, July 8, 2022). An emergency stay is

necessary to prevent the irreparable harm that Appellants would suffer as a result

of the disclosure of confidential and proprietary information belonging to Château

Miraval, in which Appellants Pitt and Mondo Bongo are indirect shareholders and

Grant is a former director, as well as information belong to Miraval Provence, in

which Appellants Pitt and Mondo Bongo are also indirect shareholders. The harm

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from the release of this sensitive information to Appellee Nouvel — now

nominally controlled by competitor spirits business, Stoli Group — could not be

undone. In addition, release of this information would moot Appellants’ appeal,

causing irreparable harm. See Khrapunov v. Prosyankin, No. 18-16254 (9th Cir.

order entered Aug. 2, 2018).

Appellants could not have moved sooner for relief in this Court, as

Appellants were not informed of Nouvel’s desired production deadline until July

28, 2022.

IV. Notification and Service of Opposing Counsel

Counsel for Nouvel was notified of the filing of this motion on July 29,

2022, and have indicated that Nouvel intends to oppose it. Nouvel’s counsel will

be served with the filing by CM/ECF and electronic mail.

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CORPORATE DISCLOSURE STATEMENT

Pursuant to Federal Rule of Appellate Procedure 26.1, disclosure is hereby

made that Appellant Mondo Bongo, LLC is a private limited liability company that

has no parent organization. No publicly held corporation owns more than 10% of

its stock.

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TABLE OF CONTENTS

INTRODUCTION ..................................................................................................... 1 
BACKGROUND AND PROCEDURAL HISTORY ............................................... 3 
I.  Background ........................................................................................................... 3 
II.  Procedural history ................................................................................................. 7 
ARGUMENT ............................................................................................................. 7 
I.  Appellants are likely to succeed on the merits. .................................................... 8 
  The District Court failed to address foreign-law disputes............................... 9 
  The District Court failed to address the international comity concerns
raised by the subpoenas. ................................................................................ 12 
II.    Appellants will be irreparably harmed absent a stay. ....................................... 14 
III.   Nouvel will not be injured by a stay. ................................................................ 15 
IV.  The public interest favors a stay. ....................................................................... 16 
CONCLUSION ........................................................................................................ 16 

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TABLE OF AUTHORITIES

CASES

Akebia Therapeutics, Inc. v. Fibrogen, Inc.,


No. 15-15274 (9th Cir. order entered Mar. 16, 2015) ............................................8

All. for the Wild Rockies v. Cottrell,


632 F.3d 1127 (9th Cir. 2011) ................................................................................8

Baxalta Inc. v. Genentech, Inc.,


2016 WL 11529803 (N.D. Cal. Aug. 9, 2016) .....................................................10

Becker v. United States,


451 U.S. 1306 (1981) ...........................................................................................14

Berhardt v. Cnty. of Los Angeles,


279 F.3d 862 (9th Cir. 2002) ................................................................................15

Cryolife, Inc. v. Tenaxis Med., Inc.,


2009 WL 88348 (N.D. Cal. Jan. 13, 2009) ..........................................................10

In re Accent Delight Int’l,


2018 WL 7473109 (S.D.N.Y. June 27, 2018) ......................................................15

In re Cathode Ray Tube (CRT) Antitrust Litig.,


2012 WL 6878989, at *2 (N.D. Cal. Oct. 22, 2012) ............................................13

In re Digitechnic,
2007 WL 1367697 (W.D. Wash. May 8, 2007) ...................................................10

In re Gorsoan Ltd.,
2020 WL 4194822 (S.D.N.Y. July 21, 2020) ......................................................16

In re Microsoft Corp.,
428 F. Supp. 2d 188 (S.D.N.Y. 2006), abrogated on other grounds by
In re del Valle Ruiz, 939 F.3d 520 (2d Cir. 2019) ................................................13

In re OOO Promnefstroy,
2009 WL 3335608 (S.D.N.Y. Oct. 15, 2009), abrogated on other grounds by
In re del Valle Ruiz, 939 F.3d 520 (2d Cir. 2019) .......................................... 11-13

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Intel Corp. v. Advanced Micro Devices, Inc.,


542 U.S. 241 (2004) ..................................................................................... passim

John Doe Agency v. John Doe Corp.,


488 U.S. 1306 (1989) ...........................................................................................14

Khrapunov v. Prosyankin,
931 F.3d 922 (9th Cir. 2019) ................................................................................10

Khrapunov v. Prosyankin,
No. 18-16254 (9th Cir. order entered Aug. 2, 2018) ....................................... 8, 14

Lair v. Bullock,
697 F.3d 1200 (9th Cir. 2012) ............................................................................7, 9

Leiva-Perez v. Holder,
640 F.3d 962 (9th Cir. 2011) .............................................................................. 7-8

Mees v. Buiter,
793 F.3d 291 (2d Cir. 2015) .................................................................................12

Nikon Corp. v. GlobalFoundries U.S. Inc.,


2017 WL 4865549 (N.D. Cal. Oct. 26, 2017) ......................................................15

Siemens AG v. W. Digital Corp.,


2013 WL 5947973 (C.D. Cal. Nov. 4, 2013) .................................................. 9, 10

ZF Auto. US, Inc. v. Luxshare, Ltd.,


142 S. Ct. 2078 (2022) .........................................................................................12

STATUTES AND RULES

28 U.S.C. § 1782 .............................................................................................. passim

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INTRODUCTION

This appeal from an order under 28 U.S.C. § 1782 centers on Angelina

Jolie’s unlawful sale of her ownership interest in Château Miraval, a French

company comprising a home and vineyard in the south of France. Château

Miraval was jointly owned through Appellee Nouvel and Appellant Mondo Bongo,

limited liability companies controlled by Jolie and Appellant Brad Pitt,

respectively. In October 2021, Jolie sold Nouvel to Stoli Group — a competitor of

Château Miraval — in breach of rights she and Nouvel owed Pitt and Mondo

Bongo. Pitt never consented to the sale and is now challenging its validity in

California state court, with further litigation pending in Luxembourg.

Against that backdrop, Nouvel filed an ex parte § 1782 application, seeking

discovery in connection with the Luxembourg proceeding as well as a threatened

suit in France against Château Miraval and its affiliate Miraval Provence. After

the District Court authorized Nouvel’s application, Appellants moved to vacate the

ex parte order and quash Nouvel’s subpoenas. In briefing that motion, the parties

recognized that the dispute is governed by Intel Corp. v. Advanced Micro Devices,

Inc., 542 U.S. 241 (2004), in which the Supreme Court established a four-factor

analysis to guide the exercise of judicial discretion under § 1782. Because the Intel

analysis turns on questions of foreign procedure, including whether the requested


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evidence is available or admissible overseas, the parties submitted dueling expert

affidavits opining on Luxembourgish and French law.

But those issues of foreign procedure were never decided. Instead, the

District Court concluded that it was unnecessary to take up foreign-law disputes so

long as there was “some doubt” whether Appellants would prevail. This was an

abuse of discretion, departing from the guidance of this Court and the Supreme

Court. It also reflects a division of authority within the Circuit, where trial courts

disagree as to whether foreign-law disputes need be resolved under Intel.

Moreover, because the District Court brushed French law to the side, it

failed to address the significant comity concerns raised by Nouvel’s application.

The clash between sovereigns could not be more stark: French courts have already

prohibited Nouvel from receiving many of the documents it seeks and are

presently weighing whether to permit Nouvel access to other documents that fall

within its subpoenas. The Supreme Court’s § 1782 analysis was calibrated to

prevent precisely the outcome ordered below — an American court ordering the

production of documents in service of foreign litigation, even though discovery of

the same documents is pending decision overseas.

The decision below thus presents substantial issues that demand resolution

by this Court. Those issues will never reach this Court, however, absent a stay

pending appeal — because Nouvel is demanding near-immediate compliance with

its subpoenas. Appellants thus face the irreparable harm of compelled disclosure
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that would moot their appeal. To prevent that harm, and to vindicate the

considerations of comity underlying the Supreme Court § 1782 jurisprudence,

Appellants respectfully request that the Court enter a stay pending a decision on

the merits.

BACKGROUND AND PROCEDURAL HISTORY

I. Background

In 2008, Brad Pitt and Angelina Jolie acquired Château Miraval, a French

company comprising a home and vineyard in the south of France. Ex. 11 (Compl.,

William B. Pitt v. Angelina Jolie, No. 22STCV06081 (Cal. Sup. Ct. Feb. 17,

2022)) ¶¶ 13, 14. Pitt and Jolie purchased the company through their acquisition of

Quimicum, a Luxembourg limited liability company that owns Château Miraval

and nothing else. Id. ¶ 13. Pitt — through Mondo Bongo, his California LLC —

paid €15 million to obtain a 60% interest in Quimicum and, thus, Château Miraval.

Id. ¶ 16. Jolie — through Nouvel, her California LLC — paid €10 million to

obtain a 40% interest in Quimicum and, thus, Château Miraval. Id. ¶¶ 16-18.

In 2013, Pitt identified one of France’s most highly regarded winemakers as

a partner to reinvent Château Miraval’s wine business. Id. ¶ 34. The resulting

joint venture, Miraval Provence, quickly became one of the world’s preeminent

makers of rosé. Id. ¶ 35-36. In December 2013 — several months before Pitt and

Jolie were married at the Château Miraval estate — Pitt entered into a transaction

that transferred 10% of Quimicum to Jolie for the sum of €1, never paid, such that
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Mondo Bongo and Nouvel each nominally hold a 50% interest in Quimicum, and

by extension, Château Miraval. Id. ¶ 29. Pitt made this transfer in reliance on

contractual agreements he and Mondo Bongo made with Jolie and Nouvel that no

party could alienate their interest in Château Miraval without the other’s approval.

Id. ¶ 30.

In 2016, Jolie filed for divorce. Id. ¶ 38. Over the next several years, Jolie

engaged in exclusive negotiations with Pitt for him to buy her interest in Château

Miraval — honoring the contractual rights she owed him. Id. ¶¶ 50-55. But in

June 2021, with negotiations nearly complete, Jolie’s representatives abruptly

terminated discussions. Id. ¶ 56. In October 2021, Pitt learned through a press

release that Jolie had sold Nouvel, and thus her stake in Château Miraval, to an

entity controlled by Stoli Group — in subversion of Pitt’s and Mondo Bongo’s

contractual rights. Id. ¶ 59.

Since nominally acquiring Nouvel, Stoli Group has launched a multi-

pronged offensive to take control of Château Miraval. Id. ¶¶ 64-66. Through

Nouvel, Stoli has imposed gridlock in the enterprise’s governance, attempting to

expand the size of Quimicum’s management board and install Stoli representatives.

Id. ¶ 65. Stoli has sought to transfer Miraval-related intellectual property to

Cyprus as part of an unsound and legally questionable tax dodge. Id. ¶ 66. And

Stoli asked Château Miraval’s bank to effectively freeze Château Miraval’s assets

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by sharply limiting its ability to transact — a demand the bank promptly declined.

Id.

Most significant here, however, are Stoli’s repeated attempts to use Nouvel

to access the confidential and proprietary information of Château Miraval and

Miraval Provence, the joint venture that owns Château Miraval’s wine business.

Stoli — owned and operated by a competitor spirits company — has used Nouvel

to improperly contact Miraval Provence’s distributors to discuss contract terms,

without authority and without Miraval Provence’s knowledge or consent. Id. Stoli

has also demanded from Château Miraval a laundry list of commercial information

that would allow Stoli to conduct an indirect audit of the entity.

It is against this backdrop that Stoli-controlled Nouvel launched its

application seeking the same information under 28 U.S.C. § 1782. The subpoenas

Nouvel issued to Appellants pertain, in part, to proceedings Mondo Bongo filed

against Nouvel in Luxembourg, seeking to invalidate the 2013 transfer of 10% of

Quimicum from Mondo Bongo to Nouvel on the ground that the transaction is void

for lack of consideration. Nouvel has never sought discovery from anybody —

including Mondo Bongo — in Luxembourg.

The subpoenas also pertain to an action Nouvel claims it is planning to bring

in France against the directors and officers of Château Miraval and Miraval

Provence. According to Nouvel, its suit will allege that (1) Château Miraval

allowed Miraval Provence “to register as its own Chateau Miraval’s trademarks
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. . . for no compensation,” and (2) “Pitt and his directors appear to have wasted the

Chateau’s assets . . . on renovations that lack a business function.” Ex. 8 (R&R

Response) at 3.

In connection with this contemplated action, Nouvel has filed successive ex

parte discovery applications in the French courts. Its first ex parte application,

filed on December 14, 2021, sought an expansive set of documents from Château

Miraval, including all of Château Miraval’s commercial, accounting, financial,

contractual, governance, and IP-related materials. Ex. 12 (Nouvel’s Proposed

French Discovery Order, Dec. 14, 2021). On December 22, 2021, the French court

denied that application because Nouvel was not permitted access to this

information as an indirect shareholder of Château Miraval. Ex. 13 (French Order

Denying Nouvel’s Discovery App., Dec. 22, 2021). “[O]nly” Quimicum was

permitted access. Id.

Less than one month later, Nouvel filed two more ex parte discovery

applications in France against Château Miraval and Miraval Provence. These

applications sought a narrower set of documents that more directly pertain to

Nouvel’s contemplated trademark claims. Ex. 14 (Nouvel’s French Discovery

App., Feb. 9, 2022). The applications were quickly granted, and the French courts

authorized search orders on Château Miraval and Miraval Provence that were

executed on March 4, 2022. See Ex. 15 (Decl. of Alain Maillot in Support of Mot.)

¶ 16. The documents obtained via this procedure are being held in escrow while
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the French courts weigh Château Miraval’s and Miraval Provence’s challenges to

these orders. Id. Nouvel has yet to file any underlying merits claim in France.

II. Procedural history

On January 7, 2022, Nouvel filed its § 1782 application, Ex. 1, which was

granted on an ex parte basis five days later, Ex. 2. On March 17, 2022, Appellants

moved to quash the subpoenas issued by Nouvel pursuant to its application. Ex. 3.

On June 8, 2022, Judge Eick issued a Report and Recommendation supporting

denial of the motion to quash. Ex. 6. On July 22, 2022, the District Court entered

an order accepting the R&R. Ex. 9. That order also denied Appellants’ request for

a stay pending appeal. Id. at 4.

On July 29, 2022, Appellants filed their notice of appeal from the District

Court’s order. Appellants now bring this motion to stay the decision below

pending resolution of their appeal by this Court.

ARGUMENT

The grant of a stay pending appeal involves the balancing of four

considerations: “(1) whether the stay applicant has made a strong showing that he

is likely to succeed on the merits; (2) whether the applicant will be irreparably

injured absent a stay; (3) whether issuance of the stay will substantially injure the

other parties interested in the proceeding; and (4) where the public interest lies.”

Lair v. Bullock, 697 F.3d 1200, 1203 (9th Cir. 2012). The Court applies a “sliding

scale” in weighing these factors, under which “a stronger showing of one element
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may offset a weaker showing of another.” Leiva-Perez v. Holder, 640 F.3d 962,

964-66 (9th Cir. 2011).

If the Court does not authorize a stay pending this appeal, there will be no

appeal, because Nouvel will rush to compel production before the Court issues its

decision. In like circumstances — to prevent irreparable harm flowing from

mandatory production — this Court has repeatedly authorized temporary stays of

discovery under § 1782. See, e.g., Khrapunov v. Prosyankin, No. 18-16254 (9th

Cir. order entered Aug. 2, 2018); Akebia Therapeutics, Inc. v. Fibrogen, Inc., No.

15-15274 (9th Cir. order entered Mar. 16, 2015); see also All. for the Wild Rockies

v. Cottrell, 632 F.3d 1127, 1131 (9th Cir. 2011) (“Under [the sliding scale]

approach, the elements of the preliminary injunction test are balanced . . . a

stronger showing of irreparable harm to plaintiff might offset a lesser showing of

likelihood of success on the merits.”). The Court should follow that practice here,

to avoid irreparable harm, resolve a division of authority among the district courts

of this Circuit, and prevent the imminent preemption of overseas discovery

proceedings.

I. Appellants are likely to succeed on the merits.

In the decision on appeal, the District Court abused its discretion by

expressly declining to resolve key foreign-law disputes and failing to address

related comity concerns. Appellants thus have a “substantial case on the merits”

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supporting the grant of a stay that would maintain the status quo pending appeal.

Lair, 697 F.3d at 120.

The District Court failed to address foreign-law disputes.

In Intel Corp. v. Advanced Micro Devices, Inc., 542 U.S. 241 (2004), the

Supreme Court identified four factors that courts should consider in making the

discretionary decision to grant or deny § 1782 discovery: (1) whether evidence

“may be outside the foreign tribunal’s jurisdictional reach”; (2) “the nature of the

foreign tribunal, the character of the proceedings underway abroad, and the

receptivity of the foreign government or the court . . . to U.S. federal-court judicial

assistance”; (3) whether the request “conceals an attempt to circumvent foreign

proof-gathering restrictions or other policies of a foreign country”; and (4) whether

the request is “unduly intrusive or burdensome.” Id. at 264-65.

The first three Intel factors present questions of foreign law, as to which the

parties joined issue below through the submission of affidavits from experts in

Luxembourgish and French law. But the District Court did not resolve those

disputes. Instead, Judge Eick concluded that the District Court “should not”

consider such issues, Ex. 6 (R&R) at 7, and the District Court agreed, holding that

it was not “necessary” to make findings as to which party “correctly

characterize[d] [foreign] law and procedure.” Ex. 9 (Order) at 2 (quoting Siemens

AG v. W. Digital Corp., 2013 WL 5947973, at *2 (C.D. Cal. Nov. 4, 2013)). The

court thus discarded without analysis Appellants’ arguments and evidence

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concerning Luxembourgish and French law. That outcome echoed a handful of

prior trial-court decisions within this Circuit, which have similarly declined to

resolve foreign-law disputes in granting applications under § 1782. See Siemens

AG, 2013 WL 5947973, at *2; Cryolife, Inc. v. Tenaxis Med., Inc., 2009 WL

88348, at *3 (N.D. Cal. Jan. 13, 2009).

This Court has never endorsed the approach adopted by the District Court.

To the contrary, in Khrapunov v. Prosyankin, 931 F.3d 922 (9th Cir. 2019), the

Court recently reversed and remanded a § 1782 determination with instructions to

conduct “additional fact-finding” on issues of foreign law. Id. at 925. Other

district courts within this Circuit have likewise interpreted Intel to require a careful

examination of foreign-law issues. In In re Digitechnic, 2007 WL 1367697 (W.D.

Wash. May 8, 2007), for example, the court performed a comprehensive review of

both parties’ evidence on foreign discovery procedure and the record in the

underlying proceedings abroad. Id. at *4-5. And in Baxalta Inc. v. Genentech,

Inc., 2016 WL 11529803 (N.D. Cal. Aug. 9, 2016), the court weighed the parties’

submissions concerning the foreign jurisdiction’s receptivity to § 1782 evidence

and foreign discovery procedure. Id. at *5-7.

The District Court’s departure from these precedents was dispositive below.

First, the District Court discarded Appellants’ evidence demonstrating that

Luxembourg would permit the discovery that Nouvel has sought here. This goes

to the first Intel factor, which considers whether discovery is available in the
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“foreign tribunal’s jurisdiction.” Intel, 542 U.S. at 264. To establish the

availability of Luxembourgish discovery, Appellants submitted expert affidavits

and relevant Luxembourgish caselaw. Ex. 16 (Decl. of Véronique Hoffeld in

Further Support of Mot.); Ex. 17 (TAL-2019-06643, Luxembourg District Court,

Mar. 19, 2021) 27-29. Rather than address this evidence, the District Court

weighed the first Intel factor against Appellants because it had “some doubt that

the requested discovery is or will become available in the foreign courts.” Ex. 9

(Order) at 2 (emphasis added). See also Ex. 6 (R&R) at 9 (weighing the first Intel

factor against Appellants because “[s]ufficient doubt pervades the issue of the

alleged availability of the subject discovery”). But the first Intel factor does not

ask whether there is “some doubt” that a petitioner may obtain foreign discovery.

Instead, it requires the finder of fact to scrutinize the availability of discovery

overseas.

Second, the District Court declined to address disputed issues of French law.

Just months before Nouvel filed its § 1782 application, a French court held that

Nouvel was prohibited from accessing Château Miraval’s confidential and

proprietary business information, because Nouvel is only an indirect shareholder of

Château Miraval. Ex. 13 (French Order Denying Nouvel’s Discovery App., Dec.

22, 2021). Under the third Intel factor, permitting Nouvel access to the very same

material via § 1782 would circumvent French proof-gathering restrictions. Intel,

542 U.S. at 264-65; see also In re OOO Promnefstroy, 2009 WL 3335608, at *9


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(S.D.N.Y. Oct. 15, 2009), abrogated on other grounds by In re del Valle Ruiz, 939

F.3d 520 (2d Cir. 2019). Alerted to this evidence, the District Court acknowledged

that the “third Intel factor concerns foreign ‘rules akin to privileges that prohibit

the acquisition or use of certain materials.’” Ex. 9 (Order) at 3 (quoting Mees v.

Buiter, 793 F.3d 291, 303 n.20 (2d Cir. 2015)). But it failed to address how the

French corporate law restrictions at issue miss the mark.

Nouvel has argued that the authorities urging a close analysis of foreign law

under Intel are “wrong[],” and that it should receive the benefit of the “doubt” on

the parties’ disputes. Ex. 4 (Opp.) at 13-14; Ex. 8 (R&R Response) at 11. This

appeal thus squarely presents the question whether a court abuses its discretion by

expressly disregarding arguments and evidence arising out of disputed issues of

foreign law before ordering invasive discovery under § 1782. Intel itself makes

clear that the answer to this question is yes, by directing finders of fact to analyze

issues of foreign law. Intel, 542 U.S. at 264-65. To correct the line of district

court cases that hold otherwise — and preserve Appellants’ right to appeal on an

issue that has split the district courts in this Circuit — the Court should issue a stay

pending appeal.

The District Court failed to address the international comity


concerns raised by the subpoenas.

The District Court also abused its discretion by failing to address “the

animating purpose of § 1782” — international comity. ZF Auto. US, Inc. v.

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Case: 22-55737, 08/03/2022, ID: 12509143, DktEntry: 2-1, Page 22 of 29

Luxshare, Ltd., 142 S. Ct. 2078, 2088 (2022). If the District Court’s order is not

stayed, the subpoenas it authorizes will intrude on both past and pending French

court proceedings.

As Nouvel has acknowledged, the French courts are currently reviewing

whether it is entitled to receive many of the documents that it has sought in this

proceeding. Ex. 4 (Opp.) at 18. As Nouvel’s own expert has likewise

acknowledged, the French courts have held that it is prohibited from accessing

other documents sought here, due to its status as an indirect shareholder of Château

Miraval. Ex. 18 (Decl. of Stéphane Bonifassi in Support of App.) ¶ 10. These

French court orders demonstrate that a French court would not “welcome the

proposed discovery” targeted in Nouvel’s § 1782 subpoenas. In re Cathode Ray

Tube (CRT) Antitrust Litig., 2012 WL 6878989, at *2 (N.D. Cal. Oct. 22, 2012).

To the contrary, the issuance of subpoenas for those documents in this proceeding

would “frustrate the careful balance struck by the [foreign] courts in the

underlying” litigation. In re OOO Promnefstroy, 2009 WL 3335608, at *9. And

any decision by this Court would plainly “either preempt or contradict” prior and

anticipated rulings by the French courts. In re Microsoft Corp., 428 F. Supp. 2d at

195 (S.D.N.Y. 2006), abrogated on other grounds by In re del Valle Ruiz, 939 F.3d

520 (2d Cir. 2019).

The Section 1782 discovery authorized by the District Court thus runs

directly contrary to the comity concerns that animate the second and third Intel
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factors. See Intel, 542 U.S. at 264 (instructing factfinders to consider the “nature

of the foreign tribunal,” “the character of the proceedings underway abroad,” and

the risk of “circumvent[ion of] foreign proof-gathering restrictions” in deciding

§ 1782 applications). Yet the District Court was silent on the evident conflict

between Nouvel’s subpoenas and its efforts to obtain overlapping discovery in

France. This was an independent abuse of discretion.

II. Appellants will be irreparably harmed absent a stay.

Appellants will suffer two distinct forms of irreparable harm in the absence

of a stay. First, absent a stay, Appellants will be stripped of their right to judicial

review, because the appeal will be rendered moot. As the Ninth Circuit has

recognized in granting emergency motions to stay pending appeal from orders

granting discovery under § 1782, the loss of Appellants’ appeal right constitutes

irreparable harm. See Khrapunov v. Prosyankin, No. 18-16254 (9th Cir. order

entered Aug. 2, 2018) (citing Becker v. United States, 451 U.S. 1306, 1311 (1981)

(“The balance of equities tips heavily in favor of applicants. If a stay is not

granted, . . . the[] appeal may well become moot . . . .”); John Doe Agency v. John

Doe Corp., 488 U.S. 1306, 1309 (1989) (“The fact that disclosure would moot that

part of the Court of Appeals’ decision . . . would also create an irreparable

injury.”)).

Second, Appellants will face irreparable harm from the unnecessary

disclosure of confidential and proprietary information to Stoli Group, the


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aggressive competitor spirits business that now controls Nouvel. Stoli, through

Nouvel, seeks virtually all documents from the past decade that in any way relate

to Château Miraval or Miraval Provence. In particular, Nouvel’s subpoenas ask

for all documents concerning the companies’ intellectual property, finances,

operations, assets, property renovations, and potential sale. Because “the

proverbial bell cannot be unrung,” Appellants will be required to produce all of

this information in the absence of a stay. In re Accent Delight Int’l, 2018 WL

7473109, at *1 (S.D.N.Y. June 27, 2018) (staying production of § 1782 discovery

pending appeal); see also Berhardt v. Cnty. of Los Angeles, 279 F.3d 862, 871 (9th

Cir. 2002) (“Where the activities sought to be enjoined already have occurred, and

the appellate courts cannot undo what has already been done, the action is moot,

and must be dismissed.”).

III. Nouvel will not be injured by a stay.

Nouvel will not be harmed by a temporary stay pending expedited resolution

of this appeal. While a § 1782 applicant may incur injury if it does not receive

discovery “until after expiration of [] deadlines in the foreign proceeding,” that is

not a concern here. Nikon Corp. v. GlobalFoundries U.S. Inc., 2017 WL 4865549,

at *3 (N.D. Cal. Oct. 26, 2017). There are no looming overseas deadlines.

In Luxembourg, litigation is still in its infancy. There is no schedule in

place that would threaten Nouvel’s ability to use the discovery it seeks under

§ 1782. As for France, Nouvel’s contemplated action is still not filed. Thus, there
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is no danger that a stay would jeopardize Nouvel’s use of any discovery obtained

here. See In re Gorsoan Ltd., 2020 WL 4194822, at *7 (S.D.N.Y. July 21, 2020)

(granting stay after finding no merit to § 1782 applicant’s argument that it would

receive discovery “too late for it to be of use” in the foreign proceeding).

IV. The public interest favors a stay.

Finally, the public interest favors granting a stay. Because granting a stay

poses no risk of harm to Nouvel, a stay would act solely to “preserv[e] judicial

resources by avoiding unnecessary proceedings while the appeal in this action is

pending.” Gorsoan, 2020 WL 4194822, at *8. A stay would also serve the “public

interest in comity between the United States and foreign tribunals,” id., because it

would permit this Court to consider Appellants’ arguments that Nouvel is using

§ 1782 to circumvent French proof-gathering restrictions and intrude on a pending

French discovery proceeding directed to many of the same documents.

CONCLUSION

For the reasons stated above, Appellants respectfully request that this Court

stay the District Court’s order pending the resolution of their appeal.

Dated: August 3, 2022 KENDALL BRILL & KELLY LLP

By: s/ Laura W. Brill


Laura W. Brill
Attorneys for Appellants

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CERTIFICATE OF CONFERENCE

Counsel for Nouvel was notified of the filing of this motion on July 29, 2022

and have indicated that Nouvel intends to oppose it.

Dated: August 3, 2022 KENDALL BRILL & KELLY LLP

By: s/ Laura W. Brill


Laura W. Brill
Attorneys for Appellants

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STATEMENT OF RELATED CLASSES

Appellants are not aware of any related cases pending in this Court.

Dated: August 3, 2022 KENDALL BRILL & KELLY LLP

By: s/ Laura W. Brill


Laura W. Brill
Attorneys for Appellants

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Case: 22-55737, 08/03/2022, ID: 12509143, DktEntry: 2-1, Page 28 of 29

CERTIFICATE OF SERVICE

The undersigned certifies that on this 3st day of August, 2022, a copy of

Appellant’s Emergency Motion Under Circuit Rule 27-3 for Stay Pending Appeal

was electronically transmitted to the United States Court of Appeals for the Ninth

Circuit using the Court’s ECF filing system and was served on the following

parties via (i) electronic notice pursuant to the Court’s ECF filing system, or (ii) by

United States first class mail, postage prepaid, to the persons who do not receive

electronic notice pursuant to the Court’s ECF filing system:

Counsel for Petitioner-Appellee:

Keith R. Hummel
CRAVATH, SWAINE & MOORE LLP
Worldwide Plaza
825 Eighth Avenue
New York, NY 10019
Telephone: (212) 474-1000
Facsimile: (212) 474-3700
khummel@cravath.com

James Lee (192301)


Enoch Liang (212324)
Joe Tuffaha (253723)
LTL ATTORNEYS LLC
300 South Grand Avenue, Suite 1400
Los Angeles, CA 90071
Telephone: (212) 474-1000
Facsimile: (212) 474-3700
james.lee@ltlattorneys.com
enoch.liang@ltlattorneys.com
joe.tuffaha@ltlattorneys.com

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Case: 22-55737, 08/03/2022, ID: 12509143, DktEntry: 2-1, Page 29 of 29

Dated: August 3, 2022 KENDALL BRILL & KELLY LLP

By: s/ Laura W. Brill


Laura W. Brill
Attorneys for Appellants

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