Paul Ceglia's claim to own half of Mark Zuckerberg's stake in
Facebook has featured a parade of counsel for the upstate New
York wood pellet salesman who says Zuckerberg granted him half
of the company in a 2003 contract. But now there's a new name,
and from a firm famous for once vanquishing Facebook: David
Grable of Quinn Emanuel Urquhart & Sullivan.
Grable's name does not appear on the docket for Ceglia, nor
has it ever. Instead, he enters the fray by way of a motion to compel discovery that Facebook counsel Gibson, Dunn & Crutcher
filed in federal court in Buffalo. The motion (number five, if
you're counting) asks U.S. Magistrate Judge Leslie Foschio to
compel Ceglia to, among other things, update his declaration to
list newly discovered email accounts (including the colorful
getzuck@gmail.com); to allow Gibson, Dunn to subpoena Google and
other email providers in order to access those accounts; and to
review, in camera, certain documents Facebook believes Ceglia
improperly withheld as privileged. Among those purportedly
privileged documents are six emails sent to Grable at Quinn
Emanuel.
David Grable, according to the Gibson, Dunn motion, "appears
to be a personal relation" of James Grable of Connors & Vilardo,
a Buffalo firm that was one of Ceglia's original counsel in the
Facebook case. (Connors & Vilardo was also one of the first
firms to drop out of the litigation, withdrawing as Ceglia's
counsel last summer.) According to the privilege log Gibson,
Dunn attached to its motion, three of the emails are between the
two Grables. The correspondence, however, is not limited to
the two attorneys. Ceglia also received a copy of the emails
between James and David Grable, and, on Dec. 8, 2010, Ceglia
even sent an email just to David Grable, to which Grable
responded.
We don't yet know, of course, whether Jim Grable was seeking
legal advice from Cousin Dave, asking Quinn Emanuel to join
Ceglia's team, or simply saying hello. (Neither David Grable nor
James Grable responded to a request for comment.) If the judge
refuses to review the allegedly privileged emails, we may never
know what they say; if he agrees that they're protected, we'll
only be able to assume that David Grable was providing some
legal advice, however cursory. Ceglia's attorney, Dean Boland of
Boland Legal, would say only that he is asserting that the
attorney-client privilege applies to the emails; he declined to
say whether David Grable was offering legal advice or whether
Quinn was approached about becoming counsel in the case.
But Quinn Emanuel's history with Facebook makes any link to
the Ceglia case noteworthy. The firm represented Cameron and
Tyler Winklevoss in the suit against Mark Zuckerberg that formed
the basis of the great movie "The Social Network." Quinn won a
$65 million settlement for the Winklevoss twins before the
client relationship went sour and the Winklevosses balked at
paying Quinn's fees. The firm was eventually awarded $13 million
in fees, an amount upheld on appeal. (Fun fact: the pay dispute
led to the now-infamous Tweet by Quinn Emanuel founder John
Quinn: "Winklevoss twins lose again: QE payday cometh.")
So far, the Ceglia litigation has been a long and ugly
discovery battle in which Gibson, Dunn has repeatedly asserted
(as it does in Tuesday's motion) that "Ceglia is perpetrating a
massive litigation fraud." Despite asserting that it has gotten
hold of the original contract between Zuckerberg and Ceglia --
and alleging that the real contract makes no mention of
Facebook, which then existed mostly as an idea in Zuckerberg's
head -- Gibson, Dunn still hasn't filed Facebook's long-expected
motion to dismiss Ceglia's case. Last week Foschio scheduled a
March 28 conference to enter a case management order. Boland
told Reuters Tuesday that he believes Gibson, Dunn does not have
the evidence to file a motion to dismiss and that the case will
proceed to trial.
Orin Snyder of Gibson, Dunn declined comment.
(Reporting by Erin Geiger Smith)
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