Roche Freedman Loses Bid to Reopen Discovery Against Ex-Partner

Cryptocurrency law firm Roche Freedman LLP won’t be able to reopen discovery in its case against a partner it severed ties with for allegedly abusive behavior, a federal judge decided, overruling the firm’s objection to a magistrate judge’s recommendation that the firm’s motion be denied.

Roche Freedman’s arguments that the magistrate judge should’ve reopened discovery to uncover a potential settlement between defendant Jason Cyrulnik and another former founding partner who Cyrulnik brought counterclaims against are “either moot or without merit,” the US District Court for the Southern District of New York said Tuesday.

Cyrulnik brought counterclaims against Nathan Holcomb, who initially intended to seek dismissal but ended up leaving the firm and supporting Cyrulnik’s motion for summary judgment—Cyrulnik dropped the counterclaims shortly after.

• The firm argued it was entitled to discovery concerning the bias and credibility of Holcomb’s anticipated testimony in the firm’s case against Cyrulnik
• Cyrulnik co-founded in 2020 what was once Roche Cyrulnik Freedman LLP, a boutique firm focusing on high-end cryptocurrency, cannabis, and complex litigation cases
• Cyrulnik allegedly refused accept that he wasn’t a partner at the firm after it severed ties with him, leading the firm to sue him for alleged breach of fiduciary duty and intentional interference with contract
• Judge John G. Koeltl said the magistrate judge was well-positioned to determine that the firm had no good cause to reopen discovery at such a late stage in the case especially since the firm had the opportunity to question Holcombe during his deposition—which occurred after he left Roche Freedman
• To the extent that communications between Cyrulnik and Holcomb would be useful at trial, the firm can subject Holcomb to cross-examination regarding the circumstances of his settlement with Cyrulnik or seek relevant documents through a trial subpoena, Koeltl said

Roche Freedman is represented by Shapiro Arato Bach LLP, Freedman Normand Friedland LLP, and Frankfurt Kurnit Klein & Selz PC. Cyrulnik is represented by Kasowitz, Benson, Torres LLP.

The case is Roche Freedman LLP v. Cyrulnik, S.D.N.Y., No. 1:21-cv-01746, 8/8/23.