UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

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GM NETWORK LIMITED et ano.,

Plaintiffs,

- against -

E-GOLD LTD., et al.,

Defendants.

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01 Civ. 9621(RMB)(DFE)

MEMORANDUM AND ORDER

DOUGLAS F. EATON, United States Magistrate Judge.

          I am responding to the August 20 joint letter from Mr. Scully and Mr. Schott (13 pages plus 16 exhibits).

          Defendants complain that plaintiffs have given discovery that is incomplete in three categories. Defendants make very strained arguments that some of the discovery is relevant to their counterclaims. For example, at page 5 of the joint letter they say: ". . . E-gold has a right to investigate the source code [of Plaintiffs] to see if Mr. Grigg, or perhaps Mr. Evans, gave trade secrets to the Plaintiffs . . . ." But there is no such claim in the counterclaims. In reality, defendants are asking me to order discover which is merely relevant to the "subject matter" of this lawsuit. For this type of discovery, F. R. Civ. P. Rule 26(b)(1) requires "good cause." I find that defendants have failed to show good cause. I am satisfied that plaintiffs have provided adequate responses with respect to each of the three categories in dispute.

                                                                                Douglas F. Eaton
DOUGLAS F. EATON
United States Magistrate Judge
Roo 1360, U. S. Courthouse
500 Pearl Street
New York, NY 10007
Dated:          

New York, New York
August 22, 2002