Update on the $5,000 in sanctions Psystar is required to pay Apple

Wed, Aug 26, 2009

Legal, News

Once again, Dizzle of WorldOfApple is on the ball with all things Psystar.  Earlier today, Dizzle obtained the transcript from the recent Psystar/Apple hearing where Judge Alsup ordered Psystar to pay Apple $5,000.  Contrary to initial reports, the $5,000 in sanctions wasn’t rooted in Psystar’s motion to compel, but was rather the result of Psystar CEO Rudy Pedrazza straight up lying in his deposition to Apple lawyers, which ultimately resulted in unnecessary legal fees.

Below are excerpted portions of the transcript obtained by Dizzle.  Note that Ms Boroumand Smith represents Apple while wunderkid lawyer Mr. Kiwi Camara speaks on behalf of Psystar.

THE COURT: What is the relief that you are getting
3 that is — warrants attorney’s fees?
4 MS. BOROUMAND SMITH: Well, it’s the fact that had
5 they not lied to us in their 30(b)(6) deposition, Your Honor,
6 and told us that they did — we basically went down this whole
7 path trying to find all of this information. We have spent
8 time meeting and conferring with them, writing briefs, only to
9 find out today what we should have known back in May –
10 THE COURT: Go back over all that. That sounds
11 plausible. Go back through that chronology of how you got
12 misled on this.
14 So back in March, we had a 30(b)(6) deposition of
15 Psystar’s CEO, Rudy Pedraza. At that deposition, we asked him
16 whether he knew what the dsmos kernel extension was, whether
17 Psystar used the dsmos kernal extension –
18 THE COURT REPORTER: Slow down just a little for me.
19 MS. BOROUMAND SMITH: I’m sorry.
20 And similarly, we asked him about the Apple decrypt
21 kernel extension and whether or not Psystar used that kernel
22 extension: The answers to all of those questions were “no.”
23 We then –
24 THE COURT: Stop just a second.

1 THE COURT: That’s totally false, isn’t it?
2 MR. CAMARA: Well –
3 THE COURT: I mean, sounds totally false based on
4 what I’m hearing today that that testimony was just false.
5 MR. CAMARA: Well, here’s what happened. They –
6 the people at Psystar — well, I won’t defend that, Your Honor,
7 I think those answers were false.
8 THE COURT: All right.
9 MR. CAMARA: Coming from a 30(b)(6) deponent.
10 THE COURT: All right.
11 MR. CAMARA: Robert Pedraza at the business was in
12 charge of this, but, certainly, Rudy Pedraza should have had
13 that information at the 30(b)(6) deposition.

We’re going to get into more of Pedrazza’s shenanigans in a later post, but to suffice it to say that Psystar CEO Rudy Pedrazza was caught lying red handed during his deposition, and under rule 30(d)(2) of the Federal Rules of Procedure,

The court may impose an appropriate sanction — including the reasonable expenses and attorney’s fees incurred by any party — on a person who impedes, delays, or frustrates the fair examination of the deponent.

And that’s exactly what the court chose to do, to the tune of 5 large.



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