HomeMy WebLinkAbout2026-04-27 Subpoena Notice of Intent - Constr Loan Services II, LLC [dckt 1000_0]Case 24-11647-MFW Doc 1000 Filed 04/27/26 Page 1 of 10
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re:
SilverRock Development Company, LLC,
et al.,
Debtors.
Chapter 11
Case No. 24-11647-MFW
CONSTRUCTION LOAN SERVICES II, LLC'S
NOTICE OF INTENT TO SERVE SUBPOENA TO
CITY OF LA QUINTA CALIFORNIA
Pursuant to Fed. R. Civ. P. 30 and 45, made applicable by Fed. R. Bankr. P. 7030 and 9016,
Michael L. Schuster, Esq., on behalf of Construction Loan Services II, LLC, will be serving the
attached subpoena for documents and a deposition on The City of La Quinta, California today
on April 27, 2026, or shortly thereafter. The production will take place on May 11, 2026.
The deposition will be conducted via Zoom at an agreed upon date and time to be
determined. Please contact undersigned counsel prior to the scheduled start of the deposition to
obtain the dial -in information.
Dated: April 27, 2026 Respectfully submitted,
POLSINELLI PC
Stephen A. Smith, Esq. (DE Bar No. 7456)
222 Delaware Avenue, Suite 1101
Wilmington, DE 19801
Telephone: (302) 252-0920
Facsimile: (302) 252-0291
Email: sasmith@polsinelli.com
-and-
Is! Michael L. Schuster
Michael L. Schuster (pro hac vice ECF 925)
1401 Lawrence Street, Suite 2300
1
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Case 24-11647-MFW Doc 1000 Filed 04/27/26 Page 2 of 10
Denver, CO 80202
Telephone: (720) 931-1188
Fascimile: (302) 252-0921
Email: mschuster@polsinelli.com
2
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Case 24-11647-MFW Doc 1000 Filed 04/27/26 Page 3 of 10
B2560 (Form 2560 — Subpoena to Testify at a Deposition in a Bankruptcy Case or Adversary Proceeding) (12/15)
UNITED STATES BANKRUPTCY COURT
In the United States Bankruptcy Court for the District of Delaware
In re SilverRock Development Company, LLC, et al.,
Debtor
(Complete if issued in an adversary proceeding)
Plaintiff
v.
Defendant
Case No. 24-11647 (MFW)
Chapter 11
Adv. Proc. No.
SUBPOENA TO TESTIFY AT A DEPOSITION
IN A BANKRUPTCY CASE (OR ADVERSARY PROCEEDING)
To: The City of La Quinta, California
(Name of person to whom the subpoena is directed)
x❑ Testimony: YOU ARE COMMANDED to appear at the time, date, and place set forth below to testify at a deposition to
be taken in this bankruptcy case (or adversary proceeding). If you are an organization, you must designate one or more
officers, directors, or managing agents, or designate other persons who consent to testify on your behalf about the following
matters, or those set forth in an attachment:
Remote via Zoom
05/11/2026
The deposition will be recorded by this method:
stenographic and audiovisual means
X❑ Production: You, or your representatives, must also bring with you to the deposition the following documents,
electronically stored information, or objects, and must permit inspection, copying, testing, or sampling of the material:
See attachment A
The following provisions of Fed. R. Civ. P. 45, made applicable in bankruptcy cases by Fed. R. Bankr. P. 9016, are
attached — Rule 45(c), relating to the place of compliance; Rule 45(d), relating to your protection as a person subject to a
subpoena; and Rule 45(e) and 45(g), relating to your duty to respond to this subpoena and the potential consequences of not
doing so.
Date: 04/27/2026
CLERK OF COURT
OR
/s/Michael L. Schuster
Signature of Clerk or Deputy Clerk Attorney 's signature
The name, address, email address, and telephone number of the attorney representing Construction Loan
Services II, LLC, d/b/a Builder's Capital, who issues or requests this subpoena, are:
Michael L. Schuster, 1401 Lawrence Street, Suite 2300, Denver, CO 80202, (720) 931-1188
Notice to the person who issues or requests this subpoena
If this subpoena commands the production of documents, electronically stored information, or tangible things, or the
inspection of premises before trial, a notice and a copy of this subpoena must be served on each party before it is served on
the person to whom it is directed. Fed. R. Civ. P. 45(a)(4).
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B2560 (Form 2560 — Subpoena to Testify at a Deposition in a Bankruptcy Case or Adversary Proceeding) (Page 2)
PROOF OF SERVICE
(This section should not be filed with the court unless required by Fed. R. Civ. P. 45.)
I received this subpoena for (name of individual and title, if any):
on (date)
n I served the subpoena by delivering a copy to the named person as follows:
on (date) ; or
❑ I returned the subpoena unexecuted because:
Unless the subpoena was issued on behalf of the United States, or one of its officers or agents, I have also tendered to the
witness the fees for one day's attendance, and the mileage allowed by law, in the amount of $
My fees are $
Date:
for travel and $ for services, for a total of $
I declare under penalty of perjury that this information is true and correct.
Server's signature
Printed name and title
Server's address
Additional information concerning attempted service, etc.:
Case 24-11647-MFW Doc 1000 Filed 04/27/26 Page 5 of 10
B2560 (Form 2560 — Subpoena to Testify at a Deposition in a Bankruptcy Case or Adversary Proceeding) (Page 3)
Federal Rule of Civil Procedure 45(c), (d), (e), and (g) (Effective 12/1/13)
(made applicable in bankruptcy cases by Rule 9016, Federal Rules of Bankruptcy Procedure)
(c) Place of compliance.
(1) For a Trial, Hearing, or Deposition. A subpoena may command a
person to attend a trial, hearing, or deposition only as follows:
(A) within 100 miles of where the person resides, is employed, or
regularly transacts business in person; or
(B) within the state where the person resides, is employed, or regularly
transacts business in person, if the person
(i) is a party or a party's officer; or
(ii) is commanded to attend a trial and would not incur substantial
expense.
(2) For Other Discovery. A subpoena may command:
(A) production of documents, or electronically stored information, or
things at a place within 100 miles of where the person resides, is employed,
or regularly transacts business in person; and
(B) inspection of premises, at the premises to be inspected.
(d) Protecting a Person Subject to a Subpoena; Enforcement.
(1) Avoiding Undue Burden or Expense; Sanctions. A party or
attomey responsible for issuing and serving a subpoena must take
reasonable steps to avoid imposing undue burden or expense on a person
subject to the subpoena. The court for the district where compliance is
required must enforce this duty and impose an appropriate sanction —
which may include lost eamings and reasonable attorney's fees — on a
party or attorney who fails to comply.
(2) Command to Produce Materials or Permit Inspection.
(A) Appearance Not Required. A person commanded to produce
documents, electronically stored information, or tangible things, or to
permit the inspection of premises, need not appear in person at the place of
production or inspection unless also commanded to appear for a deposition,
hearing, or trial.
(B) Objections. A person commanded to produce documents or tangible
things or to permit inspection may serve on the party or attorney designated
in the subpoena a written objection to inspecting, copying, testing or
sampling any or all of the materials or to inspecting the premises — or to
producing electronically stored information in the form or forms requested.
The objection must be served before the earlier of the time specified for
compliance or 14 days after the subpoena is served. If an objection is made,
the following rules apply:
(i) At any time, on notice to the commanded person, the serving party
may move the court for the district where compliance is required for an
order compelling production or inspection.
(ii) These acts may be required only as directed in the order, and the
order must protect a person who is neither a party nor a party's officer from
significant expense resulting from compliance.
(3) Quashing or Modifying a Subpoena.
(A) When Required. On timely motion, the court for the district where
compliance is required must quash or modify a subpoena that:
(i) fails to allow a reasonable time to comply;
(ii) requires a person to comply beyond the geographical limits
specified in Rule 45(c);
(iii) requires disclosure of privileged or other protected matter, if no
exception or waiver applies; or
(iv) subjects a person to undue burden.
(B) When Permitted. To protect a person subject to or affected by a
subpoena, the court for the district where compliance is required may, on
motion, quash or modify the subpoena if it requires:
(i) disclosing a trade secret or other confidential research,
development, or commercial information; or
(ii) disclosing an unretained expert's opinion or information that does
not describe specific occurrences in dispute and results from the expert's
study that was not requested by a party.
(C) Specifying Conditions as an Alternative. In the circumstances
described in Rule 45(d)(3)(B), the court may, instead of quashing or
modifying a subpoena, order appearance or production under specified
conditions if the serving party:
(i) shows a substantial need for the testimony or material that cannot
be otherwise met without undue hardship; and
(ii) ensures that the subpoenaed person will be reasonably
compensated.
(e) Duties in Responding to a Subpoena.
(1) Producing Documents or Electronically Stored Information. These
procedures apply to producing documents or electronically stored
information:
(A) Documents. A person responding to a subpoena to produce
documents must produce them as they are kept in the ordinary course of
business or must organize and label them to correspond to the categories in
the demand.
(B) Form for Producing Electronically Stored Information Not
Specified. If a subpoena does not specify a form for producing
electronically stored information, the person responding must produce it in
a form or forms in which it is ordinarily maintained or in a reasonably
usable form or forms.
(C) Electronically Stored Information Produced in Only One Form. The
person responding need not produce the same electronically stored
information in more than one form.
(D) Inaccessible Electronically Stored Information. The person
responding need not provide discovery of electronically stored information
from sources that the person identifies as not reasonably accessible because
of undue burden or cost. On motion to compel discovery or for a protective
order, the person responding must show that the information is not
reasonably accessible because of undue burden or cost. If that showing is
made, the court may nonetheless order discovery from such sources if the
requesting party shows good cause, considering the limitations of Rule
26(b)(2)(C). The court may specify conditions for the discovery.
(2) Claiming Privilege or Protection.
(A) Information Withheld. A person withholding subpoenaed
information under a claim that it is privileged or subject to protection as
trial -preparation material must:
(i) expressly make the claim; and
(ii) describe the nature of the withheld documents, communications,
or tangible things in a manner that, without revealing information itself
privileged or protected, will enable the parties to assess the claim.
(B) Information Produced. If information produced in response to a
subpoena is subject to a claim of privilege or of protection as trial -
preparation material, the person making the claim may notify any party that
received the information of the claim and the basis for it. After being
notified, a party must promptly return, sequester, or destroy the specified
information and any copies it has; must not use or disclose the information
until the claim is resolved; must take reasonable steps to retrieve the
information if the party disclosed it before being notified; and may
promptly present the information under seal to the court for the district
where compliance is required for a determination of the claim. The person
who produced the information must preserve the information until the claim
is resolved.
(g) Contempt. The court for the district where compliance is required — and
also, after a motion is transferred, the issuing court — may hold in contempt
a person who, having been served, fails without adequate excuse to obey
the subpoena or an order related to it.
For access to subpoena materials, see Fed. R. Civ. P. 45(a) Committee Note (2013)
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ATTACHMENT A
DEFINITIONS
1. "Amended Allocation Motion" means the Debtors' Amended Motion for Entry of
an Order (I) Determining the Value of the Secured Claims of Certain Creditors Pursuant to 11
U.S.C. § 506(a) and Bankruptcy Rule 3012; (II) Establishing the Amount to be Paid on Account
of SR Land's TIC Interest; and (III) Granting Related Relief [Docket No. 913].
2. "Amended Development Plan" means the Reinstated and Amended Development
Agreement By and Between the City of La Quinta and TBE RE Acquisition Co II, LLC, an affiliate
of Turnbridge Equities, filed with the City on October 7, 2025.
3. You," "Your, "City" or "City of La Quinta" shall mean the City of La Quinta,
California, including its elected officials, employees, advisors, consultants, and agents.
4. "Buyer" means TBE RE Acquisition Co II, LLC, together with all of its attorneys,
advisors, agents, representatives, employees, directors, officers, assigns, or any other persons
acting or purporting to act on its behalf.
5. "Debtors" means SilverRock Development Company, LLC and all affiliated
debtors and their respective officers, directors, employees, agents, advisors, consultants,
representatives, attorneys, and anyone acting on their behalf.
6. "Purchased Assets" means the assets sold to TBE RE Acquisition Co II, LLC (or
its assignees) pursuant to the Sale Order [Docket No. 759].
7. "Sale Motion" means the Debtors' Motion for Entry of an Order (I) Approving the
Sale of the Purchased Assets to the Successful Bidder Free and Clear of all Claims, Liens,
Interests, and Encumbrances; (II) Approving the Consensual Termination or Rejection of Ground
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Leases, Effective As of the Closing Date; (III) Approving Form of Grant Deed; and (IV) Granting
Related Relief filed at Docket No. 621.
8. "Sale Hearing" means the hearing held on October 14, 2025 concerning approval
of the Sale and/or entry of the Sale Order.
9. "Sale Order" means the Order (I) Approving the Sale of Assets to the Successful
Bidder Free and Clear of All Claims, Liens, Interests, and Encumbrances; (II) Approving the
Consensual Termination or Rejection of Ground Leases, Effective as of the Closing Date; (III)
Approving Form of Grant Deed; and (IV) Granting Related Relief entered on October 23, 2025 at
Docket No. 759, together with all exhibits, schedules, and attachments thereto.
10. "Sale" means the closing of the sale of the Purchased Assets on December 9, 2025.
11. "Gazzano Declaration" means the Declaration of Michael Gazzano in Support of
the Debtors' Sale Motion, filed at Docket No. 721.
12. "Debtors' prior development plans" means any construction, development,
implementation, entitlement, land use, phasing, budgeting, scheduling, design, or redevelopment
plans for the Purchased Assets prepared, considered, proposed, approved, revised, or maintained
by or for the Debtors before the Sale.
13. "Creditor" or "Creditors" means any creditor of the Debtors
14. "Cushman Report" means the Appraisal Report of SilverRock Resort prepared by
Cushman & Wakefield for the City of La Quinta, dated October 7, 2025.
15. "Net Allocable Sale Proceeds" means the $52,356,920.79 of the net proceeds of the
Sale.
16. "Person" means any natural person, corporation, partnership, limited liability
company, association, governmental body, or other legal or business entity
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17. "And" as well as "or" shall be construed either disjunctively or conjunctively as
necessary to bring within the scope of these Requests any information that might otherwise be
construed as outside their scope.
18. "Communication" means, without limitation, any conversation, discussion, letter,
memorandum, meeting, note, or other transfer of information, whether written or oral, including,
without limitation, written communications such as electronic communications, emails, text
messages, instant messages, correspondence, or the exchange of written or recorded information.
19. "Document" shall have the broadest meaning permitted under the Federal Rules of
Civil Procedure, made applicable by the Federal Rules of Bankruptcy Procedure, and common law
interpreting such rules, including, without limitation, all originals, drafts, non -identical copies, and
copies with marginal notations or interlineations of any writing, email, text message, message sent
via social media or mobile messenger application, sworn statement, deposition transcript,
declaration, affidavit, recording, computer data, notes, or any other item containing information of
any kind or nature however produced or reproduced, whatever its origin or location, and regardless
of the form maintained. The term "Document" further means any document now or at any time in
Your possession, custody, or control. Without limiting the term "control" as used in the preceding
sentence, a person is deemed to be in control of a document if the person has the right to secure
the document or a copy thereof from any person having actual possession thereof.
20. "Electronically Stored Information" or `BSI" means electronically stored
information of any kind, including emails, text messages, instant messages, chats, social media
messages, word-processing files, spreadsheets, presentations, databases, calendars, cloud -stored
files, and metadata.
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21. "Relating to," "related to," "concerning," "regarding," "referring to," "refer to,"
"evidencing," and "memorializing" mean directly or indirectly mentioning, describing, discussing,
analyzing, constituting, containing, summarizing, reflecting, identifying, supporting,
contradicting, or pertaining in any way to the subject matter referenced.
INSTRUCTIONS
1. Produce all responsive, non -privileged Documents and Communications in Your
possession, custody, or control by the Production Deadline at the address or electronic portal
designated by the Issuing Party. Rolling productions are permitted but must be completed by the
Production Deadline.
2. Identify the custodian for each produced Document.
3. If withholding information based on privilege, produce a privilege log identifying
the nature of the document, date, author, recipients, subject matter sufficient to assess the claim,
and the privilege asserted.
4. If any responsive material was but is no longer in Your possession, state when it
was last possessed, why it is no longer possessed, and identify its current custodian if known.
5. Produce documents as kept in the ordinary course, including attachments, with
family relationships preserved, and with Bates numbering.
6. Unless otherwise agreed, all Documents and Communications shall be Bates
labeled and shall be produced electronically in single page Group IV TIF format (except that
Microsoft Excel, PowerPoint, and data files shall be produced in native format with a "nativelink"
file), with OCR at the document level, with LFP, OPT, and DAT load files containing, for each
document, extracted searchable text and all available metadata for at least the following fields:
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BEGDOC, ENDDOC, BEGATTACH, ENDATTACH, PageCt, Author, From, To, Cc, Bcc,
Custodian, Date Sent, Subject, FileName, DateLastMod, and MD5Hash.
7. These Requests are continuing; supplement as required by applicable rules.
8. For each Request, the relevant time period is August 5, 2024 through the date of
your production, unless otherwise specified.
REQUESTS FOR PRODUCTION
1. All Documents and Communications that evidence, memorialize, relate, or refer to
Your interest in how the Net Allocable Sale Proceeds are distributed to the Creditors including
analyses, due diligence materials, internal memoranda, presentations, approvals, and
correspondence concerning the reasons for your interest.
2. All Documents and Communications between You and the Debtors, the Buyer, or
any other person or entity that evidence, memorialize, relate, or refer to any agreements or
proposals in how the Net Allocable Sale Proceeds are distributed to the Creditors including
analyses, due diligence materials, internal memoranda, presentations, approvals, and
correspondence concerning the reasons for your agreements or proposals.
3. All Documents and Communications that evidence, memorialize, relate, or refer to
any comment, valuation, opinion, appraisal, allocation of value, market study, component, or
parcel -level analysis of the Purchased Assets or the Debtors' real property, including all supporting
materials.
4. All Documents and Communications between You and the Debtors, the Buyer, or
any other person or entity that evidence, memorialize, relate, or refer to any comment, review or
opinion of the Amended Development Plan, including analyses, due diligence materials, internal
memoranda, presentations, approvals, and correspondence concerning Your review.
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