IN THE UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS AUSTIN DIVISION FUNDSXPRESS FINANCIAL NETWORK, INC., Plaintiff, v. DIGITAL INSIGHT CORPORATION, JOHN DORMAN, VINCENT BRENNAN, RONALD GOFFMAN, ERIC EDWARDS and STEPHEN CRATN, Defendants. PLAINTIFF'S RESPONSE TO DEFENDANT'S MOTION TO QUASH NOTICE OF DEPOSITIONS BY WRITTEN QUESTIONS TO THE HONORABLE SAM SPARKS: Plaintiff FundsXpress Financial Network, Inc. files this Response to Defendant Digital Insight Corporation's Motion to Quash Notice of Deposition by Written Questions and for Protective Order, and would respectfully show: 1. FundsXpress has served depositions upon written questions to fifteen financial institutions. Digital Insight seeks to quash those depositions. 2. The depositions were served on December 12 and 13, 2002. The deposition dates listed in those subpoenas are January 15, January 17 or January 21, 2003, for each of the fifteen deponents. 3. Digital Insight identifies two reasons to support its Motion to Quash: (1) the number of depositions on written questions exceeds the limit of ten imposed by Rule 31, Fed. R. Civ. P.; and (2) because the depositions on written questions have been served on the financial institutions, that service has impaired Digital Insight's ability to ask cross-questions of the deponents. Digital Insight's Motion to Quash should be denied. The Parties Agreed That They Would Exceed the 10 Deposition Limit. 4. In paragraph 6 of the Discovery Control Plan which was agreed to by both parties, and filed May 14, 2002, the Plan states as follows: The parties anticipate that there may be between 150 and 200 witnesses with information relevant to this matter. Therefore the deposition limit of 10 per side will be exceeded and the parties will work together to place reasonable limitations on oral and written depositions. See Exhibit 1, attached. 5. At the time the Discovery Control Plan was submitted, the parties agreed that the deposition limit would exceed ten and also acknowledged by implication that the limit would exceed ten by more than just five additional depositions. This is particularly true with regard to depositions on written questions, which are a much more cost-effective procedure than oral depositions. Because the parties have agreed to the Discovery Control Plan and Digital Insight has not sought a revision or amendment to the Plan, Digital Insight's Motion to Quash should be denied. Digital Insight Has Had Ample Opportunity to Ask Cross-Questions. 6. Digital Insight next complains that by the serving the subpoenas on the financial institutions that Digital Insight somehow has been prejudiced by not being allowed to ask cross-questions of the deponents. As stated above, the deposition notices and subpoenas indicate that the depositions will take place on one of the following three dates: January 15, 17 or 21, 2003. 7. Rule 31 allows a party to ask cross-questions within fourteen days following service of the Notice and written questions. Based on the deposition dates of the deponents, Digital Insight has had ample opportunity to ask those questions and as of the filing of this response, Digital Insight has not propounded cross-questions to these deponents. Based on the timing of service of the depositions on written questions, Digital Insight's Motion to Quash should be denied. WHEREFORE, PREMISES CONSIDERED, Plaintiff FundsXpress asks the Court to deny Digital Insight's Motion to Quash. FundsXpress also asks the Court to grant it all further relief the Court finds appropriate. Respectfully submitted, R. James George, Jr. State Bar No. 07810000 David H. Donaldson, Jr. State Bar No. 05969700 Peter D. Kennedy State Bar No. 11296650 Nanneska N. Hazel State Bar No. 12813500 114 W. 7th Street, Suite 1100 Austin, Texas 78701 (512) 495-1400 (512) 499-0094 (Fax) ATTORNEYS FOR PLAINTIFF FUNDSXPRESS FINANCIAL NETWORK, INC. GEORGE & DONALDSON, L.L.P. 114 West 7th Street, Suite 1100 Austin, Texas 78701 (512) 495-1400 FAX: (512) 499-0094 WINSTEAD SECHREST & MINICK, P.C. 100 Congress Ave., Suite 800 Austin, Texas 78701 (512) 474-4330 FAX: (512) 370-2850 CERTIFICATE OF SERVICE I hereby certify that on January 3 , 2003, a true and correct copy of the foregoing was served on counsel of record as shown below: A. Boone Almanza Barry K. Bishop Bo Blackburn Clark, Thomas & Winters, P.C. Akin & Almanza, L.L.P. 300 West 6th Street, 15th Floor 1717 West 6th Street, Ste. 230 Austin, Texas 78701 Austin, Texas 78701 (via Fax 474-1129) (via Fax 478-7151) Aaron C. Gundzik Martha Dickie John Cotton Jeffrey D. Miller Cotton & Gundzik, L.L.P. Minton, Burton, Foster & Collins 725 S. Figueroa St., 34th Floor A Professional Corporation Los Angeles, CA 90017 1100 Guadalupe Street (via Fax (213) 623-6699) Austin, Texas 78701 (via Fax 476-1315) Nanneska N. Hazel Peter D. Kennedy