Blum v. Merrill Lynch Pierce Fenner & Smith Inc.

Scott A. Blum appeals a district court order granting KPMG LLP’s motion to intervene, and modifying a protective order so that a deposition transcript would be held in escrow rather than destroyed. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm.

I. Factual and Procedural Background

In 2003, in a case that was removed to the Central District of California, Blum sued Merrill Lynch Pierce Fenner & Smith Inc. (“Merrill Lynch”) and Thomas Mazzucco for their advice in connection with an initial public offering of Buy.com (the “federal action”). Blum alleged that but for Merrill Lynch’s advice, he would have sold his Buy.com shares for $500 million in 1999. Blum provided deposition testimony in this matter. In 2004, a blanket protective order was issued, and in 2005, the parties entered into a settlement agreement. The protective order contained an obligation for the parties to de stroy all confidential documents, including Blum’s deposition transcript. According to Blum, the settlement agreement explicitly required continued adherence to the protective order as a condition of settlement.

In 2009, Blum sued KPMG in Los Ange-les Superior Court (the “state…