Davidson represented Daniels when she received $130,000 from Cohen in October 2016 for, she claims, silence over an alleged sexual tryst with Trump in 2006. Federal agents raided Cohen's home and office April 9 as part of the criminal fraud investigation.
Wood appointed Barbara Jones, a former federal judge, as special master to go over the documents before they are turned over to federal prosecutors. They're sorting what would be covered by attorney-client privilege or contained "highly personal" information, like medical records.
"The fact that so few documents seized from an attorney are even claimed to be privileged is surprising", Mitchell Epner, an attorney at Rottenberg Lipman Rich who was previously an assistant U.S. attorney for the District of New Jersey, told Business Insider.
If they fail to meet the deadline, she will turn over the remaining materials to a government "taint team", she said.
Michael Cohen, the longtime lawyer of President Donald Trump, arrives at the U.S. Courthouse in NY to attend a hearing to limit prosecutors' review of documents seized from his home and office. "We have now individuals sleeping on couches".
The invoice comes a day before the parties are scheduled to be back in court before Wood.
Among the items not yet cleared for release, a prosecutor said in court on Wednesday, were two BlackBerry phones and the contents of one of Mr. Cohen's shredders. She said the material includes data from a video recorder.
Wood set the June 15 deadline for attorneys for Cohen, working with attorneys for Trump and his company, to determine what is privileged and turn it over to the special master.
That means a microscopic number of the documents - less than 0.02% of the total that has been reviewed - are sought to be excluded from the criminal investigation into Cohen.
Avenatti had filed a motion to intervene in the case, as the Trump Organization and lawyers for the president had, and his motion has been held in abeyance, meaning that it's indefinitely suspended.
Anti-Putin journalist's 'murder' turns out to be staged
As a journalist, he criticized his country's annexation of Crimea and the Kremlin's support for separatist Ukrainian rebels. Its not clear whether Russian Federation was involved in the plot to trick Babchenko's enemies.
Trump has repeatedly denied any collusion, and Russian Federation has denied meddling in the US election.
When he entered the courtroom Wednesday, Avenatti approached the bench to find out where he should sit.
"When someone, especially a lawyer, is prepared to be not straightforward, and cute, and I would say misleading" with the court, Hendon said, it raised questions about how he would "conduct himself on the more serious proceedings" going forward. He has said he believes some of the seized materials could relate to Daniels, whose real name is Stephanie Clifford.
"It was a premeditated drive-by shooting of my client's rights", Ryan said.
Cohen's attorney Stephen Ryan slammed Avenatti's television appearances and tweets about about Cohen and Trump, saying the California lawyer, who needs court permission to participate in a New York-based lawsuit, was "seeking the aggrandizement of a single attorney and his client".
"Candidly, he shouldn't be asking us to answer questions; he should be asked to answer questions", Ryan said. "We haven't been contacted by the Treasury Department".
Cohen's attorneys have earlier expressed their desire for Avenatti to not be admitted into the case, which he is seeking to do on Daniels' behalf. However, Avenatti's correspondence with the president's counsel shows otherwise.
Avenatti defended against the bankruptcy issue by bringing up President Trump's own history of bankruptcies, noting, "Trump has had his own fair share of bankruptcies over the years and those haven't disqualified him".
"Not even the same firm in the case", he said. Prosecutors called that an "unreasonable delay". They also said it was likely that they belonged to Cohen's wife, which surprised federal prosecutors from the USA attorney's office, who said that they were not previously made aware of that information.
The primary subject of the hearing Wednesday was a review of files and phone data taken from Michael Cohen, pictured, as part of an investigation of his personal business affairs.