BakeMark USA LLC v. Negron
- Analisa Torres
- 1:23-cv-02360
- U.S. District Court · Southern District of New York
- 2
In BakeMark USA LLC v. Negron, Judge Moses scheduled a conference to address arbitration, mediation, bankruptcy, and discovery issues.
BakeMark USA LLC, Brian Negron, Jose Negron, Bakers Depot, LLC, and JB Freight LLC; the order also concerns the related bankruptcy proceeding and discovery dispute.
What happened
BakeMark USA LLC v. Negron concerns BakeMark’s plan to pursue damages claims against Brian Negron and Jose Negron in arbitration. BakeMark was also considering whether to ask the court to require Bakers Depot, LLC and JB Freight LLC to arbitrate.
The defendants said Bakers Depot and JB Freight had not signed arbitration agreements and might oppose such a request. They proposed mediation, but BakeMark said mediation would likely be ineffective until a discovery dispute in the bankruptcy court was resolved.
Judge Barbara Moses scheduled a September 5, 2024 conference to discuss the bankruptcy case, the discovery dispute, possible mediation, and the next steps in this court. The order did not decide whether any party must arbitrate or mediate.
The detailed version
- BakeMark USA LLC v. Negron · No. 1:23-cv-02360
- Analisa Torres
- Aug. 27, 2024
Background
The court reviewed the parties’ joint status letter dated August 22, 2024. BakeMark USA LLC said it intended to pursue its damages claims against individual defendants Brian Negron and Jose Negron in arbitration. BakeMark also said it was exploring the legal grounds for asking the court to require corporate defendants Bakers Depot, LLC and JB Freight LLC to arbitrate.
The order states that Bakers Depot was the subject of a Chapter 11 bankruptcy proceeding in the United States Bankruptcy Court for the District of New Jersey and was protected by the bankruptcy stay. The defendants said Bakers Depot and JB Freight had not signed arbitration agreements and indicated that they would oppose any motion seeking to require those companies to arbitrate.
The defendants proposed mediation. BakeMark responded that mediation would likely be ineffective until it received a more complete response to discovery requests it had made in the bankruptcy court. BakeMark did not provide a timeline for seeking arbitration or an estimate for when the discovery dispute would be resolved.
Court’s Action
The court scheduled a conference for September 5, 2024, at 10:00 a.m. Judge Barbara Moses directed the parties to be prepared to discuss the status of the bankruptcy proceeding, including the expected timing of resolution of the discovery dispute, approval of a reorganization plan, and lifting of the bankruptcy stay.
The parties were also directed to discuss the next steps in this case if it was not referred to mediation. The order highlighted that a party may lose its contractual right to arbitration if it engages in extended litigation that prejudices the opposing party, including by using litigation tools and delaying a motion to compel arbitration.
What the Order Did Not Decide
This order did not grant or deny a motion to compel arbitration, decide whether Bakers Depot or JB Freight must arbitrate, refer the case to mediation, or resolve the discovery dispute. It set a conference to address those unresolved issues.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.