Polcom USA, LLC v. Affiliated FM Insurance Company

Background

Polcom asked the court, under Local Civil Rule 37.2, to hold a conference about entering a scheduling order and setting a discovery schedule. The request concerned Polcom’s lawsuit against Affiliated FM over Affiliated FM’s alleged refusal to pay a multi-million-dollar claim under a marine shipping insurance policy.

Affiliated FM had filed a motion to dismiss, which is a request to end the case at an early stage based on the pleadings. The motion was pending when Polcom sought to begin discovery, including initial disclosures and document requests.

The Parties’ Positions

Polcom argued that a stay of discovery was unwarranted. It said Affiliated FM’s motion relied only on a one-year limitations provision in the policy and that Second Circuit precedent interpreting similar language supported Polcom’s position that the lawsuit was timely. Polcom also argued that the motion was a delaying tactic.

According to Polcom’s letter, Affiliated FM would not agree to start discovery, including initial disclosures, until 30 days after the court decided the motion to dismiss.

Ruling

After reviewing both letters, Judge Naomi Reice Buchwald stated that the court was not persuaded that there had been a showing of good cause to conduct discovery while the potentially dispositive motion to dismiss was pending. The order therefore did not allow Polcom to proceed with discovery during the pendency of that motion.

The opinion text does not expressly label the request as “granted” or “denied”; it states the court’s conclusion that good cause had not been shown and ends with “so ORDERED.”