XO Global LLC v. Diamond

Background

Counsel for Brooke Diamond, Arielle Mellen, Ross Prussin, and John Wood submitted a letter requesting a pre-motion conference. The defendants anticipated asking the court to stay, or pause, the federal litigation as to Diamond, Mellen, and Prussin.

The letter stated that XO Global’s complaint acknowledged written arbitration agreements with Diamond, Mellen, and Prussin covering claims arising from or relating to their employment. It also stated that XO Global had begun arbitration against those three defendants concerning alleged violations of the Defend Trade Secrets Act, alleged breaches of a proprietary-rights agreement, alleged tortious interference, and alleged breaches of fiduciary duty. According to the letter, the arbitration involved the same claims asserted in the federal complaint.

The letter also referred to the court’s February 3, 2021 order setting expedited discovery in anticipation of XO Global’s motion for a preliminary injunction. That discovery schedule included obligations for Diamond, Mellen, and Prussin through April 14, 2021, when party depositions were to be completed.

Requested Relief

The defendants argued that Section 3 of the Federal Arbitration Act requires a federal court to stay litigation when an issue is covered by a written arbitration agreement. They asked the court to stay this action as to Diamond, Mellen, and Prussin after those defendants completed the discovery required by the February 3 order.

Court’s Action

Judge Lorna G. Schofield ordered XO Global to file a letter responding to the request by February 25, 2021. The provided text does not state that the court held the requested conference, granted or denied a stay, or decided whether the claims must be arbitrated.