Securities and Exchange Commission v. Bronson

Nature of the Filing

The document is a motion by Dr. Stuart Krost and Chelsea Krost, described as non-party witnesses, to strike or modify a revised scheduling order. The underlying lawsuit is identified as a dispute between the Securities and Exchange Commission and Edward Bronson. E-Lionheart Associates, LLC, doing business as Fairhills Capital, is also listed as a defendant, and Fairhills Capital, Inc. is listed as a relief defendant.

What the Krost Witnesses Requested

An earlier scheduling order set a June 3, 2021 hearing at which the Krost witnesses and other non-parties were directed to testify. A revised order canceled that hearing and reset it for July 7, 2021. Under the revised order, Stuart Krost was to testify in person, while Chelsea Krost was permitted to testify remotely by phone or video.

The Krost witnesses asked the court to strike the revised scheduling order and cancel the July hearing as to them. They argued that the court lacked personal jurisdiction—the court's authority over a person—because they lived full-time in Florida and were not located within or near the Southern District of New York. Their motion discussed differing approaches to courts' authority over non-party witnesses and argued that constitutional due-process protections apply to people who are not parties to a case.

Alternatively, the Krost witnesses asked the court to modify the order so that Stuart Krost and his lawyer could participate remotely alongside Chelsea Krost. The stated reasons included health concerns related to air travel and hotels, the circumstances described as involving Chelsea Krost's pregnancy, convenience, scheduling, and cost.

Court Action

The document does not state that the court granted or denied the motion. Instead, on June 28, 2021, Judge Kenneth Karas directed the Securities and Exchange Commission to respond to the motion and a supplemental statement by July 1, 2021.