Experience Hendrix, L.L.C. v. Noel Redding Estate Ltd

Background

The parties disputed certain requests for production—requests for documents—seeking information about the defendants’ insurance policies and litigation-funding agreements. The requests arose during discovery about whether the court had jurisdiction over the dispute. The court had directed the plaintiffs to explain how those requests related to the jurisdiction question.

Jurisdictional Discovery

The court stated that the party seeking discovery about jurisdiction must show that the discovery is necessary. After reviewing the parties’ letters and the requests, the court found that the plaintiffs had not shown that information about insurance policies or litigation funding was relevant to the jurisdiction question. The court noted that the defendants had already proposed producing documents concerning their contacts with New York that were even arguably relevant to jurisdiction.

The plaintiffs raised arguments concerning alter-ego liability, which can involve treating one entity as legally responsible for another. But the court found that the plaintiffs had not shown how the details of the defendants’ litigation funding or insurance would bear on whether the defendants were alter egos of the predecessor estates. Because the plaintiffs had not presented a viable basis for the requested discovery, the court denied the request.

Motion to Dismiss and Further Proceedings

Because the result of jurisdictional discovery could affect the pending motion to dismiss, the court denied the defendants’ motion to dismiss without prejudice. The order stated that, after discovery ends, the defendants may refile a revised motion that repeats their earlier arguments and includes information obtained through jurisdictional discovery. The clerk was directed to terminate the motion listed at Docket 18. The parties were ordered to file a joint letter by July 25, 2022, updating the court on discovery and proposing deadlines for completing jurisdictional discovery and any supplemental briefing.

Disposition

Judge Ronnie Abrams denied the plaintiffs’ request for discovery concerning insurance policies and litigation funding. The court also denied the defendants’ motion to dismiss without prejudice, leaving the defendants able to refile a revised motion after jurisdictional discovery.