Jackpocket, Inc. v. Lottomatrix NY LLC

Background

The defendants requested limited expedited discovery before the scheduled hearing on Jackpocket’s motion for a preliminary injunction. The court considered the entire record and the surrounding circumstances. The opinion states that the defendants had changed counsel, but it explains that the change of counsel alone did not establish good cause.

Ruling on Expedited Discovery

The court granted the motion for limited expedited discovery. It found that the defendants had established good cause and that the request was reasonable. The court also found that the defendants had not acted with undue delay: they substituted counsel within several weeks of the conference at which the hearing date was set, promptly informed Jackpocket of their intent to seek expedited discovery, and brought the issue to the court after the parties could not agree.

The court rejected Jackpocket’s asserted prejudice as a reason to deny discovery. That prejudice included plans for Mr. Sullivan to travel abroad based on the expectation that there would be no discovery, as well as the need to produce documents and prepare for depositions. The court said the parties could address those concerns through discussions between their lawyers and by having witnesses testify remotely. Because the court would permit Jackpocket to take expedited discovery from the defendants as well, it ordered the parties to discuss the matter and submit a proposed discovery schedule by September 14, 2022. The schedule was to include deposition dates for the people who submitted declarations, with prehearing briefs due by the night of October 9, 2022.

Evidentiary Hearing and Further Motions

The court converted the oral argument scheduled for October 11, 2022, into an evidentiary hearing. It stated that if Jackpocket had difficulty having its witnesses available on that date, Jackpocket’s proper course was to request an adjournment.

The order preserved each party’s right to move for a protective order concerning a discovery request that was burdensome or otherwise improper, or to move to compel discovery. The order stated that those rights were preserved without prejudice. The clerk was directed to close the motions at Docket Nos. 76 and 77.

Disposition

Judge Lewis J. Liman granted the motion for limited expedited discovery, ordered mutual expedited-discovery planning, converted the scheduled oral argument into an evidentiary hearing, and directed the clerk to close the two identified motions.