Shanghai Fosun Pharmaceutical Co., Ltd. v. Hajjar

Background

Shanghai Fosun Pharmaceutical (Group) Co., Ltd. told the court that Respondent Dr. John Hajjar had filed for Chapter 11 bankruptcy on June 9, 2023. That bankruptcy filing automatically stayed this action as to Hajjar, but not as to the other respondents: Sovereign Medical Services, Inc. (SMS) and Sovereign Capital Holdings, LLC (SCH).

Frier & Levitt, LLC, which had represented the respondents, moved to withdraw as counsel of record for all three respondents. On July 17, 2023, the court granted that motion, subject to service and contact-information requirements. The court also ruled that SMS and SCH, as corporations, could not proceed without lawyers and ordered them to retain replacement counsel and file a notice of appearance by August 14, 2023. No notice of appearance was filed.

Court’s Reasoning

The court explained that it has authority to stay proceedings to manage its docket and may stay a civil case when the interests of justice require it. Because the action was already stayed as to Hajjar and SMS and SCH could not participate without counsel, the court found that staying the entire proceeding would allow the corporate respondents time to obtain replacement counsel.

Order

Judge Jennifer L. Rochon directed the Clerk of Court to mark the docket as stayed. The court further ordered SMS and SCH to obtain counsel and have counsel file a notice of appearance within the next 45 days. The order did not decide the underlying claims.