ProActive Capital Partners, LP v. Sysorex, Inc.
- Naomi Buchwald
- 1:22-cv-04654
- U.S. District Court · Southern District of New York
- 2
In ProActive Capital Partners v. Sysorex, Judge Buchwald granted counsel’s withdrawal and sealing motions, stayed discovery, and gave Sysorex 30 days to hire counsel.
Sysorex, Inc. must retain new counsel within 30 days or face entry of a default judgment; A.Y. Strauss LLC may withdraw as counsel, and the parties’ discovery deadlines are stayed.
What happened
In ProActive Capital Partners, LP v. Sysorex, Inc., A.Y. Strauss LLC asked to withdraw as Sysorex’s counsel and to seal its supporting memorandum and declaration.
The court granted both motions. Sysorex, a corporation, was given 30 days to retain new counsel; the court warned that failing to do so would result in a default judgment against Sysorex. The court also stayed the parties’ discovery deadlines until further direction.
Judge Naomi Reice Buchwald ordered A.Y. Strauss LLC to serve Sysorex with the order. The ruling addressed counsel, sealing, and discovery rather than the underlying dispute.
The detailed version
- ProActive Capital Partners, LP v. Sysorex, Inc. · No. 1:22-cv-04654
- Naomi Buchwald
- Aug. 23, 2023
What the motions concerned
A.Y. Strauss LLC moved to withdraw as counsel for defendant Sysorex, Inc. It also moved to seal the memorandum of law and declaration of Jordan M. Engelhardt that supported the withdrawal motion.
Court’s ruling
The court granted A.Y. Strauss LLC’s motion to withdraw and motion to seal. The court explained that corporations may not represent themselves and must be represented by an attorney.
The court gave Sysorex 30 days to retain new counsel. It stated that failing to do so would result in the entry of a default judgment against Sysorex. A default judgment is a judgment entered against a party that fails to defend the case as required.
The court also ordered A.Y. Strauss LLC to serve Sysorex with the order and stayed the parties’ discovery deadlines pending further direction from the court. Discovery is the pretrial exchange of information and evidence between the parties.
Disposition and scope
Judge Naomi Reice Buchwald granted the withdrawal and sealing motions and stayed discovery. The order did not decide the underlying claims between ProActive Capital Partners, LP and Sysorex, Inc.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.