Asset Co IM Rest, LLC v. Katzoff

Background

The defendants—Gerald “Jerry” Katzoff, IMNY GS, LLC, West 3rd Holdings, LLC doing business as Il Giglio Tribeca, West 3rd Products, LLC, IM LLC-I, and GFB Restaurant Corp.—submitted a letter motion seeking to stay, or pause, discovery until the court resolved their anticipated motions to dismiss. The defendants stated that the complaint contained 14 counts against six defendants and alleged that the pleading improperly grouped defendants together even when particular claims were directed only at certain parties.

The defendants also stated that the plaintiffs had served 37 requests for production, including requests for financial statements covering periods from 2000 through the present. They argued that the anticipated motions to dismiss could eliminate claims or parties, making immediate discovery burdensome and potentially unnecessary. The defendants further argued that the plaintiffs would not suffer unfair prejudice from a delay because the case was in its early stages and a preliminary injunction would remain in effect.

Requested Relief

The defendants asked the court to stay discovery under Federal Rule of Civil Procedure 26(c) until the court ruled on their anticipated motions to dismiss. According to the letter, those motions would seek dismissal for failure to state a claim under Rule 12(b)(6), dismissal for lack of jurisdiction under Rule 12(b)(1), and, alternatively, a more definite statement under Rule 12(e).

Court’s Action

Judge John P. Cronan ordered the plaintiffs to respond to the defendants’ letter by February 20, 2024. The document does not state that the court granted or denied the requested discovery stay, and it does not decide the anticipated motions to dismiss.