Mullen Automotive, Inc. v. GEM Global Yield LLC SCS

Background

The order addresses two related cases. In the first, Mullen Technologies, Inc. and Mullen Automotive, Inc. sued GEM Global Yield LLC SCS, GEM Yield Bahamas Limited, and Christopher Brown. That case is identified as the “Rescission Action.” In the second, GEM Yield Bahamas Limited and GEM Global Yield LLC SCS petitioned against Mullen Technologies and Mullen Automotive. Both matters concern an Interim Measures Arbitration Award and ongoing arbitration proceedings.

Rulings on Sealing and the Interim Award

The Court granted the parties’ motions to seal in the related actions. It lifted the stay on enforcement of the Interim Measures Arbitration Award that the Court had issued on March 5, 2024. The Court stated that it would not interfere with the pending arbitration or further orders issued by Arbitrator Mark Morril. The Court accepted GEM’s representation that it would not seek to withdraw the award before the application to confirm or vacate the final damages arbitration award is decided, subject to an exception identified in GEM’s letter brief.

The Court stated that it was not yet in a position to confirm or vacate the Interim Measures Arbitration Award. It ordered the parties to reformat and refile their submissions concerning confirmation or vacatur under Federal Rule of Civil Procedure 56, the rule governing summary judgment. GEM was ordered to file a submission of no more than 15 pages by April 22, 2024. The parties were also directed to make their best efforts to file a joint statement of facts under Local Rule 56.1 and a joint exhibit appendix. Mullen Technologies and Mullen Automotive were ordered to file a response of no more than 15 pages by May 6, 2024. The Court did not request a reply brief.

The respondents were ordered to maintain the Interim Measures Arbitration Award while the Court resolves the motion.

Stay of the Rescission Action

The Court stayed the Rescission Action. It explained that, even assuming the Federal Arbitration Act did not require a stay, it was exercising its discretion to promote judicial economy and avoid confusion and potentially inconsistent results between the federal action and the ongoing arbitration.

The parties were ordered to jointly file a status letter within one week of any significant development in the arbitration or issuance of a final damages order. The Court stated that the issue of the Partial Final Award should be addressed in that update. The Clerk was directed to terminate specified pending motions in both cases and docket the order in both cases.

Disposition

The Court granted the sealing motions, lifted the stay on enforcement of the Interim Measures Arbitration Award, ordered new briefing on confirmation or vacatur, ordered the respondents to maintain the award during that process, and stayed the Rescission Action. Judge Katherine Polk Failla did not confirm or vacate the Interim Measures Arbitration Award in this order.