Press v. Primavera

Background

Robert D. Press brought a diversity action against Patrick J. Primavera asserting one defamation claim. Press alleged that Primavera, who had previously served as TCA Fund Management Group Corp.’s managing director for its New York office, submitted a false and defamatory declaration to the Securities and Exchange Commission on December 22, 2020. The court had previously denied Primavera’s motion to dismiss, and Primavera had answered the complaint.

The case was later stayed because Primavera informed the court that a receivership order issued by the U.S. District Court for the Southern District of Florida might cover this lawsuit. That order stayed civil proceedings involving the receiver, receivership property, receivership entities, and certain past or present officers, directors, managers, agents, or partners when sued for actions taken in those capacities. The Florida court did not clarify whether the order applied to Press’s case.

Analysis

The court first rejected Primavera’s suggestion that the case should be dismissed without prejudice based on duplicative litigation. Although federal courts may stay or dismiss a case that duplicates another federal case, the court found that the Florida Action and this case involved different parties, rights, and requested relief. The court therefore concluded that the rule against duplicative litigation did not apply.

The court then interpreted the Florida stay order. It reasoned that the order’s reference to a person being “sued” meant that the relevant officer or other covered person generally had to be a defendant. Primavera qualified as a defendant, so the key question was whether the conduct supporting Press’s claim was an action Primavera took in his capacity as a TCA officer.

The court concluded that the best reading of the Florida stay was that it did not cover this case. Primavera had voluntarily left TCA in 2019, while the declaration at issue was submitted in December 2020. Although the declaration may have discussed Primavera’s experiences while working for TCA, the court found that the declaration itself was not an action taken in his capacity as a TCA officer. The court noted that the receiver’s views and language in an abandoned settlement agreement were not controlling.

The court also weighed the interests relevant to staying a case, including the parties’ interests, judicial efficiency, the interests of nonparties, and the public interest. It found that lifting the stay would not undermine efficiency or respect for the Florida court because the cases were not duplicative and the Florida stay did not appear to cover this action. Further delay would prejudice Press’s ability to pursue his claim. The court also held that Primavera, as the party seeking to maintain the stay, had not shown that continuing it was necessary.

Disposition

The court GRANTS Press’s request to lift the stay of this case. It directs the parties to jointly submit a proposed amended case-management plan within seven days of the opinion and order. The opinion does not resolve the merits of Press’s defamation claim.

Judge

The opinion was issued by United States District Judge Jennifer L. Rochon.