Court Continues Stay Despite Delay In Out Of State Trial That Was Basis For Stay

On July 10, 2024, Justice Joel M. Cohen denied Defendants' motion to lift a stay of discovery in Barons Media, LLC v. Shapiro Legal Group, PLLC, Index No. 652481/2023. In October 2023, the Court granted defendant’s motion for a stay pending the result of a case in Florida “because the result in the Florida Action may impact the viability of this case.” Further, the Florida trial was scheduled to begin in October 2023, shortly after the stay order was issued. However, the Florida Action was delayed. Thus, in May 2024, plaintiff moved to lift the stay. The Court denied the motion, explaining:

Plaintiff argues that the stay is no longer reasonable because trial in the Florida Action will be delayed by at least eleven months from its intended start date; because the result of the Florida Action will not determine all of the issues in this action; and because Plaintiffs aiding and abetting claims in this action are broader than those in the Florida Action. Defendant opposes and argues that Plaintiff has not established prejudice; that trial in the Florida Action will commence in September of 2024; and that Plaintiff caused the complained of delay.

The continuation of the stay is appropriate in this instance (3B Assoc. LLC v eCommission Sols., LLC, 226 AD3d 527 [1st Dept 2024] citing Belopolsky v. Renew Data Corp., 41 A.D.3d 322, 322-323, 837 N.Y.S.2d 154 [1st Dept. 2007] [staying discovery in a fraudulent conveyance action pending a breach of contract action]). Barons' only remaining cause of action is for aiding and abetting breach of fiduciary duty, which necessarily requires an underlying breach (Kaufman v Cohen, 307 AD2d 113, 125 [1st Dept 2003]), which is the subject of the Florida Action. Clearly, the result of the Florida Action is highly relevant to - and potentially dispositive of - this case. Further, it appears from the evidence presented that Plaintiff bears some - perhaps most - of the responsibility for the delay.

The attorneys at Schlam Stone & Dolan frequently litigate motions to stay. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.