There were two litigation-funding related hearings set forth tomorrow in Chief Judge Connolly cases. Both were canceled today.
The first was in the Nimitz cases, C.A. Nos. 21-1362, 21-1855, and 22-413. As we discussed last week, the Court set this hearing after Nimitz failed to produce the broad formation- and funding-related discovery that the Court required from it.
Later last week, the plaintiff in that case produced the required documents. Today, the Court canceled the hearing so that it would have time to review the recent production:
ORAL ORDER: Whereas (1) on Thursday, April 6, 2023 at 4:23 p.m., Mr. Pazuniak submitted to the Court documents in response to the Court's November 10, 2023 Memorandum Order; (2) the Court was closed on Friday, April 7; and (3) the Court needs time to review the documents; NOW THEREFORE, it is HEREBY ORDERED that the hearing scheduled for Tuesday, April 11, 2023 is canceled.
After the order cancelling the hearing—and despite telling Law360 that they don't intend to argue anything—counsel for Nimitz filed a motion for reargument on the order setting the show cause hearing. The motion argues that Nimitz had no obligation to comply with the Court's production order until the Federal Circuit issues a mandate on the appeal.
Another Disclosure Hearing Set—And Canceled
We missed this order last week, but Chief Judge Connolly also ordered a plaintiff and its counsel to appear in-person tomorrow, after the plaintiff filed to file its required disclosures under his standing orders:
Whereas Plaintiff is an LLC; and
Whereas Plaintiff has not complied with the Court's April 18, 2022 Standing Order Regarding Disclosure Statements Required by Federal Rule of Civil Procedure 7.1;
NOW THEREFORE, at Wilmington on this Fifth day of April in 2023, it is HEREBY ORDERED that Plaintiff's counsel and at least one member of Plaintiff shall appear in Courtroom 4B on April 11, 2023 at 1:00 p.m. and shall be prepared at that time to show good cause why Plaintiff should not be sanctioned for its failure to comply with the Standing Order.
After this order, plaintiff filed their statement, and also asked for their client representative and counsel to be excused from in-person attendance at the hearing for medical and religious reasons. The Court canceled the hearing in light of the disclosure:
ORAL ORDER: In light of (1) the fact that Investrex LLC has now disclosed its membership and appears therefore to be in compliance with the Court's April 18, 2022 Standing Order Regarding Disclosure Statements Required by Federal Rule of Civil Procedure 7.1 and (2) counsel's representation that Investrex's failure to comply with that standing order was "simply an oversight on the part of Plaintiff's counsel," the show cause hearing scheduled for April 11, 2023 is CANCELED.
But, shortly thereafter, it found the disclosure wanting:
ORAL ORDER: Whereas, Plaintiff has disclosed that Marbit Lending, LLC provides funding for Plaintiff's expenses to litigate this action in exchange for a financial percentage of any monetary recovery in this action; NOW THEREFORE, it is HEREBY ORDERED that Plaintiff shall disclose no later than April 17, 2023 the name of every owner and member of Marbit Lending, LLC, proceeding up the chain of ownership until the name of every individual and corporation with a direct or indirect interest in Marbit Lending, LLC has been identified.
I've long found that nobody wants to fly to Delaware if they don't have to. So do not forget the standing order disclosure requirements if your case gets assigned to Chief Judge Connolly.
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