| In SDNY Judge Cave Declines
To Stay Millennium Discovery Against Citi BOM
Chase and Truist
By Matthew
Russell Lee, Patreon
BBC
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SDNY COURTHOUSE,
Jan 15 – When Millennium
Laboratories, one of the
largest urine testing
companies in the US, declared
bankruptcy in 2015, it spawned
litigation that gave rise in
the U.S. District Court for
the Southern District of New
York to a January 10
teleconference before and
January 15 order by SDNY
Magistrate Judge Sarah L.
Cave.
The
plaintiff, Marc S. Kirschner
as trustee of the
post-bankruptcy litigation
trust, was opposing the bank
defendants' request to
essentially stay discovery in
the proceeding. Kirschner
argued that he needs access to
documents in order to keep up
with the discovery that is
going forward in a related
Delaware case.
The
banks being sued include JP
Morgan Chase, Citigroup, Bank
of Montreal and SunTrust, now
known as Truist since it
merged with BB&T.
During the January 10
teleconference, which Inner
City Press covered with the
permission of the Court, the
banks' lawyers argued that it
is a threshold legal issue
whether the syndicated
leveraged loan at issue is a
security, an issue that should
be determined before discovery
proceeds.
But
on January 15, Magistrate
Judge Cave found "that is a
threshold question only
with respect to the state
securities law claims...
Plaintiff has asserted five
other common law causes of
action for which that question
is not necessarily
determinative."
Therefore
Judge Cave ruled that "a
further stay of discovery is
not warranted, and that
discovery should continue, as
it has been, in coordination
with the Delaware
Action. Accordingly,
this action having been
referred to this Court for
general pretrial
supervision, a case management
conference will be held on
Tuesday, February 25."
Inner City Press will continue
to follow this case. it is
Kirschner v. JPMorgan Chase
Bank, N.A., et al, 17-cv-6334
(Gardephe / Cave).
***
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