Court of Chancery Grants Stay of Discovery Pending Dispositive Motion

Posted on November 4, 2009 by Francis Pileggi

Airborne Health Inc. v. Squid Soap, LP., No. 4410-VCL (Del. Ch., Oct. 28, 2009), read letter ruling here.

In this two-page letter decision, the Court of Chancery cited to several cases to support its position that whether or not to stay discovery is a discretionary matter for the Court, and reasoned that a potentially case-dispositive motion at the beginning of the case is a "frequent and logical predicate for the Court to consider granting a stay." In addition to listing the various factors taken into consideration when ruling on such a motion, the Court observed that it expects to rule shortly on the motion for judgment on the pleadings–as an added justification for granting the motion to stay discovery. In closing, the Court reminded the parties of their obligation to preserve documents and evidence pending the stay.

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