GEA Group AG v. Flex-N-Gate Corp.

Dist. Ct. did not err in granting defendant-CEO’s request to partially lift stay of discovery in action brought by plaintiff alleging that defendant-corporation breached contract to purchase plaintiff’s company, and that defendant-CEO had used his control to strip assets of corporation so as to preclude plaintiff from obtaining any recovery. Record showed that plaintiff and defendant-corporation were parties to pending German arbitration concerning alleged breach of contract, and although plaintiff argued that stay of discovery of its lawsuit against defendants corporation and CEO was appropriate because CEO could obtain materials in discovery that might be useful to corporation in arbitration proceedings, plaintiff’s concern about corporation’s use of discovery materials in arbitration proceedings is not relevant in instant case, and plaintiff otherwise has remedy about said use of discovery materials with arbitration panel. Moreover, plaintiff cannot choose to sue defendant-CEO and then prevent him from defending himself.