Delaware Business Litigation Report

Court of Chancery Partially Denies Defendants' Motion To Stay Discovery Pending Resolution Of Their Motion To Dismiss

Bonham v. HBW Holdings, Inc., C.A. No. 820-N, 2005 WL 2335464 (Del. Ch. Sept. 20, 2005). Defendants moved to stay discovery pending resolution of their motion to dismiss. Defendants moved to dismiss Plaintiffs' complaint and to stay discovery pending resolution of motion to dismiss. The Court held that there were special circumstances justifying denial in part of motion to stay discovery, notwithstanding pending motion to dismiss. The Court held that denial in part of Defendants' motion to stay discovery was appropriate because: (1) the motion to dismiss did not offer a reasonable expectation of avoiding further litigation over a number of claims; and (2) Plaintiffs sought release of $25 million from escrow at earliest possible time, which was analogous to a claim for interim relief. Share