Choice of Delaware forum outweighed interest in litigating in bankruptcy forum
Zoetics, Inc. et al., v. Yahoo!, Inc., No. 06-108-JJF, July 6, 2006.
Farnan, J. Motion to stay action and transfer is denied. Despite the fact that New York would be more convenient for the witnesses, and the bankruptcy proceedings were pending in New York, the plaintiff’s choice of forum was paramount.
Zoetics filed for bankruptcy in S.D.N.Y due to inability to pay AT&T for patents. Defendant sought to stay this action pending resolution of ownership of the patents in bankruptcy court. The Court declined to stay because there was no indication the ownership issue would be imminently resolved and because of prejudice to plaintiff. Staying the action pending a non-parallel proceeding in which the ownership question may be addressed leaves too much uncertainty. The court declined to transfer to district where the bankruptcy case is pending where there are no existing rulings there necessary to resolve the issues in this matter.
