Akishev v. Kapustin

23 F. Supp. 3d 440, 2014 U.S. Dist. LEXIS 72232, 2014 WL 2608388
CourtDistrict Court, D. New Jersey
DecidedMay 28, 2014
DocketCivil No. 13-7152 (NLH/AMD)
StatusPublished
Cited by58 cases

This text of 23 F. Supp. 3d 440 (Akishev v. Kapustin) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akishev v. Kapustin, 23 F. Supp. 3d 440, 2014 U.S. Dist. LEXIS 72232, 2014 WL 2608388 (D.N.J. 2014).

Opinion

MEMORANDUM OPINION AND ORDER

ANN MARIE DONIO, United States Magistrate Judge.

In this action, Defendants seek a stay of proceedings pending resolution of litigation in the Eastern District of New York or, alternatively, request that the Court conduct a scheduling and ease management conference pursuant to Federal Rule of Civil Procedure 16 prior to requiring Defendants to file a responsive pleading. (See Memorandum of Law in Support of Defendants’ Motion to Stay and for Alternative Relief (hereinafter, “Defs.’ Br.”) [Doc. No. 10-1], 7, 10, 15.) Defendants also seek an extension of the time within which to answer, move, or otherwise reply to Plaintiffs’ complaint.1 (Id.) In addition to opposing the. pending motion, Plaintiffs have also moved for the entry of default in light of Defendants’ purported failure to answer, move, or otherwise respond to Plaintiffs’ complaint. (See Plaintiffs’ Memorandum of Law in Opposition to Defendants’ Motion to Stay and for Alternative Relief (hereinafter, “Pis.’ Opp’ n”) [Doc. No. 15]; see also Request to Enter Default as to Defendants [Doc. No. 16].) The central issue raised by the submissions is whether the pending litigation in the Eastern District of New York warrants staying this litigation. The Court conducted oral argument concerning the pending motions on March 5, 2014. For the reasons that follow, the Court finds that a stay of proceedings is not warranted and therefore denies Defendants’ request for a stay without prejudice. The Court grants Defendants’ request for an extension of time to answer, move, or otherwise respond to Plaintiffs’ complaint, and denies Plaintiffs’ request for the entry of default without prejudice.

Plaintiffs, all “citizens of the former USSR Republics!,]” filed the initial complaint in this action on November 25, 2013. (See Complaint [Doc. No. 1], ¶ 1.) In their complaint, Plaintiffs allege that Defendants operated an ongoing fraudulent scheme calculated “to defraud overseas” car buyers (including the individual Plaintiffs) in violation.of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961 et seq. (hereinafter, “RICO”) (id. at ¶¶ 247-252, 270-286), the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1 et seq. (id. at ¶¶ 287-304), and the Motor Vehicle Information and Cost Savings Act, 49 U.S.C. §§ 32701 et seq. (id. at ¶¶ 317-319), in addition to various other state law torts. (Id. at 320-354.) Plaintiffs generally allege that Defendants “lur[ed]” Plaintiffs into consummating transactions to purchase Defendants’ vehicles through “misrepresenting [the] mileage, condition!,]” “location and ownership” of the vehicles, and then by coercing additional. payments for the vehicles. (Pis.’ Opp’n [Doc. No. 15], 1.) Plaintiffs allege that Defendants purportedly “fail[ed] to deliver” Plaintiffs’ vehicles in accordance with the parties’ purchase agreements. (Id.)

Defendants seek to stay this action for a period of six (6) months pending resolution [444]*444of litigation in the Eastern District of New York (hereinafter, the “E.D.N.Y. action”). (See Defs.’ Br. [Doc. No. 10-1], 8; Defs.’ Reply [Doc. No. 18], 1.) Defendants assert that the E.D.N.Y. action addresses “[a]ll of the dispositive issues that underlie Plaintiffs’ claims and allegations in this ae- ' tion[.]” (Defs.’ Br. [Doc. No. 10-1], 2.) Specifically, Defendants assert that “the heart” of this action concerns Defendants’ alleged breach of contract for Defendants’ failure to deliver the vehicles purchased by Plaintiffs. (Id.) Defendants assert in this action that they fulfilled their obligations to transport the vehicles to Finland, but allege that the maritime commercial shipping defendants in the E.D.N.Y. action (“Michael Hitrinov and Empire United Lines”) unlawfully detained and converted the vehicles in port in Finland. (Id. at 2-4.) Defendants therefore assert that the Court should stay this action in favor of the E.D.N.Y. action where the “the main issue” of who bears responsibility for the conversion of Plaintiffs’ vehicles will be adjudicated. (Defs.’ Reply [Doc. No. 18], 5-6.) Defendants accordingly seek to stay this litigation in order to- avoid the alleged hardship associated with duplicative litigation. (Id. at 2, 9.)

Defendants alternatively seek to be exempted from them obligation to file a responsive pleading pending an initial scheduling conference pursuant to Federal Rule of Civil Procedure 16. (Id. at 10.) Defendants specifically propose that the Court address “issues relating to questions of applicable law, standing, sufficiency of the counts plead in the Complaint, and [the] existence of undisputed facts” prior to requiring Defendants to answer, move, or otherwise respond to Plaintiffs’ complaint. (Id. at 10.) Defendants’ alternative request seeks a thirty (30) day extension of the time within which to answer, move, or otherwise reply to Plaintiffs’ complaint.2 (Id. at 15.)

Plaintiffs oppose the issuance of a stay and assert that this action concerns Defendants’ purportedly “fraudulent dealings” with Plaintiffs, whereas the E.D.N.Y. action “deals with the debt dispute between” Defendant Global Auto Enterprise and a maritime shipping company Empire United Lines Company, Incorporated. (Pis.’ Opp’n [Doc. No. 15], 12.) Plaintiffs further assert resolution of issues in the E.D.N.Y. action would be “merely peripheral” to the issues set forth in Plaintiffs’ complaint in this litigation. (Id.) Consequently, Plaintiffs contend that the imposition of a stay would neither “simplify” nor “narrow” the . issues to be litigated in this action because this litigation will proceed “regardless of the outcome” of the E.D.N.Y. action. (Id. at 13-14.) Plaintiffs also assert that any delay in this action would cause significant prejudice to Plaintiffs because any additional time would afford Defendants the latitude to “dissipate their assets in order to avoid paying damages[,]” if any, ultimately awarded in this action. (Id. at 14.) [445]*445With respect to Defendants’ alternative requests, Plaintiffs assert that Defendants’ request for an early initial scheduling conference is premature because Defendants have not yet responded to Plaintiffs’ complaint and because any defenses identified by Defendants “should properly be raised” by way of dispositive motion. (Id, at 16.) Finally, Plaintiffs oppose a further extension of time, asserting that Defendants have had ample opportunity to prepare a response. (Id. at 19.)

Because the relation, if any, of this action to the E.D.N.Y. action bears on the issue of the stay request, the Court shall set forth certain salient details concerning that action. On April 24, 2013, Global Auto, Inc., G Auto Sales, Inc., and Effect Auto Sales, Inc. (Defendants in this litigation) commenced a maritime action in the E.D.N.Y. against Empire United Lines Co., Inc., Michael Hitrinov a/k/a Michael Khitrinov, and Mediterranean Shipping Company (USA) Inc. (also, Defendants in part in this litigation). See Global Auto, Inc. v. Michael Hitrinov a/k/a Michael Khitrinov, No. 13-2479, Memorandum and Order [Doc. No.

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Bluebook (online)
23 F. Supp. 3d 440, 2014 U.S. Dist. LEXIS 72232, 2014 WL 2608388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akishev-v-kapustin-njd-2014.