Khardy Enterprises LLC, et al. v. NCR Atelos Corporation, et al.

CourtDistrict Court, E.D. Michigan
DecidedJanuary 22, 2026
Docket2:24-cv-12797
StatusUnknown

This text of Khardy Enterprises LLC, et al. v. NCR Atelos Corporation, et al. (Khardy Enterprises LLC, et al. v. NCR Atelos Corporation, et al.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Khardy Enterprises LLC, et al. v. NCR Atelos Corporation, et al., (E.D. Mich. 2026).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

KHARDY ENTERPRISES LLC, et al., Case No. 24-12797 Honorable Gershwin A. Drain Plaintiffs, Magistrate Judge Elizabeth A. Stafford

v.

NCR ATELOS CORPORATION, et al.,

Defendants.

ORDER DENYING DEFENDANTS’ MOTION TO COMPEL (ECF NO. 25)

A. Defendants NCR Atelos Corporation and Cardtronics USA, Inc., moved in July 2025 to compel Plaintiffs Khardy Enterprises LLC and KKL Transportation, LLC’s responses to interrogatories and requests for production. ECF No. 25. The Honorable Gershwin A. Drain referred the motion to the undersigned for hearing and determination under 28 U.S.C. § 636(b)(1)(A). ECF No. 28. After a status conference in August 2025, the Court ordered the parties to meet and confer, and then to file a joint list of unresolved issues before an October 2025 hearing. ECF No. 34. The meet and confer order included detailed instructions for the joint list of unresolved issues,

including that “The parties’ arguments must address relevance to a specific claim or defense, and the proportionality factors under Federal Rule of Civil Rule 26(b)(1).” Id., PageID.510 (emphasis in

original). The September 2025 joint list included only this unresolved issue: “The parties, having agreed that affidavits will need to be supplied as requested in the Motion to Compel, will need further time to agree upon the content required in those affidavits.” ECF No. 39, PageID.567. The Court

thus canceled the hearing and then held three status conferences in October 2025. ECF No. 40; ECF No. 41; ECF No. 44. The parties’ joint list of unresolved issues filed the day of the October

31, 2025 status conference revealed that, contradicting the September 2025 joint list, the remaining disputes went far beyond the affidavits. ECF No. 51. The newer list addressed 15 requests for production of documents (RFPs) and 12 interrogatories, as well as defendants’ claim that plaintiffs

failed to sign their discovery responses and had provided no affidavits. Id. Because the newer joint list included no analysis of the relevance and proportionality of the discovery requests, the Court ordered the parties to

again meet and confer and then “file a joint list of unresolved issues that addresses the relevance and proportionality of the disputed discovery requests and that comports with the guidance set out in the Court’s August

2025 meet-and-confer order.” ECF No. 52, PageID.638 (citing ECF No. 34, emphasis in original). The new joint list was due on December 1, 2025, four days before the hearing. Id. But no joint list was filed on December

1st and, during a status conference held on December 5th, counsel said that they needed more time. ECF No. 61, PageID.660. Thus, on December 8, 2025, the Court again ordered the parties to meet and confer and to file their joint list by January 5, 2026, ahead of a

January 9, 2026. Id., PageID.661. The Court again instructed that the joint list must address “the relevance and proportionality of the disputed discovery requests and that comports with the guidance set out in the

Court’s August 2025 meet-and-confer order.” Id. (citing to ECF No. 34). The parties did not file their latest 38-page joint list of unresolved issues until about two hours before the scheduled January 9th hearing, so the Court adjourned the hearing until January 20, 2026. ECF No. 74; ECF

No. 75. Despite the parties being given months to resolve the issues, disputes about 14 RFPs and nine interrogatories remained. Id. “Presumably, counsel expected the Court to use the hearing to review one-

by-one each of the dozens of outstanding discovery requests, hear argument on each, and declare whether the requested discovery should be compelled. That type of micromanagement is not the function of this

Court.” State Farm Mut., Auto. Ins. Co. v. Max Rehab Physical Therapy, LLC, No. CV 18-13257, 2020 WL 12763079, at *2 (E.D. Mich. July 19, 2020) (citing KCI USA, Inc. v. Healthcare Essentials, Inc., No. 1:14 CV 549,

2015 WL 13839455, at *2 (N.D. Ohio May 1, 2015)).1 And critically, the joint list of unresolved issues failed to comply with the discovery rules and the meet and confer orders. The Court thus denies defendants’ motion to compel.

B. As noted, the Court emphasized repeatedly that the joint list of unresolved issues had to address the relevance of the discovery requests

to a claim or defense and include an analysis of the proportionality factors. ECF No. 34; ECF No. 52; ECF No. 61. Defendants bear the burden of showing that “the information sought by the requests is relevant to the claims or defenses in this action.” Frazier v. Breville USA, Inc., No. 3:23-

CV-00563, 2025 WL 2557577, at *4 (M.D. Tenn. Mar. 6, 2025).

1 The Court recommends that the parties consider requesting that Judge Drain appoint a discovery special master. The proportionality factors are “the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to

relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit.” Rule 26(b)(1). The 2015

amendment to Rule 26(b)(1) was meant to “ensure[ ] that the parties and courts share the ‘collective responsibility to consider the proportionality of all discovery and consider it in resolving discovery disputes.’” Helena Agri- Enterprises, LLC v. Great Lakes Grain, LLC, 988 F.3d 260, 273 (6th Cir.

2021) (citing Rule 26 advisory committee's notes (2015)). Defendants fail to meet their burden that the requested discovery is relevant to a claim or defense. ECF No. 74. They repeatedly argue in the

joint list that the “discovery is necessary and proportional.” Id., PageID.774, 776, 778, 781, 784, 787, 789, 791-806 (emphasis added). But Rule 26(b)(1) does not vaguely refer to “necessary” discovery. Rather, it “signals to the court that it has the authority to confine discovery to the

claims and defenses asserted in the pleadings, and signals to the parties that they have no entitlement to discovery to develop new claims or defenses that are not already identified in the pleadings.” Rule 26, advisory

committee’s notes (2015). Defendants’ analysis tied none of their discovery requests to a claim or defense, and their conclusory narratives about why the discovery was

necessary assumed a familiarity with the facts and issues in the case that the Court lacks. Id., PageID.774, 776, 778, 781, 784, 787, 789, 791-806. The Court has no duty to scour the record to align defendants’ discovery

requests with a claim or defense. “Judges are not like pigs, hunting for truffles that might be buried in the record.” Knight Capital Partners Corp. v. Henkel AG & Co., KGaA, 930 F.3d 775, 780 n.1 (6th Cir. 2019) (cleaned up); see also McPherson v. Kelsey, 125 F.3d 989, 995-96 (6th Cir. 1997)

(“It is not sufficient for a party to mention a possible argument in the most skeletal way, leaving the court to put flesh on its bones.” (cleaned up)) The Court is aware that defendants maintain that they withheld as

“disputed funds” excessive ATM servicing fees that underlie plaintiffs’ complaint. See ECF No. 1-1; ECF No. 74, PageID.780-781.

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Related

Mcpherson v. Kelsey
125 F.3d 989 (Sixth Circuit, 1997)
Knight Capital Partners Corp. v. Henkel AG & Co.
930 F.3d 775 (Sixth Circuit, 2019)

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