The Research Foundation for the State University of New York v. Telluric Labs, LLC

CourtDistrict Court, E.D. New York
DecidedSeptember 28, 2023
Docket2:21-cv-01898
StatusUnknown

This text of The Research Foundation for the State University of New York v. Telluric Labs, LLC (The Research Foundation for the State University of New York v. Telluric Labs, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Research Foundation for the State University of New York v. Telluric Labs, LLC, (E.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT 9/28/2023 10 :48 am EASTERN DISTRICT OF NEW YORK U.S. DISTRICT COURT ---------------------------------X EASTERN DISTRICT OF NEW YORK THE RESEARCH FOUNDATION FOR THE LONG ISLAND OFFICE STATE UNIVERSITY OF NEW YORK,

Plaintiff/Counterclaim-Defendant, MEMORANDUM & ORDER 21-CV-1898 (JS)(SIL) -against-

TELLURIC LABS, LLC,

Defendant/Counterclaim-Plaintiff,

-against-

STATE UNIVERSITY OF NEW YORK AT STONY BROOK, PETER I. BERNSTEIN, MICHAEL FERDMAN, PETER MILDER, FARID SAMANDI, TIANCHU JI and SHENGSUN CHO,

Third-Party Defendants,

---------------------------------X APPEARANCES

For Plaintiff and Third-Party Defendants Michael Ferdman, Peter Milder, Farid Samandi, Tianch Ji, Shengsun Cho: Peter I. Bernstein, Esq. Drew Berweger, Esq. Seth M. Weinfeld, Esq. Scully, Scott, Murphy & Presser P.C. 400 Garden City Plaza, Suite 300 Garden City, New York 11530

For Defendant: No appearance. For Third-Party Defendant State University of New York at Stony Brook: Nicholas Mesiti, Esq. Thomas Sica, Esq. Heslin Rothenberg Farley & Mesiti, P.C. 5 Columbia Circle Albany, New York 12203

Toni E. Logue, Esq. NYS Attorney General’s Office 200 Old Country Road, Suite 460 Mineola, New York 11501

For Third-Party Defendant Peter L. Bernstein: Marian C. Rice, Esq. Meredith Diane Belkin, Esq. L’Abbate Balkan Colavita & Contini LLP 3 Huntington Quadrangle, Suite 102-S Melville, New York 11747

SEYBERT, District Judge:

Although the procedural posture of this action is tortured, for purposes of this introduction, the Court succinctly summarizes it as follows. After counsel of record for Defendant/Counterclaim-Plaintiff Telluric Labs LLC (“Defendant” or “Telluric”) was disqualified almost two years ago, Telluric has experienced substantial issues maintaining and obtaining competent representation. By way of example, approximately one year has passed since Telluric’s most recent counsel of record was permitted to withdraw. Since that time, and despite numerous orders by this Court and Magistrate Judge Steven I. Locke requiring Telluric to obtain counsel because, as a corporation, it cannot proceed pro se, Telluric remains unrepresented. There has been protracted motion practice in this

action -- which is predominantly a by-product of the gamesmanship employed by Telluric’s disqualified attorneys -- and several items are pending at this juncture. Notwithstanding, this Memorandum & Order solely addresses three motions to dismiss Telluric’s Counterclaims and Third-Party Complaint. Although the dismissal motions raise various merits-based arguments, one common denominator echoes throughout the movants’ submissions: that Telluric’s Counterclaims and Third-Party Complaint should be involuntarily dismissed for failure to prosecute and for failure to comply with orders of the Court. For the reasons that follow, the dismissal motions are GRANTED. BACKGROUND

By Memorandum and Order dated November 17, 2021, Judge Locke granted the motion by Plaintiff/Counterclaim-Defendant the Research Foundation of the State University of New York (“Plaintiff” or the “Foundation”) to disqualify attorneys Michael Ivanciu (“Ivanciu”) and Codrut Radu Radulescu (“Radulescu”) from serving as counsel to Telluric (the “Disqualification Order”). (See Disqualification Order, ECF No. 57.) The Court notes that Ivanciu and Radulescu are Telluric’s President and Vice President, respectively. On December 1, 2021, Telluric appealed the Disqualification Order to this Court, and Judge Locke’s ruling was affirmed on August 24, 2022. (Aug. 24, 2022 M&O, ECF No. 95.) The Disqualification Order stayed this litigation for 30

days to afford Telluric an opportunity to obtain new counsel and scheduled a status conference on January 11, 2022. (Disqualification Order at 23.) On the day of this status conference, attorney David Postolski (“Postolski”) filed a notice of appearance on behalf of Telluric. (Postolski NOA, ECF No. 63.) Postolski continued to represent Telluric throughout the pendency of the appeal of the Disqualification Order, during which time pre-motion conference requests regarding motions to dismiss Telluric’s Counterclaims and Third-Party Complaint by the Foundation and Third-Party Defendants State University of New York at Stony Brook (“SBU”), Peter Bernstein (“Bernstein”), Michael Ferdman (“Ferdman”), Peter Milder (“Milder”), Faird Samandi

(“Samandi”), Tianchu Ji (“Ji”), and Shengsun Cho (“Cho”) also remained pending. Simultaneously with its decision to affirm the Disqualification Order on August 24, 2022, the Court entered a briefing schedule regarding the anticipated motions to dismiss by Plaintiff and the Third-Party Defendants. (-Se-e- Aug. 24, 2022 Elec. Order.) Then, shortly after the Disqualification Order was affirmed and this briefing schedule was set, on September 2, 2022, Postolski moved to withdraw as counsel for Telluric. (Postolski Withdrawal Mot., ECF No. 96.) On October 6, 2022, Judge Locke granted Postolski’s motion and stayed this action until the parties’ next appearance on January 12, 2023. (Oct. 6, 2022 Min.

Order, ECF No. 110.) During this period, the Court held in abeyance briefing on the motions to dismiss. (Sept. 7, 2022 Elec. Order; see also Jan. 10, 2023 Elec. Order (“To the extent Plaintiff and any Third-Party Defendants ask this Court to reinstate the briefing schedule for motions to dismiss, the Court is holding in abeyance its decision on such a request, pending the outcome of Judge Locke’s upcoming conference on January 12, 2023.”).) At the January 12, 2023 conference, Judge Locke was advised Telluric failed to retain new counsel. (See Jan. 12, 2023 Min. Order, ECF No. 116.) Judge Locke warned Telluric that it “must have counsel and cannot represent itself,” and that “[f]ailure to obtain new counsel may result in a default on

the[] motions” to dismiss. (Id.) In addition, Judge Locke recommended to this Court that “motion practice is appropriate at this time and the parties should engage in motion [to dismiss] practice consistent with” the Court’s Individual Rules. (Id.) On January 17, 2023, the Court agreed with Judge Locke and reinstated the briefing schedule for the motions to dismiss as follows: (1) On or before February 17, 2023, Plaintiff and the Third-Party Defendants shall file their respective motions to dismiss; (2) On or before March 17, 2023, Defendant/Third-Party Plaintiff shall file a single, consolidated opposition brief to the motions to dismiss. The Court will expand its page-limitation for Defendant’s opposition to thirty-five (35) pages; and

(3) On or before April 7, 2023, Plaintiff and the Third-Party Defendants shall file their replies, if any.

Once the motions are fully briefed, the parties shall provide courtesy copies of their motions to Chambers. As previously noted by Judge Locke in his January 12, 2023 Minute Order, Telluric must have counsel and cannot represent itself. Thus, any failure by Telluric to respond to these motions through retained counsel may result in the Court deeming the motions unopposed and/or result in a default on those motions. Plaintiff and the Third-Party Defendants are directed to serve a copy of this Electronic Order upon Telluric and to file proof of such service on ECF forthwith.

(-Se-e- Jan. 17, 2023 Elec. Order.) Telluric was promptly served with copies of this order. (Certs. of Serv., ECF Nos.

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The Research Foundation for the State University of New York v. Telluric Labs, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-research-foundation-for-the-state-university-of-new-york-v-telluric-nyed-2023.