M. DATTANI CREDIT TRUST VS. JOSEPH THEISEN ET AL

Set for Law and Motion/Discovery Calendar on Thursday, July 17, 2025, Line 8. PLAINTIFF M. DATTANI CREDIT TRUST's Motion To Quash Or Alternatively For Protective Order Re Callaway Deposition.

Plaintiff's motion to quash and for a protective order is granted. Generally, a bankruptcy stay precludes discovery from the debtor. (Scherer v. Carroll (D VT 1993) 150 B.R. 549, 552; In re Manown (BC ND GA 1997) 213 B.R. 411, 412 ["the automatic stay is designed to protect Debtor from the burden of responding to discovery and defending a court action"].) In In re Miller (B.A.P. 9th Cir. 2001) 262 B.R. 499, 504, the court allowed discovery to proceed against the debtor where the "discovery requests are framed as discovery pertaining only to the claims against the other non-debtor defendants."

Here, given the overlap between this case and plaintiff's action against Mr. Callaway (CGC-22-603028), the court does not see how the parties will realistically be able to question Mr. Callaway regarding matters distinct to Defendants without also implicating liability issues against Mr. Callaway. In addition, Defendant's suggestion of a "one-sided" deposition without cross-examination from plaintiff is unfair, prejudicial, and wasteful. On this record, Plaintiff's alleged prejudice from delaying Calloway's deposition is outweighed by the factors weighing against the deposition at this time. Given these circumstances, the motion is granted.

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