Opinion
Civil No. 3:15cv675 (JBA)
04-07-2021
RULING DENYING RELIEF DEFENDANTS' MOTION TO STRIKE OPPOSITION BRIEFS BY NON-PARTIES
Relief Defendants move to strike non-parties Oak Management Corporation's (Oak) [Doc. # 1478], Brown Rudnick's (Brown) [Doc. # 1480] and NMR e-tailing, LLC's (NMR) [Doc. # 1481] oppositions to the Relief Defendants' Motion for Temporary Injunction [Doc. # 1446] because the non-parties have no standing to file motions or documents in this case. (Relief Defs.' Mot. to Strike Memoranda in Opp. [Doc. # 1486] at 1; see Oak's Mem. in Opp. to Temp. Injunc. [Doc. # 1478]; Brown's Mem. in Opp. to Temp. Injunc. [Doc. # 1480]; NMR's Mem. in Opp. to Temp. Injunc. [Doc. # 1481].) The United States and Securities Exchange Commission (SEC) opposes the motion. ([Doc. # 1513].) Neither the Receiver nor Defendant commented on this motion.
The Court denied Relief Defendants' motion for a temporary injunction on March 30, 2020, holding that no additional action was necessary to protect the interests of Relief Defendants. (Ruling Denying Mot. for Temp. Injunc. [Doc. # 1532] at 5.).
Oak, Brown, and NMR argue that their opposition briefs were properly filed as Relief Defendants' motion for a temporary injunction specifically requested that the Court enjoin Oak, Brown, and NMR from pursuing their claims against Defendant and Relief Defendants. (Oak's Mem in Opp. to Mot. to Strike [Doc. # 1516] at 2; Brown's Mem. in Opp. to Mot. to Strike [Doc. # 1514] at 3; NMR's Mem. in Opp. to Mot. to Strike [Doc. # 1518] at 2; see also Relief Defs.' Emerg. Mot. for a Temp. Injunc. [Doc. # 1446] at 2.) While the Federal Rules of Civil Procedure typically permit only those designated as parties to file motions and pleadings, see Fed. R. Civ. P. 7, where, as here, the nonparties "are aggrieved by the judicial action" at issue, they not only have standing to file objections to motions, but also have standing to appeal the Court's order, SEC v. Alpine Sec. Corp., 768 F. App'x 93, 95 (2d Cir. 2019). As Relief Defendants' motion would have directly impacted the non-parties' interests, their opposition filings were proper.
"Whether to grant or deny a motion to strike is vested in the trial court's sound discretion." Tucker v. Am. Int'l Grp., Inc., 936 F. Supp. 2d 1, 15-16 (D. Conn. 2013). As the opposition briefs of non-parties Oak, Brown, and NMR were properly filed, Relief Defendants' Motion to Strike is DENIED.
IT IS SO ORDERED.
/s/_________
Janet Bond Arterton, U.S.D.J.
Dated at New Haven, Connecticut this 7th day of April 2021.