Weygandt v. WECO

Summary

Motion to stay discovery in state civil proceeding pending outcome of federal criminal proceeding.

The underlying suit involves Gulfstream's purchase of WECO in 2003. Gulfstream sought indemnification because Weygandt, who owned WECO, allegedly violated FAA regulations.

The United States intervened to request an indefinite stay of discovery pending completion of a federal criminal investigation, even though no indictment had issued. The United States expected the grand jury proceeding to complete in approximately 4-6 months.

The state law proceedings were allegedly inextricably linked to the ongoing grand jury investigation. The United States alleged that one purpose of the Delaware civil proceeding was to do an "end run" around the federal criminal rules and gain information about the federal investigation that they could not get under the federal criminal procedure rules. For example, the Weygandt parties requested that Gulfstream turn over any documents produced to the federal government.

The Court granted intervention and issued a stay until January 15, 2010.