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In re Velsicol Chemical LLC, et al.

23 B 12544
The District of Columbia sought leave to take discovery of Debtors and related entities pursuant to Fed. R. Bankr. P. 2004.  Debtors objected.  HELD: The scope of a Rule 2004 examination is broad.  Standing to take Rule 2004 examinations is not limited to creditors, but instead is allowed for any party in interest.  So long as the inquiry under Rule 2004 is relevant to the wide range of topics described in the Rule, it is appropriate.  Under this standard, the District’s request would be granted.  Although the parties disputed whether the District could plausibly allege a claim for relief against Debtors, a Rule 2004 motion was not the proper forum for resolution of that dispute.  Finally, the District had attached proposed document requests to the motion, and requested approval of those in its proposed order.  The court declined to approve the requests because the issue of whether particular questions or document requests comply with Fed. R. Civ. 45 is more appropriately resolved after subpoenas are issued.

Friday, February 23, 2024