Burford Capital and Sysco File Objections to Judge’s Denial of Substitution of Plaintiff
As LFJ reported earlier this month, the story of Burford Capital and Sysco’s antitrust lawsuits experienced a new development, with a Minnesota judge denying their joint motions for substitution of plaintiff. As was expected at the time, both the litigation funder and its client have now filed objections and asked the Court to set aside the ruling and allow Burford’s subsidiary to take over the cases. Reporting by Reuters reveals that objections have been filed by both Carina Ventures, a subsidiary of Burford Capital, and Sysco, against U.S. Magistrate Judge John Docherty’s denial of their joint motion for a substitution of plaintiff. The objections, which were filed with the United States District Court of Minnesota on 23 February, both argue that the judge’s order is based on ‘errors of law’. Carina’s filing summarised both parties’ position succinctly, stating that ‘there is no sound policy reason to require Carina to control the prosecution of its claims from the sidelines, rather than litigating them directly in its own name.’ Carina’s objection is formed around two central arguments. Firstly, that Judge Docherty’s order ‘contravenes uniform Eighth Circuit and District Court precedent, as well as the core purposes of Rule 25(c).’ Secondly, that the judge’s ‘public policy reasons for denying substitution are legally erroneous’, with Carina arguing that ‘denial of substitution does not and cannot change Carina’s legal right under the assignment agreement to control the claims.’ Sysco’s objection followed similar arguments around the court’s order running ‘contrary to Rule 25’, whilst also providing three central pillars to its argument around Judge Docherty’s public policy reasoning. Sysco argued that the ‘the public policy favoring settlement also favours substitution’, that the ‘substitution promotes antitrust policy’, and that ‘the doctrine of champerty favors substitution of the claim owner’. Both Carina Ventures and Sysco concluded their objections by requesting that the Court grant substitution of plaintiff in the antitrust cases.