Superior Court Judge Sheldon K. Rennie made his first decision on a taxpayer lawsuit against the Diamond State Port Corporation, which was filed in July.
The case is still in early stages, and the Thursday hearing was largely procedural.
It focused on a difference in opinion between the two parties. Rennie granted the DSPC’s request to stay discovery on subpoenas filed on behalf of taxpayers suing the public private partnership managing the Port of Wilmington and its Edgemoor expansion.
The subpoenas are to third parties. One asks the State Auditor’s office to share "any and all communications" concerning the DSPC, Gulftainer USA, and Enstructure gathered during its 2025 audit of the port corporation.
The plaintiffs also sought bank statements, loan applications, wire transfers, financing documents related to a $350 million credit line the DSPC’s former port partner Gulftainer obtained through banks. Rennie stayed discovery for those three bank subpoenas too.
Legal representation for DSPC from Barnes & Thornburg argued the case is in its very early stages, and it's filed a motion to dismiss. It argued that carrying out discovery with third parties before a decision on the case's validity is made could pose an undue burden.
Baker filed motion for summary judgement in the case in September, indicating he has information necessary to win the case now. And the DSPC legal reps argued the motion for summary judgement and subpoenas this early in the case are inconsistent.
During the hearing, it was discussed that relief sought by the plaintiffs is equitable in nature, meaning it's possible that the case is not a matter for the Superior Court. And if that's decided, the case will likely be resolved in the Court of Chancery.
These are "threshold" decisions. And Rennie said it would not undermine the taxpayer's case to stay discovery until these are decided.
The taxpayer's legal representation has until early November to file an answer to the DSPC's motion to dismiss. And the DSPC's response to that will come shortly after.
None of this means the suit is dismissed. Rennie could make decisions on the court's authority and motion to stay based on filings submitted, or with another hearing.
Rennie said during the hearing that he will use what authority he has to ask the State Auditor and banks not to dispose of relevant information until then, since it's possible the loan Gulftainer filed for in 2018 could face a record-keeping expiration date at the banks.
