Nivalis Energy Systems, LLC et al v. LG Energy Solution, Ltd.

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UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
NIVALIS ENERGY
SYSTEMS, LLC, et al.,
Plaintiffs,
Case No. 25-cv-10058
v. 	Hon. Matthew F. Leitman
LG ENERGY SOLUTION, LTD.,
Defendant.
__________________________________________________________________/
ORDER (1) GRANTING IN PART AND DENYING IN PART
DEFENDANT’S MOTION TO COMPEL ARBITRATION (ECF No. 12)
AND (2) STAYING PROCEEDINGS
On November 17, 2025, the Court held a hearing on Defendant LG Energy
Solution, Ltd.’s motion to compel arbitration with respect to the claims brought in
this case by Plaintiff Nivalis Energy Systems, LLC. (See Mot., ECF No. 12.) 	For
the reasons explained on the record, the motion is GRANTED IN PART AND
DENIED IN PART as follows:
The question of whether the parties’ mutual non-disclosure agreement (the
“NDA,” see ECF No. 12-7) requires Nivalis to arbitrate its claims against LG in this
action must be decided in the first instance by an arbitrator in arbitration proceedings
conducted in conformity with Section 13 of the NDA. Accordingly, it is appropriate
to stay these proceedings as to Nivalis’ claims against LG until the arbitrator makes
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that determination. For reasons of judicial efficiency, it also makes sense to stay the
claims of Plaintiff Townsend Capital, LLC until the arbitrator determines whether
Nivalis must arbitrate its claims. 	Accordingly, LG’s motion is GRANTED IN
PART and this action is STAYED until further order of the Court as to all claims
by both Plaintiffs until the arbitrator determines whether the NDA requires Nivalis
to arbitrate its claims. Once the arbitrator makes that determination, the parties shall
so inform the Court, and the Court will schedule an on-the-record status conference
to discuss next steps. If the arbitrator determines that the NDA does require Nivalis
to arbitrate its claims, then during the status conference, the Court will extend the
stay at least as to the claims brought by Nivalis so that those claims may be
arbitrated.
LG’s motion is DENIED IN PART to the extent that LG contends that any
agreement or contract between the parties other than the NDA requires Nivalis to
arbitrate its claims.
Nothing in this Order shall be read to indicate that Townsend Capital is
obligated to arbitrate any of its claims against LG or that the arbitrability of those
claims must be decided by an arbitrator.
IT IS SO ORDERED.
s/Matthew F. Leitman
MATTHEW F. LEITMAN
Dated: November 17, 2025 	UNITED STATES DISTRICT JUDGE
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I hereby certify that a copy of the foregoing document was served upon the
parties and/or counsel of record on November 17, 2025, by electronic means and/or
ordinary mail.
s/Holly A. Ryan
Case Manager
(313) 234-5126
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