Milestone,

I think your response here is a little too simplistic.

<The Defendants knew the amount of damages being sought before seeking the joint motion to stay>

Why ask for a stay to negotiate if $ amount is OK?  Just sign on the dotted line.  Come on now.  I would like to understand whether such a request by the defendants would be out of order at this juncture?  What is the realm of possibility?   Opty