U.S. Commodity Futures Trading Commission v. Banc de Binary, Ltd.

Filing 43

ORDER Granting 41 Defendant's Motion for for Stay of Discovery pending adjudication of a dispositive motion. IT IS FURTHER ORDERED that all discovery is stayed in this case until the earlier of the ruling on the dispositive motion or 5/27/2014. On or before 15 days after the stay is lifted the parties must file an Amended Discovery Plan and Scheduling Order. Signed by Magistrate Judge Cam Ferenbach on 11/25/2013. (Copies have been distributed pursuant to the NEF - AC)

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UNITED STATES DISTRICT COURT 1 DISTRICT OF NEVADA 2 *** 3 4 U.S. COMMODITY FUTURES TRADING COMMISSION, 2:13–cv–0992–MMD–VCF 5 Plaintiff, 6 vs. 7 ORDER BANC DE BINARY, LTD., Defendants. 8 9 10 11 Before the court is Defendant Banc De Binary’s motion for stay of discovery pending adjudication of a dispositive motion (#411). This motion is unopposed. 12 13 In evaluating the propriety of an order staying or limiting discovery while a dispositive motion is pending, courts in the Ninth Circuit consider the goal of Federal Rule of Civil Procedure 1, which states 14 that the rules shall “be construed and administered to secure the just, speedy, and inexpensive 15 determination of every action.” FED. R. CIV. P. 1. It needs no citation of authority to recognize that 16 discovery is expensive. The Supreme Court has long mandated that trial courts should resolve civil 17 18 19 20 matters fairly but without undue cost. Brown Shoe Co. v. United States, 370 U.S. 294, 306 (1962). This directive is echoed by Rule 26, which instructs the court to balance the expense of discovery against its likely benefit. See FED. R. CIV. P. 26(B)(2)(iii). 21 Consistent with the Supreme Court’s mandate that trial courts should balance fairness and cost, 22 the Rules do not provide for automatic or blanket stays of discovery when a potentially dispositive 23 motion is pending. Skellerup Indus. Ltd. v. City of Los Angeles, 163 F.R.D. 598, 600–01 (C.D. Cal. 24 25 1 Parenthetical citations refer to the court’s docket. 1 1 2 1995). However, the court may stay discovery where—as here—it is convinced that “discovery is not required to address the issues raised by Defendant’s motion to dismiss.” White v. American Tabacco 3 Co., 125 F.R.D. 508 (D. Nev. 1989) (citing Wood v. McEwen, 644 F.2d 797, 801 (9th Cir. 1981), cert. 4 denied, 455 U.S. 942 (1982); Jarvis v. Regan, 833 F.2d, 149, 155 (9th Cir. 1987)). See also Shift4 Corp. 5 v. Martin, No. 11–cv–01315–MMD, 2012 WL 3206027, at *3 (D. Nev. Aug. 3, 2012) (citing Wood 6 v. McEwen, 644 F.2d 797, 801 (9th Cir. 1981)). 7 Banc de Binary’s motion to stay is granted for two reasons. First, consistent with this districts 8 precedent, a stay is appropriate because resolution of the pending motion to dismiss does not require 9 discovery. (See Def.’s Mot. to Stay (#41) at 6). The only issue that is raised is a question of law: namely, 10 whether the Government’s complaint states a plausible claim under Iqbal. (Id.) Second, Banc de 11 Binary’s motion to stay is granted because it is unopposed. Under Local Rule 7-2(d), “[t]he failure of an 12 opposing party to file points and authorities in response to any motion shall constitute a consent to the 13 14 15 granting of the motion.” Banc de Binary’s motion was filed on October 29, 2013. To date, no opposition has been filed. The Government has, therefore, consented to granting Banc de Binary’s motion. 16 ACCORDINGLY, and for good cause shown, 17 IT IS ORDERED that Defendant Banc De Binary’s motion for stay of discovery pending 18 19 20 21 22 adjudication of a dispositive motion (#41) is GRANTED. IT IS FURTHER ORDERED that all discovery is stayed in this case until the earlier of the ruling on the dispositive motion or May 27, 2014; IT IS FURTHER ORDERED that on or before fifteen days after the stay is lifted the parties must file an Amended Discovery Plan and Scheduling Order. 23 After May 16, 2014, the parties may file a stipulation to further stay discovery, if the case is still 24 pending. 25 2 1 2 IT IS SO ORDERED. DATED this 25th day of November, 2013. 3 4 _________________________ CAM FERENBACH UNITED STATES MAGISTRATE JUDGE 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3