Thomas v. Solarcity Financial Company, LLC

Filing 39

ORDER STAYING ACTION. The Court denies the motion to compel arbitration [Dkt. 16 ] and stays this case, but will allow discovery that relates to the three named plaintiffs. After Morris is decided, the Court will lift the stay, issue an appropriate order, and decide the motion for corrective action [Dkt. 20 ] if necessary. Signed by Judge Larry Alan Burns on 10/16/2017.(lrf)

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UNITED STATES DISTRICT COURT

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SOUTHERN DISTRICT OF CALIFORNIA

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JONATHAN DENICOLA, et al.,

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CASE NO. 17cv820-LAB
Plaintiffs,

ORDER STAYING ACTION

vs.
SOLARCITY FINANCE COMPANY, LLC,
et al.,
Defendants.
Plaintiffs entered arbitration agreements with Solarcity that forbid them from bringing

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claims as a class or collective action. The Ninth Circuit, however, held those types of

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agreements violate the NLRA’s protection of concerted activity. Morris v. Ernst & Young,

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LLP, 834 F.3d 975, 979 (9th Cir. 2016). Since the Supreme Court heard oral argument in

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Morris last week, the Court exercises its broad discretion to stay this case. Leyva v. Certified

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Grocers, 593 F.2d 857, 863 (9th Cir. 1979). But there’s no sense in delaying discovery that

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will help resolve this action regardless of the outcome in Morris. Accordingly, the Court

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denies the motion to compel arbitration [Dkt. 16] and stays this case, but will allow discovery

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that relates to the three named plaintiffs. After Morris is decided, the Court will lift the stay,

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issue an appropriate order, and decide the motion for corrective action [Dkt. 20] if necessary.

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IT IS SO ORDERED.
DATED: October 16, 2017

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HONORABLE LARRY ALAN Burns
United States District Judge