Nevada Sand Castle, LLC v. Green Tree Servicing LLC et al

Filing 52

ORDER Granting 38 Motion to Stay. Status Conference set for 1/16/2017 10:30 AM in LV Courtroom 3D before Magistrate Judge Cam Ferenbach. Signed by Magistrate Judge Cam Ferenbach on 8/15/16. (Copies have been distributed pursuant to the NEF - ADR)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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***

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NEVADA SAND CASTLES, LLC,
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Plaintiff,
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vs.
GREEN TREE SERVICING LLC, et al.,

2:15-cv-00588-GMN-VCF
ORDER

Defendants.

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Before the court is Federal National Mortgage Association and Federal Housing Finance Agency's

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Motion for Stay of Discovery Pending Resolution of their Motion for Summary Judgment (ECF No. 78).

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No opposition has been filed and the time to file and opposition has passed. For the reasons stated below,’

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Federal National Mortgage Association and Federal Housing Finance Agency's motion is granted.

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LEGAL STANDARD

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When evaluating a motion to stay discovery while a dispositive motion is pending, the court

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initially considers the goal of Federal Rule of Civil Procedure 1. The guiding premise of the Rules is that

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the Rules “should be construed and administered to secure the just, speedy, and inexpensive determination

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of every action.” FED. R. CIV. P. 1. It needs no citation of authority to recognize that discovery is

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expensive. The Supreme Court has long mandated that trial courts should resolve civil matters fairly but

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without undue cost. Brown Shoe Co. v. United States, 370 U.S. 294, 306 (1962). This directive is echoed

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by Rule 26, which instructs the court to balance the expense of discovery against its likely benefit. See

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FED.R.CIV.P. 26(B)(2)(iii).

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Consistent with the Supreme Court’s mandate that trial courts should balance fairness and cost,

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the Rules do not provide for automatic or blanket stays of discovery when a potentially dispositive motion

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is pending. Skellerup Indus. Ltd. v. City of Los Angeles, 163 F.R.D. 598, 600–01 (C.D. Cal. 1995).

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Pursuant to Federal Rule of Civil Procedure 26(c)(1), “[t]he court may, for good cause, issue an order to

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protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense.”

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Whether to grant a stay is within the discretion of the court. Munoz–Santana v. U.S. I.N.S., 742 F.2d 561,

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562 (9th Cir. 1984). The party seeking the protective order, however, has the burden “to ‘show good cause’

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by demonstrating harm or prejudice that will result from the discovery.” FED.R.CIV.P. 26(c)(1).

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Satisfying the “good cause” obligation is a challenging task. A party seeking “a stay of discovery carries

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the heavy burden of making a ‘strong showing’ why discovery should be denied.” Gray v. First Winthrop

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Corp., 133 F.R.D. 39, 40 (N.D.Cal.1990) (citing Blankenship v. Hearst Corp. 519 F.2d 418, 429 (9th Cir.

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1975)).

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Generally, imposing a stay of discovery pending a dispositive motion is permissible if there are no

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factual issues raised by the dispositive motion, discovery is not required to address the issues raised by

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the dispositive motion, and the court is “convinced” that the plaintiff is unable to state a claim for relief.

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Rae v. Union Bank, 725 F.2d 478, 481 (9th Cir. 1984); White v. Am. Tobacco Co., 125 F.R.D. 508 (D.

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Nev. 1989) (citing Wood v. McEwen, 644 F.2d 797, 801 (9th Cir. 1981) cert. denied, 455 U.S. 942 (1982).

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Typical situations in which staying discovery pending a ruling on a dispositive motion are appropriate

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would be where the dispositive motion raises issues of jurisdiction, venue, or immunity. TradeBay, LLC

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v. Ebay, Inc., 278 F.R.D. 597, 600 (D. Nev. 2011).

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Courts in the District of Nevada apply a two-part test when evaluating whether a discovery stay

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should be imposed. Id. (citations omitted). First, the pending motion must be potentially dispositive of the

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entire case or at least the issue on which discovery is sought. Id. Second, the court must determine whether

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the pending dispositive motion can be decided without additional discovery. Id. When applying this test,

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the court must take a “preliminary peek” at the merits of the pending dispositive motion to assess whether

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a stay is warranted. Id. The purpose of the “preliminary peek” is not to prejudge the outcome of the

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dispositive motion. Rather, the court’s role is to evaluate the propriety of an order staying or limiting

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discovery with the goal of accomplishing the objectives of Rule 1.

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DISCUSSION

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Federal National Mortgage Association and Federal Housing Finance Agency's Motion to stay is

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granted for two reasons. First, no opposition has been filed to motion to stay. Local Rule 7-2(d) states,

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“[t]he failure of an opposing party to file points and authorities in response to any motion shall constitute

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consent to the granting of the motion.” Here, it would seem that the other parties have consented to the

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granting of the motion under Local Rule 7-2(d).

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The Court has considered the joint motion in light of the goals of Rule 1 to “secure the just, speedy,
and inexpensive” determination of all cases.

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For good cause shown,

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IT IS HEREBY ORDERED that the motion to stay (ECF NO. 38) is hereby GRANTED. In the

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event resolution of the motion for summary judgment (ECF No. 37) does not result in the disposition of

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this case, the parties must file a joint discovery plan within 21 days of the issuance of the order resolving

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that motion.

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IT IS FURTHER ORDERED that a status hearing is scheduled for 10:30 a.m., January 16, 2017,
in courtroom 3D.
12th
DATED this 15th day of August, 2016.

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_________________________
CAM FERENBACH
UNITED STATES MAGISTRATE JUDGE