Bank of America, N.A. et al v. Santa Barbara Homeowners Association et al

Filing 73

ORDER that ECF No. 58 Motion to Stay Discovery is granted in part; Discovery is STAYED; ECF Nos. 71 and 72 Motions for Protective Order are denied as moot. Signed by Magistrate Judge Carl W. Hoffman on 11/28/2017. (Copies have been distributed pursuant to the NEF - LH)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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BANK OF AMERICA, N.A., et al.

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Plaintiffs,
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v.
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SANTA BARBARA HOMEOWNERS
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ASSOCIATIONS, et al.,
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Defendants.
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_______________________________________ )

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Case No. 2:16-cv-02768-RFB-CWH

ORDER

Presently before the Court is Plaintiff Bank of America, N.A.’s motion to stay discovery

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(ECF No. 58), filed on September 22, 2017. Defendant SFR Investment Pool 1, LLC (“SFR”) filed a

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response (ECF No. 64) on October 13, 2017. Plaintiffs did not file a reply. Also before the Court

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are Plaintiff’s emergency motions for protective order (ECF Nos. 71 and 72), filed on November 22,

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2017.

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Plaintiff moves for a stay of all discovery in this case, pending the Court’s decision on

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Plaintiff’s motion for summary judgment (ECF No. 57). Plaintiff argues that in light of the Ninth

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Circuit’s recent decision in Bourne Valley, its motion for summary judgment is potentially

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dispositive of this matter and requires no discovery for the Court to render a decision. See Bourne

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Valley Court Tr. v. Wells Fargo Bank, NA, 832 F.3d 1154 (9th Cir. 2016). SFR opposes the stay,

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arguing that Bourne Valley is not dispositive, and moreover, the Nevada Supreme Court will likely

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issue an affirmative answer to the certified question currently pending before it (See The Bank of

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New York Mellon v. Star Hill Homeowners Association, et al., Case No. 2:16-cv-02561-RFB-PAL,

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(ECF No. 41)), and this affirmative answer will supersede Bourne Valley and thereby dispose of

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Plaintiff’s claims in its motion for summary judgment.

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It is within the Court’s broad discretion over discovery to determine whether a stay of

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discovery is appropriate. Little v. City of Seattle, 863 F.2d 681, 685 (9th Cir. 1988). When

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evaluating a motion to stay, this Court considers the goal of Rule 1 of the Federal Rules of Civil

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Procedure, which directs that the Rules shall 'be construed and administered to secure the just,
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speedy, and inexpensive determination of every action.'" Tradebay, LLC v. eBay, Inc., 278 F.R.D.

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597, 602 (D. Nev. 2011).

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Here, both parties acknowledge that the outcome in this case depends upon the proper

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interpretation of Bourne Valley. SFR further argues that the Nevada Supreme Court’s answer to the

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pending certified question will likely supersede Bourne Valley and end Plaintiff’s claims. Given

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SFR’s argument that Plaintiff’s motion for summary judgment is an attempt to “rush to a decision

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. . . in case the Nevada Supreme Court formally tells the Ninth Circuit that it interpreted Nevada law

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incorrectly,” (Def’s Resp. at p. 64), there is good cause to stay discovery in this matter, at least until

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the Nevada Supreme Court announces its answer to the certified question. The Court finds no

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suggestion that a stay would prejudice the parties. Rather, a stay will allow the parties to ensure that

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the legal questions pertinent in this case are settled before expending resources on discovery.

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IT IS THEREFORE ORDERED that Plaintiff’s motion to stay discovery (ECF No. 58) is

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GRANTED in part. Discovery in this matter is STAYED until the Nevada Supreme Court issues an

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answer to the certified question presented to it in The Bank of New York Mellon v. Star Hill

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Homeowners Association, et al., Case No. 2:16-cv-02561-RFB-PAL, (ECF No. 41). After the

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Nevada Supreme Court issues its answer, any party may move to lift the stay.

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IT IS FURTHER ORDERED that Plaintiff’s pending motions for protective order (ECF Nos.
71 and 72) are DENIED as moot.
DATED: November 28, 2017

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_________________________________
C.W. Hoffman, Jr.
United States Magistrate Judge

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