Klein et al v. Silversea Cruises Ltd
Filing
25
Memorandum Opinion and Order granting 22 MOTION for Protective Order and ordering that all discovery is stayed pending the Court's entry of an order resolving Defendant's pending Motion to Transfer Venue. (See order for specifics) (Ordered by Magistrate Judge David L Horan on 12/16/2014) (mcrd)
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
VICKY KLEIN and TERRY KLEIN,
Plaintiffs,
V.
SILVERSEA CRUISES, LTD.,
Defendant.
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No. 3:14-cv-2699-G-BN
MEMORANDUM OPINION AND ORDER STAYING DISCOVERY
Defendant Silversea Cruises, Ltd. has filed a Motion for Protective Order, asking
for an order staying discovery until the Court has decided Defendant’s pending Motion
to Transfer Venue [Dkt. No. 9]. See Dkt. No. 22. As required by the requirements of the
Court’s Standing Order on Discovery Motions [Dkt. No. 8], the parties have now filed
their Joint Status Report Regarding Defendant’s Motion for Protective Order. See Dkt.
No. 24.
The Court GRANTS Defendant’s Motion for Protective Order [Dkt. No. 22] for
the reasons explained below.
Background
On August 6, 2014, Silversea filed its Motion to Transfer Venue [Dkt. No. 9] on
the basis that the Plaintiffs Vicky and Terry Klein entered into a contract with
Defendant that contained a forum selection clause requiring that all litigation related
to the cruise at issue be filed in the State of Florida. That motion remains pending, and
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Defendant seeks to stay all discovery pending that motion’s determination.
Analysis
Control of discovery is committed to this Court’s sound discretion, see generally
Freeman v. United States, 556 F.3d 326, 341 (5th Cir. 2009), and the Court has
discretion to stay discovery “for good cause shown,” FED. R. CIV. P. 26(c)(1); see
generally Landry v. Air Line Pilots Ass’n Int’l AFL-CIO, 901 F.2d 404, 436 (5th Cir.
1990).
The United States Court of Appeals for the Fifth Circuit has held a stay of
discovery to be appropriate in a similar situation. See Enplanar, Inc. v. Marsh, 11 F.3d
1284, 1291 (5th Cir. 1994). The Court of Appeals explained in Enplanar that it had
found no authority “holding [a] district court has abused its discretion in denying
merits-related discovery pending ruling on a motion for change of venue,” where
“[f]ederal courts have long recognized that two of the factors supporting a change in
venue are convenience of the witnesses and the location of records and documents,”
where these factors “necessarily implicate the ease of conducting merits-related
discovery in a location which is near the relevant witnesses and documents,” and
where, “if a change of venue motion is granted, the discovery is not denied but merely
delayed.” Id.
Defendant relies on these same points in support of their motion requesting a
stay. Based on these same considerations, the Court finds good cause to, in its
discretion in this particular case, order the stay of all discovery pending a decision on
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Defendant’s motion to transfer.
The Court is not persuaded by Plaintiffs’ counter-arguments. See Dkt. No. 24.
Plaintiffs argue that advances in internet and associated technologies eliminate the
witness and document convenience argument advanced in favor of a stay in Enplanar
and by Defendant here. But the United States Supreme Court has very recent
reaffirmed the general applicability of these considerations in connection with a 28
U.S.C. § 1404(a) venue transfer analysis. See Atlantic Marine Constr. Co., Inc. v. U.S.
Dist. Court for W. Dist. of Tex., 134 S.Ct. 568, 581 (2013). And, in this case, the Court
has nothing before it to suggest that Defendant’s documents at issue or its witnesses
to be made available for deposition would be electronically available to such an extent
as to, in this case, eliminate these considerations of witness convenience and record
and document location and their weighing in favor of a stay.
In Enplanar, the Court of Appeals further explained that the nonmoving party
there opposing a stay “tendered no showing that the delay in discovery somehow
prejudiced their case ... through loss of documents or unavailability of witnesses.” 11
F.3d at 1291. Plaintiffs here generally assert that “[t]he prejudice caused by the delay
of discovery outweighs staying discovery until a ruling on the Defendant’s motion to
transfer venue” because “[d]elay in discovery will lead to a loss of evidence – documents
can be misplaced or destroyed and most importantly, witnesses’ memories can fade,
thereby frustrating Plaintiffs’ abilities to put forth an effective case.” Dkt. No. 24 at 6.
But the Court finds that argument to be no more persuasive than what the Court of
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Appeals rejected 20 years ago, where Plaintiffs’ argument could be made in response
to any request for a stay, including the stay that the Fifth Circuit affirmed in
Enplanar.
Further, the stay requested here does not involve the length of the stay at issue
in Alcala v. Webb County, 625 F. Supp. 2d 391, 414 (S.D. Tex. 2009), on which
Plaintiffs rely. Defendant requests a stay pending a decision on a ripe motion, not
pending resolution of a separate case, as in Alcala.
Finally, Plaintiffs do not disagree that resolving the pending motion to transfer
does not require discovery but instead argue that conducting discovery will not
prejudice that motion’s resolution because “there is no prejudice in transferring venue
AFTER discovery has commenced.” Dkt. No. 24 at 6. But that argument does not
address the fact that, as the Court of Appeals explained in Enplanar, a district court
can properly consider “the ease of conducting merits-related discovery in a location
which is near the relevant witnesses and documents” and that, “if a change of venue
motion is granted, the discovery is not denied but merely delayed.” 11 F.3d at 1291.
That staying discovery may not be necessary to grant the transfer that Defendant
seeks does not undermine Defendant’s showing of good cause to preclude discovery
until the Court has decided whether this case will proceed in this or another venue.
Conclusion
The Court GRANTS Defendant’s Motion for Protective Order [Dkt. No. 22] and
ORDERS that all discovery is stayed pending the Court’s entry of an order resolving
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Defendant’s pending Motion to Transfer Venue [Dkt. No. 9].
SO ORDERED.
DATED: December 16, 2014
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DAVID L. HORAN
UNITED STATES MAGISTRATE JUDGE
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