United States District Court, D. Nevada
ORDER (DOCKET NOS. 27, 28)
J. KOPPE United States Magistrate Judge
before the Court are Defendant Credit One Bank, N.A.'s
motion for stay of discovery and motion for stay of action.
Docket Nos. 27, 28. The Court has considered the motions, as
well as Plaintiff's responses and Defendant's
replies. Docket Nos. 27, 28, 31, 32, 33, 34. The Court finds
this motion properly resolved without oral argument.
See Local Rule 78-1.
initiated this action on November 9, 2016, alleging
violations of the Fair Credit Reporting Act and Nevada's
Deceptive Trade Practices statute. Docket No. 1. On January
6, 2017, Defendant filed a motion to compel arbitration.
Docket No. 20. Defendant submits that, as its customer,
“Plaintiff gave his express consent to arbitrate any
and all disputes with Credit One, ” and that therefore
“Credit One is entitled to compel arbitration.”
Id. at 2. Plaintiff asserts that Defendant is not
entitled to compel arbitration. See, e.g., Docket
No. 22. Defendant now asks the Court to stay this case or, to
stay discovery, pending resolution of its motion to compel
arbitration. Docket Nos. 27, 28.
Motion to Stay Action
have inherent power to stay the cases before them as a matter
of controlling their own dockets and calendars. See
Landis v. N. Am. Co., 299 U.S. 248, 254-55
(1936). This power to stay is “incidental to
the power inherent in every court to control the disposition
of the causes of action on its docket with economy of time
and effort for itself, for counsel, and for litigants.”
Id. at 254. The movant bears the burden of showing
that a stay is warranted. See Clinton v. Jones, 520
U.S. 681, 708 (1997).
Ninth Circuit has outlined various factors a court should
consider in exercising its discretion:
Where it is proposed that a pending proceeding be stayed, the
competing interests which will be affected by the granting or
refusal to grant a stay must be weighed. Among those
competing interests are the possible damage which may result
from the granting of a stay, the hardship or inequity which a
party may suffer in being required to go forward, and the
orderly course of justice measured in terms of simplifying or
complicating of issues, proof, and questions of law which
could be expected to result from a stay.
Lockyer v. Mirant, 398 F.3d 1098, 1110 (9th Cir.
2005) (quoting CMAX, Inc. v. Hall, 300 F.2d 265, 268
(9th Cir. 1962)).
submits that because this case is neither fact- nor
witness-intensive, no harm will result from a stay. Docket
No. 28 at 5. Defendant submits that, absent a stay, it will
suffer harm because it “will be burdened by the risk of
engaging in motion practice and discovery proceedings that
may be rendered useless if this Court grants [its] motion to
compel arbitration.” Id. at 6. Defendant also
contends that granting a stay will conserve the Court's
resources, and will have no negative impact on the public or
any other persons outside this litigation. Id. at
6-7. Plaintiff responds that, inter alia,
Defendant's motion does not cite the proper authority to
support its request to stay the action. Docket No. 32 at 9.
Defendant replies that, inter alia, the relevant
authority supports imposition of a stay. See Docket
No. 33 at 3-7.
Court finds that a stay of the instant action is warranted.
First, any potential damage that will result from a stay is
minimal. The only risk involved is a slight delay in the
proceedings in the event the Court does not grant
Defendant's motion to compel arbitration. Second, if
Defendant is forced to move forward while the motion to
compel arbitration is under consideration, it will have to
engage in expensive discovery and, potentially, motion
practice, that will be rendered useless if the Court grants
its motion to compel arbitration. Finally, granting a stay
will streamline and simplify the process by allowing the
Court to first resolve the threshold issue of whether
Defendant may compel arbitration.
Motion to Stay Discovery
has also filed a motion to stay discovery. Docket No. 27. As
the Court has granted Defendant's motion, ...