Davitashvili v. Grubhub Inc.

District Court, S.D. New York·Decided June 30, 2023·No. 1:20-cv-03000·Unknown

Opinion

ENDORSED USDS SDNY June 29, 2023 DOCUMENT Granted. ELECTRONICALLY FILED Hon. Lewis A. Kaplan SO ORDERED. DOC We a United States District Judge . DATE FILED: _ 6-30-2023 | United States Courthouse /s/ Lewis A. Kaplan 500 Pearl Street Lewis A. Kaplan, U.S.D.J. New York, NY 10007 Dated: June 30, 2023 Re: = Mariam Davitashvili, et al. v. Grubhub Inc., et al., 20 Civ. 03000 (LAK) (S.D.N.Y.) Dear Judge Kaplan, We write jointly on behalf of the Plaintiffs and Defendants. Under Your Honor’s Rules of Practice and Section 13.1 of this Court’s ECF Rules and Instructions, we respectfully submit this joint letter motion based on last Friday’s Supreme Court decision in Coinbase v. Bielski, No. 22- 105 (June 23, 2023), a copy of which is attached. In light of Coinbase, the parties request that the Court stay all proceedings until Defendants’ pending interlocutory appeals under 9 U.S.C. § 16(a) are resolved. See Davitashvili v. Grubhub Inc., Nos. 23-521(L), 23-522(Con) (2d Cir.). According to the Supreme Court in Coinbase, a “district court must stay its pre-trial and trial proceedings while [an] interlocutory appeal” under “9 U.S. C. §16(a) ... is ongoing.” Slip op. at 1 (abrogating Motorola Credit Corp. v. Uzan, 388 F. 3d 39, 53-54 (2d Cir. 2004)). The Court explained that “[a]n appeal, including an interlocutory appeal, ‘divests the district court of its control over those aspects of the case involved in the appeal.’” /d. at 3 (quoting Griggs v. Provident Consumer Discount Co., 459 U.S. 56, 58 (1982)). The Court in Coinbase also held that when a party appeals under 9 U.S.C. § 16(a), “the entire case is essentially ‘involved in the appeal.’” □□□ (quoting Griggs, 459 U.S. at 58). Accordingly, Coinbase requires that this Court stay all proceedings with respect to the five named plaintiffs subject to both Defendants’ 9 U.S.C. § 16(a) appeals. And since all plaintiffs in this case assert the same allegations in support of the same claims, and since there 1s no plaintiff not subject to either appeal who can seek to represent one of the three proposed classes, going forward without all plaintiffs for all of the putative classes poses many risks. They include duplicative and inefficient party, third-party, and expert discovery and multiple rounds of class certification proceedings, all “wast[ing] scarce judicial resources.” Coinbase, slip op. at 6. Under these circumstances, “the interests of justice [and] judicial economy thus would be served” by a complete “stay [of] proceedings.” Freeman v. Complex Computing Co., 931 F. Supp. 1115, 1124 (S.D.N.Y. 1996) (Kaplan, J.), aff'd in relevant part, rev’d in part on other grounds and remanded, 119 F.3d 1044 (2d Cir. 1997). For the foregoing reasons, the parties request that this Court stay all proceedings in this case until Defendants’ pending interlocutory appeals under 9 U.S.C. §16(a) are resolved and the Second Circuit issues the mandates to this Court. (The parties have also agreed to work to expedite resolution of Defendants’ appeals.) If the Court grants this motion, the parties will provide the Court with a proposed scheduling order within twenty-one days after the issuance of the mandates.

Sincerely, s/ Eric S. Hochstadt Eric S. Hochstadt Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, NY 10153 eric.hochstadt@weil.com Counsel for Grubhub Inc. (d/b/a Seamless) s/ Andrew A. Ruffino Andrew A. Ruffino Covington & Burling LLP The New York Times Building 620 8th Avenue New York, NY 10018 aruffino@cov.com Counsel for Uber Technologies, Inc. and Postmates Inc. s/ Edward Normand Edward Normand Freedman Normand Friedland LLP 99 Park Avenue, 19th Floor New York, NY 10016 tnormand@fnf.law Gregory A. Frank FRANK LLP 305 Broadway, Suite 700 New York, New York 10007 info@frankllp.com Counsel for Plaintiffs (Slip Opinion) OCTOBER TERM, 2022 1 Syllabus NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done inconnectionwiththis case, at the time theopinion isissued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. SeeUnited States v.Detroit Timber & Lumber Co., 200U.S. 321, 337. SUPREME COURT OF THE UNITED STATES Syllabus COINBASE, INC. v. BIELSKI CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT No. 22–105. Argued March 21, 2023—Decided June 23, 2023 Abraham Bielski filed a putative class action on behalf of Coinbase users alleging that Coinbase, an online currency platform, failed to replace funds fraudulently taken from the users’ accounts. Because Coinbase’s User Agreement provides for dispute resolution through binding arbi- tration, Coinbase filed a motion to compel arbitration. The District Court denied the motion. Coinbase then filed an interlocutory appeal to the Ninth Circuit under the Federal Arbitration Act, 9 U. S. C. §16(a), which authorizes an interlocutory appeal from the denial of a motion to compel arbitration. Coinbase also moved the District Court to stay its proceedings pending resolution of the interlocutory appeal. The District Court denied Coinbase’s stay motion, and the Ninth Cir- cuit likewise declined to stay the District Court’s proceedings pending appeal. Held: A district court must stay its proceedings while an interlocutory appeal on the question of arbitrability is ongoing. Pp. 2–10. (a)Section 16(a) does not say whether district court proceedings must be stayed pending resolution of an interlocutory appeal. But Congress enacted the provision against a clear background principle prescribed by this Court’s precedents: An appeal, including an inter- locutory appeal, “divests the district court of its control over those as- pects of the case involved in the appeal.” Griggs v. Provident Consumer Discount Co., 459 U. S. 56, 58. The Griggs principle resolves this case. Because the question on appeal is whether the case belongs in arbitra- tion or instead in the district court, the entire case is essentially “in- volved in the appeal,” id., at 58, and Griggs dictates that the district court stay its proceedings while the interlocutory appeal on arbitrabil- ity is ongoing. Most courts of appeals to address this question, as well as leading treatises, agree with that conclusion. 2 COINBASE, INC. v. BIELSKI Syllabus The common practice of staying district court proceedings during the pendency of an interlocutory appeal taken under §16(a) reflects com- mon sense. If the district court could move forward with pre-trial and trial proceedings while the appeal on arbitrability was ongoing, then many of the asserted benefits of arbitration (efficiency, less expense, less intrusive discovery, and the like) would be irretrievably lost—even if the court of appeals later concluded that the case actually had be- longed in arbitration all along. Absent a stay, parties also could be forced to settle to avoid the district court proceedings (including dis- covery and trial) that they contracted to avoid through arbitration. The Griggs rule avoids these detrimental results. Congress’s longstanding practice reflects the Griggs rule.

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