Schrader v. Wynn

District Court, D. Nevada·Decided October 14, 2021·No. 2:19-cv-02159·Unknown

Opinion

4 UNITED STATES DISTRICT COURT 5 DISTRICT OF NEVADA 6 * * * 7 Brenna Schrader, Case No. 2:19-cv-02159-JCM-BNW 8 Plaintiff, 9 ORDER v. 10 Wynn Las Vegas, LLC, et al., 11 Defendants. 12 13 14 Before the Court are two motions to stay discovery. Defendant Alan Wynn filed a motion 15 to stay discovery. ECF No. 101. Defendant Maurice Wooden joined this motion. ECF No. 102. 16 Plaintiff opposed the motion (ECF No. 124), and Mr. Wynn replied (ECF No. 135). Defendants 17 Wynn Resorts, Limited (WRL) and Wynn Las Vegas, LLC (WLV) (collectively, the “entity 18 defendants”) also filed a motion to stay discovery. ECF No. 106. Plaintiff opposed the motion 19 (ECF No. 124), and the entity defendants replied (ECF No. 132). 20 I. Background 21 This is a putative class action in which Plaintiff seeks to represent nine subclasses of 22 plaintiffs. ECF No. 90. Plaintiff generally alleges as follows: Defendants engaged in decades of 23 sexual misconduct at WLV and WR and covered up this conduct. Many current and former 24 female employees, including Plaintiff, were sexually harassed, sexually assaulted, and forced into 25 sexual servitude. More specifically, Plaintiff alleges that she and others were forced to perform 26 sex acts on Mr. Wynn and VIP clients at WR and WLV. This, and other conduct, created a hostile 27 work environment. It also had the effect of denying these female employees the same terms and 1 As a result of this conduct, Plaintiff filed suit. ECF No. 1-1. Defendants moved to dismiss. 2 ECF Nos. 35, 36, 39. Defendants simultaneously sought to stay discovery, which Plaintiff did not 3 oppose. ECF No. 38, 40, 42, 56. Accordingly, this Court granted Defendants’ motion and stayed 4 discovery. ECF No. 57. The Court ordered the parties to file a scheduling order within 14 days 5 after the motions to dismiss were decided. Id. at 2. 6 Plaintiff then moved to amend her complaint. ECF No. 69. This Court recommended that 7 certain claims not be allowed to proceed and ordered other claims to proceed. ECF No. 81. 8 Defendants objected. ECF Nos. 82-85. The district judge assigned to the case reviewed the 9 objections, sustaining some and overruling others. ECF No. 89. Ultimately, the following claims 10 survived: (1) Plaintiff’s Title VII claim against the entity defendants; (2) Plaintiff’s Nevada RICO 11 claim against all Defendants; (3) Plaintiff’s intentional infliction of emotional distress (IIED) 12 claim against the entity defendants and Mr. Wynn; and (4) Plaintiff’s civil conspiracy claim 13 against Mr. Wynn. Id. at 22. The district judge also denied the motions to dismiss as moot. Id. 14 Once the amended complaint was filed, Defendants again moved to dismiss certain 15 claims. ECF Nos. 98, 99, 103. Mr. Wynn and Mr. Wooden each moved to dismiss all remaining 16 claims against them. ECF Nos. 98, 99. The entity defendants moved to dismiss the Nevada RICO 17 claim against them, conceding that the Title VII and IIED claims would proceed. See ECF No. 18 103. 19 Because there are several motions to dismiss pending, Defendants moved to continue the 20 stay of discovery. ECF Nos. 101, 106. Defendants make two general arguments regarding why 21 discovery should be stayed. First, Defendants argue that under Kor Media Group, LLC v. Green, 22 294 F.R.D. 579 (D. Nev. 2013) and similar cases, a discovery stay is appropriate because 23 dispositive motions are pending that are likely to succeed. See ECF Nos. 101, 106. Second, 24 Defendants argue that under Federal Rule of Civil Procedure 1, a continuation of the discovery 25 stay is appropriate based on the complexity and current procedural posture of this case. See ECF 26 Nos. 106, 132. 27 Plaintiff opposed both motions to stay discovery in a joint response brief. ECF No. 124. 1 should be denied because the Court cannot be convinced that Plaintiff cannot state a claim. Id. 2 Additionally, Plaintiff argues that discovery is related to the dispositive motions because 3 “Plaintiff could potentially amend her complaint upon the discovery of additional facts.” Id. at 4.1 4 Finally, though Plaintiff acknowledges that in deciding a motion to stay discovery the Court is 5 guided by Rule 1 of the Federal Rules of Civil Procedure, she does not address Defendants’ 6 arguments about the complexity of this case. See ECF No. 124. 7 II. Legal Standard 8 The Federal Rules of Civil Procedure do not provide for automatic or blanket stays of 9 discovery because a potentially dispositive motion is pending. Skellerup Indus. Ltd. v. City of 10 L.A., 163 F.R.D. 598, 600-01 (C.D. Cal. 1995). 11 A court may, however, stay discovery under Federal Rule of Civil Procedure 26(c). Fed. 12 R. Civ. P. 26(c)(1); Clardy v. Gilmore, 773 F. App’x 958, 959 (9th Cir. 2019) (affirming stay of 13 discovery under Rule 26(c)). The standard for staying discovery under Rule 26(c) is good cause. 14 Fed. R. Civ. P. 26(c)(1) (the court “may, for good cause, issue an order to protect a party or 15 person from annoyance, embarrassment, oppression, or undue burden or expense,” including 16 forbidding discovery or specifying when it will occur). 17 The Ninth Circuit has not provided a rule or test that district courts must apply to 18 determine if good cause exists to stay discovery. Salazar v. Honest Tea, Inc., No. 19 213CV02318KJMEFB, 2015 WL 6537813, at *1 (E.D. Cal. Oct. 28, 2015) (“The Ninth Circuit 20 has not provided guidance on evaluating a motion to stay discovery pending resolution of a 21 potentially dispositive motion, other than affirming that district courts may grant such a motion 22 for good cause.”); Mlejnecky v. Olympus Imaging Am., Inc., No. 2:10-CV-02630, 2011 WL 23 489743, at *6 (E.D. Cal. Feb. 7, 2011) (“The Ninth Circuit Court of Appeals has not announced a 24 clear standard against which to evaluate a request or motion to stay discovery in the face of a 25 pending, potentially dispositive motion.”). 26

27 1 The Court will not address this argument except to say that Plaintiff provides no authority for the proposition that discovery should be allowed if plaintiffs could potentially discover additional information to amend their complaints. 1 The Ninth Circuit has, however, identified one scenario in which a district court may stay 2 discovery and one scenario in which a district court may not stay discovery. The Ninth Circuit has 3 held that a district court may stay discovery when it is convinced that the plaintiff will be unable 4 to state a claim upon which relief can be granted. See Wood v. McEwen, 644 F.2d 797, 801 (9th 5 Cir. 1981) (“A district court may limit discovery ‘for good cause’, Rule 26(c)(4), Federal Rules of 6 Civil Procedure, and may continue to stay discovery when it is convinced that the plaintiff will be 7 unable to state a claim for relief.”); B.R.S. Land Invs. v. United States, 596 F.2d 353, 356 (9th Cir. 8 1979) (“A district court may properly exercise its discretion to deny discovery where, as here, it is 9 convinced that the plaintiff will be unable to state a claim upon which relief can be granted.”).2 10 The Ninth Circuit has also held that a district court may not stay discovery when discovery is 11 needed to litigate the dispositive motion. Alaska Cargo Transp., Inc. v. Alaska R.R.

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