MARK A. GOLDSMITH, District Judge.
On May 23, 2019, this Court entered an Opinion and Order which,
Rule 23(f) confers discretion upon the district court to stay proceedings pending appeal of an order granting or denying class certification. On a motion to stay pending appeal, the Court considers "(1) whether the defendant has a strong or substantial likelihood of success on the merits; (2) whether the defendant will suffer irreparable harm if the district court proceedings are not stayed; (3) whether staying the district court proceedings will substantially injure other interested parties; and (4) where the public interest lies."
Turning first to Defendants' likelihood of success on the merits, the Court finds that this factor weighs against issuing a stay. Defendants' burden with respect to showing a likelihood of success on the merits is two-fold: they must show that it is likely that their Rule 23(f) petition will be granted, and that they will prevail on the merits of their petition.
As an initial matter, the Sixth Circuit may decide not to hear Defendants' appeal. A Rule 23(f) appeal "is never to be routine," and "Rule 23(f) appeals will be the exception, not the norm."
The Court finds it unlikely that the Sixth Circuit would hear the appeal on the theory that this Court's decision would be a "death-knell" for the litigation. In
The Court also finds it unlikely that the Sixth Circuit would grant Defendants' petition on the grounds of a strong likelihood of success on the merits. The Court carefully considered the arguments raised by Defendants in connection with the motion for class certification, and Defendants have offered no new substantive arguments that would lead this Court to reconsider its conclusions. For the reasons set forth in this Court's May 23, 2019 Opinion, the Court cannot conclude that Defendants have a strong likelihood of succeeding on the merits.
It may be that the Sixth Circuit decides to hear the appeal based on novel or unsettled issues of class certification law. Defendants raise three grounds for the Sixth Circuit to reverse this Court's decision on class certification: (1) the Court certified a class consisting of out-of-state Plaintiffs; (2) the class includes members who may have received an e-fax; and (3) the Court certified a class even though Plaintiff did not present admissible evidence supporting his argument. The second ground does not go to an issue of class certification; it concerns the merits of the case, making it unlikely that the Sixth Circuit would decide to consider it on a Rule 23(f) appeal.
Nonetheless, it is unlikely that, if the Sixth Circuit does take the appeal, Defendants would prevail on appeal. An order granting class certification "is subject to a very limited review and will be reversed only upon a strong showing that the district court's decision was a clear abuse of discretion."
The second factor for this Court to consider is whether Defendants would be irreparably harmed, absent a stay. "A showing of irreparable harm requires more than a reference to litigation costs associated with continued district court proceedings, or to settlement pressures."
Defendants argue that Lyngaas has an interest in staying the case, as a stay will avoid unnecessary expense. Defs. Mot. at 16. As Lyngaas points out, however, it is
Lastly, Defendants argue that the public interest weighs in favor of entering a stay, as class members will receive notice of the class proceedings and may rely upon this notice. Defs. Mot. at 17. If the Sixth Circuit decertifies the class, Defendants argue, the parties will have to send out another round of notices to class members. Defendants point to
It is unclear what confusion might result from class members receiving a corrective notice regarding class certification. Class members would initially receive a notice informing them that they are part of a class action unless they decide to opt out; should the Sixth Circuit decertify the class, the class member would later be told that he or she is no longer part of a class action. The Court sees no reason to assume that the class members are incapable of understanding any notice that is sent to them. As for any reliance that a class member would place on receiving the initial class notice, there would be no prejudice to the class member, as "[t]he filing of a class action complaint tolls the statute of limitations for all putative class members . . . until class certification is denied."
Further, "[t]he public has an interest in prompt resolution of the cases that will be tried,"
For these reasons, the Court finds that the balance of considerations weighs against staying the case pending Defendants' Rule 23(f) appeal.
For the reasons provided, the Court denies Defendants' motion to stay (Dkt. 91).
SO ORDERED.