ERIN WILDER-DOOMES, Magistrate Judge.
Plaintiff, Kelly Marie Villani ("Plaintiff"), has filed a Motion to Stay Discovery Pending Resolution of the Related Criminal Matter in State Court.
On December 17, 2014, the Grand Jury of East Baton Rouge Parish returned an indictment against Abdellatif E. Devol (the "Indictment").
On or about September 8, 2015, Plaintiff filed a Petition for Damages in state court. Kelly Marie Villani v. Abdellatif E. Devol, 19
On or about December 21, 2015, the State of Louisiana filed a Motion to Stay Discovery in the state civil suit.
On the same day the State filed a motion to stay discovery in the civil suit, Defendant removed the civil suit to this court.
On February 11, 2016, Plaintiff filed a Motion to Stay Discovery Pending Resolution of the Related Criminal Matter in State Court.
A district court has the inherent power to regulate the flow of cases and "control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants." Landis v. N. Am. Co., 299 U.S. 248, 254 (1936); Billiot v. Beavers, 2015 WL 4397108, *1 (E.D. La. July 13, 2015). "Certainly, a district court may stay a civil proceeding during the pendency of a parallel criminal proceeding." U.S. v. Little Al, 712 F.2d 133, 136 (5th Cir. 1983). See also, SEC v. First Fin. Group of Texas, Inc., 659 F.2d 660, 668 (5th Cir. 1981). While the "simultaneous prosecution of civil and criminal actions is generally unobjectionable," a district court "[i]n `special circumstances'" "should stay one of the proceedings pending completion of the other to prevent a party from suffering substantial and irreparable prejudice." SEC v. First Fin. Group of Texas, Inc., 659 F.2d 660, 667 & 68 (5th Cir. 1981). "A district court has the discretionary authority to stay a civil action pending the resolution of a parallel criminal proceeding when the interests of justice so require." Whitney Nat'l Bank v. Air Ambulance by B&C Flight Management, Inc., 2007 WL 1468417, at *2 (S.D. Tex. May 18, 2007) (citing State Farm Lloyds v. Wood, 2006 WL 3691115 (S.D. Tex. Dec. 12, 2006); United States v. Kordel, 397 U.S. 1, 12 n. 27 (1970); Wehling v. Columbia Broad. Sys., 608 F.2d 1084, 1088) (5th Cir. 1979); and Estes-El v. Long Island Jewish Med. Ctr., 916 F.Supp. 268, 269 (S.D.N.Y. 1995)).
The court considers the following factors when considering whether a civil action should be stayed in light of criminal proceedings: "(1) the extent to which the issues in the criminal and civil cases overlap; (2) the status of the case, including whether the defendant has been indicted; (3) the plaintiff's interest in proceeding expeditiously weighed against the prejudice to the plaintiff caused by a delay; (4) the private interest of and burden on the defendant; (5) the interest of the court; and (6) the public interest." Atkins v. Southeast Comm. Hosp. Sys., 2012 WL 370218 (M.D. La. Feb. 3, 2012) (citing Lodge v. Boyd, 2011 WL 4727863 (E.D. La. Oct. 6, 2011) (citing LeBouef v. Global X-Ray, 2008 WL 239752, at 2 (E.D. La. Jan. 29, 2008); SEC v. First Fin. Group of Texas, Inc., 659 F.2d 660, 668 (5th Cir. 1981))).
"[T]he similarity of issues in the underlying civil and criminal actions is considered the most important threshold issue in determining whether to grant a stay." Dominguez v. Hartford Fin. Serv. Group, Inc., 530 F.Supp.2d 902, 906-07 (S.D. Tex. Jan. 18, 2008). See also, Doe v. Morris, 2012 WL 359315 (E.D. La. Feb. 2, 2012). Here, the Indictment charges Defendant with four counts — two of which parallel Plaintiff's allegations of sexual assault set forth in her civil suit.
As discussed below, the Court considers the status of the criminal case to be relevant to both: (1) Defendant's potential risk of self-incrimination; and (2) the State's ability to investigate and/or prosecute the criminal case.
"Generally, a stay of a civil case is `most appropriate' when a party to the civil action has already been indicted for the same conduct." Modern American Recycling Serv. v. Dunavant, 2012 WL 1357720, at 3 (E.D. La. April 19, 2012). See also, Whitney Nat'l Bank v. Air Ambulance by B&C Flight Management, Inc., 2007 WL 1468417, at *3 (S.D. Tex. May 18, 2007) ("If a criminal indictment is returned against a civil defendant, a court should strongly consider staying the civil proceedings until the related criminal proceedings are resolved."). The status of the criminal case "is largely linked with the fourth factor, the potential burden on Defendant in not granting the stay." LeBouef v. Global X-Ray, 2008 WL 239752, at *2 (E.D. La. Jan. 29, 2008). This is because "[w]here a criminal indictment has been issued, there is a greater risk of self-incrimination. . . ." Id. See also, Hatten v. Gimelstob, 1996 WL 627863, at *1 (E.D. La. Oct. 29, 1996) (finding that even though defendant had not stated whether he intended to invoke his 5th amendment privilege, "there is a substantial risk of self-incrimination. There is a strong argument in favor of deferring civil proceedings . . . where a party under indictment for a serious offense is required to defend a civil action involving the same matter."); Brumfield v. Shelton, 727 F.Supp. 282, 284 (E.D. La. 1989) (staying entire civil proceeding where there was a "real and appreciable risk of self-incrimination," because defendant was "focal point of both the civil and criminal matters" such that "a stay of discovery as to [defendant] effectively stays the entire civil proceeding.")
As explained by one court, "[o]ne primary goal of a stay, when a stay is indeed warranted, is to preserve a defendant's Fifth Amendment right against self-incrimination and to resolve the conflict he would face between asserting this right and defending the civil action." Alcala v. Texas Webb County, 625 F.Supp.2d 391, 397 (S.D. Tex. 2009). In opposition to Plaintiff's motion to stay, Defendant asserts that "he will not assert his right against self-incrimination in the civil case" and that he "is waiving his Fifth Amendment privilege in the civil case in order for the discovery to proceed."
The Fifth Amendment privilege against self-incrimination "does not preclude a witness from testifying voluntarily in matters which may incriminate him." US v. Locke, 482 F.3d 764, 767 (5th Cir. 2007).
In addition to the potential risk of placing a defendant in the untenable position of choosing between his Fifth Amendment privilege against self-incrimination and his right to defend the civil action, the status of the criminal case is relevant to the extent proceeding with this civil action would be prejudicial to the State's ability to investigate and/or prosecute the criminal case.
Plaintiff has requested the stay, and both parties recognize that this factor is not significant in the Court's analysis.
As discussed above, while Defendant has been indicted in the criminal case, he has stated in opposition to Plaintiff's motion to stay that he is waiving his Fifth Amendment privilege against self-incrimination "in order for the discovery to proceed."
The court "has interests in judicial economy and expediency." Doe v. Morris, 2012 WL 359315, at *2 (E.D. La. Feb. 2, 2012). See also, Waste Management of Louisiana, LLC v. River Birch, Inc., 2012 WL 520660, at *5 (E.D. La. Feb. 15, 2012) (The court and the public benefit from an "economical use of judicial resources."). The "conviction of a civil defendant as a result of the entry of a plea or following a trial can contribute significantly to the narrowing of issues in dispute in the overlapping civil cases and promote settlement of civil litigation not only by that defendant but also by co-defendants who do not face criminal charges." Alcala v. Texas Webb County, 625 F.Supp.2d 391, 406 (S.D. Tex. 2009) (citing In re Worldcom, Inc. Securities Litigation, 2002 WL 31729501, at *8 (S.D.N.Y. Dec. 5, 2002)). See also, Rosenthal v. Giuliani, 2001 WL 121944, at *2 (S.D.N.Y. Feb. 9, 2001) ("[A] stay in the action will streamline later civil discovery since transcripts from the criminal case will be available to the civil parties."). Accordingly, this Court must analyze "whether, and to what extent, the outcome of the criminal proceeding would serve to simplify or `streamline' the issues and any possible discovery disputes." Id. See also, Billiot v. Beavers, 2015 WL 4397108, at *2 (E.D. La. July 13, 2015) ("Here, if this civil action is stayed until the conclusion of the criminal proceeding, there is no need to make rulings regarding potential discovery disputes involving issues that may affect the criminal case. Additionally, the outcome of the criminal proceeding may guide the parties in settlement discussion and potentially eliminate the need to litigate some or all of the issues in this case.").
Based on the significant overlap of factual issues between the criminal and civil cases, there is a great risk of duplicative discovery if the civil suit is not stayed. Moreover, because the viability of Defendant's defense of consent to sexual activity will be tested during the criminal proceedings, the Court finds that staying civil proceedings until after the completion of the criminal suit would potentially simplify the issues raised by the parties and likely guide the parties in settlement discussions.
Finally, the public has an interest in the integrity of criminal cases and "criminal prosecutions unimpeded by concerns that may arise in discovery in a related civil case." Whitney Nat'l Bank v. Air Ambulance by B&C Flight Management, Inc., 2007 WL 1468417, at *4 (S.D. Tex. May 18, 2007). See also, State Farm Lloyds v. Wood, 2006 WL 3691115, at * 3 (S.D. Tex. Dec. 12, 2006) ("While the public has an interest in this case, the related criminal proceeding serves to advance many of those same interests, especially given the factual overlap between the cases with respect to the alleged insurance fraud."). The Fifth Circuit has explained that the "very fact that there is a clear distinction between civil and criminal actions requires a government policy determination of priority: which case should be tried first. Administrative policy gives priority to the public interest in law enforcement. This seems so necessary and wise that a trial judge should give substantial weight to it in balancing the policy against the right of a civil litigant to a reasonably prompt determination of his civil claims or liabilities." Campbell v. Eastland, 307 F.2d 478, 487 (5th Cir. 1962).
"In handling motions for a stay of a civil suit until the disposition of a criminal prosecution on related matters . . . a judge should be sensitive to the difference in the rules of discovery in civil and criminal procedure. While the Federal Rules of Civil Procedure have provided a well-stocked battery of discovery procedures, the rules governing criminal discovery are far more restrictive." Campbell v. Eastland, 307 F.2d 478, 487 (5th Cir. 1962).
Here, Defendant candidly states that he "looks forward to discovery in the civil case which will provide more information to clear his name than the limited discovery allowed in criminal proceedings."
For the reasons set forth herein, the Motion to Stay is GRANTED and this matter is stayed until resolution of the related criminal proceeding pending in state court. It is further ordered that the Clerk of Court CLOSE the above-captioned civil case for administrative and statistical purposes, pending further order from this Court.