Opinion
CIVIL ACTION NO. 00-2688, SECTION "N".
February 21, 2001.
ORDER AND REASONS
Before the Court is defendant EquiCredit Corporation of America's Motion to Stay All Class Certification Issues Pending Resolution of its Motion for Summary Judgment. For the following reasons, defendant's motion is GRANTED.
BACKGROUND
In 1998, plaintiff Joseph Ladd ("Ladd") mortgaged his home to defendant EquiCredit Corporation of America ("EquiCredit"). Ladd claims that EquiCredit charged him over $2,000.00 for property inspections that were never performed, and he has filed the instant suit as a putative class action, alleging that EquiCredit committed mail fraud by routinely adding unauthorized charges to its customers' loan accounts.
EquiCredit now moves to stay discovery on all class certification issues pending the resolution of its Motion for Summary Judgment, which is set for hearing on March 7, 2001. EquiCredit does not seek to stay discovery on the issues related to its Motion for Summary Judgment.
LAW AND ANALYSIS
A "trial court has broad discretion and inherent power to stay discovery until preliminary questions that may dispose of the case are determined." Petrus v. Bowen, 833 F.2d 581, 582 (5th Cir. 1987). In the case at bar, defendant EquiCredit has filed a summary judgment motion that may be dispositive of the plaintiff's claims. Since a decision on the merits may render all class certification issues moot, the Court may properly refuse to entertain motions for class certification and related discovery until dispositive motions have been resolved. See Wade v. Kirkland, 118 F.3d 667, 670 (9th Cir. 1997) (holding that "in some cases, it may be appropriate in the interest of judicial economy to resolve a motion for summary judgment or motion to dismiss prior to ruling on class certification"). Moreover, the merits of a case have no impact on whether a class may be properly maintained, and a court may decide the merits of a case regardless of whether it is certified as a class action. See, Eisen v. Carlisle and Jacquelin, 417 U.S. 156, 178 (1974);Floyd v. Bowen, 833 F.2d 529, 534-35 (5th Cir. 1987). Accordingly, because the Court finds that it is in the interests of justice and judicial economy to stay all class certification issues until it is determined whether Ladd has any valid claims against EquiCredit, the defendant's motion is GRANTED.
However, Ladd is entitled to discovery on issues related to EquiCredit's Motion for Summary Judgment.