Yes I Can Licensed Behavior Analyst PLLC v. Green Tree Capital, LLC

Background

Yes I Can Licensed Behavior Analyst PLLC filed a notice of interlocutory appeal from the district court’s October 9, 2024 order denying preliminary relief. That earlier order found that the plaintiffs could not show a likelihood of success on the merits and stated that it appeared the court lacked subject-matter jurisdiction under the Rooker-Feldman doctrine. That doctrine generally prevents federal courts from deciding claims brought by people who lost in state court and complain of injuries caused by state-court judgments.

After the appeal was filed, Berkovitch & Bouskila, PLLC, Steven Berkovitch, and Ariel Bouskila, collectively identified as B&B Law, and Green Tree Capital LLC filed separate motions to dismiss the underlying action.

Reasoning

The court explained that filing an interlocutory appeal gives the Court of Appeals control over the issues involved in the appeal and removes the district court’s control over those issues. The district court still retains jurisdiction over the case as a whole and over matters not involved in the appeal.

Here, the pending motions to dismiss raised substantially the same jurisdictional questions that were before the Second Circuit. The court therefore concluded that staying the case would promote judicial economy and avoid inconsistent decisions by two courts considering the same issues at the same time.

Disposition

The court stayed the case pending the Second Circuit’s resolution of the interlocutory appeal. The order did not decide the pending motions to dismiss. It also stated that the stay does not affect the court’s jurisdiction over other matters in the case and that the court may lift the stay if circumstances change.