Whitaker v. Kyo-Ya Hotels & Resorts, LP

Background

Brian Whitaker sued Kyo-Ya Hotels & Resorts, LP, alleging violations of the Americans with Disabilities Act and California’s Unruh Civil Rights Act. The complaint concerns federal regulations governing reservation systems for lodging facilities, referred to in the order as the “Reservations Rule.” Kyo-Ya had filed a motion to dismiss, which remained pending.

The order noted that the Ninth Circuit had not yet interpreted the Reservations Rule. Appeals were pending in two cases that the court said squarely concerned the issues raised in Whitaker’s complaint. The court had therefore ordered the parties to explain why the case should not be paused while the Ninth Circuit considered those appeals.

Parties’ Positions

Whitaker did not oppose pausing the case while the Ninth Circuit appeals proceeded. Kyo-Ya opposed a pause. It argued that an unfavorable result in this case might deter Whitaker and his firm from filing similar cases. Kyo-Ya also argued that a stay would substantially injure it because the open case would be a cloud on its business and would have to be reported as a contingent liability.

Ruling

The court ordered the case administratively closed. It concluded that pausing the litigation was warranted because the pending appeals addressed the exact issue presented and would likely provide substantial guidance, or new law, affecting the court’s decision. The court also found that administrative closure would conserve party and court resources and would not meaningfully prejudice Kyo-Ya.

The court administratively closed the case rather than imposing a formal stay for docketing reasons. Any party may reopen the case by filing a notice within 14 days after the Ninth Circuit issues its first mandate in the identified appeals, or in any other currently pending Ninth Circuit appeal interpreting the Reservations Rule. The order did not decide Kyo-Ya’s pending motion to dismiss or the underlying claims.