Cathy Areu v. Fox News Network, LLC

Background

This case had previously been part of claims in a related proceeding and was later separated. Before the separation, Judge Abrams had stayed discovery. After the plaintiff in the related proceeding sought to lift that stay, Cathy Areu asked for the same relief granted there. The court directed any party seeking to pause discovery while a motion to dismiss was pending to file a motion for that relief.

The Fox Defendants—Fox News Network, LLC, Tucker Carlson, Sean Hannity, and Howard Kurtz—then asked that the discovery stay continue until the court resolved their motion to dismiss and motion for sanctions. Areu asked the court to lift the stay for document discovery. Ed Henry supported allowing the parties to begin limited document discovery while the motions to dismiss were pending.

Court’s analysis

The court considered three factors: the breadth of the requested discovery, the prejudice that would result, and the strength of the motion to dismiss.

On the strength of the motion, the court reviewed the parties’ filings and concluded that the Fox Defendants had made “substantial arguments for dismissal.”

On the scope of discovery, Areu argued that document discovery would not be burdensome because the Fox Defendants had already conducted company-wide investigations involving related claims. The court found that the defendants would still face a significant burden because attorneys would need to review documents before producing them in discovery.

On prejudice, Areu and Henry argued that events surrounding the litigation had harmed their reputations and that they wanted to clear their names. The court recognized reputational harm as a factor but found that they had not alleged more compelling circumstances, such as witness illness or loss of documents. The court also noted that Henry had offered to exchange documents and information requests before the court ruled on the dispositive motions, which could reduce any prejudice caused by continuing the stay.

Ruling

Magistrate Judge Gabriel W. Gorenstein ordered that the discovery stay continue pending resolution of the Fox Defendants’ motion to dismiss. The opinion does not decide that motion to dismiss.