Toxqui v. The Jade Farm LLC

Background

Jose Luis Toxqui brought the case on behalf of himself and others similarly situated against The Jade Farm LLC, doing business as Jue Lan Club, and other defendants. The order concerns whether the parties formed a contract, a factual issue relevant to the defendant’s request for permission to file a motion asking the court to require arbitration.

Court’s ruling

The court granted Toxqui’s proposal to conduct limited discovery on contract formation before considering any motion to compel arbitration. The parties must exchange disclosures under Federal Rule of Civil Procedure 26 within 14 days of the order. They have 21 days to respond to requests for documents or written questions, and discovery on contract formation must conclude by February 27, 2023.

The court also directed the parties to provide a joint status update no later than one week after discovery closes. The update must address whether the contract-formation question should be decided by a judge or jury; whether the parties would consent to a judge deciding it if it is a jury question; and whether they would consent to a magistrate judge deciding it if appropriate. The court stayed the defendant’s request for permission to file a motion to compel arbitration until the factual issue is resolved.

Additional note

The court noted its expectation that Toxqui’s counsel would present an affirmation from Toxqui sufficient to raise a factual dispute about contract formation by the disclosure deadline. This order sets discovery and pauses the arbitration request; it does not decide whether a contract was formed or whether arbitration will ultimately be required.