Dervisevic v. Buckingham Trading Partners Inc.

Background

Defendants filed a letter stating that they anticipated moving to dismiss plaintiffs’ state-law claims. The parties were then participating in the court’s mediation program, but mediation failed. Plaintiffs subsequently voluntarily dismissed their state-law claims from the federal action and simultaneously refiled those claims in New York Supreme Court, New York County.

Defendants later asked the federal court to stay the case while the state case proceeded or, alternatively, to dismiss part of the action. Plaintiffs opposed the request.

Court’s Analysis

The court explained that whether to pause a federal case because a related state case is pending is within the district court’s discretion. It considered factors including the risk of piecemeal litigation, the relative progress of the two cases, whether federal or state law supplies the governing rules, and whether the plaintiffs’ rights would be protected in the state proceeding.

The court found that a stay would help avoid piecemeal litigation. It noted that the state-law claims covered a longer limitations period than the Fair Labor Standards Act claims and included claims without federal equivalents. The court also found that neither case was more advanced than the other and that greater relief was possible in the state action. It concluded that plaintiffs’ Fair Labor Standards Act claims were duplicative of the state-law claims pending in state court.

Ruling

The court stayed this case pending the outcome of the state case. The Clerk of Court was directed to maintain the stay pending further order, and the parties were directed to promptly advise the court of significant events in the state proceeding. The opinion does not dismiss the federal case or decide the merits of the claims.

Judge

The order was issued by Katherine Polk Failla, United States District Judge.