Hall-Landers v. New York University

Background

Casey E. Hall-Landers brought a proposed class action against New York University (NYU) seeking refunds of tuition and fees allegedly paid for in-person education, facilities, services, and opportunities during the Spring Semester 2020. Hall-Landers alleges that NYU suspended in-person classes on March 11, 2020, moved continuing classes online, and closed facilities. The amended complaint asserts claims for breach of contract, implied contract, unjust enrichment, conversion, and money had and received. The opinion states that federal jurisdiction is based only on the Class Action Fairness Act, which requires specified class-size, interstate-citizenship, and amount-in-controversy conditions.

The motion addressed in this opinion was NYU’s request to separate, or bifurcate, discovery about class certification from discovery about the merits of Hall-Landers’s claims. NYU also asked the court to expedite briefing on class certification and pause merits discovery until the class-certification motion was decided. NYU argued that class certification could determine whether federal jurisdiction existed because Hall-Landers’s individual claims did not meet the ordinary $75,000 amount-in-controversy threshold. Hall-Landers argued that the two types of discovery would substantially overlap and that bifurcation would create unnecessary disputes and delay.

Court’s Analysis

The court explained that it has discretion under the Federal Rules of Civil Procedure to control the timing and sequence of discovery. In a proposed class action, separating discovery may be appropriate when a narrow issue could end the case or make other discovery unnecessary, but bifurcation is generally the exception rather than the rule.

The court found good cause for partial bifurcation. It relied in part on another NYU tuition-and-fee case in which class certification was denied and the complaint was dismissed without prejudice because the proposed class action was the only basis for federal jurisdiction. The court reasoned that it should determine promptly whether Hall-Landers’s case can proceed as a class action. It also considered NYU’s willingness to produce information specific to Hall-Landers, NYU’s previously gathered materials concerning fees and COVID-19 policies, and the court’s ability to manage discovery concerning tuition claims that were not addressed in the other case.

The court did not adopt an unlimited class-discovery restriction. It agreed with Hall-Landers that one general deposition of NYU would likely be insufficient and permitted depositions of representatives of NYU, NYU’s Bursar’s Office, and Tisch, the school in which Hall-Landers was enrolled. The court also allowed Hall-Landers to request additional class-certification depositions upon a showing of good cause.

Order

United States Magistrate Judge Sarah L. Cave granted in part and denied in part NYU’s motion. For 90 days, through February 20, 2024, the parties were ordered to focus on class-certification discovery, including discovery specific to Hall-Landers, NYU’s reproduction of relevant materials from the other NYU case, tuition and COVID-19 policies, Tisch materials, and the authorized depositions. Discovery outside that category was held in abeyance until May 16, 2024.

The court ordered Hall-Landers to file the class-certification motion by March 21, 2024; NYU to file its opposition by April 22, 2024; Hall-Landers to file a reply by May 6, 2024; and the parties to submit a joint letter by May 13, 2024, addressing what merits discovery, if any, should proceed. The court scheduled an in-person conference for May 16, 2024, and directed the clerk to close the motion docket entry.