Opinion
CASE No. 99-CV-0828 W (LSP)
May 9, 2001
ORDER CONTINUING STAY OF ACTION
By order dated July 13, 2000 the Court stayed this action in its entirety until the Ninth Circuit resolves the appeal in San Francisco Baseball Assoc. L.P. v. United States, 88 F. Supp.2d 1087 (N.D. Cal. 2000). On April 17, 2001 the United States Supreme Court handed down its ruling in United States v. Cleveland Indians Baseball Co., ___ S.Ct. ___, 2001 WL 376554 (U.S. Apr 17, 2001) (NO. 00-203). Writing on behalf of the Supreme Court, Justice Ruth Bader Ginsburg said the Internal Revenue Service has consistently interpreted the rules "to require taxation of back wages according to the year the wages are actually paid, regardless of when those wages were earned or should have been paid." Id. Upon this Court's request, both parties recently submitted supplemental memoranda regarding whether the stay in this action should remain pending or whether the action should immediately proceed on its merits. Both parties urge this Court to maintain the stay in all respects.
The regulation of a stay, unlike the question of dismissal, is one that falls squarely with the discretion of the district court. See Landis v. North American Co. 299 U.S. 248, 254 (1936) ("the power to stay proceedings is incidental to the power inherent in every court to control the disposition of causes on its docket with economy of time and effort for itself, for counsel, and for litigants."). Such discretion is appropriately used when the resolution of another matter will have a direct impact on the issues before the court. See Mediterranean Enterprises, Inc. v. Sangyong, 708 F.2d 1458, 1465 (9th Cir. 1983) ("A trial court may, with propriety, find it is efficient for its own docket and the fairest course of the parties to enter a stay of an action before it, pending resolution of independent proceedings which bear upon the case. This rule applies whether the separate proceedings are judicial, administrative, or arbitral in character, and does not require that the issues in such proceeding are necessarily controlling of the action before the court."). Having read and considered the parties' supplemental memoranda, the Court concludes that the stay shall remain in full force and effect.
Notwithstanding the Supreme Court's decision in Cleveland Indians, the Ninth Circuit must still address the issue of whether the Clubs' payments to the players constituted "wages." Neither party disputes that the payment classification issue in San Francisco Baseball is indistinguishable from the instant case. As such, the Ninth Circuit's decision in San Francisco Baseball will substantially simplify the issues presented here. At minimum, the Ninth Circuit's San Francisco Baseball decision will resolve the primary, if not only, disputed issue that remains in this case.
This action shall remain STAYED in its entirety, as to all parties and claims, until the Ninth Circuit fully resolves the appeal in San Francisco Baseball Assoc. L.P. v. United States, 88 F. Supp.2d 1087 (N.D. Cal. 2000). Within fifteen court days of the conclusion of the Ninth Circuit's proceedings, Plaintiff shall file and serve a Notice of Completion of Appellate Review which shall include a copy of the Ninth Circuit's disposition of the San Francisco Baseball matter.
All requirements set forth in this order shall be vacated should the parties alternatively elect to submit a stipulated voluntary notice of dismissal.
Upon filing of the aforementioned, the stay in this action shall immediately lift without further order of this Court. The parties are then instructed to jointly contact the chambers of Magistrate Judge Papas to reset pretrial scheduling dates and resume this litigation.
IT IS SO ORDERED.