Order | Filed: July 30, 2026
| Entered: July 30, 2026
The Floating Hospital, Inc. v. New York State Department of Health et al
Civil Rights: Other | New York Eastern
Order on Motion to Stay
ORDER denying without prejudice 21 . "'[T]he power to stay proceedings is incidental to the power inherent in every court to control the disposition of the cases on its docket with economy of time and effort for itself, for counsel, and for litigants.' " Spetner v. Palestine Inv. Bank, No. 19-CV-5, 2025 WL 3222473, at *2 (E.D.N.Y. Nov. 19, 2025) (citation omitted). "A motion to dismiss does not automatically stay discovery," and "discovery should not be routinely stayed simply on the basis that a motion to dismiss has been filed." Id. (citations omitted). "[A] court determining whether to grant a stay of discovery pending a motion must look to the particular circumstances and posture of each case." (citation omitted). Id. (citations omitted). "In evaluating whether a stay of discovery pending resolution of a motion to dismiss is appropriate, courts typically consider: (1) whether the Defendants has made a strong showing that the plaintiff's claim is unmeritorious; (2) the breadth of discovery and the burden of responding to it; and (3) the risk of unfair prejudice to the party opposing the stay." Id. (citations omitted). "These three factors are nonexclusive, and ultimately the overarching consideration of the circumstances in their totality governs." Id. (citations and quotation marks omitted). "The burden is on the movant to establish that a stay is warranted." Id. (citations omitted).
Here, a stay of discovery is not warranted at this juncture. First, Defendants have failed to make a strong showing that Plaintiff's claim is unmeritorious. Defendants argue that Medina v. Planned Parenthood South Atlantic, 606 U.S. 357 (2025) forecloses a private right of action. Dkt. No. 21 at 1-2. Plaintiffs identify a controlling Second Circuit case Community Health Care Association of New York State v. Shah, 770 F.3d 129 (2d Cir. 2014), as well as consistent case law from the First, Third, Fourth, Fifth, and Ninth Circuits, and an argument that Medina can be harmoniously read with Community Health Care Association of New York State. Dkt. No. 24 at 1-3.
Second, the scope of discovery is narrow and the burden on Defendants is minimal. Plaintiff is interested in (a) correspondence between Defendants and specified stakeholders concerning Defendants' delegated federally-qualified health center payment obligation for behavioral health services, and (b) a one-day Fed. R. Civ. P. 30(b)(6) deposition on Defendants' policies and practices in implementing the New York State's federally-qualified health center payment obligation in Medicaid managed care. Dkt. No. 24 at 3.
Finally, the risk of unfair prejudice to Plaintiff in granting the stay is high. Any lack of full and timely reimbursement for Plaintiff's behavioral health services to Medicaid beneficiaries likely diminishes the services it would otherwise make available to patients who are uninsured. Dkt. No. 24 at 3. Accordingly, a stay of discovery is not warranted at this juncture.
The Court sets the following discovery schedule:
The date for completion of automatic disclosures required by Fed. R. Civ. P. 26(a)(1), no amendment of the pleadings will be permitted after, and no additional parties may be joined after August 7, 2026.
The parties shall file a joint status report by August 31, 2026, outlining the current status of discovery.
Fact discovery shall be completed by December 18, 2026. The Court will set an expert discovery schedule at a later date.
No extension of the above deadlines will be granted except upon a motion, filed prior to the deadline and consistent with Judge Marutollo's Individual Practices and Rules, showing good cause for the extension. The parties are reminded that "a finding of 'good cause' depends on the diligence of the moving party." Parker v. Columbia Pictures Indus., 204 F.3d 326, 340 (2d Cir. 2000). Pursuant to Fed. R. Civ. P. 1, the Court has an obligation "to secure the just, speedy, and inexpensive determination of every action and proceeding." Ordered by Magistrate Judge Joseph A. Marutollo on 7/30/2026. (KY)