Scofield v. Alleviate Tax LLC
1:24-cv-03231
D. Colo.Jun 18, 2025Background
- Plaintiff Shane Scofield brings a single-count class action against Alleviate Tax LLC, alleging illegal use of pre-recorded telemarketing calls to cell phones in violation of the Telephone Consumer Protection Act (TCPA).
- Plaintiff alleges calls were made to hundreds of potential class members nationwide in the four years prior to filing.
- Defendant filed a Rule 12(b)(6) Motion to Dismiss, arguing the complaint fails to allege direct or vicarious liability, and a Motion to Strike Class Allegations.
- Defendant also moved to stay all discovery pending a ruling on its dispositive motions and to bifurcate discovery if not stayed.
- Plaintiff opposed the stay, citing risk of prejudice due to delay, including potential loss of evidence and fading memories.
- Magistrate Judge Starnella granted the motion to stay discovery and denied the motion to bifurcate as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Stay of discovery pending dispositive motion | Delay unfair; grounds for dismissal are weak and evidence may be lost | Burden of unnecessary, costly class-wide discovery if motions succeed; implemented a litigation hold | Stay of discovery granted pending disposition of motions |
| Risk of prejudice from delay | Memories may fade, witnesses hard to reach, risk of lost evidence | Litigation hold in place, evidence preservation not at risk | Litigation hold mitigates prejudice; favors stay |
| Burden of discovery on defendant | Not emphasized | Expensive, broad, possibly unnecessary class discovery if not dismissed | Significant burden on defendant; favors stay |
| Effect on judicial efficiency | Not directly addressed | Judicial resources wasted if discovery proceeds in case that may be dismissed | Stay promotes efficiency; favors stay |
Key Cases Cited
- String Cheese Incident, LLC v. Stylus Shows, Inc., 2006 WL 894955 (D. Colo. Mar. 30, 2006) (identified five-factor test for stay of discovery)
- Grosvenor v. Qwest Commc’ns Int’l, Inc., 2010 WL 1413108 (D. Colo. Apr. 1, 2010) (class action discovery as elevated burden justifying a stay)
(Note: No cases with proper official reporter Bluebook-form citations were referenced in the order.)