Alorica Inc. v. Tech Mahindra (Americas) Inc.

District Court, E.D. Texas·Decided September 16, 2025·No. 4:24-cv-00030·Unknown

Opinion

United States District Court EASTERN DISTRICT OF TEXAS SHERMAN DIVISION

ALORICA INC., § § Plaintiff, § v. § Civil Action No. 4:24-cv-30 § Judge Mazzant TECH MAHINDRA (AMERICAS) § INC., § § Defendant. § MEMORANDUM OPINION AND ORDER Pending before the Court is Plaintiff’s Motion to Exclude (Dkt. #190). Having considered the Motion, the relevant pleadings, the parties’ arguments and briefing, and the applicable law, the Court finds that the Motion should be GRANTED. BACKGROUND The background of this lawsuit is more thoroughly set forth in the Court’s Memorandum Opinion and Order on the parties cross-motions for summary judgment (Dkt. #172). On August 6, 2025, the parties filed their original Trial Exhibit List, Witness List, and Deposition Designations with the Proposed Joint Pretrial Order (Dkt. #147). On August 28, 2025, the Court issued a Memorandum Opinion and Order on the parties cross-motions for summary judgment (Dkt. #172). The Court’s summary judgment order significantly narrowed the issues for trial. See Dkt. #172 at p. 21 (disposing of almost all of the parties’ legal claims other than Plaintiff and Defendant’s breach of contract claims, Plaintiff’s suit on sworn account, and Defendant’s misrepresentation claim).1

1 On September 2, 2025, the issues for trial were further narrowed after Defendant voluntarily moved to dismiss, with prejudice, its counterclaim against Plaintiff for misrepresentation (Dkt. #176). Additionally, the Court’s summary judgment order made important findings on matters of law relating to the interpretation of the Contract,2 each of which are pertinent to the resolution of this dispute. See Dkt. #172 at p. 11 (finding that the Contract is unambiguous and also ruling in favor of

Plaintiff’s interpretation including, but not limited to, the exception contained in Section 6.2 of the Contract). On September 2, 2025, despite the legal issues and claims being significantly narrowed, Defendant filed an opposed Motion for Leave to Amend Exhibit List and Witness List (Dkt. #175). Defendant’s Second Amended Trial Exhibits included twenty-four new exhibits, all new deposition designations for a prior witness, and deposition designations for three new witnesses (See Dkt.

#175-1 at p. 4–8; Dkt. #175-2 at p. 3–13). In support of its motion, Defendant argues that leave to amend is necessary because the Court’s summary judgment order altered the central issue at trial. See Dkt. #175 at ¶ 2 (“Because Tech Mahindra had previously prepared its exhibits and witness list with the expectation that the interpretation of the Amendment, rather than the nature and characterization would be the crux of trial, amendment is now necessary to address the Court’s Order.”). On September 4, 2025, Plaintiff filed its Opposition to Defendant’s Moton for Leave to

Amend Exhibit List and Witness List (Dkt. #176). In support of its opposition, Plaintiff argues that Defendant should not be given leave to amend because it has failed to establish good cause. See Dkt. #176 at p. 4 (“Tech Mahindra’s argument that AT&T’s instruction to halt the Transition Plan is just now a central issue at trial, thus allowing Tech Mahindra to substantially alter its trial disclosures, is a farce.”). In addition, Plaintiff also argues that it would be significantly prejudiced

2 The Court’s use of the term “Contract” encompasses the 2021 Contract and the 2022 Amendment at issue. by Defendant’s untimely disclosures. See Dkt. #176 at p. 6 (“Alorica has been preparing for trial for the past month using the exhibits and witnesses originally disclosed by Plaintiff, including witness preparation, demonstratives, and arguments. . . Now, Alorica’s time and efforts are being cast out

the window by Tech Mahindra’s hard pivot.”). On September 5, 2025, the parties appeared before this Court for the pretrial conference. At the pretrial conference, the Court addressed, among other things, the pending Motion for Leave to Amend filed by Defendants. In support of its motion, Defendant continued to argue that leave was necessary because the central issue at trial has changed. On the other hand, in support of its opposition, Plaintiff continued to plead that it would be significantly prejudiced if the Court

allowed leave to amend. After considering the arguments from both sides, the Court granted Defendant’s Motion for Leave but requested that the parties submit trial briefs on the abovementioned issue. In granting Defendant’s Motion for Leave to Amend the Court, however, made clear that although the exhibits are now included, it does not mean that the Court will allow them to be admitted as evidence at trial. On September 7, 2025, the parties each filed trial briefs in response to the request made by the Court during the pre-trial conference (See Dkt. #188; Dkt. #189).

LEGAL STANDARD I. Untimely Evidence Rule 37 of the Federal Rules of Civil Procedure provides that “if a party fails to provide information or identify a witness as required by Rule 26(a) or (e), the party is not allowed to use that information or witness to supply evidence on a motion, at a hearing, or at trial, unless the failure was substantially justified or is harmless.” FED R. CIV. P. 37(c)(1). “Rule 37(c)(1) is a self-executing . . . automatic sanction intended to provide a strong inducement for parties to diligently comply with their Rule 26 requirements.” See Silva v. United States, 2022 WL 22298558, at *4 (S.D. Tex. April 27, 2022) (citation omitted). “The purpose of Rule 37(c)(1) is to prevent an ambush, resulting in surprise or prejudice, of undisclosed or late disclosed evidence.” See Jonibach Mgmt. Tr. v.

Wartburg Enterprises, Inc., 136 F. Supp. 3d 792, 808 (S.D. Tex. 2015) (citing Reed v. Iowa Marine and Repair Corporation, 16 F.3d 82, 84 (5th Cir. 1994)). “Determining whether to impose the exclusionary effect of Rule 37(c)(1) is a two-step process committed to the sound discretion of the district court.” See Primrose Operating Co. v. Nat’l Am. Ins. Co., 832 F.3d 546, 563 (5th Cir. 2006). “First, the court must determine whether a party has failed to comply with its Rule 26(a) disclosure requirement or its Rule 26(e) supplementation

obligation.” See Mission Toxicology, LLC v. UnitedHealth Care Ins. Co., 499 F. Supp. 3d 338, 344 (W.D. Tex. 2020). If so, the court must determine “whether that party has shown substantial justification for the failure or that the failure is harmless.” Id. To evaluate substantial justification or harmlessness, courts may examine the following factors: “(1) the importance of the evidence; (2) the prejudice to the opposing party of including the evidence; (3) the possibility of curing such prejudice by granting a continuance; and (4) the explanation for the party’s failure to disclose.” Id. II. Irrelevant Evidence Rule 401 and 402 of the Federal Rules of Evidence generally permit the admission of “all

relevant evidence,” which is defined as “evidence having any tendency to make the existence of any material fact more probable or less probable than it would be without the evidence.” See Bevill v. City of Quitman, Texas, 2025 WL 2306849, at *31 (E.D. Tex. Aug. 11, 2025) (cleaned up); see also Greger v. C.R. Bard, Inc., 2021 WL 3855474, at *12 (E.D. Tex. Aug. 30, 2021) (stating that Federal Rules of Evidence

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Alorica Inc. v. Tech Mahindra (Americas) Inc., (E.D. Tex. 2025).

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