American Express National Bank, et al. v. Welcome Trader’s, et al.

District Court, E.D. California·Decided April 20, 2026·No. 2:24-cv-03320·Unknown

Opinion

1 2 3 4 5 6 7 10 11 AMERICAN EXPRESS NATIONAL No. 2:24-cv-03320-WBS-SCR BANK, et al., 12 Plaintiffs, 13 ORDER RE: DISCOVERY MOTIONS v. 14 WELCOME TRADER’S, et al., 15 Defendants. 16 17 Before the Court are Plaintiffs’ two motions to confirm that requests for admission 18 (“RFAs”) are deemed admitted (ECF Nos. 31 & 32) and a motion to modify the scheduling order 19 (ECF No. 33). These discovery-related motions are before the undersigned pursuant to Local 20 Rule 302(c)(1) and 28 U.S.C. § 636. The Court held a hearing on April 16, 2026 on the RFA 21 motions. Plaintiffs’ counsel appeared. The individual defendants, who are now proceeding pro 22 se and are alleged to be the officers of the corporate defendants, did not appear at the hearing. 23 The Court now GRANTS IN PART and RESERVES IN PART the motions to confirm requests 24 for admission as deemed admitted, and GRANTS the motion to modify the scheduling order. 25 I. Procedural History and Background 26 Plaintiffs American Express National Bank and American Express Travel Related 27 Services Company, Inc. (herein “Plaintiffs”) filed this action on November 27, 2024, alleging 28 breach of contract, fraud, and other claims. ECF No. 1. Defendants are two California 1 corporations (Welcome Trader’s and Rehman Trader’s) and two individuals (Mehlab Fatima and 2 Sarib Rehman). ECF No. 1 at ¶¶ 6-9. Defendants were initially untimely with their answers, and 3 the Clerk entered default. ECF No. 10. The default was then set aside by stipulation, and an 4 Answer was filed on behalf of all four Defendants, who were represented by counsel at the time. 5 ECF No. 15. About six months later, in November 2025, defense counsel filed a motion for leave 6 to withdraw as counsel, which stated there was a breakdown in communications between attorney 7 and clients. ECF No. 19. 8 In advance of a hearing on the motion to withdraw, Defendants’ counsel filed a 9 supplemental declaration. ECF No. 24. In that filing, Defendants’ counsel admitted that he had 10 not had meaningful contact with Defendants since August 2025. Id. at ¶ 4. Defendants’ counsel 11 made clear that he informed Defendants of the need to speak with them and that Defendants were 12 aware of this as they signed receipts for Defendants’ counsel’s correspondence. Id. at ¶ 5. On 13 October 30, 2025, Defendants’ counsel informed Defendants of the “emergency situation 14 regarding discovery and the implications of failing to respond to discovery.” Id. at 10. Further, 15 in Defendants’ counsel correspondence to Defendants dated November 3, 2025, he informed 16 Defendants of the discovery sanctions that could ensue should they fail to cooperate in 17 responding to the discovery. Specifically, he advised the Defendants that the results would be 18 “catastrophic and may result in [Defendants] losing the case in its entirety.” Id. at 10. Finally, in 19 Defendants’ counsel’s December 26, 2026 email to Defendants, he further warned them that 20 “failure to completely respond to discovery requests can have a devastating impact on [their] case 21 and may cause [them] to forfeit aspects of your defense.” Id. at 20. 22 Judge Shubb held a hearing on January 20, 2026 and granted the motion to withdraw. 23 ECF No. 25. Defendant Rehman was present at that hearing. Id.1 24 II. Motions to deem admitted RFAs (ECF Nos. 31 & 32) 25 Plaintiffs’ motions seek to have the Court strike each of Defendant Rehman’s and 26

27 1 Plaintiffs have also filed a motion to strike the Answers of Welcome Trader’s and Rehman Trader’s and enter default because they are no longer represented by counsel. ECF No. 30. That 28 motion is set for hearing before Judge Shubb on April 27, 2026. 1 Defendant Fatima’s objections to RFAs and deem the RFAs admitted. ECF Nos. 31 at 2; 32 at 2. 2 Plaintiffs contend the responses were boilerplate objections and were served late. Id. The 3 responses were due the Friday after Thanksgiving, November 28, 2025, and that the objections 4 were not served until Monday, December 1, 2025. Id. at 3. 5 Plaintiffs sent then-counsel for Defendants a meet-and-confer letter concerning the RFA 6 responses on December 11, 2025. ECF No. 31-1. Counsel for Plaintiffs and then-counsel for 7 Defendants conferred by telephone on December 17, 2025. After that meeting, counsel for 8 Defendants informed counsel for Plaintiffs that he was “without additional information with 9 which to supplement [the RFA responses] at this time.” ECF No. 37-1 at 2. Counsel for 10 Plaintiffs has “been attempting to reach and communicate with Defendants since January 27, 11 2026.” ECF No. 37 at 3. 12 Specifically, after filing the RFA motions on March 12, 2025, counsel for Plaintiffs sent 13 Defendants emails on March 13, 16, and 17 concerning the motions and the need to prepare a 14 joint statement. ECF No. 37-2 at 3-5. Defendants never responded substantively. On April 3, 15 Defendant Rehman responded that he is “currently out of the country and will be returning on 16 April 17, 2026.” Id. at 2. Defendant Rehman stated, “I am willing to meet and confer in good 17 faith and kindly request that we schedule a time during the following week after my return.” Id. 18 Plaintiffs’ counsel responded that she is “available to discuss this case any time the week of April 19 20th when you have returned” and requested a date and time for that discussion. Id. As of April 20 17, 2026, Defendant Rehman had not further responded to Plaintiffs’ counsel. 21 Defendants have not filed responses to Plaintiffs’ pending motions and, as noted, did not 22 appear at the hearing on April 16, 2026. 23 III. Analysis 24 Requests for Admission are governed by Federal Rule of Civil Procedure 36. Rule 25 36(a)(3) provides: “A matter is admitted unless, within 30 days after being served, the party to 26 whom the request is directed serves on the requesting party a written answer or objection 27 addressed to the matter and signed by the party or its attorney.” A party may file a motion 28 regarding the sufficiency of an answer or objection. Fed. R. Civ. P. 36(a)(6). “Unless the court 1 finds an objection justified, it must order that an answer be served.” Id. 2 District courts have discretion to “permit a longer time for a written answer to a request 3 for admissions and to accept the filing of an answer that would otherwise be untimely.” United 4 States v. Petroff-Kline, 557 F.3d 285, 293 (6th Cir. 2009). A formal motion is not required for the 5 court to exercise its discretion. Id. at 293-94 (“Despite its failure to have filed a formal motion to 6 withdraw its claimed admissions, the Government’s filing of a slightly overdue response 7 effectively served as such a withdrawal.”). In Petroff-Kline, the “slightly overdue” response was 8 three days late, just as Plaintiffs here assert the response was three days (one business day) late. 9 The Ninth Circuit similarly recognizes the district court’s discretion. See French v. United States, 10 416 F.2d 1149, 1152 (9th Cir. 1968) (“A trial judge has discretion to permit a late response to a 11 request for admissions made pursuant to Rule 36, and thus relieve a party of apparent default.”) 12 With that said, Defendants’ course of conduct is troubling.

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American Express National Bank, et al. v. Welcome Trader’s, et al., (E.D. Cal. 2026).

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