Bloom v. NextEra Energy, Inc.

District Court, D. Kansas·Decided September 25, 2023·No. 5:21-cv-04058·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

MATTHEW BLOOM, et al.,

Plaintiffs,

v. Case No. 5:21-cv-04058-HLT-ADM

NEXTERA ENERGY, INC., et al.,

Defendants.

MEMORANDUM AND ORDER This case arises out of the construction of wind turbines in Kansas. Plaintiffs Matthew and Rachel Bloom and Casey and Sharon Bloom assert a nuisance claim against Defendant Soldier Creek. Other claims and defendants have been dismissed. Plaintiffs have twice sought to amend the complaint to add some of the dismissed defendants—NextEra Energy Resources (“NEER”) and NextEra Energy Project Management (“NEPM”)—back into the case. Both motions were denied by the magistrate judge. Plaintiffs now seek review of the second of those orders. Doc. 149. The Court employs de novo review and concludes that: (1) Plaintiffs fail to show good cause under Rule 16 for amending the complaint five months after the deadline for doing so and (2) the proposed amendment is both untimely and futile under Rule 15. The objection is overruled. Leave to amend is denied. I. BACKGROUND A. Pleading History and Motions to Dismiss This case is related to two others pending in the District of Kansas: Renne v. NextEra Energy, Inc. et al, Case No. 5:21-cv-04032-HLT-ADM (D. Kan.), and Stallbaumer v. NextEra Energy Resources, LLC et al, Case No. 5:22-cv-04031-HLT-ADM (D. Kan.).1 This case and Renne have generally proceeded together, though none of the cases are formally consolidated. Stallbaumer involves the same issues but was filed later than the others. The magistrate judge recently issued identical amended scheduling orders in all three cases to align the deadlines. Plaintiffs initially filed a complaint in August 2021. Doc. 1. After Defendants moved to

dismiss, Plaintiffs filed an amended complaint. Doc. 25. The Court denied the motions to dismiss as moot. In response to the amended complaint, Defendants again moved to dismiss. In response, Plaintiffs sought leave to file a second amended complaint, which was granted, and which again mooted the pending motions to dismiss. Doc. 37. After Plaintiffs filed the second amended complaint, Doc. 40, Defendants again moved to dismiss. The Court subsequently granted in part and denied in part the motions on July 25, 2022. Doc. 63. Relevant here, the Court dismissed all the so-called NextEra Defendants because they are not the owner and operator of the wind turbine project. Id. at 23.2 The only surviving claim was a nuisance claim, and the only remaining defendant was Soldier Creek, who both parties

acknowledge owns and operates the project. Id. at 12, 23. In dismissing the NextEra Defendants, the Court stated it “struggled somewhat to discern precisely the grounds on which Plaintiffs believe they can hold [the NextEra] Defendants liable for the conduct about which they complain, especially given that it is undisputed that only Soldier Creek owns and operates the project.” Id. at 12. Although the NextEra Defendants have a parent-subsidiary relationship with Soldier Creek, they still have a separate corporate existence. Id. There were no allegations they are alter egos or that piercing the corporate veil is necessary. Id. at 12-13. Although Plaintiffs argued they were

1 Cites to docket entries in this case will be to “Doc. __.” Any cites to docket entries in the other cases will be designated with the respective case name. 2 Two NextEra Defendants were also not subject to personal jurisdiction. Doc. 63 at 23. alleging joint and several liability, or a joint venture or common enterprise, the Court found that there were no facts alleged to support those legal conclusions. Id. at 13-14. Finally, to the extent Plaintiffs alleged the NextEra Defendants are directly liable based on their involvement in the development and construction of the wind farm, Plaintiffs failed “explain how their involvement at some point in the construction of the wind turbines renders them directly liable for nuisance

under Kansas law.” Id. at 16. Accordingly, the Court dismissed the claims against the NextEra Defendants, including NEER and NEPM. Id. at 17. The Court also dismissed claims by Casey and Sharon Bloom because there were no facts alleged about how the wind turbines interfered with the use and enjoyment of their property. Id. at 19. B. First Contested Motion to Amend About a month later, Plaintiffs filed a motion for leave to file a third amended complaint, seeking to add back in claims by Casey and Sharon Bloom, as well as the dismissed nuisance claims against NEER and NEPM. Doc. 67. Specifically, Plaintiffs sought to correct collective pleading issues, reference some new evidence that those involved in the wind project were NEPM

employees, and explain that Soldier Creek is the “junior partner of sorts in this enterprise” while NEER and NEPM are the leaders. Id. at 3-7. Plaintiffs wished to address the Court’s ruling on the motion to dismiss that only Soldier Creek owns and operates the project by alleging that NEER owns Soldier Creek and that NEER and NEPM “were very active in Kansas on the Project even apparently more so than Soldier Creek Wind LLC and, at least, jointly involved in critical matters relevant to the claims.” Id. at 7. According to Plaintiffs, NEER and NEPM are “the primary actors and jointly liable for the harm to Plaintiffs.” Id. at 8. The magistrate judge denied leave to amend on grounds of futility and undue delay as to the claims against NEER and NEPM. Doc. 75.3 On the issue of futility, she concluded that the proposed third amended complaint suffered the same failings as existed in the Renne case, and she found that leave to amend should be denied for the reasons stated in that order. Id. at 2. In the Renne order, the magistrate judge found that the proposed amendment did not address the Court’s

questions about how NEER and NEPM could be liable for nuisance for a project it does not own, even considering the allegations that NEER and NEPM employees were involved in the development of the project. See Renne, Doc. 67. at 6-8. The magistrate judge also found undue delay in seeking leave to amend. Specifically, all the information relied on in seeking amendment had long been known. Id. at 9-11. No explanation for the delay was given. Id. at 10. In the Renne order, the magistrate judge further noted: [T]his case has been bogged down for nearly 18 months with an ongoing cycle of pleading, motions to dismiss, repleading, more motions to dismiss, and now yet another futile attempt to replead. At this point, the scope of the case has been properly refined to the surviving nuisance claim against Soldier Creek, and it is time for the parties to move forward with discovery on that claim without further delay. The court recognizes the possibility that Renne may seek leave to amend if he learns additional information in discovery. But, at least at this procedural juncture, it is clear to the court that the proposed third amended complaint is not legally justified and that allowing it would undermine the “just, speedy, and inexpensive determination” of this action.

Id. at 11-12 (citing Fed. R. Civ. P. 1). The case proceeded to discovery. The December 2022 scheduling order set a discovery deadline of May 12, 2023, and a deadline for motions to amend of February 2, 2023. Doc. 81 at 2. The parties sought to modify the scheduling order at least three times, primarily for expert related

3 Leave to amend to add back in claims by Casey and Sharon Bloom was denied without prejudice. Doc. 75 at 2-3. Plaintiffs subsequently moved again regarding those claims, Doc. 76, and that motion was granted as unopposed, Doc. 77. The third amended complaint with those claims was filed December 2, 2022. Doc. 78. discovery issues. Docs. 95, 98, 106.

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