Con El, Inc. v. Burlington Insurance Company

CourtDistrict Court, E.D. Louisiana
DecidedMay 2, 2025
Docket2:23-cv-06402
StatusUnknown

This text of Con El, Inc. v. Burlington Insurance Company (Con El, Inc. v. Burlington Insurance Company) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Con El, Inc. v. Burlington Insurance Company, (E.D. La. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA SUSCA, INC., ET AL. * CIVIL ACTION

VERSUS * NO. 23-6402

BURLINGTON INSURANCE * SECTION “M” (2) COMPANY

ORDER AND REASONS

Pending before me is a Motion for Leave to File Amended Complaint. ECF No. 35. Defendant filed an Opposition Memorandum. ECF No. 37. Having considered the record, the submissions and arguments of counsel, and the applicable law, Plaintiff’s Motion for Leave to File Amended Complaint is GRANTED for the reasons stated herein. I. BACKGROUND Plaintiffs filed this Hurricane Ida suit against Burlington Insurance Company seeking contractual and extra-contractual damages in state court under policy number 0006722. ECF No. 1-1. Plaintiffs contend that three buildings were damaged, and that they made claims for damages to all three locations. ECF No. 35-1 at 2. Defendant removed the case to this Court, after which it became subject to the Court’s Hurricane Ida Case Management Order (“CMO”). ECF Nos. 1, 4, 16, 20, 30, 31. No Scheduling Order has yet been issued, and there is no trial date. When Plaintiffs filed suit, they specified damage to two properties (169 and 187 Monarch Drive). ECF No. 1-1 ¶¶ 4, 6. Plaintiffs now seek leave to amend to make clear that they also seek to recover for the damage to their third property (141 Westover Drive) under the same insurance policy. ECF No. 35-1 at 2–3. Citing Rule 15(a)(2), Plaintiffs argue that leave to amend is proper because there has been no (1) undue delay, (2) bad faith or dilatory motive, (3) repeated failure to cure deficiencies by previous amendments, (4) undue prejudice to the opposing party, or (5) futility of the amendment. Id. at 4–6. Plaintiffs also argue that their amendment would relate back to the original filing, citing article 1153 of the Louisiana Code of Civil Procedure. Id. at 6–7. In Opposition, Defendant argues that Plaintiff improperly seeks to add a new claim for a new loss location, and that Plaintiffs unduly delayed and repeatedly failed to cure that deficiency

after notice of same. ECF No. 37 at 1, 6–9. Defendant argues that Plaintiffs filed two different state court suits, the first seeking damages for their 169 and 187 Monarch properties and the second suit seeking damages for those two locations as well as 141 Westover, but Plaintiffs dismissed the second suit. Id. at 2. Defendant also argues that Plaintiffs’ new claims are untimely and do not relate back; thus, amendment is futile. Id. 1, 9–15. II. APPLICABLE LAW AND ANALYSIS A. This Court’s Hurricane Ida CMO In accordance with the Hurricane Ida CMO, absent a timely opt-out, all pretrial matters are stayed pending the parties’ completion of the Streamlined Settlement Program and certification of

the case by the Chief Magistrate Judge. ECF No. 16, Hurricane Ida CMO Amendment #4, § 3 at p. 5, 10–11. Chambers staff has been advised that the parties’ Hurricane Ida CMO-mandated neutral settlement conference is scheduled for May 20, 2025. Although the Court would be justified in denying the motion based on the stay, allowing the parties to understand what claims are at issue is the better course. Therefore, the Court will exercise its discretion to modify the stay solely for purposes of addressing this motion for leave. B. Standard for Amendment Rule 15(a) applies when a party seeks leave to amend before expiration of the deadline for amendments, but when leave is sought after the scheduling order deadline for amendments has expired, the analysis is governed by Rule 16.1 Plaintiffs filed this motion for leave to amend before issuance of a Scheduling Order. Accordingly, the request is governed by Rule 15(a) rather than the more stringent good cause requirements of Rule 16(b). Under Rule 15(a)(2), the “court should freely give leave [to amend] when justice so requires.”2 Although leave to amend is not automatic,3 given Rule 15(a)(2)’s bias in favor of

granting leave to amend, a court “must possess a ‘substantial reason’ to deny a request.”4 The five relevant factors considered in determining whether leave to amend is proper or there is substantial reason to deny the request are: (1) undue delay, (2) bad faith or dilatory motive, (3) repeated failure to cure deficiencies by previous amendments, (4) undue prejudice to the opposing party, and (5) futility of the amendment.5 Denial of leave to amend is reviewed for abuse of discretion,6 but absent a “substantial reason,” the court’s discretion “is not broad enough to permit denial” of a request for leave to amend.7

1 See S&W Enters., L.L.C. v. SouthTrust Bank of Ala., NA, 315 F.3d 533, 535–36 (5th Cir. 2003) (holding that Federal Rule of Civil Procedure 16(b) governs the amendment of pleadings after a scheduling order deadline has expired and only upon a showing of good cause and with the judge’s consent will the more liberal standard of Rule 15(a) apply to the court’s decision to grant or deny leave). 2 Denial of leave to amend is reviewed for abuse of discretion. Carroll v. Fort James Corp., 470 F.3d 1171, 1174 (5th Cir. 2006). The term “discretion” in this context “may be misleading, because [Rule] 15(a) evinces a bias in favor of granting leave to amend.” Mayeaux v. La. Health Serv. & Indem. Co., 376 F.3d 420, 425 (5th Cir. 2004) (quoting Stripling v. Jordan Prod. Co., 234 F.3d 863, 872 (5th Cir. 2000)). A district court properly exercises its discretion under Rule 15(a)(2) when it denies leave to amend for a substantial reason, such as undue delay, repeated failures to cure deficiencies, undue prejudice, or futility. U.S. ex rel. Spicer v. Westbrook, 751 F.3d 354, 367 (5th Cir. 2014) (citation omitted). 3 Avatar Expl., Inc. v. Chevron U.S.A., Inc., 933 F.2d 314, 320 (5th Cir. 1991). 4 Smith v. EMC Corp., 393 F.3d 590, 595 (5th Cir. 2004) (citation omitted); accord. Mayeaux, 376 F.3d at 425 (citing Martin’s Herend Imps., Inc. v. Diamond & Gem Trading U.S. of Am. Co., 195 F.3d 765, 770 (5th Cir. 1999); Stripling, 234 F.3d at 872). 5 Gregory v. Mitchell, 634 F.2d 199, 203 (5th Cir. 1981) (quoting Foman v. Davis, 371 U.S. 178, 182 (1962)); see also Spicer, 751 F.3d at 367 (citation omitted); Strickland v. Bank of N.Y. Mellon, 838 F. App’x 815, 821 (5th Cir. 2020) (quoting Marucci Sports, L.L.C. v. Nat'l Collegiate Athletic Ass'n, 751 F.3d 368, 378 (5th Cir. 2014)) (“Denying a motion to amend is not an abuse of discretion if allowing an amendment would be futile.”). 6 Carroll, 470 F.3d at 1174 (citation omitted). 7 Mayeaux, 376 F.3d at 425 (citing Martin’s Herend Imps., Inc., 195 F.3d at 770; Stripling, 234 F.3d at 872). 1. Undue Delay

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Con El, Inc. v. Burlington Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/con-el-inc-v-burlington-insurance-company-laed-2025.