CRAIG v. CORNERSTONE TRADING GROUP, LLC

District Court, S.D. Indiana·Decided October 9, 2025·No. 1:23-cv-01575·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION

TUSHAWN CRAIG, et al., ) ) Plaintiffs, ) ) v. ) No. 1:23-cv-01575-TWP-MJD ) CORNERSTONE TRADING GROUP, LLC, et ) al., ) ) Defendants. )

ORDER DENYING CORNERSTONE DEFENDANTS' MOTIONS FOR LEAVE TO BELATEDLY AMEND THEIR FINAL WITNESS AND EXHIBIT LISTS

Defendants Cornerstone Trading Group LLC, My-Way Trading Inc., and Seth Smith (collectively "Cornerstone Defendants") have filed two motions for leave to belatedly amend their final witness and exhibit lists. [Dkts. 281 & 286.] Co-defendant and cross-claimant City of Richmond ("City") opposes these motions. For the reasons explained below, the motions are DENIED. I. Background This class action arises from a fire at a recycling facility in Richmond, Indiana. [Dkt. 72 at ¶ 1.] The plaintiffs evacuated their homes because of the fire and are now suing Cornerstone Trading Group LLC ("Cornerstone") and Seth Smith, who owned the recycling facility, and the City, which owned the land on which the recycling facility was located. [Id. at ¶¶ 2, 4, 12-14.] Cornerstone has filed crossclaims against the City, and the City has filed crossclaims against all

three of the Cornerstone Defendants. [Dkt. 1-2 at 69-71; dkt. 77 at 24-34.] The original deadline to file final witness and exhibit lists was May 13, 2025. [Dkt. 42 at 6.] As the case progressed, the Court repeatedly told the parties that "no further enlargement of the current case management deadlines will be granted," due to the unreasonably slow pace of the parties' discovery efforts. [Dkt. 75 at 1 (emphasis in original); dkt. 88 at 1 (emphasis in original).] Nevertheless, the Court did extend the deadline to file final witness and exhibit lists to July 15, 2025, as well as other case management deadlines. [Dkt. 138.] In the Order extending those deadlines, the Court provided the following detailed instructions for any future motion to amend a party's final witness and exhibit list: If a party identifies a possible witness or exhibit that may be used at trial after the deadline set forth in this paragraph, that party shall immediately file a motion for leave to amend their final witness and/or exhibit list, and shall identify therein when the witness or exhibit was first identified and explain why that witness or exhibit could not have been identified prior to the deadline set forth in this paragraph.

[Id. at 2-3 n.2 (emphasis added).]

On February 12, 2025, counsel for the Cornerstone Defendants moved to withdraw, citing missed payments dating back to September 2024. [Dkt. 162 at ¶ 3.] The Court granted the motion to withdraw and ordered Cornerstone and My-Way Trading, Inc. to obtain substitute counsel by March 28, 2025, or show cause why they should not be found in default.1 [Dkt. 168, 169.] On March 27, 2025, attorney Arie Lipinski appeared as new counsel for the Cornerstone Defendants. [Dkt. 170.] Three weeks later, the Cornerstone Defendants moved to extend

1 Unlike Defendant Seth Smith, Cornerstone and My-Way Trading, Inc. are entities and may not represent themselves in court. See In re IFC Credit Corp., 663 F.3d 315, 318 (7th Cir. 2011) ("Corporations unlike human beings are not permitted to litigate pro se") (collecting cases). numerous case management deadlines by sixty days due to Mr. Lipinski's inability to complete the

tasks related to those deadlines within the time allowed. [Dkt. 179.] They did not move to amend the deadline to file final witness and exhibit lists in that motion. [Id.] The Court granted that motion in part and extended certain deadlines by approximately thirty days. [Dkt. 183.] On July 10, 2025, the Court denied a motion by the City and the Cornerstone Defendants to extend the deadline to file final witness and exhibit lists. [Dkt. 260.] Ultimately, all parties filed their final witness and exhibit lists on July 15, 2025. [Dkts. 263-65.] The Cornerstone Defendants filed a motion to belatedly amend their final witness and exhibit lists on August 29, 2025. [Dkt. 281.] They filed a second motion to belatedly amend their final witness and exhibit lists on September 18, 2025. [Dkt. 286.] The specific arguments in those motions will be addressed in Section III below, but in general, the motions are premised on the

alleged unreasonableness of the Court's case management deadlines in light of Mr. Lipinski's status as a solo practitioner and his midstream appearance into this case earlier this year. The City opposes both motions, which are now ripe for the Court's review. [Dkts. 284; 285; 288; 292.] II. Legal Standard Under Federal Rule of Civil Procedure 16(b)(4) , the moving party must show "good cause" to amend a deadline in the trial court's scheduling order. Bell v. Taylor, 827 F.3d 699, 706 (7th Cir. 2016) The "good-cause standard focuses on the diligence of the party seeking amendment, not the prejudice to the nonmoving party." Peters v. Wal-Mart Stores E., LP, 512 F. App'x 622, 627- 28 (7th Cir. 2013); see also Alioto v. Town of Lisbon, 651 F.3d 715, 720 (7th Cir. 2011) ("In making a Rule 16(b) good-cause determination, the primary consideration for district courts is the

diligence of the party seeking amendment."). III. Discussion In their first motion to amend, the Cornerstone Defendants seek to add four witnesses and fourteen exhibits to their final witness and exhibit lists. [Dkt. 281 at ¶¶ 4, 5.] It is unclear precisely when the Cornerstone Defendants became aware of these additional witnesses and exhibits. Mr. Lipinski states that he inadvertently omitted one witness, George Sowers, when he filed the final witness list on July 15, 2025, and that his clients had informed him of the other three witnesses several weeks before he filed the present motion. [Id.¶¶ 2-3.] Mr. Lipinski concedes that "[m]ost, if not all, of the additional exhibits had been produced in discovery, but [he] was unaware of their existence until several days after he filed the Final Witness and Exhibit List." [Id. at ¶ 3 (emphasis added).]

In the second motion to amend, the Cornerstone Defendants seek to add messages that were left on Defendant Seth Smith's voicemail, as well as transcripts of those messages and a photograph showing the dates and times of those messages. [Dkt. 286 at ¶ 4.] The messages are dated November 4, 2020, December 1, 2020, December 20, 2020, and January 14, 2021. [Id.] Mr. Lipinski received these messages from his clients in September, 2025. [Id. at ¶¶ 2-3.] The Cornerstone Defendants argue that Mr. Lipinski, who is a solo practitioner, did not have the time and resources to review the voluminous discovery materials and meet and confer with his clients before the deadline to file their final witness and exhibit lists. [Dkt. 285 at ¶ 3.] They state that, "although Mr. Lipinski chose to represent Cornerstone Defendants and accepted the circumstances that come with such representation, he likely would not have appeared if he had

known that case management deadlines were so concrete that they would prejudice his ability to defend Cornerstone Defendants and put him at risk for malpractice if his work is not flawless

despite the magnitude of this litigation." [Id. (cleaned up)] The Court is unpersuaded by the Cornerstone Defendants' arguments. By his own admission, Mr. Lipinski lacks the resources to defend his clients in a case of this magnitude—a case that no one, least of all the Court, forced him to accept. A simple review of the record would have shown Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

CRAIG v. CORNERSTONE TRADING GROUP, LLC, (S.D. Ind. 2025).

CRAIG v. CORNERSTONE TRADING GROUP, LLC (CRAIG v. CORNERSTONE TRADING GROUP, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Alioto v. Town of Lisbon
651 F.3d 715 (Seventh Circuit, 2011)
In Re IFC Credit Corp.
663 F.3d 315 (Seventh Circuit, 2011)
Peters v. Wal-Mart Stores East, LP
512 F. App'x 622 (Seventh Circuit, 2013)
Richard N. Bell v. Cameron Taylor
827 F.3d 699 (Seventh Circuit, 2016)