Evans Hotel, LLC v. Unite Here! Local 30

District Court, S.D. California·Decided August 30, 2022·No. 3:18-cv-02763·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 EVANS HOTELS, LLC, a California Case No.: 18-CV-2763-RSH-AHG limited liability company; BH 12 PARTNERSHIP LP, a California limited ORDER (1) DENYING PLAINTIFFS’ 13 partnership; EHSW, LLC, a Delaware MOTION FOR LEAVE TO FILE limited liability company, FOURTH AMENDED COMPLAINT; 14 (2) DENYING DEFENDANTS’ Plaintiff, 15 MOTION FOR ATTORNEYS’ FEES v. AND COSTS; (3) GRANTING JOINT 16 MOTION FOR ORDER ON UNITE HERE! LOCAL 30; BRIGETTE 17 BRIEFING OF MOTION TO BROWNING, an individual; SAN DIEGO DISMISS; AND (4) DENYING JOINT 18 COUNTY BUILDING and MOTION FOR STATUS CONSTRUCTION TRADES COUNCIL, 19 CONFERENCE AFL-CIO; TOM LEMMON, an

20 individual; and DOES 1-10, [ECF Nos. 118, 125, 126, 137] 21 Defendants. 22 23 24 Pending before the Court are four motions: (1) Plaintiffs’ Motion for Leave to File 25 a Fourth Amended Complaint (ECF No. 118); (2) Defendants’ Motion for Attorneys’ Fees 26 and Costs Pursuant to California Code of Civil Procedure § 425.16 (ECF No. 125); (3) the 27 Parties’ Joint Motion for an Order on Briefing a Motion to Dismiss (ECF No. 126); and (4) 28 a Joint Motion to Set a Status Conference (ECF No. 137). For the reasons discussed below, 1 the Court denies Plaintiffs’ motion (ECF No. 118), denies Defendants’ motion (ECF No. 2 125), grants the parties’ Joint Motion on Briefing (ECF No. 126), and denies the Joint 3 Motion for a Status Conference (ECF No. 137). 4 I. Background 5 The Court previously provided a detailed factual and procedural background in its 6 Order of August 26, 2021. ECF No. 93. For purposes of the pending motions, the relevant 7 procedural history below pertains to Plaintiffs’ filing of successive complaints, 8 Defendants’ motions to dismiss or to strike those complaints, and the Court’s rulings. 9 On December 7, 2018, Plaintiffs filed their initial Complaint in this matter, alleging 10 nine claims: (1) unlawful secondary boycott in violation of section 303 of the Labor- 11 Management Relations Act (“LMRA”), (2) attempted monopolization in violation of 12 section 2 of the Sherman Act, (3) conspiracy to monopolize in violation of section 2 of the 13 Sherman Act, (4) violation of the Racketeer Influenced and Corrupt Organizations Act 14 (“RICO”), (5) violation of RICO by conspiring to violate 18 U.S.C. § 1962(c), (6) violation 15 of RICO by conspiring to violate 18 U.S.C. § 1962(d), (7) violation of RICO by conspiring 16 to violate 18 U.S.C. § 1962(b), (8) interference with prospective economic advantage, and 17 (9) attempted extortion. ECF No. 1. In February 2019, Defendants filed motions to dismiss 18 and anti-SLAPP motions. ECF Nos. 15-18. 19 On March 7, 2019, Plaintiffs filed a First Amended Complaint, containing the same 20 nine claims. ECF No. 19. The Court ruled that the filing of an amended complaint mooted 21 the motions that were pending as to the initial complaint. ECF No. 24. On April 15, 2019, 22 Defendants again filed motions to dismiss as well as motions to strike. ECF Nos. 29-32. 23 On January 7, 2020, the Court dismissed all of Plaintiffs’ claims, ruling that 24 Plaintiffs had failed to plead facts establishing that Defendants’ conduct was not protected 25 under the Noerr-Pennington doctrine. ECF No. 60. The Court denied the anti-SLAPP 26 motions as moot, and provided that Plaintiffs could request leave to amend. Id. at 25. 27 Plaintiffs requested and were granted leave to amend. ECF No. 75. 28 1 On April 21, 2020, Plaintiffs filed their Second Amended Complaint (“SAC”). ECF 2 No. 76. The SAC added a new state claim for unfair competition, and withdrew two RICO 3 conspiracy claims, for a total of eight claims (of which three were state claims). Id. 4 Defendants again filed motions to dismiss, as well as an anti-SLAPP motion directed to 5 the state claims. ECF Nos. 79-81. 6 On August 26, 2021, the Court dismissed all claims in the SAC, except Plaintiffs’ 7 first claim for unlawful secondary boycott in violation of section 303 of the LMRA. ECF 8 No. 93. The dismissal was without prejudice. Id. at 61. Having dismissed all the state 9 claims, the Court denied as moot Defendants’ anti-SLAPP motion. Id. at 60-61. The Court 10 also denied without prejudice Defendants’ request for fees and costs made in connection 11 with the anti-SLAPP motion. Id. at 60. 12 Defendants thereafter moved for reconsideration of the Court’s order, which the 13 Court denied on January 28, 2022. ECF No. 113. In denying the motion for reconsideration, 14 the Court directed that “Plaintiffs must file their Third Amended Complaint within ten (10) 15 days of this order” and “[a]bsent a motion demonstrating good cause, that complaint must 16 not contain any new claims for relief.” Id. at 113. 17 On February 7, 2022, within the ten-day window, Plaintiffs filed a Third Amended 18 Complaint (“TAC”). ECF No. 114. The TAC contained three federal claims, none of which 19 were new: (1) unlawful secondary boycott, (2) attempted monopolization in violation of 20 section 2 of the Sherman Act, and (3) conspiracy to monopolize in violation of section 2 21 of the Sherman Act. 22 On February 14, 2022, the parties filed a joint motion seeking to extend the deadline 23 for Defendants to respond to the TAC. ECF No. 115. In that motion, the Parties indicated 24 that “Plaintiffs intended to seek leave of the Court to assert a new antitrust claim arising 25 under section 1 of the Sherman Act based on the existing nucleus of facts.” Id. at 3. On 26 February 15, 2022, the Court granted the motion in part, directing Plaintiffs to file their 27 motion for leave to amend within ten days. The order advised that “a strong showing must 28 1 be made for why any claims can survive as well as why they were not brought within the 2 past three years of this case’s pendency.” ECF No. 116 at 4. 3 On February 25, 2022, Plaintiffs timely filed their Motion for Leave to File a Fourth 4 Amended Complaint (“FAC”) that is pending before this Court. ECF No. 118. The 5 proposed FAC adds two claims under section 1 of the Sherman Act, for a total of five 6 claims. ECF No. 118-3. Neither the TAC nor the FAC contains state claims. Plaintiffs’ 7 motion has been fully briefed. ECF Nos. 118, 119, 121, 122, 123. 8 On April 5, 2022, Defendants filed their pending motion for attorneys’ fees and costs 9 pursuant to California’s anti-SLAPP statute; this motion has likewise been fully briefed. 10 ECF Nos. 125, 127, 128. 11 Also on April 5, 2022, the Parties filed their joint motion for an order on briefing a 12 motion to dismiss. ECF No. 126. That motion proposes expanded page limits for briefing 13 on a motion to dismiss that is yet to be filed by Defendants, but that will seek dismissal 14 either of the TAC (if the Court denies leave to file a FAC) or of the FAC (if the Court 15 grants leave to file). 16 After the case was transferred to the undersigned on June 24, 2022 (ECF No. 135), 17 the Parties on August 2, 2022 filed their joint motion for a status conference. ECF No. 137. 18 The joint motion recited the procedural history of the case and requested a status conference 19 because “there are motions pending before the Court that will drive how the litigation 20 proceeds going forward.” Id. at 6. 21 II. Plaintiffs’ Motion for Leave to Amend 22 Plaintiffs’ motion, filed more than 38 months after the initial complaint, seeks leave 23 to file a Fourth Amended Complaint that for the first time includes two claims under section 24 1 of the Sherman Act.

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