Greathouse v. Comerica Bank

District Court, D. New Mexico·Decided February 20, 2025·No. 1:24-cv-01030·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

TERRY GREATHOUSE,

Plaintiff,

v. No. 1:24-cv-1030 DLM/JFR

COMERICA BANK,

Defendant.

ORDER GRANTING JURY TRIAL REQUEST

THIS MATTER is before the Court on Plaintiff’s late demand for a jury trial. (Doc. 32.) Defendant Comerica Bank opposes the motion. (See Doc. 36.) After careful consideration, and for the following reasons, the motion seeking a jury trial is GRANTED. I. BACKGROUND Plaintiff filed this lawsuit in New Mexico state court on July 22, 2024, claiming that his Social Security disability payments—held by Comerica Bank—were stolen and alleging six causes of action. (See Doc. 1.) In his initial complaint, no jury demand was made. (Id.) On October 9, 2024, Comerica Bank properly removed this case to federal court. (Id.) In anticipation of a Rule 16 scheduling conference, the parties submitted a joint status report on November 25, 2024, signed by counsel for Plaintiff, which reiterated that this case was a non-jury case. (Doc. 14 at 6.) At the December 4, 2024 Rule 16 conference, the parties stated that they had exchanged initial disclosures and discussed the appropriate discovery track for this case. (See Doc. 17.) The Court placed this matter on a modified 180-day discovery track. (See id.) Since then, Plaintiff has served requests for production and interrogatories, which Comerica Bank has responded to. (See Doc. 36 ¶ 2.) On January 15, 2025, at a trial scheduling conference, Plaintiff first stated his desire to have a jury trial instead of a bench trial. (Doc. 29.) After the trial scheduling conference, the Court set a four-day bench trial to occur the following year in February 2026. (Doc. 30.) The Court also set a deadline of February 14, 2025, for Plaintiff to file a motion to request a jury trial. (Doc. 31.) Plaintiff filed his request on January 17, 2025. (Doc. 32.) On February 7, 2025,

Plaintiff filed a notice that briefing was complete and stated that under the Local Rules, Comerica Bank’s time to file a response had ended. (Doc. 35.) Comerica Bank filed its opposition that same day.1 (Doc. 36.) II. LEGAL STANDARD “The right to a jury trial is enshrined in the Seventh Amendment to the federal Constitution, and has been incorporated into the Federal Rules of Civil Procedure . . . .” Pruess v. Presbyterian Health Plan, Inc., No. 1:19-cv-00629-DHU-JFR, 2024 WL 1329434, at *2 (D.N.M. Mar. 28, 2024) (citing Fed. R. Civ. P. 38(b)). Federal Rule of Civil Procedure 38(b) states that “[o]n any issue triable of right by a jury, a party may demand a jury trial by . . .

serving the other parties with a written demand . . . no later than 14 days after the last pleading directed to the issue is served.” Fed. R. Civ. P. 38(b). The failure to properly serve and file a timely demand for a jury trial waives the right to a jury trial. Fed. R. Civ. P. 38(d). Relatedly, Rule 39(b) says that when a plaintiff fails to demand a jury trial, the court tries the case, but the court may, upon request, order a jury trial. Fed. R. Civ. P. 39(b); see also Paramount Pictures Corp. v. Thompson Theatres, Inc., 621 F.2d 1088, 1090 (10th Cir. 1980) (noting the court’s

1 Under D.N.M. LR-Civ. 7.4, “[a] response must be served and filed within [14] calendar days after service of the motion,” Comerica Bank argues that because Plaintiff filed its motion well before the Court’s February 14 deadline, its response, filed 21 days after Plaintiff’s motion, is timely. (See Doc. 37.) Comerica Bank cites no authority in support of this novel proposition, nor could it, as it is incorrect. The Court imposed a deadline for Plaintiff to file its motion, but nothing in the Order gave Comerica Bank 14 days after the deadline to respond. (See Doc. 31.) Rather, the time to respond is calculated from the date the motion is filed, and Comerica Bank’s response is untimely under Rule 7.4. Regardless, the Court has considered the response brief in deciding this motion. “broad” discretion to grant or deny a jury trial). And the Tenth Circuit has held that under Rule 39, trial courts should grant untimely jury requests absent “strong and compelling reasons to the contrary.” Pruess, 2024 WL 1329434, at *2 (quoting Nissan Motor Corp. in U.S.A. v. Burciaga, 982 F.2d 408, 409 (10th Cir. 1992)). III. DISCUSSION

Plaintiff asks the Court to grant his late motion for a jury trial and explains that his failure to file a jury demand was due to “inadvertence.” (Doc. 32.) Comerica Bank opposes the request and argues that (1) mere inadvertence is a proper reason to deny the request (Doc. 36 ¶¶ 7–9); (2) Plaintiff consented to a bench trial and the late jury demand is a change in litigation strategy (id. ¶¶ 10–12); and (3) Plaintiff’s Electronic Funds Transfer Act (EFTA) claims are not appropriate for jury trials (id. ¶¶ 13–16). Comerica Bank further argues that had a jury trial been originally requested, its litigation strategy would have been different because it would not have agreed to a modified 180-day discovery schedule and “it would have been less inclined to agree to early mediation.” (Id. ¶ 5.)

Comerica Bank filed their answer on November 11, 2024, and the deadline for Plaintiff to file a jury demand was November 25, 2024. (See Doc. 10.) The jury demand was ultimately filed 53 days after the deadline. (See Doc. 32.) Additionally, Plaintiff consented to a bench trial by filing the joint status report, which indicated that this was a non-jury case. (Doc. 14 at 6.) Comerica Bank cites Henry v. Albuquerque Job Corps Ctr., for the proposition that mere inadvertence is a proper reason to deny Plaintiff’s request. No. 11-cv-0322 WJ/LAM, 2014 WL 12631440, at *2 (D.N.M. June 3, 2014) (quoting Nissan, 982 F.2d at 409). But neither the Henry court nor the Nissan court denied the untimely requests for inadvertence alone. Id. Rather, the Henry court found that a jury demand filed three years past the deadline, after settlement negotiations occurred, and just before discovery ended, plus inadvertence were strong and compelling reasons to deny the request. Id. Similarly, the Nissan court held that inadvertence plus a two-year delay in the jury demand supported denial of the mandamus request for a jury trial. Nissan, 982 F.2d at 409. Comerica Bank’s other purportedly supportive cases fare no better because in each case, the courts found that inadvertence plus other factors favored denial of the

requests: • In Dill v. City of Edmond, the denial was based on inadvertence plus an untimely demand made a year and a half after the complaint was filed. 155 F.3d 1193, 1208 (10th Cir. 1998). • In Oklahoma Natural Gas Co. v. LaRue, the denial was based on inadvertence plus the close timing of the request and the trial—only a few weeks separating the two events— and the thirteen months of prior constructive notice to the parties that the case was scheduled to be a non-jury trial. Nos. 97-6093, 97-6224, 97-6087, 1998 WL 568321, at *6–7 (10th Cir. 1998).

• In West Ridge Group, LLC v. First Trust Co.

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