Hardy v. Farmers Group

District Court, D. Utah·Decided June 27, 2023·No. 2:21-cv-00619·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH

ORDER AND MEMORANDUM ANGELEE HARDY, DECISION DENYING MOTION FOR LEAVE TO FILE THIRD AMENDED COMPLAINT Plaintiff, v. Case No. 2:21-cv-00619-TC-DBP FARMERS INSURANCE EXCHANGE,

District Judge Tena Campbell Defendant. Magistrate Judge Dustin B. Pead

Before the court is Plaintiff-Employee Angelee Hardy’s Motion for Leave of Court to File Third Amended Complaint. (ECF No. 26 (“Mot. File TAC”)). The Defendant-Employer in this employment discrimination action, Farmers Insurance Exchange (Farmers), opposes the motion. (Opp. Mot. File TAC, ECF No. 34).1 Having considered the parties’ arguments and the proposed pleading, (Pl.’s (Proposed) Third Am. Compl., ECF No. 26-2 (“TAC”)), the court denies Ms. Hardy’s motion on the grounds of undue delay and futility of amendment. DISCUSSION

I. Background2 In her Third Amended Complaint (TAC), as in her Second Amended Complaint (SAC), Ms. Hardy claims she experienced gender-based discrimination and harassment while employed at Farmers and she brings a cause of action against Farmers for gender-based discrimination. (TAC ¶¶ 80–91, ECF No. 26-2; see also SAC ¶¶ 80–91, ECF No. 9). She also alleges now, as

1 Ms. Hardy did not file a reply in support of her pending motion. 2 Having described Ms. Hardy’s history at Farmers at length in its previous Order, (Order, ECF No. 25), the court will not again recite all the events that led to Ms. Hardy filing this action. The facts alleged and arguments made are discussed herein as they are relevant to the motion at hand. she did before, that Farmers retaliated against her for reporting the abusive behavior and she brings a cause of action against Farmers for retaliation. (TAC ¶¶ 92–103; SAC ¶¶ 92–103). On September 30, 2022, Farmers moved to dismiss Ms. Hardy’s claims. (Mot. Dismiss, ECF No. 13). On January 23, 2023, the court granted Farmers’ motion and dismissed both of Ms. Hardy’s claims. (Order, ECF No. 25). The court did not enter judgment at that time.

Instead, it allowed Ms. Hardy to file a motion seeking leave to file an amended complaint. Id. Ms. Hardy’s motion requesting this leave is now before the court. (Mot. File TAC, ECF No. 26). II. Analysis

A pleading may be amended under Rule 15(a)(1) “‘once as a matter of course’ within 21 days after (A) serving the pleading or (B) service of a responsive pleading or preresponse motion. When, as here, Paragraph 15(a)(1) does not apply, a party may amend only with the opposing party’s written consent or the court’s leave.” Pacheco v. Habti, 62 F.4th 1233, 1240 (10th Cir. 2023) (citing Fed. R. Civ. P. 15(a)(2)). Farmers does not consent. (Opp. Mot. File TAC 11, ECF No. 34). So, Ms. Hardy requires the court’s leave to file her amended pleading. a. Legal Standard. Courts “should freely give leave [to amend] when justice so requires.” Pacheco, 62 F.4th at 1240 (quoting Fed. R. Civ. P. 15(a)(2)).3 “The liberal granting of motions for leave to amend reflects the basic policy that pleadings should enable a claim to be heard on its merits.” Calderon v. Kansas Dep’t of Soc. & Rehab. Servs., 181 F.3d 1180, 1186 (10th Cir. 1999). But “This policy is not limitless.” Id. “[A] district court may deny a motion to amend for reasons such as undue

3 Once judgment is entered “the filing of an amended complaint is not permissible until judgment is set aside or vacated.” J. G. through Grimes v. Bimestefer, No. 21-1194, 2022 WL 2965794, at *7 (10th Cir. July 27, 2022) (unpublished) (quoting The Tool Box, Inc. v. Ogden City Corp., 419 F.3d 1084, 1087 (10th Cir. 2005)). Here, judgment has not yet been entered. The court notes that unpublished decisions are cited for persuasive value. Fed. R. App. 32.1; DUCivR 7-2(a)(2). delay, undue prejudice to the opposing party by virtue of allowance of the amendment, or futility of the amendment.” Cvent, Inc. v. RainFocus, Inc., No. 2:17-cv-00230, 2018 WL 4290399, at *2 (D. Utah Sept. 7, 2018) (citing Foman v. Davis, 371 U.S. 178, 182 (1962)); see Frank v. U.S. West, Inc., 3 F.3d 1357, 1365 (10th Cir. 1993) (listing when refusing leave to amend is justified). A court must state its reasons if it refuses leave to amend. Stafford v. Saffle, 34 F.3d 1557, 1560

(10th Cir. 1994). So, the court explains its decision refusing Ms. Hardy leave to amend below. b. Undue Delay. Ms. Hardy filed her motion to amend nearly 16 months after filing her original complaint. “Where the party seeking amendment knows or should have known of the facts upon which the proposed amendment is based but fails to include them in the original complaint, the motion to amend is subject to denial” due to undue delay. Las Vegas Ice & Cold Storage Co. v. Far W. Bank, 893 F.2d 1182, 1185 (10th Cir. 1990) (quoting State Distribs., Inc. v. Glenmore Distilleries Co., 738 F.2d 405 (10th Cir. 1984)). Courts must consider the adequacy of the reasons a plaintiff provides for their delay. Cohen v. Longshore, 621 F.3d 1311, 1314 (10th Cir. 2010). But denial of leave to amend is appropriate when the party filing the motion has no adequate explanation for

the delay. Zisumbo v. Ogden Reg’l Med. Ctr., 801 F.3d 1185, 1195 (10th Cir. 2015) (quoting Minter v. Prime Equip. Co., 451 F.3d 1196, 1205–06 (10th Cir. 2006)). Farmers argues that leave to amend should be denied because of undue delay. (Opp. Mot. File TAC 30, ECF No. 34). Ms. Hardy did not file a reply to rebut this point. Her motion to amend is similarly unhelpful. It does not explain why Ms. Hardy failed to include the facts on which the proposed amendment is based in her original complaint. It also does not contest that she knew or should have known these facts when the original complaint (ECF No. 2) was filed, or when her First Amended Complaint (ECF No. 3), or her Second Amended Complaint (ECF No. 9), were filed. It merely says that in the brief she filed in opposition to Farmers’ Motion to Dismiss, she “conceded that [the SAC] had various pleading deficiencies” and that an “efficient resolution might be” to allow her to amend her complaint. (Mot. File TAC 2, ECF No. 26). During the hearing on the pending motion, Ms. Hardy’s counsel explained the late timing of amendment by acknowledging that the changes in the TAC were made once it became clear that

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