In re MGM Mirage Securities Litigation

282 F.R.D. 600, 2012 U.S. Dist. LEXIS 83190, 2012 WL 2243051
District Court, D. Nevada·Decided June 14, 2012·No. No. 2:09-cv-1558-GMN-RJJ·Published·Cited by 5 cases

Opinion

ORDER

GLORIA M. NAVARRO, District Judge.

INTRODUCTION

Before the Court is Lead Plaintiff Arkansas Teacher Retirement System’s (hereinafter Lead Plaintiff) Motion to Strike Defendants’ Notice of Death of a Party (ECF No. 141). Defendants James J. Murren, Daniel J. D’Arrigo and Robert C. Baldwin filed a Response (ECF No. 143) and Lead Plaintiff filed a Reply (ECF No. 150).

Also before the Court is Plaintiffs Arkansas Teacher Retirement System, Luzerne County Retirement System, Philadelphia Board of Pensions and Retirement, Stichting Pensioenfonds Metaal en Techniek’s (collectively “Plaintiffs”) Motion for Hearing (ECF No. 153).

FACTS AND BACKGROUND

On July 20, 2011, Defendants James J. Murren, Daniel J. D’Arrigo and Robert C. Baldwin filed a Notice of Death stating that Defendant J. Terrance Lanni had died during the pendency of the action. {See Notice of Death, ECF No. 139.) Lead Plaintiffs counsel contacted Defendants’ counsel, Irell & Manella LLP (“Irell”) on October 13, 2011, to ask Irell for a stipulation to substitute an unnamed “appropriate party” for Lanni. (Noroozi Decl. ¶2, ECF No. 143-1.) Irell had represented Lanni in this case as reflected in the docket. However, Irell could not agree on a stipulation because it was not counsel for Lanni’s estate and further claimed that it had no knowledge about the identity of the executor of Lanni’s estate. [602] (Id. at ¶¶3, 4.) On October 18, 2011, Lead Plaintiff filed the instant Motion to Strike the Notice of Death. (Mtn. to Strike, ECF No. 141.)

On April 17, 2012 Plaintiffs filed an Amended Complaint. Immediately following the filing of the Amended Complaint, Plaintiffs filed a motion for hearing regarding the newly filed complaint and the pending Notice of Death. (Mtn. for Hearing, ECF No. 153).

DISCUSSION

A. Motion to Strike

1. Legal Standard

Federal Rule of Civil Procedure 25 governs a motion for substitution and a notice of death. The Rule provides:

(a) Death
(1) Substitution if the Claim is Not Extinguished. If a party dies and the claim is not extinguished, the court may order substitution of the proper party. A motion for substitution may be made by any party or by the decedent’s successor or representative. If the motion is not made within 90 days after service of a statement noting the death, the action by or against the decedent must be dismissed.
(3) Service. A motion to substitute, together with a notice of hearing, must be served on the parties as provided in Rule 5 and on nonparties as provided in Rule 4. A statement noting death must be served in the same manner. Service may be made in any judicial district.

Fed.R.Civ.P. 25(a).

The rule requires two affirmative steps in order to trigger the running of the 90-day period. Barlow v. Ground, 39 F.3d 231, 233 (9th Cir.1994). “First, a party must formally suggest the death of the party upon the record.” Id. (citing Anderson v. Aurotek, 774 F.2d 927, 931 (9th Cir.1985); Grandbouche v. Lovell, 913 F.2d 835 (10th Cir. 1990)). “Second, the suggesting party must serve other parties and nonparty successors or representatives of the deceased with a suggestion of death in the same manner as required for service of the motion to substitute.” Barlow, 39 F.3d at 233; Fed.R.Civ.P. 25(a).

2. Analysis

Plaintiff argues that the notice failed to fulfill the two requirements and thus the 90-day time period to substitute a party was never triggered. First, Lead Plaintiff argues notice of death must identify the successor or representative who may be substituted for the decedent. Dummar v. Lummis, 2:07-cv-459-JCM-PAL, 2007 WL 4623623, at *3, 2007 U.S. Dist. LEXIS 95288, at *7-*8 (D.Nev. Dec. 26, 2007). The Dummar case relied on three cases from other jurisdictions that have held that the suggestion of death must identify the successor or representative who may be substituted for the decedent. See Smith v. Planas, 151 F.R.D. 547, 549 (S.D.N.Y.1993); Kessler v. Se. Permanente Med. Group of N.C., P.A., 165 F.R.D. 54, 56 (E.D.N.C.1995); Rende v. Kay, 134 U.S.App.D.C. 403, 415 F.2d 983, 985 (D.C.Cir.1969). However, other cases in the Ninth Circuit do not require the suggestion of death to identify a person who may be substituted. See Jackson v. Rowlett, No. CIV S-04-0741 DFL DAD P, 2007 WL 397114, at *1, 2007 U.S. Dist. LEXIS 11300, at *2 (E.D.Cal. Jan. 31, 2007) (“Rule 25’s sole requirement concerning the content of a suggestion of death on the record is that it must contain ‘a statement of the fact of the death.’ ”).

Regardless of whether or not the suggestion of death is defective because it does not identify a person who may be substituted, the 90 days may not have been triggered by the suggestion of death if it was not properly served on the nonparty successor. See Barlow, 39 F.3d at 233; Fed.R.Civ.P. 25(a)(1) & (3). Defendants argue that they do not have to meet this requirement because the information is not “readily available to them.” See, e.g., Barlow, 39 F.3d at 234 (noting that the noticing party “clearly” knew the name and address of the nonparty who should have been served with the notice of death because the noticing party had been provided with a copy of the decedent’s will, which identified the name and address of the executor); Bertam Music Co. v. P & C Enters., Case No. [603]*60309-2253, 2011 WL 2632323, at *2, 2011 U.S. Dist. LEXIS 74913, at *4 (C.D.Ill. May 25, 2011) (notice should list the name of an executor or administrator of the estate when “the information is readily available to the person filing the statement”) (emphasis added). Defendants further argue that the Ninth Circuit has not imposed a requirement that the suggestion identify a nonparty that may be substituted when, as here, the notice of death was filed by the surviving defendants rather than by the decedent’s representative or successor. See Scott v. Vasquez, Case No. CV 02-05296 GAF (AJW), 2009 U.S. Dist. LEXIS 116071, at *6-7 (C.D.Cal. Dec. 9, 2009); see also In re Cardoza, 111 B.R. 906, 909 (S.D.Cal.1990) (notice of death must include the identity of the estate representative only when the notice is filed by the representative; that rule does not apply when another party to the action files and serves the notice).

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In re MGM Mirage Securities Litigation, 282 F.R.D. 600, 2012 U.S. Dist. LEXIS 83190, 2012 WL 2243051 (D. Nev. 2012).

282 F.R.D. 600 (In re MGM Mirage Securities Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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