Klein v. Jelly Belly Candy Co.

CourtDistrict Court, E.D. California
DecidedJune 23, 2023
Docket2:23-cv-00035
StatusUnknown

This text of Klein v. Jelly Belly Candy Co. (Klein v. Jelly Belly Candy Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Klein v. Jelly Belly Candy Co., (E.D. Cal. 2023).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 DAVID KLEIN, No. 2:23-cv-00035-DAD-JDP 12 Plaintiff, 13 v. ORDER GRANTING DEFENDANT’S APPLICATIONS FOR AN AWARD OF 14 JELLY BELLY CANDY COMPANY, ATTORNEYS’ FEES AND COSTS, IN PART 15 Defendant. (Doc. Nos. 46, 47) 16 17 This matter came before the court on June 20, 2023 for a hearing on the applications for 18 attorneys’ fees and costs filed on behalf of defendant Jelly Belly Candy Company (“Jelly Belly”) 19 on March 14, 2023. (Doc. Nos. 46, 47.) Plaintiff David Klein appeared by video representing 20 himself pro se, and attorney Eric D. Wong appeared by video on behalf of defendant. For the 21 reasons explained below, defendants’ applications will be granted, in part. 22 BACKGROUND 23 A. Plaintiff’s Prior Lawsuit — the New York Action 24 On May 23, 2022, plaintiff Klein, proceeding with counsel,1 initiated a civil action against 25 Jelly Belly in New York state court asserting claims for libel (written defamation) and civil 26 conspiracy (the “New York Action”). (See Doc. No. 33-1 at 3.) Jelly Belly removed that action 27

28 1 Plaintiff Klein was represented by counsel throughout the New York Action. 1 to federal court in New York and thereafter moved to dismiss Klein’s claims as barred by the 2 applicable one-year statute of limitations and because Klein had otherwise failed to state a 3 cognizable claim for relief. See Klein v. Jelly Belly Candy Company, 1:22-cv-05629-JPC-JLC 4 (S.D.N.Y July 1, 2022); (Doc. No. 33-5). 5 Rather than oppose Jelly Belly’s motion to dismiss, Klein filed a “pre-motion letter” 6 seeking the court’s permission to file a motion to transfer the action to the federal court in 7 Massachusetts, transparently conceding that the reason for the transfer was to attempt to take 8 advantage of the longer (3-year) statute of limitations in Massachusetts. (See Doc. No. 33-5.) In 9 that letter, Klein alternatively requested that the court dismiss his action so that he could re-file 10 the action “in a jurisdiction with a longer statute of limitations.” (Id. at 4.) Jelly Belly filed a 3- 11 page, single spaced letter in response, presenting its arguments and citing legal authority to urge 12 the New York district court to deny Klein’s request for permission to file a motion to transfer the 13 action. See Klein, 1:22-cv-05629-JPC-JLC, Letter, Doc. No. 20 (Aug. 15, 2022). Klein then filed 14 a pre-motion letter requesting permission from the court to file a motion to strike Jelly Belly’s 15 letter as non-compliant with the court’s page limits and format requirements. See Klein, 1:22-cv- 16 05629-JPC-JLC, Letter, Doc. No. 22 (Aug. 15, 2022). Jelly Belly responded and cited legal 17 authority to support its position that Klein’s request to file a motion to strike should be rejected. 18 (Doc. No. 23.) The New York district court denied Klein’s request, stating that “[t]he double- 19 spacing requirement in Local Rule 11(b)(3) does not apply to pre-motion letters written to the 20 Court.” See Klein, 1:22-cv-05629-JPC-JLC, Order, Doc. No. 25 (Aug. 18, 2022). 21 That court also directed Jelly Belly “to file an additional response letter by August 22, 22 2022, addressing whether voluntary dismissal under Fed. R. Civ. P. 41(a)(1)(A)(i) is available to 23 Plaintiff in this case.” See Klein, 1:22-cv-05629-JPC-JLC, Order, Doc. No. 24 (Aug. 18, 2022). 24 In its additional response, Jelly Belly suggested that, rather than being ignorant of the option to 25 voluntarily dismiss the action without a court order, Klein’s counsel had strategically decided not 26 to pursue voluntary dismissal under Rule 41(a)(1)(A)(i) because doing so would enable Jelly 27 Belly to seek an award of costs and attorneys’ fees pursuant to Rule 41(d) of the Federal Rules of 28 Civil Procedure. (See Doc. No. 33-17 at 2.) Specifically, Rule 41(d) provides that: “If a plaintiff 1 who previously dismissed an action in any court files an action based on or including the same 2 claim against the same defendant, the court: (1) may order the plaintiff to pay all or part of the 3 costs of that previous action; and (2) may stay the proceedings until the plaintiff has complied.” 4 Fed. R. Civ. P. 41(d). Citing this rule, Jelly Belly warned Klein that should he “pursue his 5 intended forum shopping strategy to avoid New York’s statute of limitations by voluntarily 6 dismissing this action [] and refiling it elsewhere, [Jelly Belly] reserves the right to recover the 7 fees and costs it incurred in defending this action in New York.” (See Doc. No. 33-17 at 2.) 8 Thereafter, the New York district court issued an order advising Klein that if he “wishes to 9 terminate this action, and presumably re-file his complaint in a different district, he shall file a 10 notice of voluntary dismissal pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(i).” See 11 Klein, 1:22-cv-05629-JPC-JLC, Order, Doc. No. 27 (Aug. 22, 2022). On August 26, 2022, Klein 12 filed a notice of voluntary dismissal pursuant to Rule 41(a)(1)(A)(i), and that action was 13 dismissed accordingly. (See Doc. No. 33-7 at 2.) 14 B. Plaintiff’s Second Lawsuit — this Action 15 On September 28, 2022, plaintiff Klein, proceeding with counsel, filed the complaint 16 initiating this action against Jelly Belly, again asserting defamation and civil conspiracy claims, 17 this time in Massachusetts state court. (Doc. No. 1-2 at 4.) Defendant timely removed this action 18 to federal court in Massachusetts on October 25, 2023, and on January 6, 2023, the District Court 19 of Massachusetts transferred this action here to the Eastern District of California.2 (Doc. Nos. 1 20 at 1; 22; 25.) 21 On January 20, 2023, defendant Jelly Belly filed two motions in this action: (1) an anti- 22 SLAPP motion to strike/dismiss plaintiff’s claims and a request for an award of attorneys’ fees 23 and costs it incurred in defending this action; and (2) a motion under Rule 41(d) for an award of 24 attorneys’ fees and costs incurred in the New York Action. (Doc. Nos. 32, 33, 36). On March 7, 25 2023, the court held a hearing on those motions and orally granted both of them from the bench. 26 (Doc. Nos. 43, 50.) Specifically, the court found that pursuant to California Civil Procedure Code 27 2 Plaintiff Klein was represented by counsel in this action through January 3, 2023, and since that 28 date, has proceeded pro se. (See Doc. No. 22.) 1 § 425.16(c), defendant Jelly Belly is entitled to recover reasonable attorneys’ fees and costs 2 incurred moving to strike plaintiff’s claims in this action. (Id.) The court also found that 3 pursuant to Rule 41(d), awarding Jelly Belly the attorneys’ fees and costs it incurred in the New 4 York Action is appropriate in light of plaintiff’s admitted forum shopping. (Id.) (citing 5 Moskowitz v. Am. Sav. Bank, F.S.B., 37 F.4th 538, 545–46, n.8 (9th Cir. 2022); Milkcrate 6 Athletics, Inc. v. Adidas Am., Inc., No. 21-cv-09328-FWS-JPR, 2022 WL 3584501, at *13 (C.D. 7 Cal. Aug. 4, 2022) (applying the decision in Moskowitz and viewing the “weight of authority as 8 constraining the upper bound of the court’s discretion to award fees to situations in which (1) 9 there is proof of bad faith, vexatiousness, wanton actions, or forum shopping in the filing of the 10 original action; or (2) if the substantive statute underlying the claim provides for attorney’s fees”).

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Bluebook (online)
Klein v. Jelly Belly Candy Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/klein-v-jelly-belly-candy-co-caed-2023.