Parker v. Exterior Restorations, Inc.

District Court, S.D. Alabama·Decided October 27, 2022·No. 1:21-cv-00425·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

JOHN H. PARKER, et al., ) ) Plaintiffs, ) ) v. ) CIVIL ACTION 21-0425-WS-B ) EXTERIOR RESTORATIONS, INC., ) et al., ) ) Defendants. )

ORDER This matter is before the Court on the plaintiffs’ motion for leave to file a seventh amended complaint. (Doc. 121). The parties have filed briefs and evidentiary materials in support of their respective positions, (Docs. 121, 133, 135, 137, 141-44), and the motion is ripe for resolution.1 After careful consideration, the Court concludes the motion is due to be granted in part and denied in part.

BACKGROUND As recounted in previous Court orders, this action centers around stucco materials applied to a residence. The original complaint was filed in state court in January 2020 by the homeowner (“Parker”) against the exterior contractor and its representative (collectively, “Exterior”). (Doc. 1-2 at 2-10). The third amended complaint, filed in March 2021, added the general contractor (“BMH”) as a second plaintiff and added the stucco manufacturer (“Sto”), the stucco retailer (“Capitol”),

1 The motion for leave to file a sur-reply, (Doc. 146), the purpose of which is to address matters not relevant to the Court’s disposition of the plaintiffs’ motion, is denied. The plaintiffs’ motions to file exhibits, (Docs. 151, 153), filed six days after briefing closed and the motion for leave to amend was taken under submission, (Doc. 122), are denied. The proposed exhibits, (Docs. 152, 154), are stricken. and the post-application stucco inspector (“WCS”) as defendants, with a total of seven causes of action alleged against various groupings of the defendants. (Id. at 240-250). The defendants effected a removal of the action in September 2021 based on the plaintiffs’ assertion of a federal claim. (Doc. 1). The plaintiffs filed a motion to remand in October 2021, (Doc. 13), which the Court denied in December 2021. (Doc. 25). In January 2022, the plaintiffs filed a motion for leave to amend the complaint to delete the federal claim and a second motion to remand based on the absence of a federal question. (Doc. 27). At the same time, the plaintiffs filed a motion to stay all discovery and scheduling deadlines pending a ruling on their other motions. (Doc. 28). The Magistrate Judge granted this motion on January 31, 2022, ordering the parties to file their Rule 26(f) report within seven days of the Court’s order resolving the plaintiffs’ motions to amend and remand. (Doc. 31). On April 27, 2022, the Court entered its order granting the motion to amend and denying the motion to remand. (Doc. 35). The parties thereupon filed their Rule 26(f) report on May 4, 2022, in which they jointly requested a deadline of July 1, 2022 to amend the pleadings. (Doc. 36 at 12). The Magistrate Judge held a scheduling conference on May 20, 2022 and issued a Rule 16(b) scheduling order on June 1, 2022, which adopted the July 1 deadline for amended pleadings that the parties had requested. (Doc. 51 at 2). On the July 1 deadline, the plaintiffs filed a motion for leave to file a sixth amended complaint, for the purpose of naming an additional defendant (“Dittenber”) and adding claims of negligent and fraudulent misrepresentation and suppression against all defendants. (Doc. 60). The Court granted this motion, (Doc. 72), referring to the Magistrate Judge an embedded motion for an extension until September 7 of the July 1 deadline for filing motions for leave to amend the pleadings. (Doc. 60 at 3-4). The Magistrate Judge denied this motion but left the plaintiffs free to claim good cause under Rule 16(b)(4) should they seek leave to amend the complaint following the defendants’ August depositions. (Doc. 87 at 3- 4). The subject depositions having concluded in late August, (Doc. 142 at 12), the plaintiffs filed the instant motion for leave to amend on September 30, 2022.

DISCUSSION “A schedule [established under Rule 16(b)] may be modified only for good cause and with the judge’s consent.” Fed. R. Civ. P. 16(b)(4). “This good cause standard precludes modification unless the schedule could not ‘be met despite the diligence of the party seeking the extension.’” Sosa v. Airprint Systems, Inc., 133 F.3d 1417, 1418 (11th Cir. 1998) (quoting Fed. R. Civ. P. 16 advisory committee’s note to 1983 amendment). “If a party was not diligent, the good cause inquiry should end.” MidAmerica C2L Inc. v. Siemens Energy Inc., 25 F.4th 1312, 1335 (11th Cir. 2022) (internal quotes omitted). “The lack of diligence that precludes a finding of good cause is not limited to a plaintiff who has full knowledge of the information with which it seeks to amend its complaint before the deadline passes. That lack of diligence can include a plaintiff’s failure to seek the information it needs to determine whether an amendment is in order.” Southern Grouts & Mortars, Inc. v. 3M Co., 575 F.3d 1235, 1241 n.3 (11th Cir. 2009). The ultimate burden of establishing good cause rests on the movant, Longmire v. City of Mobile, 2017 WL 63022 at *1 (S.D. Ala. 2017), but the Court’s scrutiny of good cause depends on the arguments the non-movant chooses to raise. For purposes of evaluating the plaintiffs’ diligence vel non, the progress of this lawsuit may be divided into several segments: (1) from January 2020 through September 29, 2021, when the action lay in state court; (2) from September 29, 2021 (the date of removal) through January 31, 2022 (when the Rule 26(f) report was due); (3) from January 31 (when the Magistrate Judge stayed discovery) through April 27, 2022 (when the Court denied the plaintiffs’ second motion to remand); and (4) from April 27 through July 1, 2022. Although the action was filed in January 2020, it was not until March 2021 that Sto, Capitol, and WCS were added as defendants. By the time of removal six months later, the plaintiffs had substantially completed paper discovery as to all defendants, as the defendants themselves acknowledge. (Doc. 135 at 3; Doc. 137 at 5). Moreover, on five separate occasions between June 24 and August 25, 2021,2 the plaintiffs solicited or proposed dates for the defendants’ depositions, but scheduling conflicts prevented any agreement or actual depositions prior to removal. (Doc. 137-3). The record thus reflects diligence by the plaintiffs in pursuing discovery in state court.3 Once the defendants removed the action, discovery was subject to Rule 26. Subject to certain listed exceptions, “[a] party may not seek discovery from any source before the parties have conferred as required by Rule 26(f).” Fed. R. Civ. P. 26(d)(1). The only exception potentially relevant here is “stipulation.” Id. Because a motion to remand was promptly filed three weeks after removal, the Magistrate Judge entered no order directing the parties to confer and file a Rule 26(f) report. Thus, the plaintiffs could depose the defendants only by stipulation. Following removal, the plaintiffs were deposed by agreement. (Doc. 133 at 5). The parties also agreed on deposition dates for the defendants in November 2021. (Doc. 141-2). The defendants, however, withdrew their agreement when the plaintiffs proposed that their depositions be taken under the state court style

2 The specific dates were June 24, June 30, July 20, August 23, and August 25.

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