Rent—A—Center Inc. v. 47 Mamaroneck Avenue Corp.

215 F.R.D. 100, 2003 U.S. Dist. LEXIS 6352, 2003 WL 1894819
CourtDistrict Court, S.D. New York
DecidedApril 9, 2003
DocketNo. 02 Civ. 00213(CM)
StatusPublished
Cited by71 cases

This text of 215 F.R.D. 100 (Rent—A—Center Inc. v. 47 Mamaroneck Avenue Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rent—A—Center Inc. v. 47 Mamaroneck Avenue Corp., 215 F.R.D. 100, 2003 U.S. Dist. LEXIS 6352, 2003 WL 1894819 (S.D.N.Y. 2003).

Opinion

ORDER DENYING DEFENDANTS’ MOTION FOR LEAVE TO AMEND THEIR COUNTERCLAIM

MCMAHON, District Judge.

In the ordinary course, when a party moves to amend the pleadings after the deadline to do so in the court’s scheduling order has passed, that party must satisfy the good cause requirement of Fed.R.Civ.P. 16(b) — despite the lenient standard for amendment under Fed.R.Civ.P. 15(a) — before leave to amend may be granted. Parker v. Columbia Pictures Indus., 204 F.3d 326, 339-40 (2d Cir.2000) (citations omitted). The reason for this is simple — scheduling orders are designed to offer a degree of certainty in pretrial proceedings, ensuring that at some point both the parties and the pleadings will be fixed and the ease will proceed. Id. If Rule 15(a) is considered without regard to Rule 16(b), scheduling orders could be rendered meaningless and Rule 16(b) would be rendered nugatory.

In the present case, the defendants’ motion to amend comes long after the deadline for amendments for pleadings set by this Court’s Scheduling Order. Indeed, it is made four months after defendants amended their answer, with this Court’s permission, to assert a counterclaim for attorneys’ fees. But plaintiff failed to reply to the defendants’ counterclaim. Defendants argue that Rule 16(b)’s standard of good cause is trumped in this case, not by Rule 15(a)’s standard of lenient amendment, but by its statement that a party “may amend the party’s pleading once as a matter of course at any time before a responsive pleading is served____” Fed. R. Crv. P. 15(a).

For the following reasons, I find that the Rule 16(b) good cause standard is applicable and deny the defendants’ motion to amend the pleadings.

I. Facts Pertinent to the Motion

A. The Underlying Dispute

On or about September 29, 2000, Rent-A-Center, Inc., (“RAC”) entered a lease agreement whereby 47 Mamaroneck Avenue Corporation (“47”) would lease to RAC certain commercial property located in the City of White Plains. (Plaintiffs complaint filed on January 1, 2002 (“PL’s Compl.”) f 5). The lease was for five years with options to renew for two additional terms of five years each. (PL’s Compl. 115-6). The lease also contained terms such as price and predetermined annual rent increases.

After the lease was executed, RAC, with 47’s approval, made alterations of the commercial space and installed improvements costing over $125,000. (PL’s Compl. 119). RAC provided 47 with the proposed plans of said alterations and improvements, which the latter approved and accepted. (PL’s Compl. 119). In addition to obtaining 47’s approval, RAC secured permits and inspections that were necessary before the alterations and improvements could begin. (PL’s Compl. 119).

On or about March 21, 2001, RAC and 47 entered an agreement resolving certain dis[102]*102putes between them. Pursuant to this agreement, RAC paid 47 a specified amount and defendants released RAC from any further obligation, cost, claim, liability, or expense arising out of or related to the repairs and work. (Pl.’s Compl. 1110).

RAC contends that, after this agreement was entered, 47 and Timothy Engle (“Engle”) (collectively, the defendants) embarked on a plan of harassment and coercion with the intention of causing RAC to terminate its leasehold. (Pl.’s Compl. 1111). The alleged harassment and coercion took on many forms. RAC asserts that 47 served RAC a notice to terminate the lease for RAC’s alleged failure to cure alleged violations of certain provisions of the White Plains fire code, which according to RAC, had already been cured. (Pl.’s Compl. If 11(a)). RAC also alleges that the defendants maliciously commenced a holdover proceeding to recover the leased premises which was discontinued shortly after its commencement. (Pl.’s Compl. H 11(a)). It is asserted that 47 billed RAC for 47’s legal services in connection with this holdover proceeding. Despite its discontinued efforts to obtain legal fees from RAC, 47 notified RAC that it would terminate the lease if these fees were not paid. (Pl.’s Compl. H 11(c)). RAC further asserts that 47 trespassed onto RAC’s premises and interfered with RAC’s business by appearing unannounced and accompanied by Fire Department personnel and the City Building Inspector to elicit non-existent fire code violations, which the Fire Marshall and City Building Inspector refused to do. (Pl.’s Compl. H 11(e)). The plaintiff also alleges that 47 had RAC’s telephone line(s) cut, and that defendant Engle threatened to block RAC’s access to the leased premises basement in violation of the lease’s terms. Finally, there are additional allegations that 47 repeatedly demanded more and more counsel fees irom RAC, explaining to RAC that these fees were incurred in administering the lease. However, when billing RAC for said fees, 47 failed to itemize or breakdown the charges. (Pl.’s Compl. H 11(g)).

B. Procedural History

RAC filed its complaint in this Court on January 10, 2002, naming 47 Mamaroneck Avenue Corporation and Timothy Engle as the defendants (collectively referred to as “47”). Plaintiffs complaint contained five causes of action: 1) declaratory and injunctive relief, 2) malicious breach of contract by 47, 3) money had and received (because RAC paid, under protest, counsel fees and other charges improperly billed by 47), 4) tortious inducement of breach of contract and trespass to property, and 5) fraud.

On February 13, 2002, defendants moved to dismiss RAC’s complaint. The Court denied this motion on April 3, 2002, and directed the plaintiff to file an amended complaint, amending the allegations of the Fifth Cause of Action. On April 8, 2002, RAC did as directed, and the defendants answered on April 26, 2002. Thereafter, the Court entered a Consent Scheduling Order (the “Scheduling Order”) setting various deadlines. In particular, the Scheduling Order stated that amendments to the pleadings would not be permitted after June 1, 2002.

On May 28, 2002, (three days before the deadline for amendments), the defendants moved for summary judgment dismissing plaintiffs Fourth and Fifth Causes of Action, and for leave to amend defendants’ answer to the amended complaint to include a counterclaim. On July 30, 2002, the Court denied the defendants’ motion for summary judgment, but granted the motion to amend the defendants’ answer to the amended complaint. The defendants’ amended answer contained a counterclaim, which asserted that the plaintiff failed to pay late charges assessed pursuant the lease and additional rent consisting of the legal fees and expenses the defendants incurred in administering the lease.

On August 16, 2002, the deadline for discovery, both parties requested that it be extended by sixty days. The Court granted an extension, but not by sixty days. The Court endorsed the letter requesting a discovery extension and wrote “[y]ou have until September 20, 2002, no longer; you should not put things off until the end.”

II. The Pending Motion

On October 11, 2002, defendants again moved to amend their answer. Defen[103]

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Bluebook (online)
215 F.R.D. 100, 2003 U.S. Dist. LEXIS 6352, 2003 WL 1894819, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rentacenter-inc-v-47-mamaroneck-avenue-corp-nysd-2003.