RP Golden State Management, LLC v. Ohio Security Insurance Company

District Court, E.D. California·Decided June 17, 2021·No. 1:19-cv-00600·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 RP GOLDEN STATE MANAGEMENT, No. 1:19-cv-00600-DAD-JLT LLC, 12 ORDER DENYING DEFENDANT’S Plaintiff, MOTION FOR INVOLUNTARY DISMISSAL 13 OF THIS ACTION UNDER RULE 41(b) AND v. REFFERING DEFENDANTS MOTION FOR 14 SANCTIONS UNDER RULE 37 TO THE OHIO SECURITY INSURANCE ASSIGNED MAGISTRATE JUDGE 15 COMPANY, (Doc. No. 58) 16 Defendant. 17 18 This matter is before the court on the motion for involuntary dismissal and for terminating 19 and/or monetary sanctions filed on behalf of defendant Ohio Security Insurance Company (“Ohio 20 Security” or “defendant”) on September 18, 2020. (Doc. No. 58.) Pursuant to General Order No. 21 617 addressing the public health emergency posed by the COVID-19 pandemic, defendant’s 22 motion was taken under submission on the papers. (Doc. No. 62.) For the reasons explained 23 below, the court will deny the pending motion to the extent defendant seeks involuntary dismissal 24 of this action pursuant to Rule 41(b) of the Federal Rules of Civil Procedure. As to defendant’s 25 request for terminating and/or monetary sanctions under Rule 37 based on plaintiff’s alleged 26 repeated violations of the rules governing discovery and its failure to comply with the court’s 27 discovery orders, the undersigned will refer defendant’s motion to United States Magistrate Judge 28 Jennifer L. Thurston, consistent with Local Rule 302(c), for resolution. 1 BACKGROUND 2 On March 25, 2019, plaintiff RP Golden State Management LLC, dba Garden Suites Inn 3 (“RP Golden” or “plaintiff”) filed this action against defendant in the Kern County Superior 4 Court alleging claims for breach of contract, breach of the covenant of good faith and fair dealing, 5 and bad faith, related to a commercial general liability insurance policy that plaintiff had 6 purchased from defendant to cover a hotel that plaintiff owned and operated. (Doc. No. 1-1 at 2– 7 5.) Defendant removed this action to this federal court on May 3, 2019. (Doc. No. 1.) 8 In early June 2019, the parties sought and received a 90-day stay of the proceedings in this 9 case so they could explore the possibility of informal settlement, which efforts were ultimately 10 unsuccessful. (Doc. Nos. 7, 8.) A year later, following several stipulations to continue the formal 11 settlement conference that the court had scheduled, and after having already twice amended the 12 scheduling order at the parties’ request, the court denied the parties’ request to amend the 13 scheduling order for a third time. (See Doc. No. 29.) 14 On June 16, 2020, plaintiff’s then-counsel filed a motion to withdraw as attorney for 15 plaintiff in this action based on the representation that there had “been an irremediable breakdown 16 in communication between [himself] and plaintiff” and for additional reasons that were disclosed 17 to the court in a declaration filed by counsel under seal. (Doc. Nos. 30, 33.) On August 24, 2020, 18 the court granted that motion to withdraw and provided plaintiff fourteen (14) days from the date 19 of that order to obtain new counsel because, unlike individuals who “may appear in propria 20 persona, corporations and other entities may appear only through an attorney; an unrepresented 21 entity cannot file any pleadings, make or oppose any motions, or present any evidence to contest 22 liability.” (Doc. No. 53 at 3–4) (citing Caveman Foods, LLC v. Payne’s Caveman Foods, LLC, 23 No. 2:12-cv-01112-WBS-CKD, 2015 WL 6736801, at *2 (E.D. Cal. Nov. 4, 2015) (quoting 24 Rowland v. Cal. Men’s Colony, 506 U.S. 194, 202 (1993))).1 Plaintiff was warned in that order 25

1 While that motion to withdraw as attorney of record was pending before the court, defendant 26 had filed two motions to compel the depositions of certain witnesses, both of which were granted. 27 (Doc. Nos. 37, 44, 52, 57.) Because this order only addresses the pending motion to the extent it seeks involuntary dismissal under Rule 41(b), the court will not provide further background as to 28 the parties’ discovery disputes or those motions to compel in this order. 1 “that failure to comply with this order will result in the dismissal of this action for failure to 2 prosecute and failure to comply with the court’s order.” (Doc. No. 53 at 6.) Nevertheless, the 3 September 8, 2020 deadline for plaintiff to obtain new counsel and for that counsel to file a notice 4 of appearance passed, and neither a notice of appearance by new counsel nor a request for an 5 extension of time in which to comply with the court’s order were filed by plaintiff. 6 On September 18, 2020, defendant filed the pending motion for involuntary dismissal of 7 this action pursuant to Rule 41(b) and for terminating and/or monetary sanctions pursuant to Rule 8 37. (Doc. No. 58.) In its supporting memorandum, defendant argues that involuntary dismissal is 9 warranted in light of plaintiff’s failure to obtain counsel in compliance with the court’s August 10 24, 2020 order and that the requested Rule 37 sanctions are warranted because “RP Golden, 11 through its managing agents, has failed to comply with the rules of discovery, has willfully 12 violated this Court’s discovery orders, and has irreparably thwarted Ohio Security’s ability to 13 conduct critical discovery and prepare for trial.” (Doc. No. 59 at 2.) Plaintiff did not timely file 14 an opposition to the pending motion. 15 On September 21, 2020, plaintiff filed a request for an extension of time in which to 16 obtain new counsel. (Doc. No. 64.) The court granted plaintiff’s request, set a new deadline of 17 November 23, 2020 for plaintiff to obtain counsel, and warned that “[t]he failure of the plaintiff 18 to appear through an attorney will result in a recommendation that the action be dismissed.” 19 (Doc. No. 65.) 20 On October 13, 2020, defendant filed a reply in support of the pending motion, 21 acknowledging that the court had given plaintiff additional time to retain counsel but nevertheless 22 arguing that involuntary dismissal and imposition of sanctions remained appropriate in light of 23 plaintiff’s repeated failures to obey court orders. (Doc. No. 68.) 24 On October 23, 2020, plaintiff filed a response to the pending motion, in which Mr. Pravin 25 (Paul) Desai, the Manager/Owner and agent of RP Golden, appeared to contend that he can 26 represent “himself” pro se, on behalf of RP Golden, and that in any event he was continuing to try 27 to obtain counsel for RP Golden and would do so by the November 23, 2020 deadline. (Doc. No. 28 69 at 2, 4.) However, that deadline passed without the filing of a notice of appearance by new 1 counsel on behalf of plaintiff. Thus, on November 25, 2020, defendant filed a supplemental reply 2 in support of its pending motion, arguing that “[i]n short, RP Golden has been afforded with a 3 generous amount of time to obtain a new attorney, but has not done so” and “[a]dditional time is 4 unwarranted.” (Doc. No. 70.) 5 On November 30, 2020, plaintiff filed a second motion for an extension of time in which 6 to obtain counsel and a request for the court to appoint counsel to represent plaintiff. (Doc. No. 7 71.) On December 3, 2020, the court denied plaintiff’s request for the appointment of counsel but 8 granted plaintiff a further extension of time in which to obtain counsel, setting a deadline of 9 December 18, 2020 and again warning that plaintiff’s failure to appear in this action through an 10 attorney will result in a recommendation by the magistrate judge that this action be dismissed. 11 (Doc. No.

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