Schmitendorf v. Juicy's Vapor Lounge, Inc.

CourtDistrict Court, D. Kansas
DecidedSeptember 27, 2023
Docket2:22-cv-02293
StatusUnknown

This text of Schmitendorf v. Juicy's Vapor Lounge, Inc. (Schmitendorf v. Juicy's Vapor Lounge, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schmitendorf v. Juicy's Vapor Lounge, Inc., (D. Kan. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

BRADY SCHMITENDORF, individually ) and on behalf of all others similarly situated, ) ) Plaintiff(s), ) ) v. ) Case No. 2:22-cv-02293-TC-GEB ) JUICY’S VAPOR LOUNGE INC., an ) Oklahoma corporation, ) ) Defendant/Third Party Plaintiff, ) ) v. ) ) EYERATE, INC., ) ) Third Party Defendant. ) )

MEMORANDUM AND ORDER AND REPORT AND RECOMMENDATION

This matter comes before the Court on Defendant/Third Party Plaintiff Juicy’s Vapor Lounge, Inc.’s (“Juicy’s”) Motion for Leave to Amend Third-Party Complaint, (“Motion.”) (ECF No. 53). Third Party Defendant, EyeRate, Inc., (“EyeRate”) filed its response to Juicy’s Motion (ECF No. 57), and, on August 9, 2023, Juicy’s filed its reply. (ECF No. 58). Plaintiff Schmitendorf advances no argument in this dispute between Juicy’s and Eyerate. On August 28, 2023, the Court heard oral argument on the Motion. (ECF No. 60). This matter is fully briefed, and the Court is now prepared to rule. For the reasons set forth below, the Court GRANTS Juicy’s Motion as it relates to abandonment of Counts I and III. The Court RECOMMENDS Juicy’s Motion, as it relates to amendment of Count II, be DENIED as futile. I. Notice

Within fourteen (14) days after a party is served with a copy of this Report and Recommendation, any party may, pursuant to 28 U.S.C. § 636(b)(1) and Fed. R. Civ. P. 72(b), file written objections to this Report and Recommendation. A party must file any objections within the fourteen-day period if the party wants to have appellate review of the proposed findings of fact, conclusions of law, or recommended disposition.

II. Background Plaintiff Schmitendorf brings this putative class action against Juicy’s pursuant to the Telephone Consumer Protection Act, (“TCPA”).1 Plaintiff Schmitendorf alleges, among other things, Juicy’s sent telemarketing text messages to him and other individuals in violation of the TCPA. Juicy’s filed its answer on September 1, 2022, and then sought

leave to file a third-party complaint on December 9, 2022.2 The Court granted Juicy’s uncontested motion, and, on January 12, 2023, Juicy’s filed its third-party complaint against EyeRate.3 In its third-party complaint, Juicy’s alleges EyeRate is a third-party vendor it used to send promotional text messages on Juicy’s behalf, including a portion of those sent to

Plaintiff Schmitendorf. The process for sending the text messages through EyeRate, as

1 ECF No. 1. 2 ECF Nos. 7, 18. 3 ECF Nos. 19, 20. described by Juicy’s, is to upload an Excel file to EyeRate which contains a list of telephone numbers to target for receipt of promotional texts and pushing the “submit” or “go” button to initiate the text campaign. In this case that list included Plaintiff Schmitendorf’s phone

number. Currently, Juicy’s third-party complaint alleges three claims against EyeRate for breach of contract, negligence, and breach of warranty.4 In response to the third-party complaint, EyeRate filed a motion to dismiss arguing Juicy’s failed to state a claim under Fed. R. Civ. P. 12(b)(6) as to each of its three claims.5 As of this writing, EyeRate’s motion

to dismiss is pending. Despite a December 9, 2022, deadline for filing any motion seeking leave to amend pleadings, Juicy’s filed the instant Motion for Leave to Amend Third-Party Complaint on July 7, 2023, requesting to withdraw the claims for breach of contract and breach of warranty, while amending the negligence count by modifying the factual allegations,

altering the negligence claim, and adding a claim for negligence res ipsa loquitur.6 III. Parties’ Respective Positions 1. Juicy’s Position Juicy’s asserts good cause exists for an extension of the scheduling order deadline to file a Fed. R. Civ. P. Rule 15(a)(2) motion for leave to amend, as required by Fed. R.

Civ. P 16(b)(4).7 Juicy’s alleges it obtained new information after the deadline for filing a

4 ECF No. 20. 5 ECF No. 35. 6 ECF Nos. 13, 53. 7 ECF No. 53. motion for leave to amend, which forms the basis for its amended negligence claim against EyeRate. Juicy’s also asserts leave should be freely given as justice so requires to amend

pleadings prior to trial, and its proposed amended third-party complaint is neither unduly prejudicial nor futile, nor is it subject to dismissal under Fed. R. Civ. P. 12(b)(6).8 Finally, Juicy’s alleges it is not acting in bad faith or with a dilatory motive.9 2. EyeRate’s Position EyeRate does not address Fed. R. Civ. P. 16(b)(4), regarding the requirement of

good cause to amend the scheduling order. Therefore, the Court determines EyeRate concedes good cause exists to amend the deadline for filing a motion for leave to amend. EyeRate does argue the Motion should be denied under Fed. R. Civ. P. 15(a) due to Juicy’s bad faith and futility of the amendment. IV. Discussion

Juicy’s motion poses a host of issues for consideration which, in addition to a finding of good cause, includes a Fed. R. Civ. P. 15 analysis as to futility, incorporating a choice of law consideration, the economic loss rule, common law negligence, and negligence arising out of a contract. The Court will address each of these issues in turn.

8 Id. 9 Id. 1. Fed. R. Civ. P. 16(b)(4) Because the deadline set by the Court for filing motions seeking leave to amend has passed, the Court conducts a two-step analysis of Juicy’s Motion.10 First, the Court looks

to Fed. R. Civ. P. 16(b)(4), which provides, “[a] schedule may be modified only for good cause and with the judge’s consent.” If the Court finds there is good cause to amend the scheduling order, it must then determine whether to grant Juicy’s motion for leave to file their amended pleading.11 If Juicy’s fails to satisfy either Rule 16(b)(4) or Rule 15(a), the district court does “not abuse its discretion in denying” a motion for leave to amend.12

To demonstrate good cause to amend the scheduling order, Juicy’s must show the “scheduling deadlines cannot be met despite the movant’s diligent efforts.”13 Courts have held the good cause requirement could be satisfied if, for example, the moving party learns of new information through discovery, or the underlying law has changed.14 In this case, Juicy’s seeks to amend its third-party complaint by abandoning two

claims and amending its negligence claim.15 Juicy’s alleges the bases for its modified negligence claim are found in an Excel file it received from EyeRate in May 2023 and documents it received regarding Plivo, a global platform used to enable businesses to communicate with their customers, on March 28, 2023.16 Because EyeRate does not

10 ECF No. 13; See Tesone v. Empire Marketing Strategies, 942 F.3d 979, 989 (10th Cir. 2019). 11 Tesone at 989-90. 12 Gorsuch, Ltd., B.C. v. Wells Fargo Nat’l Bank Ass’n, 771 F.3d, 1230, 1241 (10th Cir. 2014). 13 Birch v. Polaris Indus., Inc., 812 F.3d 1238, 1247 (10th Cir.

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