Scottsdale Insurance Company v. Buehner

District Court, E.D. California·Decided March 17, 2023·No. 1:22-cv-00869·Unknown

Opinion

8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10

11 SCOTTSDALE INSURANCE COMPANY, Case No. 1:22-cv-00869-JLT-SAB

12 Plaintiff, ORDER GRANTING PLAINTIFF’S MOTION FOR LEAVE TO AMEND AND 13 v. MOTION TO SERVE BY PUBLICATION WITH EXTENSION OF TIME TO SERVE 14 LARRY BUEHNER, et al., ORDER VACATING MARCH 22, 2023 15 Defendants. HEARING

16 (ECF Nos. 30, 31) 17 I. 18 INTRODUCTION 19 Currently before the Court is Plaintiff Scottsdale Insurance Company’s motion for leave 20 to file a first amended complaint, and motion to serve Defendants Adelaide Bumgardner and 21 Brandon Garcia by publication. (Pl.’s Mot. Amend (“Mot. Amend”), ECF No. 30; Pl.’s Mot. 22 Serve Publication (“Mot. Publ.”), ECF No. 31.) No opposition to the motions has been filed and 23 the deadline to do so has expired. Accordingly, the Court considers the motions to be 24 unopposed. L.R. 230(c). Having considered the moving papers, the declarations and exhibits 25 attached thereto, the lack of any opposition, as well as the Court’s file, the Court finds this matter 26 suitable for decision without oral argument, and shall grant the Plaintiff’s motions. See Local 27 Rule 230(g). Accordingly, the previously scheduled hearing set for March 22, 2023, will be vacated and the parties will not be required to appear at that time. 1 II. 2 BACKGROUND 3 On July 14, 2022, Plaintiff filed this action seeking an order that is has no obligation to 4 defend or indemnify Larry Buehner, Arthur Coranado (“Coranado”), L&K Enterprises, Inc. 5 (“L&K”) and Eagle Valley Investments (“Eagle Valley”) for the claims being asserted by 6 Adelaide Bumgardner (“Bumgardner”) and Brandon Garcia (“Garcia”), in an underlying third- 7 party lawsuit. (See ECF No. 1.) 8 Summons were issued on July 15, 2022. (ECF No. 4.) On August 3, 2022, Plaintiff 9 returned executed summonses demonstrating service was completed on Eagle Valley, Coranado, 10 Larry Buehner, and L&K. (ECF Nos. 8, 9, 10, 11.) On September 29, 2022, the Court issued an 11 order requiring Plaintiff to file requests for entry of default or a status report concerning service 12 on Bumgardner and Garcia. (ECF No. 12.) On October 4, 2022, Plaintiff filed a status report as 13 well as the motion to extend time to serve and motion to serve by publication that are before the 14 Court. (ECF Nos. 13, 14, 15.) On December 2, 2022, the Court granted Plaintiff’s motions to 15 extend time to complete service and to serve Defendants Adelaide Bumgardner and Brandon 16 Garcia by publication. (ECF No. 21.) On January 17, 2023, Plaintiff filed a notice indicating 17 that service by publication on Defendants Adelaide Bumgardner and Brandon Garcia was 18 completed on January 4, 2023. (ECF No. 27.) 19 On February 7, 2023, Plaintiff filed a motion to amend the complaint. (ECF No. 30.) On 20 the same date, Plaintiff filed a motion to serve Defendants Adelaide Bumgardner and Brandon 21 Garcia by publication, and to extend the time to complete service. (ECF No. 31.) The hearing 22 on the motion has been continued to March 22, 2023. (ECF No. 33.) 23 III. 24 LEGAL STANDARD 25 A. Leave to Amend 26 Twenty-one days after service of a complaint or after a responsive pleading or a motion 27 to dismiss is filed, a party may amend only by leave of the court or by written consent of the 1 be freely given when justice so requires.’ ” Amerisource Bergen Corp. v. Dialysis West, Inc., 2 465 F.3d 946, 951 (9th Cir. 2006) (quoting Fed. R. Civ. P. 15(a)); see also Eminence Capital, 3 LLC v. Aspeon, Inc., 316 F.3d 1048, 1052 (9th Cir. 2003) (noting leave should be granted with 4 “extreme liberality”) (quoting Owens v. Kaiser Found. Health Plan, Inc., 244 F.3d 708, 712 (9th 5 Cir.2001)). Leave to amend under Rule 15 is “within the sound discretion of the trial court,” and 6 “[i]n exercising this discretion, a court must be guided by the underlying purpose of Rule 15 to 7 facilitate decision on the merits, rather than on the pleadings or technicalities.” United States v. 8 Webb, 655 F.2d 977, 979 (9th Cir. 1981). 9 In determining whether to grant leave to amend, a court is to consider five factors: “(1) 10 bad faith; (2) undue delay; (3) prejudice to the opposing party; (4) futility of amendment; and (5) 11 whether the plaintiff has previously amended his complaint.” Nunes v. Ashcroft, 375 F.3d 805, 12 808 (9th Cir. 2004). The factors are not weighed equally. Bonin v. Calderon, 59 F.3d 815, 845 13 (9th Cir. 1995). “Futility of amendment can, by itself, justify the denial of a motion for leave to 14 amend.” Id. Undue delay, “by itself . . . is insufficient to justify denying a motion to amend.” 15 Owens, 244 F.3d at 712 (quotation marks omitted) (quoting Bowles v. Reade, 198 F.3d 752, 16 757-58 (9th Cir. 1999)). “[I]t is the consideration of prejudice to the opposing party that carries 17 the greatest weight.” Eminence Capital, 316 F.3d at 1052. The burden to demonstrate prejudice 18 falls upon the party opposing the amendment. DCD Programs, Ltd. v. Leighton, 833 F.2d 183, 19 187 (9th Cir. 1987). “Absent prejudice, or a strong showing of any of the remaining [ ] factors, 20 there exists a presumption under Rule 15(a) in favor of granting leave to amend.” Id. 21 B. Service by Publication 22 Rule 4(m) provides that “If a defendant is not served within 90 days after the complaint is 23 filed, the court—on motion or on its own after notice to the plaintiff—must dismiss the action 24 without prejudice against that defendant or order that service be made within a specified time.” 25 Fed. R. Civ. P. 4(m). “But if the plaintiff shows good cause for the failure, the court must extend 26 the time for service for an appropriate period.” Id. 27 Under the Federal Rules of Civil Procedure, an individual can be served by any of the 1 personally; (B) leaving a copy of each at the individual’s dwelling or usual place of abode with 2 someone of suitable age and discretion who resides there; or (C) delivering a copy of each to an 3 agent authorized by appointment or by law to receive service of process.” Fed. R. Civ. P. 4 4(e)(2). Rule 4 also provides that proper service can be made by “following state law for serving 5 a summons in an action brought in courts of general jurisdiction in the state where the district 6 court is located or where service is made.” Fed. R. Civ. P. 4(e)(1).

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