Unit 53, Inc. v. Run Roadlines, Inc

District Court, E.D. California·Decided December 20, 2024·No. 2:24-cv-01718·Unknown

Opinion

UNIT 53, INC., Case No. 2:24-cv-01718-DJC-CSK Plaintiff, v. ORDER GRANTING PLAINTIFF’S MOTION TO COMPEL RUN ROADLINES,INC., et al., (ECF No. 25) Defendants. Plaintiff Unit 53, Inc. moves to compel Defendants Run Roadlines, Inc., Manpreet Randhawa, and 3515 Hwy 99, LLC to serve their initial disclosures and to respond to Plaintiff’s interrogatories, requests for production, and requests for admission.1 (ECF No. 25). Plaintiff also seeks reasonable expenses, including attorneys’ fees, for having to file the motions to compel. Pl. Mot. Compel (ECF No. 25-1 at 8-9). Pursuant to Local Rule 251(e), Plaintiff’s motion is excepted from the requirement for Joint Statements re Discovery Disagreement and was set for hearing on December 17, 2024. See E.D. Cal. L.R. 251(e); Pl. Mot Compel at 5-6. Though Defendants’ response to the motion to compel was due December 10, 2024, Defendants never responded to Plaintiff’s motion. 1 This matter proceeds before the undersigned pursuant to 28 U.S.C. § 636, Fed. R. Civ. P. 72, and Local Rule 302(c)(1). See E.D. Cal. L.R. 251(e); Docket. On December 17, 2024, the Court held an in-person hearing. (ECF No. 22.) Attorney Matthias Kleinsasser appeared for Plaintiff. Attorney Michelle Wiederhold appeared for Defendants. For the reasons that follow and as discussed at the hearing, the Court GRANTS Plaintiff’s motion to compel. On June 17, 2024, Plaintiff filed a complaint for breach of a shipping container lease and to recover real property from Defendants. Compl. (ECF No. 1). Plaintiff entered into a lease agreement with Defendant Run Roadlines where Plaintiff leased 650 shipping containers to Defendant Run Roadlines. Pl. Mot. Compel at 4. Payments under the lease were supposed to begin April 1, 2023, and were due on a monthly basis. Id. Plaintiff alleges that Defendant Run Roadlines has failed to make any payments and the total amount of past-due rental payments exceeds $5 million. Id. Plaintiff believes that Defendant Run Roadlines is subleasing the shipping containers to third parties and collecting this revenue. Id. In response to Plaintiff’s concerns that Defendant Run Roadlines was months behind on payment, Defendant Run Roadlines granted Plaintiff an exclusive option to secure a deed of trust on Defendant Run Roadlines’ real property. Id. Plaintiff exercised the option, but Defendant Run Roadlines instead encumbered the real property with a third party’s lien to Farmers & Merchants Bank. Id.; Compl. at 5. Plaintiff expressed concerns about this to Defendant Manpreet Randhawa, one of Run Roadlines’ principals, who agreed to execute a personal guaranty for Run Roadlines’ obligations under the lease. Pl. Mot. Compel at 4. However, Plaintiff alleges that after executing the guaranty, Defendant Randhawa started fraudulently transferring Defendant Run Roadlines’ property to Defendant 3515 Hwy 99 LLC. Id. at 4-5. Plaintiff alleges that Defendant Randhawa formed 3515 Hwy 99 shortly after executing the guaranty. Compl. at 6. Plaintiff alleges that Defendant 3515 Hwy 99 is managed by Defendant Randhawa and is an insider entity of Defendant Run Roadlines. Pl. Mot. Compel at 5. On July 24, 2024, Defendant Run Roadlines, Inc. filed an answer. (ECF No. 8.) On July 26, 2024, Defendants Randhawa and 3515 Hwy 99 each filed their answers. (ECF Nos. 10, 11.) Pursuant to the parties’ August 28, 2024 joint status report, the parties agreed to exchange initial disclosures by August 28, 2024. (ECF No.13 at 3). On August 28, 2024, Plaintiff timely made its initial disclosures. Pl. Mot. Compel at 5. Defendants failed to make their initial disclosures. See id. On August 29, 2024, Plaintiff served its first sets of requests for production of documents (RFPs), interrogatories, and requests for admissions (RFAs) on all Defendants. 11/12/2024 Declaration of Matthias Kleinsasser, Exh. A-1 (ECF No. 25-3 at 4-104). Defendants’ objections and responses to these discovery requests were due on September 30, 2024. Pl. Mot. Compel at 5. At the December 17, 2024 hearing, Plaintiff confirmed that Defendants still had not made their initial disclosures, or responded to Plaintiff’s RFPs, interrogatories, and RFAs. On the evening of September 30, 2024, Defendants requested a three week extension to respond to discovery. Kleinsasser Decl. ¶ 2 (ECF No. 25-3 at 2). The new deadline for Defendants’ response was October 21, 2024. Id. Defendants did not respond by October 21, so on October 22, 2024, Plaintiff emailed Defendants asking about the status of the disclosures and discovery responses. Id. On October 23, 2024, Defendants’ counsel responded, stating that he was in trial and would be in touch to discuss “all issues.” Id. On October 29, 2024, Plaintiff followed up with Defendants after not hearing from them and asked for Defendants’ availability to confer about a potential motion to compel. Id. at 2-3. On November 7, 2024, Plaintiff’s counsel called Defendants’ counsel, who informed Plaintiff’s counsel that his associate was drafting discovery responses and that the associate would contact Plaintiff’s counsel the next day to discuss discovery issues. Id. at 3. Defendants’ counsel did not, however, contact Plaintiff’s counsel and Plaintiffs filed their first motion to compel on November 14, 2024 pursuant to Local Rule 251(e). (ECF No. 22.) The Court issued a Minute Order on November 18, 2024 finding that there was not “a complete and total failure to respond to a discovery request” by Defendants and ordered the parties to comply with Local Rule 251(a) and file a Joint Statement re Discovery Disputes. (ECF No. 23.) The Court ordered Defendants to participate in the submission of the joint statement. Id. On November 26, 2024, Plaintiff filed a second motion to compel2 pursuant to Local Rule 251(e). (ECF No. 25.) Plaintiff detailed a complete and total failure to respond by Defendants. Plaintiffs attempted to contact Defendants every day from November 18 to November 26, 2024, the date Plaintiff filed its motion. 11/26/2024 Declaration of Christopher Hughes ¶ 3 (ECF No. 25-2 at 2). Plaintiff’s counsel tried calling Defendants’ counsel on two different telephone numbers and received a message that the mailbox was full and cannot accept new messages. Id. On November 21, 2024, Plaintiff’s counsel sent Defendants’ counsel three joint statements by email for his review and comment, and Defendants’ counsel did not respond. Id. ¶ 4. Plaintiff’s counsel tried to contact other members of the law firm where Defendants’ counsel worked and received no response. Id. at 2-3, ¶ 5. Plaintiff has sufficiently established a lack of response by Defendants under Local Rule 251(e). Further, the Court notes that Defendants failed to comply with the Court’s order to participate in the Joint Statement re Discovery Disagreement. On December 13, 2023, Plaintiff’s filed a reply in support of the motion to compel, noting that Defendants have failed to respond in compliance with Local Rule 251(e). (ECF No. 29.) Plaintiff also filed a motion for temporary restraining order (TRO) and motion for preliminary injunction on November 25, 2024. (ECF No. 24.) The TRO motion was denied, and a hearing for the motion for preliminary injunction was set for December 20, 2024. (ECF No. 26.) The parties then filed a stipulation and proposed order agreeing to entry of the TRO, but this was disregarded by the Court for noncompliance with Local Rule 182(a). (ECF No. 27.) Plaintiff requested a continuance of the hearing on the

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Unit 53, Inc. v. Run Roadlines, Inc, (E.D. Cal. 2024).

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