Layani v. Ouazana
1:20-cv-00420
| D. Maryland | Jun 3, 2025Background
- Plaintiffs, a group of individuals and corporate entities, sued Isaac and Benjamin Ouazana and their LLCs in 2020, alleging various forms of misconduct linked to real estate investments.
- The operative complaint is lengthy (221 pages, 13 counts) and has been narrowed by prior rulings; 11 counts remain for trial set in September 2025, including RICO conspiracy, fraud, breach of contract, and breach of fiduciary duty.
- A pretrial scheduling order set deadlines, including a December 11, 2023 cutoff for amending pleadings or adding parties.
- Discovery and summary judgment motions concluded by late 2024, and parties submitted trial materials in May 2025.
- Plaintiffs filed a motion for leave to further amend the complaint to add a new civil conspiracy count on May 16, 2025, nearly eighteen months after the deadline.
- The court denied the motion, finding no good cause for the delay, and holding that late amendment would prejudice the defendants.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether leave to amend should be granted after the scheduling order deadline | New facts about LLC operations and document destruction justify the late amendment; no undue prejudice as facts overlap with current claims | Amendment is untimely, no diligence shown by Plaintiffs, amendment would prejudice Defendants by disrupting trial prep | Denied: Plaintiffs failed to show diligence or good cause under Rule 16(b), and amendment would prejudice Defendants |
Key Cases Cited
- Foman v. Davis, 371 U.S. 178 (1962) (sets standard for denying leave to amend: prejudice, bad faith, futility)
- Johnson v. Oroweat Foods Co., 785 F.2d 503 (4th Cir. 1986) (leave to amend may be denied due to prejudice or undue delay)
- Laber v. Harvey, 438 F.3d 404 (4th Cir. 2006) (leave to amend should be granted liberally unless prejudice exists)
- Nourison Rug Corp. v. Parvizian, 535 F.3d 295 (4th Cir. 2008) (good cause under Rule 16(b) is required for late amendment)
- Newport News Holdings Corp. v. Virtual City Vision, Inc., 650 F.3d 423 (4th Cir. 2011) (prejudice more likely when amendment sought late in case)