(PS) Coward v. JP Morgan Chase Bank
2:11-cv-03378
E.D. Cal.Sep 17, 2013Background
- Plaintiff Dana Y. Coward sued J.P. Morgan Chase; defendant moved to dismiss and the magistrate judge issued F&R recommending dismissal without leave to amend.
- While F&R pending, Coward retained counsel and sought extra time to object; the referral to the magistrate under the pro se rule was withdrawn and an extension to object was granted.
- Coward did not file objections to the F&R but filed motions to amend her complaint (under Rule 15) and to stay proceedings pending a FIRREA claim; defendant opposed.
- The district court adopted the F&R except it declined to dismiss with prejudice and granted Coward 14 days to file a Fourth Amended Complaint to address the F&R deficiencies, warning that failure could lead to dismissal under Rule 41(b).
- The court denied Coward’s Rule 15 motion to broaden leave to amend because she failed to (1) attach a proposed amended complaint as required by the local rule and (2) move under Rule 16 to modify the scheduling order before seeking amendment.
- The court also denied Coward’s motion to stay because she did not meet her burden to show a stay was warranted under the Landis factors and failed to address those factors in her motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether to dismiss the action based on the magistrate judge’s F&R | Coward did not object; sought leave to amend instead | J.P. Morgan sought dismissal as recommended in F&R | Court adopted F&R but declined dismissal with prejudice; granted 14 days to file a Fourth Amended Complaint |
| Whether to grant broader leave to amend under Rule 15 | Coward asserted proposed amendments relate to original conduct and sought to add/change parties | Defendant opposed (argued procedural defects and failure to comply with rules) | Motion to amend denied for failure to attach a proposed amended complaint and failure to seek Rule 16 modification first |
| Whether compliance with local rules requires attaching a proposed amended complaint | Coward did not attach a proposed amended complaint | Defendant relied on local rule to oppose amendment | Court enforced local rule: failure to attach a proposed pleading is a proper basis to deny leave to amend |
| Whether to stay proceedings pending Coward’s planned FIRREA claim | Coward asked for a discretionary stay pending outcome of FIRREA claim | Defendant opposed; argued no basis for stay | Motion to stay denied: Coward bore burden to justify stay and failed to address Landis factors |
Key Cases Cited
- Johnson v. Mammoth Recreations, Inc., 975 F.2d 604 (9th Cir. 1992) (Rule 16 scheduling order governs amendment timing; movant must show good cause to modify schedule)
- Coleman v. Quaker Oats Co., 232 F.3d 1271 (9th Cir. 2000) (Rule 16 considerations apply before Rule 15 amendments post-scheduling order)
- Cervantes v. Countrywide Home Loans, Inc., 656 F.3d 1034 (9th Cir. 2011) (affirming denial of leave to amend where movant failed to comply with local rule requiring proposed amended complaint)
- Waters v. Weyerhaeuser Mortgage Co., 582 F.2d 503 (9th Cir. 1978) (district court has discretion to deny amendment for failure to comply with procedural requirements)
- Lockyer v. Mirant Corp., 398 F.3d 1098 (9th Cir. 2005) (discussing district court’s discretion to stay proceedings)
- Landis v. North American Co., 299 U.S. 248 (U.S. 1936) (establishing factors for discretionary stays)
- Clinton v. Jones, 520 U.S. 681 (U.S. 1997) (placing burden on stay movant to justify delay)
