TERESA J. JAMES, Magistrate Judge.
This matter is before the Court on Plaintiff's Motion for Leave to File Third Amended Complaint (ECF No. 60). Plaintiff seeks leave to amend his complaint to add counts for malicious prosecution and abuse of process. Defendants jointly oppose the motion. Upon consideration of the matter, the Court finds the motion should be granted.
On January 3, 2019, Plaintiff filed his Complaint asserting four counts against Newman University, Inc., and two counts against Newman and Kimberly McDowell-Long. He has since sought and been granted leave to file First
Defendants filed a joint response objecting to the proposed amendment. Defendants argue both counts are futile and the motion is unduly prejudicial and brought in bad faith.
Federal Rule of Civil Procedure 15(a) governs the amendment of pleadings before trial. It provides that the parties may amend a pleading once "as a matter of course" before trial if they do so within (A) 21 days after serving the pleading, or (B) "if the pleading is one to which a responsive pleading is required," 21 days after service of the responsive pleading or a motion under Fed. R. Civ. P. 12(b), (e), or (f), whichever is earlier.
In considering whether a proposed amendment is futile, the court uses the same analysis that governs a Fed. R. Civ. P. 12(b)(6) motion to dismiss for failure to state a claim.
It is well settled that a court may deny a motion to amend as futile if the proposed amendment would not withstand a motion to dismiss or if it otherwise fails to state a claim.
Defendants recite the correct legal standard for determining futility and argue the facts as alleged in the proposed Third Amended Complaint cannot establish certain elements of abuse of process or malicious prosecution. However, much of their argument misses the mark. Defendants portray Plaintiff as alleging "that because Dr. Long was represented in her Petition for Protection from Stalking by the same counsel that represents her in the present civil matter, that Defendants abused proper court process,"
The elements of a claim for abuse of process are (1) the existence of an ulterior purpose and (2) an act in the use of such process not proper in the regular prosecution of the proceeding.
Plaintiff alleges that Dr. Long filed a false and meritless Petition for Protection from Stalking Order (PFS Petition) against Plaintiff, and that Newman approved, encouraged, financed, and ratified the Petition. Plaintiff describes as false some of the accusations of the PFS Petition, which Dr. Long verified under oath, and certain of the evidence introduced at the hearing. Plaintiff notes the action terminated in his favor when the court denied the PFS Petition, and points out that the concomitant award of attorney's fees to him was made under the statutory grant of authority to award fees to the defendant "in any case where the court finds that the petition to seek relief pursuant to this act is without merit."
On the same day Dr. Long filed the PFS Petition, she filed a police report with the Wichita Police Department that Plaintiff believes contains the same allegations the PFS action judge found to be meritless. Plaintiff further alleges that Dr. Long was represented in the hearing by counsel who was also representing Newman in this action at the same time, and that counsel questioned Plaintiff during the hearing about matters pertinent to this case. And according to recent deposition testimony (as set forth in the proposed Third Amended Complaint), Newman's insurance company paid counsel's fees for representing Dr. Long in the PFS action, and Newman's president spoke with Dr. Long about her PFS action. Plaintiff asserts the allegedly meritless PFS action is further retaliation against Plaintiff, and that Newman ratified Dr. Long's PFS actions.
In the count asserting abuse of process, Plaintiff contends the filing of the PFS Petition and police report that contained false and meritless allegations constituted the knowing illegal, improper and/or unauthorized use of legal processes for the purpose of harassing or causing great hardship or inconvenience to Plaintiff, in retaliation, and to gain evidence from Plaintiff to use in this action. Plaintiff asserts Dr. Long acted in the course and scope of her employment with Newman, with Newman's participation, authority, consent, and ratification, and that Newman is vicariously liable for her conduct.
Similarly, in the count asserting malicious prosecution, Plaintiff alleges Defendants acted without probable cause and with malice, and that she was damaged as a result of the above-described conduct.
Accepting Plaintiff's well-pleaded factual allegations as true, the Court concludes that the additional counts for abuse of process and malicious prosecution are not futile. Plaintiff has alleged facts which, if true, satisfy each of the elements of those causes of action.
Defendants also argue Plaintiff's motion should be denied because certain allegations have no purpose other than prejudice. Specifically, Defendants assert the only reason Plaintiff mentions that the counsel who appeared on Dr. Long's behalf at the hearing was at the same time representing Newman in this action is to prejudice Defendants and confuse the jury. However, as Plaintiff makes clear, the purpose is to support his allegation that Newman authorized, ratified, consented to, and participated in Dr. Long's actions. Defendants do not demonstrate prejudice and offer no explanation of how the allegation would cause jury confusion. Similarly, Defendants object to Plaintiff's mention of insurance coverage as entirely inappropriate, immaterial, impertinent, scandalous, and done in bad faith because insurance coverage is not admissible as evidence of liability. Again, Plaintiff explains the reason for mentioning that Newman's insurance company paid the attorney's fees for counsel to appear on Dr. Long's behalf at the PFS hearing is to show that Newman authorized, ratified, consented to, and participated in Dr. Long's actions. Defendants have not demonstrated that Plaintiff has any improper purpose in seeking to amend his complaint.
Finally, Defendants contend Plaintiff cannot state a viable claim for abuse of process or malicious prosecution by Newman because Newman did not institute the PFS Petition or engage in the acts that Plaintiff alleges are the basis of either claim. But Plaintiff sets forth facts which allege Newman knew about and approved of Dr. Long's actions, and that during the course of the hearing on the PFS Petition counsel sought to obtain evidence from Plaintiff to use on Newman's behalf in this lawsuit. Plaintiff contends that Newman is therefore vicariously liable. The claim against Newman has facial plausibility because Plaintiff pleads facts that allow the court "to draw the reasonable inference that [Newman] is liable for the conduct alleged."
The Court concludes that Plaintiff's proposed Third Amended Complaint is not futile, is not asserted for an improper purpose, and alleges sufficient facts to state a claim against both Defendants. Plaintiff should be afforded the opportunity to offer evidence to support his allegations. Defendants suffer no prejudice from the amendment, and the Court finds that justice requires granting Plaintiff's motion.