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United States v. Rite Aid Corporation, 2:12-cv-01699-KJM-EFB. (2019)

Court: District Court, E.D. California Number: infdco20191002g64
Filed: Sep. 27, 2019
Latest Update: Sep. 27, 2019
Summary: PARTIES' JOINT MOTION TO EXTEND TIME FOR PARTIES TO MEET AND CONFER RE: DEFENDANT'S 11TH AFFIRMATIVE DEFENSE (IMPROPER DEFENDANT) AND JOINT MOTION TO AMEND SCHEDULING ORDER; ORDER Related to ECF No. 187, 188, 239, 241, 242 KIMBERLY J. MUELLER , District Judge . PARTIES' JOINT MOT TO EXT TIME TO M&C TO THE HONORABLE COURT: Plaintiff-Intervenor State of California ("California"), Qui Tam Plaintiff Loyd F. Schmuckley, Jr. ("Relator," together with California, "Plaintiffs"), and Defendant
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PARTIES' JOINT MOTION TO EXTEND TIME FOR PARTIES TO MEET AND CONFER RE: DEFENDANT'S 11TH AFFIRMATIVE DEFENSE (IMPROPER DEFENDANT) AND JOINT MOTION TO AMEND SCHEDULING ORDER; ORDER Related to ECF No. 187, 188, 239, 241, 242

PARTIES' JOINT MOT TO EXT TIME TO M&C

TO THE HONORABLE COURT:

Plaintiff-Intervenor State of California ("California"), Qui Tam Plaintiff Loyd F. Schmuckley, Jr. ("Relator," together with California, "Plaintiffs"), and Defendant Rite Aid Corporation ("Defendant" or "Rite Aid," together with Plaintiffs, the "Parties"), by and through their respective counsel of record, for good cause shown, hereby request this Court to extend the time for the Parties to further meet and confer regarding Rite Aid's Eleventh Affirmative Defense (Improper Defendant) set forth in Rite Aid's First Amended Answer to Relator's First Amended Complaint [ECF NO. 146].1

On January 25, 2019, the Court ordered the Parties to submit a joint statement concerning Rite Aid's Eleventh Affirmative Defense (Improper Defendant). ECF No. 187. On February 8, 2019, the Parties filed a joint statement setting forth their agreement that more time is warranted to continue to address, and hopefully resolve, the issues and present them to the Court at a more appropriate time. ECF No. 188 ("Joint Statement"). In the Joint Statement, the Parties proposed to the Court that the Plaintiffs should have until July 15, 2019 to either stipulate with Rite Aid for an agreed-upon amendment to correct the naming of Rite Aid in this matter, or to otherwise seek leave of the Court to amend their pleadings to do so. Id. at 1.

Plaintiffs further agreed that they would not file a motion to add a new defendant during this time until July 15, 2019, or earlier upon exhaustion of good-faith discussions. The Parties noted that the proposed timeline factored in the scheduling relating to Rite Aid's motion challenging Plaintiffs' sampling methodology and design, hearing of which the Court originally set for June 28, 2019. Id. at 1, n.2.

On June 28, 2019, due to the continuance of the hearing on Defendant's motion regarding the sampling methodology and to allow the Parties adequate time to meet and confer, the Parties jointly moved for an order allowing Plaintiffs until August 26, 2019 to either stipulate with Defendant for an agreed-upon amendment to correct the naming of Defendant in this matter, or to otherwise seek leave of the Court to amend their pleadings. ECF No. 224. The Court, finding good cause, granted the motion. ECF No. 227.

Thereafter, the parties continued to meet and confer in an attempt to come to an agreement on the identity of the correct defendant for this case without further discovery or law and motion practice, and exchanged a draft and final declaration of a Rite Aid Hdqtrs. Corp. officer in this regard.

On or about August 20, 2019, the parties jointly moved for an order allowing Plaintiffs until October 18, 2019 to either stipulate with Defendant for an agreed-upon amendment to correct the naming of Defendant in this matter, or to otherwise seek leave of the Court to amend their pleadings. ECF No. 241. This Court granted the motion on August 26, 2019. ECF No. 242.

After filing their joint motion on August 20, 2019, the Parties continued to meet and confer regarding the issues involved with Rite Aid's Eleventh Affirmative Defense (Improper Defendant), including California's issuance of related document requests and a 30(b)(6) deposition notice. To date, the parties have been unable to reach an agreement, and Plaintiffs seek discovery from Defendant. Additional meet and confer efforts are ongoing regarding:

• whether the Parties will agree that pleadings in the case will be amended pursuant to Federal Rule of Civil Procedure ("Rule") 15(c) to substitute or add Thrifty Payless, Inc. d/b/a Rite Aid, a California Corporation, and/or Rite Aid Hdqtrs Corp, a Delaware corporation, as the defendants in this action in the place of, or in addition to, Rite Aid Corporation, a Delaware Corporation; • whether all of Rite Aid's prior discovery responses, representations, and stipulations would bind any newly named defendant as if it had originally appeared as the defendant in this action from the outset; • whether the amendment shall relate back to the original pleadings for all purposes, including applicable statutes of limitation; and • how discovery requests to Rite Aid and/or any newly named defendant(s) would be addressed.

Due to the ongoing meet and confer and discovery efforts, the recent departure of Michael Q. Eagan from Morgan Lewis, and the involvement of Benjamin Smith in a Delaware Chancery Court trial in September 2019, the Parties jointly submit that good cause exists to extend deadlines for the Parties to complete the above meet-and-confer process, as follows:

Current Deadline Event [ECF No. 242] Proposed Modified Date Rite Aid Corporation's declaration Served by August 30, 2019 N/A — completed under oath regarding relationship with/among subsidiaries and Written Responses/Objections to California's Requests for Production ("RFP") Set No. 7 Rite Aid's service of Written N/A Served by October 2, 2019 Responses/Objections to California's Requests for Production ("RFP") Set No. 7 and Rite Aid's service of Written Responses/Objections to Relator's RFP Set No. 2. Rite Aid Corporation's production Completed by September Completed by October 25, of documents responsive to RFP 27, 2019 2019 Set No. 7 Parties' stipulation, if agreed upon, Filed by October 18, 2019 Filed by November 12, to amend the named defendant 2019 with relation back (including removal of Rite Aid Corporation from pleadings) Plaintiffs' motion to amend the Filed by November 1, Filed by December 2, 2019 pleadings (if necessary following 2019 Parties' inability to stipulate) Defendant's opposition to motion Filed by December 6, 2019 Filed by January 10, 2020 to amend Plaintiffs' reply re motion to Filed by December 20, Filed by January 24, 2020 amend 2019 Hearing on Plaintiffs' motion to January 17, 2020, 10:00 TBD amend the pleadings a.m., Courtroom 3

The Parties maintain their respective positions and reservations of rights as set forth in the Joint Statement while these discussions continue. ECF No. 188 at 3-4. The Parties also maintain that no Party may claim prejudice based on the extended discussions in connection with a motion to amend the pleadings under Rule 15(c).

Further, in light of the above, the Parties jointly move the Court to amend its prior scheduling order, ECF No. 239, by moving the current dates by 5 weeks to accommodate the proposed changes above, as follows:

Event Current Date Requested Modified Date Second Phase of Discovery February 21, 2020 March 27, 2020 Completed Expert Disclosures (other than April 10, 2020 May 15, 2020 sampling methodology/design) Rebuttal expert disclosures (other May 22, 2020 June 26, 2020 than sampling methodology/design) Expert Discovery Completed June 26, 2020 July 31, 2020 Last Day to Hear Dispositive October 23, 2020 at 10:00 December 4, 2020 at 10:00 Motions A.M. in Courtroom No. 3 A.M. in Courtroom No. 3

ORDER

The Court, having considered the Parties' Joint Motion to Extend Time for Parties to Meet and Confer re: Defendant's 11th Affirmative Defense (Improper Defendant) and Joint Motion to Amend Scheduling Order, finds good cause and ORDERS that the schedule for the Parties as follows:

Current Deadline Event [ECF No. 242] Requested Modified Date Rite Aid Corporation's declaration Served by August 30, 2019 N/A — completed under oath regarding relationship with/among subsidiaries and Written Responses/Objections to California's Requests for Production ("RFP") Set No. 7 Rite Aid's service of Written N/A Served by October 2, 2019 Responses/Objections to California's Requests for Production ("RFP") Set No. 7 and Rite Aid's service of Written Responses/Objections to Relator's RFP Set No. 2. Rite Aid Corporation's production Completed by September Completed by October 25, of documents responsive to RFP 27, 2019 2019 Set No. 7 Parties' stipulation, if agreed upon, Filed by October 18, 2019 Filed by November 12, to amend the named defendant 2019 with relation back (including removal of Rite Aid Corporation from pleadings) Plaintiffs' motion to amend the Filed by November 1, Filed by December 2, 2019 pleadings (if necessary following 2019 Parties' inability to stipulate) Defendant's opposition to motion Filed by December 6, 2019 Filed by January 10, 2020 to amend Plaintiffs' reply re motion to Filed by December 20, Filed by January 24, 2020 amend 2019 Hearing on Plaintiffs' motion to January 17, 2020, 10:00 TBD amend the pleadings a.m., Courtroom 3 Second Phase of Discovery February 21, 2020 March 27, 2020 Current Deadline Event [ECF No. 242] Requested Modified Date Completed Expert Disclosures (other than April 10, 2020 May 15, 2020 sampling methodology/design) Rebuttal expert disclosures (other May 22, 2020 June 26, 2020 than sampling methodology/design) Expert Discovery Completed June 26, 2020 July 31, 2020 Last Day to Hear Dispositive October 23, 2020 at 10:00 December 11, 2020 at 10:00 Motions A.M. in Courtroom No. 3 A.M. in Courtroom No. 3

IT IS SO ORDERED.

FootNotes


1. The same affirmative defense is set forth by Defendant as the Thirteenth Affirmative Defense in its First Amended Answer to the State's Complaint-in-Intervention [ECF No. 147].
Source:  Leagle

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