R. STAN BAKER, Magistrate Judge.
This matter is before the Court on Defendant's Motion to Stay Discovery, (doc. 5), and Plaintiff's Motion for Leave to Amend Complaint to Substitute Parties, (doc. 17). As to Defendant's Motion to Stay Discovery, Defendant submits that discovery should be stayed until such time as the Court enters a ruling on its Motion to Dismiss Plaintiff's Complaint, (doc. 4). Plaintiff filed a response in opposition to the Motion to Stay. (Doc. 16.) After careful consideration, the court
In this action, Plaintiff claims that Defendant sold Plaintiff defective wood chippers. Plaintiff further alleges that, after he notified Defendant of the chippers' deficiencies, Defendant deceived Plaintiff into continuing to use the defective machines by promising to repair them. Defendant did not repair the chippers. Plaintiffs filed this action in the Superior Court of Pierce County on June 16, 2016, alleging breach of contract, negligent design and manufacturing, breach of express warranties, breach of implied warranties, and fraudulent inducement claims. (Doc. 1-1.) Plaintiff seeks compensatory and punitive damages, as well as attorney's fees. (Id. at p. 8.)
On July 22, 2016, Defendant filed a Notice of Removal in this Court and contemporaneously filed an Answer to Plaintiff's Complaint, Motion to Dismiss, and Motion to Stay Discovery in this Court. (Docs. 1, 3, 4, 5.) On August 8, 2016, Plaintiff filed a Response in Opposition to Defendant's Motion to Dismiss, (doc. 14), Motion for Leave to Amend Complaint to Substitute Parties, (doc. 17), an Amended Complaint, (doc. 15), and a Reply Opposing Defendant's Motion to Stay, (doc. 16).
In its Motion to Dismiss, (doc. 4), Defendant contends that Plaintiff's Complaint should be dismissed because (1) "John James" is not a proper party plaintiff; (2) Plaintiff's tort claims for negligent design and negligent manufacturing are barred; (3) Plaintiff failed to allege his claim for fraudulent inducement with particularity; and (4) Plaintiff may not recover punitive damages. (Doc. 4, p. 2.) In response, Plaintiff filed an Amended Complaint in which he abandons his negligent design and negligent manufacturing claims. (Doc. 15.) However, in his Response to Defendant's Motion to Dismiss, (doc. 14), Plaintiff disputes Defendant's contention that he failed to plead with particularity his claims of fraudulent inducement and that he is not entitled to punitive damages.
As noted above, Plaintiff has also filed a Motion for Leave to Amend Complaint to Substitute Parties. In that Motion, Plaintiff seeks to replace improperly named Defendant "Terex Corporation" with Terex USA, LLC d/b/a Terex Environmental Equipment and Terex Financial Services, Inc. as Defendants in this action.
Pursuant to Federal Rule of Civil Procedure 15(a)(1)(A), "[a] party may amend its pleading once as a matter of course within . . . 21 days after service of a responsive pleading or 21 days after service of a motion under Rule 12(b)[.]" Defendant filed its Motion to Dismiss on July 22, 2016. Plaintiff filed his Motion for Leave to Amend Complaint to Substitute Parties seventeen days later, on August 8, 2016, (doc. 17). Accordingly, because Plaintiff filed his Motion to Amend within the time period prescribed by Rule 15(a)(1)(A), he may amend as a matter of course. Plaintiff's Motion, (doc. 17), is, therefore,
With regard to the timing of discovery, the Court of Appeals for the Eleventh Circuit has recognized that
Plaintiff maintains that
The Court recognizes that
A preliminary review of Defendant's Motion to Dismiss reveals that it has raised meritorious challenges to the legal sufficiency of Plaintiff's remaining claims. Even a partial grant of the Motion to Dismiss could narrow the issues which the parties must address in discovery. For example, Defendant claims that Plaintiff has failed to properly plead his claim of fraudulent inducement. Denial of the Motion to Stay would, therefore, require the parties to commence discovery on a claim which the Court could dismiss at a later date. It would be inefficient and costly for the parties to engage in such discovery when many, if not all, of the discovery requests could be rendered moot by the Court's ruling on the Motion to Dismiss. Moreover, Plaintiffs have not pointed to any potential loss of evidence or other issue that would render these discovery requests less effective after resolution of the Motion to Dismiss.
The Court finds good cause to stay this case until such time as a ruling is made on Defendant's Motion to Dismiss and that no substantial prejudice will accrue to the parties if a stay is granted. A ruling on Defendant's Motion to Dismiss before the commencement of discovery may save the parties time and resources by clarifying what issues the parties will need to address in discovery.
THEREFORE, IT IS HEREBY ORDERED that all discovery proceedings are stayed pending a ruling by this Court on Defendant's Motion to Dismiss.
IT IS FURTHER ORDERED that