LEONARD T. STRAND, Magistrate Judge.
This case is before me on plaintiff's motion (Doc. No. 20) for leave to amend responses (or, more accurately, non-responses) to defendants' requests for admissions. Defendants have filed a resistance (Doc. No. 25) and plaintiff has filed a reply (Doc. No. 30). No party has requested oral argument.
Plaintiff John Hanson filed this action in the Iowa District Court for Franklin County on February 15, 2015. See Doc. No. 3. The named defendants are Hagerty Insurance Agency, L.L.C. (Hagerty), and Essentia Insurance Company (Essentia). Hanson alleges that he purchased an Essentia insurance policy through Hagerty to cover a 1967 Ford Mustang. He further alleges that in January 2014, he contracted with an Indiana company to have restoration work performed on the Mustang. Hanson states that while the vehicle was in Indiana, it was impounded by local law enforcement officers. He contends that when he retrieved the vehicle from impound, it was damaged and several parts were missing. Hanson contends that he made a claim under his Essentia policy and received some reimbursement, but contends that more is owing. He asserts claims for breach of contract and bad faith and requests actual and punitive damages.
On May 26, 2015, while the case was still pending in state court, defendants served requests for admissions (the Requests) on Hanson. Pursuant to the Iowa Rules of Civil Procedure, the Requests were deemed admitted if Hanson did not deny them by June 29, 2015. See Iowa R. Civ. P. 1.510(2). Hanson did not respond by that deadline.
On July 22, 2015, defendants removed this case to this court. See Doc. No. 2. The removal was based, in part, on Hanson's failure to respond to the Requests. Specifically, the notice of removal stated that the Requests had been served, that Hanson had not responded and that all of the Requests were thereby deemed admitted under Iowa law. Id. at ¶¶ 11-12. The notice further explained that one of the admitted Requests is that the amount in controversy exceeds $75,000. Id. at ¶ 12. Based on that admission, defendants alleged that removal was appropriate pursuant to 28 U.S.C. § 1332. Id. at ¶¶ 12-14.
Because the notice of removal expressly referenced the Requests and was based, in part, on Hanson's failure to respond to them, one might assume that Hanson and his counsel reacted by attempting to cure his failure to respond. That did not happen. Instead, the case proceeded in this court for three months with no suggestion that Hanson's failure to respond was inadvertent. On September 9, 2015, I approved and entered the parties' joint proposed scheduling order and discovery plan. See Doc. No. 11. Among other things, that document established a deadline of May 10, 2016, for the completion of discovery. Trial is scheduled to begin October 31, 2016. See Doc. No. 12.
On September 11, 2015, two days after the scheduling order was filed, defendants filed a motion (Doc. No. 13) for summary judgment. Like their prior notice of removal, the motion for summary judgment is based, in large part, on facts Hanson admitted by failing to respond to the Requests. In particular, defendants contend that certain policy exclusions are triggered by the admitted facts. See, e.g., Doc. No. 13-1 at 9-11; Doc. No. 13-3 at 1-3. Even after being confronted with a dispositive motion that arose directly from his failure to respond, Hanson did not act with any haste to cure that failure. Instead, he filed his pending motion (Doc. No. 20) to amend his responses to the Requests over a month later, on October 19, 2015. He served responses to the Requests on the same date. See Doc. No. 30-1.
Hanson brings his motion pursuant to Federal Rule of Civil Procedure 36(b), which states:
Fed. R. Civ. P. 36(b).
The first prong — the effect on the litigation — focuses on whether permitting the amendment or withdrawal of an admission would promote the movant's ability to have the case heard and decided on its merits. Id.; see also Edeh v. Equifax Information Servs., L.L.C., 295 F.R.D. 219, 224-25 (D. Minn. 2013). That is plainly the situation here. As this court noted under similar circumstances: "Clearly, withdrawal of the admissions would promote the presentation of the merits of the action. If the admissions are permitted to stand, then those matters set forth in the request for admissions are conclusively established and [plaintiff's] claim is effectively done." Exum v. Portfolio Recovery Assocs., L.L.C., No. C11-0075, 2012 WL 1831572, at *5 (N.D. Iowa May 18, 2012). I find that the first prong of the Rule 36(b) analysis weighs in Hanson's favor.
As for the second prong, the Eighth Circuit Court of Appeals has explained that the prejudice contemplated by the rule "`relates to the difficulty a party may face in proving its case' because of the sudden need to obtain evidence required to prove the matter that had been admitted." Prusia, 18 F.3d at 640 (quoting Gutting v. Falstaff Brewing Corp., 710 F.2d 1309, 1314 (8th Cir. 1983), in turn quoting Brook Village North Associates v. General Electric Co., 686 F.2d 66, 70 (1st Cir. 1982)). Notably, "preparing a summary judgment motion in reliance upon an erroneous admission does not constitute prejudice." Id. (citing Davis v. Noufal, 142 F.R.D. 258, 259 (D.D.C. 1992) and Rabil v. Swafford, 128 F.R.D. 1, 3 (D.D.C. 1989)). The Eighth Circuit explained its conclusion in Prusia as follows:
Id.
The same is true here. While Hanson's failure to respond to the Requests — even after that failure was highlighted in the notice of removal — is inexplicable, the defendants have not demonstrated prejudice within the meaning of Rule 36(b). They (understandably) filed an early motion for summary judgment based on Hanson's admissions, but allowing Hanson to withdraw those admissions will serve only to impose on the defendants the same burden they would have had without the admissions. This case is still at an early stage, with six months of discovery remaining. Trial is nearly a year off. I find Prusia to be controlling in this situation and, therefore, that it compels the relief Hanson seeks.
For the reasons set forth herein, plaintiff John Hanson's motion (Doc. No. 20) for leave to amend responses to defendants' requests for admissions is