MARK FALK, Magistrate Judge.
This matter comes before the Court upon Plaintiff's motion for leave to amend his Complaint. (CM/ECF No. 70.) The motion is opposed. The motion is decided on the papers. Fed.R.Civ.P. 78(b). For the reasons set forth below, the motion is
This is an employment discrimination case. Plaintiff Tiho Marinac was employed as a Senior Business Development Manager for Defendant Mondelez International, Inc. ("Mondelez" or "Defendant"). (Am. Compl. ¶ 6.) Plaintiff was terminated from his employment in May 2014. (
On October 16, 2014, Plaintiff filed a single count Complaint against Mondelez in state court asserting a claim of age discrimination in violation of the New Jersey Law Against Discrimination ("NJLAD"), N.J.S.A. 10:5-1, et seq. Mondelez removed the case on diversity jurisdiction grounds. Following dispositive motion practice, Plaintiff filed an Amended Complaint (FAC) on April 30, 2015 asserting a single count under NJLAD.
Since that time the case went off schedule for a variety of reasons. In that time period, the Court has held at least nine case management and settlement conferences with the parties. Additionally, the Court has ruled on three motions to withdraw as counsel for Plaintiff filed by three different lawyers—the first two granted; the third denied.
There are three different aspects to Plaintiff's motion to amend. Plaintiff seeks leave to file a Second Amended Complaint (SAC) to: (1) add two new parties; (2) add two new causes of action, and (3) to amplify the existing allegations to include facts which allegedly were revealed through written discovery.
First, Plaintiff seeks to add Mondelez International Holdings LLC ("MIH") and Mondelez Global LLC ("MG") as defendants. Although the named defendant is Mondelez International, Inc., Plaintiff claims, with some basis, that it is unclear which entity was actually Plaintiff's employer. He further claims that the way Mondelez conducts business, intermixing the three entities without regard to corporate formalities, warrants treating them as one and the same. In support of his argument, Plaintiff notes that although Mondelez is the defendant, MIH filed the Answer to the Complaint and has represented that it is Plaintiff's employer.
Second, Plaintiff also seeks to plead new factual allegations-45 new paragraphs and revisions to 9 paragraphs-as well as to plead additional remedies including damages for emotional distress, pain and suffering, humiliation, loss of reputation, and liquidated damages. Among the new allegations Plaintiff seeks to assert is that he mostly worked in New York.
Finally, based on the fact that Plaintiff and Defendant both now say that he worked in New York, Plaintiff also seeks to add two additional claims for age discrimination under the New York State Human Rights Law, N.Y. Exec. Law §§ 290,
Requests to amend pleadings are usually governed by the rather liberal Federal Rule of Civil Procedure 15. However, when a party seeks to amend beyond a deadline in a scheduling order, the more demanding standard of Rule 16 applies. Under Rule 16, a party must show "good cause" to alter the scheduling order.
Rule 15 is the correct standard to use for this motion. Although technically there was one deadline in the first scheduling order (October 30, 2015) which passed more than three years ago, and even though there were subsequent scheduling orders, the date for moving to amend was never updated. More importantly, due to motion practice, stay during referral to mediation, numerous settlement conferences with the Court, multiple changes of counsel and motions to withdraw, this case never really got started. Very little discovery has taken place. Thus the anachronous amendment deadline is grossly outdated and in reality, of no moment. It would be unjust to apply the deadline to this case because the entire scheduling order was never followed. The contemplation in preparing the initial scheduling order was to have the amendment deadline near the deadline for the close of discovery. Requiring amendment prior to any real discovery is not fair. Regretfully, the progress of this case was sidetracked and Rule 15 must govern the instant motion to amend. The prior scheduling order(s) have been inoperative for some time.
Rule 15 provides that once a responsive pleading has been filed, "a party may amend its pleadings only with the opposing party's written consent or the court's leave." Fed. R. Civ. P. 15(a)(2). Leave to amend is generally granted unless there is:
(1) undue delay or prejudice; (2) bad faith; (3) dilatory motive; (4) failure to cure deficiencies through previous amendment; or (5) futility.
No question, there has been delay in seeking leave to add the claims and the parties by way of this motion. However, the Court is hard-pressed to find any prejudice. "Prejudice to the non-moving party is the touchstone for the denial of an amendment."
Plaintiff's proposed amendment is not unduly prejudicial so as to warrant denial of leave. First, Neither Mondelez nor the proposed new defendants—MIH and MG—would be prejudiced in any material way by amendment. MIH has litigated this case from the outset (filing the Notice of Removal, Answer, etc.) and even concedes that it is the entity that employed Plaintiff. MG has been on notice of Plaintiff's claims before they were even filed.
Second, the theories in the proposed SAC involve the same general allegations— age discrimination—even if the allegations are more fulsome or are used to support slightly different claims under New York law. Defendant has made no showing that its ability to defend this case would be seriously impaired by the addition of these new claims, or require Defendant to expend significant additional resources to conduct discovery, this in light of the fact that only one deposition in this case has been taken so far-that of Plaintiff. Any prejudice in this case is "incidental" and thus will not operate to deny Plaintiff the right to amend.
Third, the amendment will not, as a practical matter, delay resolution of this case. Notwithstanding the fact that this matter was filed some four years ago, it is nowhere near over. While written discovery and documents have been exchanged, only Plaintiff has been deposed. Regardless of an amendment, it is clear that depositions of key witnesses still need to be taken, as well as expert discovery, if needed. The addition of new parties—one of which has been litigating this case from its inception and the other which has long been aware of the potential claims against it—will not have a material effect on when the merits of this action are reached.
"Delay alone . . . is an insufficient ground to deny an amendment, unless the delay unduly prejudices the non-moving party." Cornell & Co., Inc. v. Occupational Safety &
The futility analysis on a motion to amend is essentially the same as a Rule 12(b)(6) motion.
Plaintiff's proposed amendment to add MIH and MG as defendants is not clearly futile or frivolous. MIH removed this case and filed an Answer. (CM/ECF Nos. 1, 10.) The factual allegations surrounding MG's participation in Plaintiff's termination certainly suggests the possibility that it was one of Plaintiff's employers, or at the very least, blurs the relationship among the entities and their potential liability to Plaintiff. That said, any potential claims against MG or MIH, at least at this stage of the proceedings and with the record before this Court, are not so clearly futile so as to deny leave to add it as a party.
Nor are Plaintiff's proposed claims for age discrimination under New York law clearly futile or frivolous. Plaintiff's proposed SAC appears to set forth sufficient facts to state an age discrimination claim. Indeed, Plaintiff alleges that he worked for Defendant or its predecessors since 2004, that he was subjected to ageist remarks from his coworker and manager, and that Plaintiff's age (54 at the time) was the legal cause for his termination.
Defendant argues, however, that any claim under New York law would be timebarred. Defendant contends that the New York statutes are governed by a 3-year statute of limitations and therefore Plaintiff's proposed claims, if his amendment were granted, would be out of time. Conversely, relying principally on "relation back" in Rule 15(c)(1), Plaintiff maintains that the age discrimination claims under New York law relate back to the Plaintiff's NJLAD claim and consequently would not be time-barred.
The statute of limitations issue is not fully briefed on this motion to amend. And it is at least conceivable that the Court could find that the allegations in the FAC gave Defendant fair notice of the general facts surrounding the age discrimination claim that Plaintiff now seeks to pursue under New York law. As noted, there is an existing age discrimination claim under NJLAD. The facts giving rise to the NJLAD claim are arguably, at their core, the same facts which would support a claim under the NYCHRL and NYSHRL.
For the reasons set forth above, Plaintiff's motion to amend is