MARGARET B. SEYMOUR, Senior District Judge.
Plaintiff Daniel Woodard (hereinafter "Plaintiff") brought the underlying action against numerous owners and operators of convenience stores, Defendants Rania Alquzah; Ranis Mart of Columbia d/b/a City Gas; Pagan Dhillion; C.K. Acquisitions, LLC d/b/a El Cheapo; Lawton Diamond; Winnsboro Petroleum d/b/a Pops Shell Station; Alhanik Murad; Alhanik, LLC d/b/a Obama Convenience Store; Sukhwinperpal Singh; and Cheapway d/b/a El Cheapo (hereinafter collectively "Defendants"), alleging that he was denied the use of restroom facilities located on Defendants' premises because of his race as an African American. Plaintiff asserts causes of action for intentional discrimination in violation of 42 U.S.C. § 1981 (First Cause of Action); and for a violation of 42 U.S.C. § 2000(a), which prohibits discrimination or segregation in places of public accommodation (Second Cause of Action). This matter is now before the court on Defendants' various motions to dismiss, ECF Nos. 5, 27, 31, 32, and Plaintiff's motion to amend/correct the complaint, ECF No. 39.
On June 7, 2017, Plaintiff, who is a disabled African American citizen, filed the present lawsuit in Richland County Court of Common Pleas, South Carolina. Case No. 2017-CP-03536. Plaintiff alleges that during the month of November 2016, Plaintiff was a customer at Defendants' convenience stores on several occasions to purchase gas. Compl. ¶ 16. During those visits, Plaintiff requested and was denied the use of restroom facilities by Defendants or their employees. Compl. ¶ 17. As a result, Plaintiff conducted a private investigation that disclosed "Defendants allowed white customers to use the restroom facilities when requested on one or more occasions." Compl. ¶ 18. Plaintiff asserts that the denial was "intentional and purposeful discrimination against the Plaintiff which occurred solely because of Plaintiff's race as an African American." Compl. ¶ 24. Moreover, Plaintiff asserts that he was denied equal access to public accommodations. Compl. ¶ ¶ 27-28.
On July 7, 2017, Defendants Lawton Diamond (hereinafter "Diamond") and Winnsboro Petroleum Company (hereinafter "Winnsboro Petroleum") removed this action to this court pursuant to 28 U.S.C. § 1331 on the basis of federal question jurisdiction.
On July 21, 2017, Plaintiff filed a response to Defendants' Diamond and Winnsboro Petroleum motion to dismiss. ECF No. 9. Plaintiff argues that these "Defendants have not alleged any prejudice from the delay of service." Id. at 2. Plaintiff further argues that "because the time to serve the Defendants has not expired . . . the court should deny the Defendant's motion to dismiss and allow any alleged defect to be cured before the 90 to 120 days expiration." Id. at 3. In reply, Defendants Diamond and Winnsboro Petroleum allege an agreement was reached with Plaintiff's counsel. ECF No. 11 at 1. According to the agreement, Plaintiff would file an amended complaint dismissing Defendant Diamond and Defendant Winnsboro would accept service of the amended complaint without conceding that service was improper. ECF No. 11 at 1. However, Defendants Diamond and Winnsboro Petroleum allege this agreement was not confirmed by Plaintiff's counsel until July 5, 2017, and thus, these Defendants filed a motion to dismiss to address the issue. Id. at 2. If Plaintiff serves an amended complaint and complies with the agreement, Defendants Diamond and Winnsboro Petroleum allege the present motion to dismiss will be rendered moot. Id. at 3.
On August 28, 2017, Defendants Alquzah, Ranis Mart, Murad, Alhanik LLC, Singh, and Cheapway filed virtually identical motions to dismiss for insufficient service of process pursuant to Fed. R. Civ. P. 12(b)(5).
On September 11, 2017, Plaintiff filed a response in opposition to Defendants Murad and Alhanik, LLC's motion to dismiss.
On October 14, 2017, Plaintiff filed a motion to amend/correct the complaint and attached a proposed amended complaint. ECF No. 39. Plaintiff states that an agreement between one or more opposing counsels was reached, wherein Plaintiff agreed to dismiss Defendants
On October 25, 2017, Defendants Diamond and Winnsboro Petroleum filed a response in opposition to Plaintiff's motion to amend/correct the complaint. ECF No. 40. Defendants Diamond and Winnsboro Petroleum allege the following: "(1) the proposed amended complaint incorrectly states that Defendant Diamond owns Winnsboro Petroleum, despite the inaccuracy which has been brought to the attention of the plaintiff multiple times; (2) the proposed amended complaint does not reflect the agreement reached among counsel as the plaintiff adds a new cause of action; (3) the parties have engaged in no discovery and, thus, no facts have come to light which would justify the plaintiff asserting a new cause of action sounding in disability discrimination pursuant to 42 U.S.C. § 12101." Id. at 1-2. Defendants Diamond and Winnsboro Petroleum allege "this new theory is inconsistent with the claims in the Plaintiff's original complaint." Id. at 4. These Defendants oppose Plaintiffs' proposed amended complaint and request that the court deny the motion. Id.
On October 30, 2017, Defendants Alquzah, Ranis Mart, Murad, Alhanik LLC, Singh, and Cheapway filed responses in opposition to Plaintiff's motion to amend.
Fed. R. Civ. P. 15(a)(1) allows for a pleading to be amended once as a matter of course within twenty-one days after service of the pleading, or, if the pleading requires a response, within twenty-one days after service of a responsive pleading. "In all other cases, a party may amend its pleading only with the opposing party's written consent or the court's leave. The court should freely give leave when justice so requires." Fed. R. Civ. P. 15(a)(2). "[A] district court has discretion to deny a motion to amend a complaint, so long as it does not outright refuse `to grant the leave without any justifying reason.'" Equal Rights Ctr. v. Niles Bolton Assoc., 602 F.3d 597, 603 (4th Cir. 2010). "This directive gives effect to the federal policy in favor of resolving cases on their merits instead of disposing of them on technicalities." Matrix Capital Mgmt. Fund, LP v. BearingPoint, Inc., 576 F.3d 172, 193 (4th Cir. 2009).
A district court may deny a motion to amend when the amendment would be prejudicial to the opposing party, the moving party has acted in bad faith, or the amendment would be futile. See Laber v. Harvey, 438 F.3d 404, 427 (4th Cir. 2006) (citing Johnson v. Oroweat Foods Co., 785 F.2d 503, 509 (4th Cir. 1986)). First, "whether an amendment is prejudicial will often be determined by the nature of the amendment and its timing." Laber, 438 F.3d at 427. "A common example of a prejudicial amendment is one that "raises a new legal theory that would require the gathering and analysis of facts not already considered by the [defendant and] is offered shortly before or during trial." Id. Second, "delay alone is an insufficient reason to deny the plaintiff's motion to amend." Id. However, "[t]he further the case progressed before judgment was entered, the more likely it is that the amendment will prejudice the defendant or that a court will find bad faith on the plaintiff's part." Id.
The court will now analyze Plaintiff's motion to amend by evaluating the Laber factors as provided by the Fourth Circuit. Laber, 438 F.3d at 427. Defendant Alquzah, Ranis Mart, Murad, Alhanik LLC, Singh, and Cheapway oppose Plaintiff's motion to amend on two grounds: bad faith and futility.
First, the court will evaluate whether the timing of Plaintiff's amendment is prejudicial to Defendants. At the time Plaintiff made his motion to amend, the case was pending for four months. Defendants Alquzah, Ranis Mart, Murad, Alhanik LLC, Singh, Cheapway, Diamond, and Winnsboro Petroleum admit that "nothing has changed since Plaintiff filed his original complaint" and that "little or no discovery has taken place in this case." ECF No. 5 at 3-4, ECF No. 41 at 2, ECF No. 42 at 2, ECF No. 43 at 2. The court finds that Plaintiff's amended complaint is still early in the pre-trial process and thus, Defendants are not prejudiced by the timing of Plaintiff's amended complaint.
Next, the court will evaluate the nature of the amendment and whether adding a new cause of action is prejudicial to Defendants. The court notes that in Plaintiff's original complaint, Plaintiff alleged that he "is [a] disabled, African American United States citizen." Compl. ¶ 2. While Plaintiff did not elaborate any further with regards to his disability, the court finds that this fact alone negates that Defendants could have been surprised by a disability cause of action in Plaintiff's amended complaint. The court further finds that Plaintiff's new cause of action does not change Plaintiff's theory of the case, but merely adds an alternative discrimination theory based on disability. See Laber, 438 F.3d at 428 (citing Foman v. Davis, 371 U.S. 178, 182 (1962) (reversing the district court's entry of judgment of dismissal and denial of plaintiff's motion to amend where "the amendment would have done no more than state an alternative theory for recovery")); see also Laber, 438 F.3d at 427 (noting that "[a]n amendment is not prejudicial, by contrast, if it merely adds an additional theory of recovery to the facts already pled and is offered before any discovery has occurred")). Accordingly, the court finds that Defendants are not prejudiced by Plaintiff's motion to amend. See Davis v. Piper Aircraft Corp., 615 F.2d 606, 613 (4th Cir. 1980) (recognizing that "[a]bsence of prejudice, though not alone determinative, will warrant granting leave to amend").
Defendants Alquzah, Ranis Mart, Murad, Alhanik LLC, Singh, and Cheapway argue that the proposed amendment was sought in bad faith, since Plaintiff failed to provide an evidentiary basis in the original complaint for the new cause of action. ECF No. 41 at 3, ECF No. 42 at 3, ECF No. 43 at 3. The court finds this argument is without merit. See Laber, 438 F.3d 404 ("Delay alone, however, is an insufficient reason to deny the plaintiff's motion to amend."); see also Davis, 615 F.2d at 613 (noting that a delay of four months should not suffice as reason for denial of a motion to amend). The court further finds that these Defendants failed to allege any facts to suggest Plaintiff has acted in bad faith. The present motion is Plaintiff's first request to amend the complaint and there is no indication that the omission amounted to bad faith.
Defendants Alquzah, Ranis Mart, Murad, Alhanik LLC, Singh, and Cheapway argue that Plaintiff's motion to amend should be denied because the proposed amendment is futile. ECF No. 41 at 3, ECF No. 42 at 3, ECF No. 43 at 3. "For a motion to amend to be denied for futility, the amendment must be `clearly insufficient or frivolous on its face." City of Charleston, South Carolina v. Hotels.Com, LP, C/A No. 2:cv-1646-PMD, 487 F.Supp.2d 676, 679 (D.S.C. Apr. 23, 2007) (citing Johnson v. Oroweat Foods Co., 785 F.2d 503, 510 (4th Cir. 1986)); see also City of Charleston, 487 F. Supp. 2d at 679 (citing Rambus, Inc. v. Infineon Tech., AG, 304 F.Supp.2d 812, 819 (E.D. Va. 2004) ("Courts generally favor the `resolution of cases on their merits' . . . [t]hus the substantive merits of a proposed claim [or defense] are typically best left for later resolution, e.g., [a] motion to dismiss or for summary judgment, . . . or for resolution at trial.")). "[T]herefore, the futility analysis under Rule 15(a) necessarily requires a preliminary assessment of the allegations of the proposed amendment in light of the substantive law on which the additional claims are based." Kramer v. Omnicare, ESC, LLC, C/A No. 2:14-cv-3546-PMD, 307 F.R.D. 459 (D.S.C. May 27, 2015) (internal citations omitted). "[I]f any new well-pleaded facts are asserted in the new proposed complaint, but fail to show that the plaintiff is entitled to relief, the court should deny the motion for leave to amend." In re: Building Materials Corp., C/A No. 8-11-mn-02000-JMC, 2013 WL 12152414 at *2 (D.S.C. June 17, 2013) (citing Ashcroft v. Iqbal, 556 U.S. 662 (2009)).
To prevail on a disability discrimination claim pursuant to 42 U.S.C. § 12182, Plaintiff must show (1) a disability within the meaning of the American Disability Act;
Based on Plaintiff's proposed amended complaint and factual allegations, the court finds Plaintiff has established a prima facie case for disability discrimination pursuant to 42 U.S.C. § 12182. The following factual allegations support the court's conclusion: (1) Plaintiff alleges to be disabled as defined by 42 U.S.C. § 12101,
In granting Plaintiff's motion to amend the complaint, Defendants' motion to dismiss are rendered moot. See Young v. City of Mount Rainer, 238 F.3d 567, 573 (4th Cir. 2001) ("The general rule . . . is that an amended pleading supersedes the original pleading, rendering the original pleading of no effect."); Fawzy v. Wauquiez Boats SNC, 873 F.3d 451, 455 (4th Cir. 2017) ("Because a properly filed amended complaint supersedes the original one and becomes the operative complaint in the case, it renders the original complaint `of no effect.'"); see also Harrera — Roman v. Harris, 2013 WL 941726, at *1 (S.D. Cal. 2013) (noting that "[o]nce a plaintiff files an amended complaint, the previous pleading no longer serves any function in the case . . . [b]ecause Defendants request dismissal of a non-operative pleading, the request is moot.").
The court grants Plaintiff's motion to amend/correct the complaint to remove certain Defendants in their individual capacities and to add a new disability cause of action. ECF No. 39. Defendants' motion to dismiss, ECF No. 5, ECF No. 27, ECF No. 31, ECF No. 32, are rendered moot. Plaintiff shall file an amended complaint within 10 days of this order.