HDI Incorporated v. Natural Earth Providers Incorporated

Filing 6

ORDER that Plaintiff's Complaint is hereby DISMISSED without prejudice. The Clerk is directed to terminate this case. Signed by Judge Susan R Bolton on 3/13/14. (LSP)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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Plaintiff,
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vs.
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Natural Earth Providers, Inc., an Arizona )
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corporation,
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Defendant.
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I. Background

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HDI a California company,

No. CV-14-00037-PHX-LOA
ORDER

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On January 8, 2014, a pro se Complaint was filed on behalf of “HDI, a California

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Company.” (Doc. 1) On the same day, the case was randomly assigned to Magistrate Judge

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Lawrence O. Anderson. (Doc. 3) The Complaint was purportedly signed by “Cooper

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Jackson, Officer HDI,” but it does not provide any information that Cooper Jackson is a

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licensed attorney, authorized to practice law in the District Court and State of Arizona.

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Moreover, the Complaint does not reflect whether HDI is a California corporation or limited

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liability company. The Complaint claims that subject matter jurisdiction is predicated upon

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diversity of citizenship and the amount in controversy exceeds $75,000, exclusive of interest

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and costs, pursuant to 28 U.S.C. § 1332(a), but it fails to identify the principal places of

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business for Plaintiff and Defendant Natural Earth Providers, Inc., an Arizona corporation.

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The Complaint fails to allege enough factual information to ensure the parties’ diversity.

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On January 16, 2014, and after his review of the Complaint, Judge Anderson ordered

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that Plaintiff shall have until and including Friday, January 31, 2014 within which to make

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its written selection to either voluntarily consent to magistrate-judge jurisdiction or elect to

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have the case assigned to a United States district judge. Plaintiff HDI was further ordered

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to retain a lawyer, appropriately licensed to practice law in Arizona and admitted to practice

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in this District Court, who must file an Amended Complaint on or before Friday, January 31,

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2014 or the Complaint would be dismissed without prejudice. Judge Anderson further

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ordered the Amended Complaint set forth sufficient specific facts regarding each party’s

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citizenship, domicile, the state where it is incorporated, and the state of its principal place of

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business or the action would be dismissed without prejudice for lack of complete diversity.

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(Doc. 4)

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On February 4, 2014, Judge Anderson issued an Order to Show Cause (“OSC”) due

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to Plaintiff’s failure to comply with his January 16, 2014 Order for Plaintiff to show cause

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in writing on or before Friday, February 21, 2014 why this case should not be dismissed

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without prejudice for failing to comply with the Court’s prior orders. To date, Plaintiff has

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not complied with any of these orders.

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II. Inherent Powers

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In his OSC, doc. 5, Judge Anderson forewarned Plaintiff that “[d]istrict courts have

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inherent power to control their docket.” Ready Transportation, Inc., v. AAR Manufacturing,

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Inc.,627 F.3d 402, 404 (9th Cir. 2010) (quoting Atchison, Topeka & Santa Fe Ry. v. Hercules,

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Inc., 146 F.3d 1071, 1074 (9th Cir. 1998) (alteration in original; internal quotation marks

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omitted) (quoting Hernandez v. City of El Monte, 138 F.3d 393, 398 (9th Cir. 1998)) The

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OSC also noted that a district court has the inherent power to dismiss an entire action to rein

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in abusive or dilatory conduct. Atchison, 146 F.3d at 1074 (recognizing inherent power to

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dismiss an action to sanction abusive conduct such as judge-shopping or failure to prosecute).

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This inherent power, however, “must be exercised with restraint and discretion. A primary

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aspect of that discretion is the ability to fashion an appropriate sanction for conduct which

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abuses the judicial process.” Ready Transp., Inc., 627 F.3d at 404-405 (citing Thompson v.

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Hous. Auth. of Los Angeles, 782 F.2d 829, 830 (9th Cir. 1986) (per curiam) (requiring a

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district court to weigh, among other factors, “the availability of less drastic sanctions” before
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resorting to dismissal as a sanction). A district court may also dismiss an action with

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prejudice based on a party’s failure to prosecute an action, failure to obey a court order, or

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failure to comply with local rules. See, e.g., Ghazali v. Moran, 46 F.3d 52, 53–54 (9th Cir.

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1995) (dismissal for noncompliance with local rule); Ferdik v. Bonzelet, 963 F.2d 1258,

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1260–61 (9th Cir. 1992) (dismissal for failure to comply with an order requiring amendment

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of complaint);

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A district court’s inherent authority to sanction parties for failing to comply with its

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orders exists, in part, to prevent “‘disobedience [of] the orders of the Judiciary, regardless

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of whether such disobedience interfered with the conduct of trial.’” Chambers, 501 U.S. at

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44 (quoting Young v. United States ex rel. Vuitton et Fils, S.A., 481 U.S. 787, 798 (1987)).

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See also Anheuser-Busch, Inc. v. Natural Beverage Distribs., 69 F.3d 337, 348 (9th Cir.

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1995) (public interest “in expeditious resolution of litigation,” court’s need to manage

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docket, risk of prejudice to party seeking sanctions, public policy favoring disposition on the

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merits, availability of lesser sanctions, bad faith of violating party, relationship between

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conduct and merits justify sanction).

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III. The Civil Justice Reform Act

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“The Civil Justice Reform Act of 1990 (“CJRA”), 28 U.S.C. § 471 et seq., mandates

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the early and on-going judicial management of the pretrial process. Under the CJRA

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mandate, ‘[f]ederal trial courts are now required, by statute, to implement techniques and

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strategies designed to dispose of cases in an efficient and inexpensive manner.’” Davis v.

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Lowes HIW, 2008 WL 4200063, at *1 (D. Ariz. Sept. 12, 2008) (quoting Schwarzkopf

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Technologies Corp. v. Ingersoll Cutting Tool Co., 142 F.R.D. 420, 423 (D. Del. 1992)).

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Additionally, federal judges “are subject to the injunction of Rule 1 [Federal Rules of Civil

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Procedure] that [the Rules] ‘be construed to secure the just, speedy and inexpensive

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determination of every action.’” Herbert v. Lando, 441 U.S. 153, 177, (1979) (emphasis in

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original).

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IV. Discussion

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Plaintiff’s failures to timely comply with Judge Anderson’s January 17th and February
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4th, 2014 orders are frustrating the speedy and inexpensive resolution of this case, not even

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considering the waste of his limited time on this case.

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In determining whether to dismiss a case for failure to comply with court orders,

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district courts weigh five factors: (1) the public interest; (2) the court’s need to manage the

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docket; (3) the risk of prejudice to the defendant; (4) the public policy favoring disposition

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of cases on their merits; and (5) the availability of less drastic alternatives. Ferdik, 963 F.2d

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at 1260-61. Plaintiff’s failures to comply with court orders are frustrating the Court’s

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responsibilities mandated by Rule 1,Fed.R.Civ.P., and Congress’ directive in the CJRA,

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mandating federal district court “set[] early, firm trial dates, such that the trial is scheduled

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to occur to occur within eighteen months after the filing of the complaint. . . .” 28 U.S.C. §

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473(a)(2) (emphasis added). Plaintiff’s pro se status does not discharge her obligation to

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“abide by the rules of the court in which [they] litigate[].” Carter v. Commissioner of Internal

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Revenue, 784 F.2d 1006, 1008 (9th Cir. 1986).

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After considering the adequacy of lesser sanctions, that Plaintiff has been forewarned

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that sanctions may be imposed, and weighing all five Ferdik factors to determine if dismissal

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is appropriate due to Plaintiff’s failure to comply with prior court orders, the Court concludes

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that dismissal of Plaintiff’s Complaint without prejudice is appropriate and just under the

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circumstances of this case.

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Based on the foregoing,

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IT IS ORDERED that Plaintiff’s Complaint is hereby DISMISSED without

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prejudice. The Clerk is directed to terminate this case.
DATED this 13th day of March, 2014.

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