JPMorgan Chase Bank, National Association v. Parkside Lending, LLC

Filing 19

ORDER by Judge Hamilton granting 16 Motion to Strike (pjhlc2, COURT STAFF) (Filed on 2/7/2013)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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JPMORGAN CHASE BANK, N.A.,

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Plaintiff,

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v.

ORDER

PARKSIDE LENDING, LLC,

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For the Northern District of California

United States District Court

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No. C 12-5197 PJH

Defendant.
_______________________________/

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Before the court is the motion of plaintiff JPMorgan Chase Bank, N.A. (“JPMorgan”)

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to strike the affirmative defenses asserted by defendant Parkside Lending, LLC

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(“Parkside”). Having read the parties’ papers and carefully considered their arguments and

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the relevant legal authority, the court hereby GRANTS the motion. Leave to amend is

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granted as to the second, fourth, and fifth affirmative defenses only.

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A motion to strike an affirmative defense is allowable under Federal Rule of Civil

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Procedure 12(f), under which a court may strike “from a pleading an insufficient defense or

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any redundant, immaterial, impertinent, or scandalous matter.” An affirmative defense is

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insufficiently pled if it does not give the plaintiff fair notice of the nature of the defense.

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Wyshak v. City Nat'l Bank, 607 F.2d 824, 827 (9th Cir. 1979).

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In addition, while the Ninth Circuit has not ruled on this issue, the vast majority of

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district courts presented with the issue have extended Twombly's heightened pleading

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standard to affirmative defenses. See Barnes v. AT & T Pension Benefit Plan-

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Nonbargained Program, 718 F.Supp.2d 1167, 1171 (N.D. Cal. 2010); see also Bonshahi v.

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Fedex Corp., 2012 WL 3638608 at *1-2 (N.D. Cal. Aug. 22, 2012). Twombly requires that a

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plaintiff allege “enough facts to state a claim to relief that is plausible on its face.” Bell

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Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007). If an affirmative defense is stricken,

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leave to amend should be freely given when doing so would not cause prejudice to the

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opposing party. Wyshak, 607 F.2d at 826.
Rule 12(f) is a vehicle by which to “avoid the expenditure of time and money that

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must arise from litigating spurious issues by dispensing with those issues prior to trial.”

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Sidney-Vinstein v. A.H. Robins Co., 697 F.2d 880, 885 (9th Cir. 1983); see also

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Whittlestone, Inc. v. Handi-Craft Co., 618 F.3d 970, 973 (9th Cir. 2010). “While a Rule

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12(f) motion provides the means to excise improper materials from pleadings, such motions

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are generally disfavored because the motions may be used as delaying tactics and
because of the strong policy favoring resolution on the merits.” Barnes, 718 F.Supp.2d at

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For the Northern District of California

United States District Court

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1170.

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In accordance with these standards, the court rules as follows.

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1.

The motion to strike the first affirmative defense is GRANTED, on the ground

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that failure to state a claim is not an affirmative defense. See, e.g., Barnes v. AT&T

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Pension Benefit Plan, 718 F.Supp. 2d 1167, 1174 (N.D. Cal. 2010); see also J & J Sports

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Prods v. Mendoza-Govan, 2011 WL 1544886 at *2-3 (N.D. Cal. Apr. 25, 2011).

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2.

The motion to strike the second affirmative defense is GRANTED, with leave

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to amend. While it is true that equitable defenses are not applicable to legal claims seeking

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damages for breach of contract, JPMorgan is also seeking recovery under a theory of

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indemnity, and has in addition asserted an alternative claim for specific performance. The

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dismissal is with leave to amend to plead sufficient facts to support the equitable defenses

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asserted.

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3.

The motion to strike the third affirmative defense is GRANTED, on the ground

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that an assertion that the plaintiff suffered no damages is not an affirmative defense,

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because it is essentially an allegation that the plaintiff cannot prove the elements of its

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claims. See J&J Sports Prods., 2011 WL 1544886 at *2-3.

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4.

The motion to strike the fourth affirmative defense is GRANTED, with leave to

amend to plead sufficient facts to support this affirmative defense.
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5.

The motion to strike the fifth affirmative defense is GRANTED, with leave to

amend to allege the appropriate statutes of limitation.
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The motion to strike the sixth affirmative defense is GRANTED, on the ground

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that apportionment is not an appropriate defense in a breach of contract case where there

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are only two parties to the contract. To the extent that Parkside claims that third parties

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may be responsible, in whole or in part, for any damages suffered by JPMorgan, the proper

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vehicle for such a claim is not an affirmative defense but a claim against those third parties

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for indemnity and contribution.

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7.

JPMorgan’s request (in its reply brief) that the court issue an order stating

that the laws of New Jersey and Ohio will govern the substantive issues in this case is

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For the Northern District of California

United States District Court

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DENIED. This argument was improperly raised for the first time in the reply brief, and in

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any event, is not appropriately raised in a Rule 12(f) motion. On the other hand, it seems

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fairly clear from the contracts attached to the complaint that New Jersey and Ohio law do

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apply (at a minimum) to any interpretation of those contracts. The court anticipates that the

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parties will be able to resolve this issue informally. In the unlikely event that they are

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unable to do so, the court will require a fully briefed motion before issuing any such order.

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The amended answer shall be filed no later than February 28, 2013. The February

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13, 2013 hearing date is VACATED.

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IT IS SO ORDERED.

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Dated: February 7, 2013
______________________________
PHYLLIS J. HAMILTON
United States District Judge

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