Huluwazu v. Snyder et al

Filing 41

Order by Judge Lucy H. Koh Granting 19 Motion to Dismiss With Leave to Amend.(lhklc1, COURT STAFF) (Filed on 12/4/2017)

Download PDF
1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN JOSE DIVISION United States District Court Northern District of California 11 12 PAPA HULUWAZU, Plaintiff, 13 v. 14 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND Re: Dkt. No. 19 15 WILLIAM SNYDER, et al., Defendants. 16 17 18 Plaintiff Papa Huluwazu, formerly known as Craig Anthony Dillard (“Plaintiff”), 19 appearing pro se, sues Defendants Sun Microsystems, Inc. (“Sun”), Oracle, Inc. (“Oracle”), and 20 Share Holders Services, Inc. (“the Corporate Defendants,” collectively),1 and William Snyder 21 (“Snyder”) for claims arising from Snyder’s alleged theft of Plaintiff’s shares of Sun stock. 22 Before the Court is Oracle’s motion to dismiss the complaint. ECF No. 19 (“Mot.”). Having 23 considered the submissions of the parties, the relevant law, and the record in this case, the Court 24 25 26 27 28 1 Defendant mistakenly named Oracle Corporation as “Oracle, Inc.” and mistakenly sued Sun Microsystems, Inc. instead of its successor-in-interest, Oracle America, Inc. See ECF No. 19 at 12. Oracle Corp. also states that “Share Holder Services” is actually a department within Oracle Corp. and does not exist as an independent entity. ECF No. 39 at 3. Oracle Corp. and Oracle America, Inc. have nonetheless appeared and defended the suit on behalf of the erroneously named Defendants. 1 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 GRANTS Oracle’s motion to dismiss as to the Corporate Defendants with leave to amend. In 2 addition, because it is clear from the Court’s analysis in the instant order that the complaint also 3 fails to state a claim against Snyder, the Court sua sponte dismisses the complaint as to Snyder 4 with leave to amend pursuant to 28 U.S.C. § 1915(e)(2), the mandatory screening procedure of the 5 in forma pauperis statute. 6 I. BACKGROUND 7 A. Factual Background 8 Although Plaintiff’s allegations are not entirely clear, the following alleged facts appear to underpin Plaintiff’s Complaint. Snyder and Plaintiff “lived together and traveled from Denver, 10 Colorado to Boulder, Colorado” before Snyder accepted a “job as controller” with Sun. Compl. 11 United States District Court Northern District of California 9 ¶ 12. “Plaintiff was asked to go on the final interview” with Snyder “and to move together if 12 [Snyder] accepted the position.” Id. ¶ 13. At some point, Snyder was “hired as the Certified 13 Public Accountant (CPA) Controller of Sun Micro Systems Public Stock Holdings.” Id. ¶ 10. 14 Snyder’s “primary responsibility was to take the corporation public.” Id. ¶ 14. 15 After moving to California, Plaintiff “[p]urchase[d] his own shares of the Sun Micro 16 Systems cooperation [sic] as penny stock prior to the cooperation [sic] going public.” Id. ¶ 15. 17 The Complaint does not specify how much stock Plaintiff allegedly bought. 18 In Plaintiff’s opposition to the motion to dismiss, Plaintiff states: “Plaintiff seeks 1.9 19 billion times 3 for the full restitution of the stock shares.” Opp. at 4. Plaintiff also states: 20 26 After moving to California from Colorado with William (Bill) Snyder. The shares $2500.00 at .37 cent were purchased in 1984-85 as penny stock. Brought from San Rafael California Broker and the stock were never cashed by Plaintiff. The 1 million dollars at .42 cent were purchased by the late Robert Henry Kleeb Jr. which Plaintiff was listed as the beneficiary were not located or identified. The penny stocks were publicly offered shares of the Sun Micro-systems corporation. The bundled penny stock had reached $1.00 and split or doubled. This was prior to the shares being offered in New York and the Stock Exchange and the (ringing of the bell) when the shares opened at $16.00. The stock split or doubled again at $23.00 and $42.00. The shares continued to grow over 30 years until purchased by Oracle Inc. at $187.00 a share. 27 Id. at 4-5. However, the Court is limited to considering the allegations in the Complaint, as well 21 22 23 24 25 28 2 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 as any judicially noticeable facts, on a motion to dismiss. Schneider v. Cal. Dep’t of Corr., 151 2 F.3d 1194, 1197 n.1 (9th Cir. 1998) (“In determining the propriety of a Rule 12(b)(6) dismissal, a 3 court may not look beyond the complaint to a plaintiff’s moving papers, such as a memorandum in 4 opposition to a defendant’s motion to dismiss.”). Plaintiff alleges that he and Snyder “were to mutually benefit from the company going 5 6 public on the Stock Exchange.” Id. ¶ 30. However, Plaintiff alleges that Snyder took Plaintiff’s 7 shares, id. ¶ 16, “forged his name on the stock and placed them with/as his holdings,” id. ¶ 17, and 8 never paid Plaintiff or gave him any money “when the corporation achieved its goal of becoming 9 publicly traded,” id. ¶ 18. Plaintiff alleges that when Oracle purchased Sun, Oracle “failed to identify shares owned 11 United States District Court Northern District of California 10 by Dr. Papa Huluwazu after receiving documents of name change from Craig Anthony Dillard.” 12 Id. ¶ 20. Plaintiff has apparently tried several times to “communicate and secure said securities” 13 without success. Id. ¶ 21. 14 B. Procedural History Plaintiff filed the instant complaint on June 12, 2017. ECF No. 1. On June 19, 2017, 15 16 Magistrate Judge Howard Lloyd granted Plaintiff’s application to proceed in forma pauperis and 17 directed the U.S. Marshal for the Northern District of California to serve the summons and 18 complaint upon Defendants. ECF No. 6. Also on June 19, 2017, the Clerk sent a letter to Plaintiff 19 requesting Defendants’ addresses so that the Marshal could complete service. ECF No. 7. On 20 July 26, 2017, Plaintiff responded to the Clerk’s letter and, as is relevant here, listed two addresses 21 for Snyder: 2900 N. Polk St., San Francisco, CA and 2235 N. Bay St., San Francisco, CA 94109. 22 ECF No. 9. The Clerk issued a summons for Snyder using the 2900 N. Polk St. address. ECF No. 23 10. 24 On September 11, 2017, the Corporate Defendants filed the instant motion to dismiss. 25 ECF No. 19. Also on September 11, 2017, Plaintiff filed a motion for entry of default against all 26 Defendants. ECF No. 24. On September 12, 2017, Plaintiff filed another motion for entry of 27 default. ECF No. 27. On September 13, 2017, the Clerk declined to enter default against 28 3 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 Defendants. ECF No. 32. 2 On September 20, 2017, the U.S. Marshal returned the executed summonses as to the 3 Corporate Defendants. ECF Nos. 34-36. However, on October 2, 2017, the U.S. Marshal returned 4 the summons unexecuted as to Snyder because “[t]he address 2900 N. Polk does not exist.” ECF 5 No. 37. There is no indication from the docket that Plaintiff was notified of the problem with the 6 summons. Under the Civil Local Rules, Plaintiff’s response to the motion to dismiss was due on 7 8 September 25, 2017. See Civil Local Rule 7-3(a). Plaintiff filed an opposition to the motion to 9 dismiss on October 2, 2017. ECF No. 38 (“Opp.”). The opposition was dated September 26, 2017. Id. at 6. On October 5, 2017, the Corporate Defendants filed a reply. ECF No. 39 11 United States District Court Northern District of California 10 (“Reply”). 12 II. LEGAL STANDARD 13 A. Motion to Dismiss Pursuant to Federal Rule of Civil Procedure 12(b)(6) 14 Pursuant to Federal Rule of Civil Procedure 12(b)(6), a defendant may move to dismiss an 15 action for failure to allege “enough facts to state a claim to relief that is plausible on its face.” Bell 16 Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A claim has facial plausibility when the 17 plaintiff pleads factual content that allows the court to draw the reasonable inference that the 18 defendant is liable for the misconduct alleged. The plausibility standard is not akin to a 19 ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted 20 unlawfully.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal citations omitted). For 21 purposes of ruling on a Rule 12(b)(6) motion, the Court “accept[s] factual allegations in the 22 complaint as true and construe[s] the pleadings in the light most favorable to the nonmoving 23 party.” Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). 24 However, a court need not accept as true allegations contradicted by judicially noticeable 25 facts, Shwarz v. United States, 234 F.3d 428, 435 (9th Cir. 2000), and the “[C]ourt may look 26 beyond the plaintiff’s complaint to matters of public record” without converting the Rule 12(b)(6) 27 motion into one for summary judgment, Shaw v. Hahn, 56 F.3d 1128, 1129 n.1 (9th Cir. 1995). 28 4 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 Nor is the Court required to assume the truth of legal conclusions merely because they are cast in 2 the form of factual allegations.” Fayer v. Vaughn, 649 F.3d 1061, 1064 (9th Cir. 2011) (per 3 curiam) (quoting W. Mining Council v. Watt, 643 F.2d 618, 624 (9th Cir. 1981)). Mere 4 “conclusory allegations of law and unwarranted inferences are insufficient to defeat a motion to 5 dismiss.” Adams v. Johnson, 355 F.3d 1179, 1183 (9th Cir. 2004); accord Iqbal, 556 U.S. at 678. 6 Furthermore, “‘a plaintiff may plead [him]self out of court’” if he “plead[s] facts which establish 7 that he cannot prevail on his . . . claim.” Weisbuch v. County of Los Angeles, 119 F.3d 778, 783 8 n.1 (9th Cir. 1997) (quoting Warzon v. Drew, 60 F.3d 1234, 1239 (7th Cir. 1995)). 9 B. Motion to Dismiss Pursuant to Federal Rule of Civil Procedure 9(b) Federal Rule of Civil Procedure 9(b) requires that allegations of fraud be stated with 11 United States District Court Northern District of California 10 particularity. Specifically, the Ninth Circuit has held that averments of fraud “be accompanied by 12 ‘the who, what, when, where, and how’ of the misconduct charged.” Vess v. Ciba-Geigy Corp. 13 USA, 317 F.3d 1097, 1106 (9th Cir. 2003) (quoting Cooper v. Pickett, 137 F.3d 616, 627 (9th Cir. 14 1997)). When an “entire claim within a complaint[] is grounded in fraud and its allegations fail to 15 satisfy the heightened pleading requirements of Rule 9(b), a district court may dismiss the . . . 16 claim.” Id. at 1107. The Ninth Circuit has recognized that “it is established law in this and other 17 circuits that such dismissals are appropriate,” even though “there is no explicit basis in the text of 18 the federal rules for the dismissal of a complaint for failure to satisfy 9(b).” Id. A motion to 19 dismiss a complaint “under Rule 9(b) for failure to plead with particularity is the functional 20 equivalent of a motion to dismiss under Rule 12(b)(6) for failure to state a claim.” Id. 21 C. 22 Leave to Amend Under Rule 15(a) of the Federal Rules of Civil Procedure, leave to amend “shall be freely 23 granted when justice so requires,” bearing in mind “the underlying purpose of Rule 15 to facilitate 24 decision on the merits, rather than on the pleadings or technicalities.” Lopez v. Smith, 203 F.3d 25 1122, 1127 (9th Cir. 2000) (en banc) (ellipses omitted). However, a court “may exercise its 26 discretion to deny leave to amend due to ‘undue delay, bad faith or dilatory motive on part of the 27 movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice 28 5 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 to the opposing party . . . , [and] futility of amendment.’” Carvalho v. Equifax Info. Servs., LLC, 2 629 F.3d 876, 892-93 (9th Cir. 2010) (alterations in original) (quoting Foman v. Davis, 371 U.S. 3 178, 182 (1962)). 4 III. DISCUSSION The Court first considers the Corporate Defendants’ request for judicial notice. The Court 5 6 then analyzes the motion to dismiss. Finally, the Court addresses Plaintiff’s claims against 7 Snyder. 8 A. 9 Request for Judicial Notice The Corporate Defendants request that the Court take judicial notice of two facts: (1) that the initial public offering of Sun took place in March 1986; and (2) that Oracle completed its 11 United States District Court Northern District of California 10 acquisition of Sun in January 2010. ECF No. 20. Plaintiff has not opposed this request. 12 The Court may take judicial notice of matters that are either “generally known within the 13 trial court’s territorial jurisdiction” or “can be accurately and readily determined from sources 14 whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201(b). “A district court ruling 15 on a motion to dismiss may consider documents ‘whose contents are alleged in a complaint [or 16 whose contents are essential to a claim] and whose authenticity no party questions, but which are 17 not physically attached to the [plaintiff’s] pleading.’” Parrino v. FHP, Inc., 146 F.3d 699, 705 18 (9th Cir. 1998) (as amended). Public records, including judgments and other publicly filed 19 documents, are proper subjects of judicial notice. See, e.g., United States v. Black, 482 F.3d 1035, 20 1041 (9th Cir. 2007). The Ninth Circuit has stated that district courts may properly take judicial 21 notice of SEC filings. See Metzler Inv. GMBH v. Corinthian Colleges, Inc., 540 F.3d 1049, 1064 22 n.7 (9th Cir. 2008); Dreiling v. Am. Exp. Co., 458 F.3d 942, 946 n.2 (9th Cir. 2006). However, to 23 the extent any facts in documents subject to judicial notice are subject to reasonable dispute, the 24 Court will not take judicial notice of those facts. See Lee v. City of Los Angeles, 250 F.3d 668, 25 689 (9th Cir. 2001), overruled on other grounds by Galbraith v. County of Santa Clara, 307 F.3d 26 1119 (9th Cir. 2002). 27 28 Here, SEC filings contain both of the facts of which the Corporate Defendants request 6 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 judicial notice. See Sun Post-Effective Amendment No. 1. To Form S-3, found at 2 https://www.sec.gov/Archives/edgar/data/709519/000119312510013763/dposam.htm (stating that 3 merger with Oracle was completed on January 26, 2010); Sun Form 10-k for the fiscal year ending 4 June 30, 1994, found at https://www.sec.gov/Archives/edgar/data/709519/0000891618-94- 5 000198.txt, at 19 n.1 (incorporating by reference Sun’s S-1 registration statement, which became 6 effective on March 4, 1986). Accordingly, the Corporate Defendants’ request for judicial notice is 7 GRANTED. 8 B. Plaintiff’s Complaint Fails to State a Claim Upon Which Relief Can Be Granted As an initial matter, Plaintiff’s Complaint does not explicitly specify the basis for invoking 9 the Court’s subject matter jurisdiction. The Complaint merely states that jurisdiction is invoked 11 United States District Court Northern District of California 10 “pursuant to federal law.” Compl. ¶ 6. However, the Court has determined that it has subject 12 matter jurisdiction pursuant to 28 U.S.C. § 1332 because the parties are diverse and the amount in 13 controversy exceeds $75,000. See Compl. ¶¶ 1-4, 22. 14 Plaintiff’s Complaint alleges four causes of action: fraud, negligence, unjust enrichment, 15 and breach of the implied covenant of good faith and fair dealing. See id. ¶¶ 9-53. It is not clear 16 which causes of action are asserted against which Defendants. The Corporate Defendants argue 17 that to the extent any of these causes of action are asserted against the Corporate Defendants, all 18 such causes of action are barred by any applicable statute of limitations. Mot. at 2-3. The 19 Corporate Defendants are correct. In addition, the Complaint’s fraud cause of action fails to 20 satisfy Rule 9(b)’s heightened pleading standard. The Court addresses each cause of action in 21 turn. 22 1. Fraud 23 First, the fraud cause of action is subject to a three-year limitations period pursuant to 24 California Code of Civil Procedure § 338(d), which governs “[a]n action for relief on the ground 25 of fraud.” A fraud cause of action accrues when the aggrieved party discovers the facts 26 constituting the fraud. In the instant case, Plaintiff appears to allege that the action constituting 27 the fraud—Snyder’s alleged theft of Plaintiff’s Sun shares and forging of Plaintiff’s signature— 28 7 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 happened before Sun went public, which was in 1986. See Compl. ¶¶ 15-19. Moreover, although 2 the Court cannot base its ruling on a motion to dismiss on new facts alleged in Plaintiff’s 3 Opposition, the Court notes that Plaintiff alleges in the Opposition that he contacted Sun to seek 4 his stock in 2003 “after several attempts were made to get the stock shares back from William 5 Snyder.” Opp. at 5. Thus, Plaintiff concedes that he was aware of the facts of the fraud at least as 6 of 2003, making the Complaint untimely by at least eleven years. 7 Plaintiff also alleges in the Complaint that “[w]hen Oracle purchased Sun,” the Corporate 8 Defendants “failed to identify shares owned by Dr. Papa Huluwazu after receiving documents of 9 name change from Craig Anthony Dillard.” Id. ¶ 20. As stated above, Oracle completed its acquisition of Sun in 2010. As a result, to the extent Plaintiff attempts to state a cause of action 11 United States District Court Northern District of California 10 for fraud against the Corporate Defendants, Plaintiff’s Complaint is untimely by at least four 12 years, as the Complaint shows that Plaintiff was aware of any fraudulent actions by the Corporate 13 Defendants at the latest in 2010. 14 Finally, to the extent Plaintiff intends to state a fraud claim against the Corporate 15 Defendants, the Complaint fails to satisfy Rule 9(b)’s heightened pleading standards. Under the 16 federal rules, a plaintiff alleging fraud “must state with particularity the circumstances constituting 17 fraud.” Fed. R. Civ. P. 9(b). To satisfy this standard, the allegations must be “specific enough to 18 give defendants notice of the particular misconduct which is alleged to constitute the fraud 19 charged so that they can defend against the charge and not just deny that they have done anything 20 wrong.” Semegen v. Weidner, 780 F.2d 727, 731 (9th Cir. 1985). Thus, claims sounding in fraud 21 must allege “an account of the time, place, and specific content of the false representations as well 22 as the identities of the parties to the misrepresentations.” Swartz v. KPMG LLP, 476 F.3d 756, 23 764 (9th Cir. 2007). In other words, “[a]verments of fraud must be accompanied by ‘the who, 24 what, when, where, and how’ of the misconduct charged.” Vess v. Ciba-Geigy Corp. USA, 317 F. 25 3d 1097, 1106 (9th Cir. 2003) (citation omitted). When there are multiple defendants in a case, 26 “Rule 9(b) does not allow a complaint to merely lump multiple defendants together but ‘require[s] 27 plaintiffs to differentiate their allegations when suing more than one defendant . . . and inform 28 8 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 each defendant separately of the allegations surrounding his alleged participation in the fraud.’” 2 Swartz, 476 F.3d at 764–65 (citation omitted). Here, Plaintiff does not identify what actions or 3 representations of the Corporate Defendants are fraudulent, nor does Plaintiff specify the time, 4 place, or identity of the parties to the misrepresentations. As such, the Complaint fails to satisfy 5 Rule 9(b). As a result, the motion to dismiss the fraud cause of action is GRANTED. 6 2. Negligence 7 The negligence cause of action is subject to a two-year limitations period pursuant to California Code of Civil Procedure § 339(1), which governs “[a]n action upon a contract, 9 obligation or liability not founded upon an instrument of writing,” as well as “an action founded 10 upon a contract, obligation or liability, evidenced by a certificate.” California courts have held 11 United States District Court Northern District of California 8 that the two-year limitations period of § 339 applies to professional negligence actions. See, e.g., 12 Hydro-Mill Co. v. Hayward, Titlton & Rolapp Ins. Assocs., Inc., 10 Cal. Rptr. 3d 582, 590 (Ct. 13 App. 2004) (stating that § 339 governs claim for professional negligence); Burt v. Irvine Co., 47 14 Cal. Rptr. 392, 416 (Ct. App. 1965) (holding that negligence action against directors of company 15 covered by § 339). Based on the allegations in the Complaint, the negligence cause of action 16 began to accrue at the latest in 2010. The Complaint, filed in 2017, is thus untimely. 17 Moreover, even if the negligence claim were somehow subject to the four-year limitations 18 period of § 337 for an action arising from a written contract or § 343, the default statute of 19 limitations for actions “not otherwise provided for,” the Complaint would still be untimely as such 20 a four-year limitations period would have expired in 2014, based on the facts alleged in the 21 Complaint. Accordingly, the motion to dismiss the negligence cause of action is GRANTED. 22 3. Unjust Enrichment 23 An unjust enrichment cause of action would typically be covered by the two-year 24 limitations period of § 339(1). See H. Russell Taylor’s Fire Prevention Serv., Inc. v. Coca Cola 25 Bottling Corp., 160 Cal. Rptr. 411, 418 n.5 (Ct. App. 1979). However, an unjust enrichment claim 26 based on fraud or mistake is subject to § 338(d)’s three year limitations period. See FDIC v. 27 Dintino, 84 Cal. Rptr. 3d 38, 50 (Ct. App. 2008); First Nationwide Savings v. Perry, 15 Cal. Rptr. 28 9 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 2d 173, 181 (Ct. App. 1992). For the same reasons that the Court explained above, the unjust 2 enrichment cause of action is thus at least four years late. Accordingly, the motion to dismiss the 3 unjust enrichment cause of action is GRANTED. 4 4. Breach of the Implied Covenant of Good Faith and Fair Dealing 5 Finally, the cause of action for breach of the implied covenant of good faith and fair 6 dealing is subject to § 339(1)’s two year limitations period because Plaintiff does not allege the 7 existence of a written contract. See Hidalgo v. Kazi Foods, Inc., B247488, 2014 WL 6694524, at 8 *8 (Cal. Ct. App. Nov. 26, 2014) (“Because plaintiff's cause of action for breach of the implied 9 covenant of good faith and fair dealing is based ‘upon a contract, obligation or liability not founded upon an instrument of writing,’ it too is subject to the two-year statute of limitations set 11 United States District Court Northern District of California 10 forth in Code of Civil Procedure section 339.”); Mktg. W., Inc. v. Sanyo Fisher (USA) Corp., 7 12 Cal. Rptr. 2d 859, 865 (Ct. App. 1992) (applying § 339(1) to claim for breach of the implied 13 covenant where contract was oral). As a result, for the reasons explained above, the breach of the 14 implied covenant cause of action is at least five years too late. The motion to dismiss the implied 15 covenant cause of action is GRANTED. 16 5. Leave to Amend 17 With regard to pro se plaintiffs, the Ninth Circuit has instructed that “[d]ismissal of a pro 18 se complaint without leave to amend is proper only if it is absolutely clear that the deficiencies of 19 the complaint could not be cured by amendment.” Nordstrom v. Ryan, 762 F.3d 903, 908 (9th Cir. 20 2014) (quoting Schucker v. Rockwood, 846 F.2d 1202, 1203-04 (9th Cir. 1988)). The facts alleged 21 in the Complaint clearly establish that all causes of action are untimely by at least four years and 22 possibly up to thirty years. Nothing in the Complaint or Opposition suggests Plaintiff would be 23 able to amend to cure these deficiencies. Indeed, in the Opposition, rather than responding to the 24 Corporate Defendants’ statute of limitations argument, Plaintiff admitted that by 2003 he had 25 attempted to recover his stock from both Snyder and Sun. Opp. at 5. As a result, there is no way 26 that Plaintiff could amend to cure the deficiencies of the Complaint unless equitable tolling or 27 equitable estoppel applies. Plaintiff will thus be granted leave to amend because it is conceivable 28 10 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 he could plead facts that would establish equitable tolling or equitable estoppel. 2 C. Sua Sponte Dismissal of Claims Against Snyder “A complaint filed by any person proceeding in forma pauperis pursuant to 28 U.S.C. 3 4 § 1915(a) is subject to a mandatory and sua sponte review and dismissal by the court to the extent 5 that it is frivolous, malicious, fails to state a claim upon which relief may be granted, or seeks 6 monetary relief from a defendant who is immune from such relief.” Esonwune v. Regents Univ. of 7 Cal., No. 17-cv-01102-LB, 2017 WL 2630113, at *3 (N.D. Cal. June 19, 2017); see Calhoun v. 8 Stahl, 254 F.3d 845, 845 (9th Cir. 2001) (affirming sua sponte dismissal). Specifically, 28 U.S.C. 9 § 1915(e)(2)-(e)(2)(B)(ii) states, “Notwithstanding any filing fee, or any portion thereof, that may have been paid, the court shall dismiss the case at any time if the court determines that . . . the 11 United States District Court Northern District of California 10 action . . . fails to state a claim on which relief may be granted.” It is clear from the Court’s 12 discussion above that the instant Complaint fails to state a claim upon which relief can be granted 13 because all claims are time-barred. Thus, under 28 U.S.C. § 1915(e)(2)’s mandatory screening 14 provision, the Court must dismiss the Complaint as to Snyder, even though Snyder has not yet 15 been served. See Esonwune, 2017 WL 2630113 at *3-4 (sua sponte dismissing complaint as to 16 newly added defendant for same reasons that court dismissed complaint challenged by other 17 defendants in a motion to dismiss); Barren v. Harrington, 152 F.3d 1193, 1194-95 (9th Cir. 1998) 18 (affirming sua sponte dismissal under § 1915(e)(2)(B)(ii)). However, Plaintiff is granted leave to 19 amend his claims against Snyder because Plaintiff may be able to allege equitable tolling or 20 equitable estoppel. 21 IV. 22 CONCLUSION For the foregoing reasons the Court GRANTS the motion to dismiss with leave to amend. 23 Plaintiff shall file his amended complaint, if any, within 30 days. Plaintiff may not add new 24 causes of action or new parties without a stipulation or leave of the Court. Any amended 25 complaint will be subject to the in forma pauperis mandatory screening pursuant to 28 U.S.C. 26 § 1915(e). If Plaintiff fails to file an amended complaint within 30 days or fails to cure the 27 deficiencies identified in this order, the claims dismissed in this order will be dismissed with 28 11 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 1 prejudice. If the Court determines that any amended complaint survives the mandatory screening 2 of § 1915(e), the Court will direct the Clerk to obtain from Plaintiff an updated address for Snyder 3 to amend the relevant summons. 4 IT IS SO ORDERED. 5 6 7 8 Dated: December 4, 2017 ______________________________________ LUCY H. KOH United States District Judge 9 10 United States District Court Northern District of California 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 12 Case No. 17-CV-03386-LHK ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND

Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.


Why Is My Information Online?