Obesity Research Institute, LLC v. Fiber Research International, LLC et al
Filing
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ORDER granting Plaintiff's 52 Motion for Leave to File First Amended Complaint. Pla shall file the First Amended Complaint in the form attached as Exhibit 1 to the Declaration of Scott J. Ferrell, by 3/3/2016. Signed by Judge Cynthia Bashant on 2/25/2016. (jah)
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UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF CALIFORNIA
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OBESITY RESEARCH INSTITUTE,
LLC,
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Plaintiff,
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Case No. 15-cv-00595-BAS(MDD)
v.
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ORDER GRANTING
PLAINTIFF’S MOTION FOR
LEAVE TO FILE FIRST
AMENDED COMPLAINT
(ECF No. 52)
FIBER RESEARCH
INTERNATIONAL, LLC,
Defendant.
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AND RELATED COUNTERCLAIM
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On March 16, 2015, Obesity Research Institute, LLC (“Obesity Research”)
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filed a Complaint for Declaratory Judgment against Fiber Research International,
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LLC (“Fiber Research”) asking the Court to declare that it has no liability under either
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the Lanham Act, 15 U.S.C. §§ 1125 et seq., or the Federal Food, Drug, and Cosmetic
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Act (“FFDCA”), 21 U.S.C. §§ 301 et seq. (ECF No. 1.) On May 28, 2015, Fiber
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Research filed an Answer, in which it asserts the affirmative defense of unclean
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hands, and a First Amended Counterclaim. (ECF No. 41 (“FACC”).) Obesity
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Research has moved to dismiss the FACC and strike the affirmative defense. (ECF
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Nos. 42, 43.)
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On June 30, 2015, U.S. Magistrate Judge Mitchell D. Dembin issued a
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scheduling order directing that any motion to amend the pleadings be filed by July
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27, 2015. (ECF No. 46 at ¶ 2.) On July 22, 2015, Obesity Research filed the present
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motion seeking leave to file a First Amended Complaint for Declaratory Judgment.
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(ECF No. 52.) Fiber Research opposes. (ECF No. 54.)
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The Court finds this motion suitable for determination on the papers submitted
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and without oral argument. See Civ. L.R. 7.1(d)(1). For the reasons set forth below,
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Court GRANTS Obesity Research’s Motion for Leave to File a First Amended
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Complaint. (ECF No. 52.)
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I.
LEGAL STANDARD
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Rule 15(a)(2) of the Federal Rules of Civil Procedure directs that “a party may
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amend its pleading only with the opposing party’s written consent or the court’s
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leave. The court should freely give leave when justice so requires.” Fed. R. Civ. P.
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15(a)(2). “[T]his policy is to be applied with extreme liberality.” Morongo Band of
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Mission Indians v. Rose, 893 F.2d 1074, 1079 (9th Cir. 1990).
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Although the decision whether to allow amendment is in the court’s discretion,
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“[i]n exercising its discretion, a court must be guided by the underlying purpose of
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Rule 15—to facilitate decision on the merits rather than on the pleadings or
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technicalities.” DCD Programs, Ltd. v. Leighton, 833 F.2d 183, 186 (9th Cir. 1987)
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(internal quotations omitted). Denial of a request to amend is only proper when it
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“would be clearly frivolous, unduly prejudicial, cause undue delay or a finding of bad
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faith is made.” United Union of Roofers, Waterproofers and Allied Trades No. 40 v.
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Ins. Corp. of Am., 919 F.2d 1398, 1402 (9th Cir. 1990).
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///
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///
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II.
DISCUSSION
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Obesity Research seeks leave to file a First Amended Complaint for
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Declaratory Judgment (1) to add Shimizu Chemical Corporation (“Shimizu”) as a
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party; (2) to add a cause of action for declarative relief based on California’s unfair
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competition and false advertising laws; and (3) adding allegations to bolster its
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defense of laches.
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amendment would be clearly frivolous or futile because Shimizu has assigned its
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interests to Fiber Research; and (2) Fiber Research would be prejudiced by the
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amendment because it would cause undue delay. (ECF No. 54.) The Court disagrees.
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Although Fiber Research alleges Shimizu has assigned its claims to Fiber
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Research, Fiber Research has filed no documentation confirming this assignment.
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Obesity Research has an interest in making sure the assignment is valid. It would not
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be frivolous to assure that this litigation resolves all issues with respect to Propol and
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its connection to Obesity Research’s Lipozene. Hence, the Court finds amendment
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to add Shimizu would not be futile.
(ECF No. 52.)
Fiber Research opposes, arguing: (1) the
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More importantly, the Court finds amendment would not be unduly prejudicial.
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The Court is mindful that the current scheduling order requires that discovery be
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completed by February 29, 2016 and that this amendment is likely to extend the
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discovery time. (See ECF Nos. 71, 72.) However, Obesity Research contends it plans
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to serve Shimizu via mail, countering Fiber Research’s argument that service will
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require months of delay. (See ECF No. 52-1 at p. 6; ECF No. 55 at pp. 2-3.) Obesity
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Research further states it was waiting on an order on its motion to dismiss the
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Counterclaims before adding Shimizu as a party, but, as the Court had not yet ruled
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on the motion, moved to amend before the cut-off date set in Judge Dembin’s
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scheduling order. (ECF No. 52-1 at p. 3.) Obesity Research also alleges that it gave
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notice to Fiber Research back in June of last year of its intent to amend to add Shimizu
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as a party if the motion to dismiss was not granted. (Id.; see also ECF Nos. 52-9;
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ECF No. 55 at p. 3.) However, Fiber Research was not willing to stipulate to the
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amendment. (ECF No. 52-1 at p. 4; ECF No. 52-2 at ¶¶ 10, 11.)
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As leave to amend a pleading should be freely granted so that the Court can
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resolve all issues on the merits, and the Court finds that such an amendment would
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not be “clearly frivolous, unduly prejudicial, cause undue delay,” and there has been
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no finding of bad faith, the Court GRANTS Obesity Research’s motion. See United
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Union of Roofers, 919 F.2d at 1402.
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III.
CONCLUSION
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For the foregoing reasons, Obesity Research’s Motion for Leave to File a First
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Amended Complaint is GRANTED (ECF No. 52). Obesity Research shall file the
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First Amended Complaint for Declaratory Judgment, in the form attached as Exhibit
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1 to the Declaration of Scott J. Ferrell, no later than March 3, 2016.
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IT IS SO ORDERED.
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DATED: February 25, 2016
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