Stone Brewing Co., LLC v. Molson Coors Brewing Company et al
Filing
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ORDER on Objection to Discovery Order [ECF No. #367 ]. Plaintiff Stone Brewing Company's Objection (ECF No. #367 ) to Magistrate Judge Lopez's Order (ECF No. #351 ) is overruled. Signed by Judge Roger T. Benitez on 10/16/2020. (tcf)
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UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF CALIFORNIA
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STONE BREWING CO., LLC,
Case No.: 3:18-cv-0331-BEN-LL
Plaintiff,
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v.
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ORDER ON OBJECTION TO
DISCOVERY ORDER
MILLERCOORS LLC,
[ECF No. 367]
Defendant.
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This matter comes before the Court on Plaintiff Stone Brewing Company’s
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Objection to an Order issued by Magistrate Judge Linda Lopez. ECF No. 363. For the
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following reasons, the objection is overruled.
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I.
Background
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On March 9, 2020, the Parties contacted Magistrate Judge Lopez’s chambers about
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a discovery dispute. Given that fact discovery closed on May 31, 2019, Magistrate Judge
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Lopez directed the Parties to file limited briefing on whether a discovery motion would
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be timely because fact discovery closed more than ten months before. Order, ECF No.
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348. Stone alleged that MillerCoors withheld and continues to withhold “highly
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probative and responsive evidence.” Mot., ECF No. 351, 2. Stone asked for full briefing
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on its motion for relief and for the Court to order MillerCoors to show cause as to why it
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should not be sanctioned. Id. MillerCoors argued Stone’s anticipated motion was not
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timely and that Stone did not have excuse for the delay. Opp’n, ECF No. 355, 2-4.
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After briefing, Magistrate Judge Lopez denied Stone’s request reasoning that Stone
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failed to diligently seek compliance with a subpoena it obtained to compel a third party to
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produce responsive materials. Order, ECF No. 363, 6. Addressing the merits, she also
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found Stone had not demonstrated excusable neglect by the factors laid out in Pioneer
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Investment Services Co. v. Brunswick Associates Ltd. Partnership, 507 U.S. 380 (1993).
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Stone filed an objection to Magistrate Judge Lopez’s order arguing it was contrary
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to law by applying the wrong standard to the dispute. Pl.’s Obj., ECF No. 367.
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MillerCoors opposed the objection. Opp’n., ECF No. 371.
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II.
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Legal Standard
Federal Rule of Civil Procedure 72(a) provides that in non-dispositive matters,
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“[t]he district judge in the case must consider timely objections and modify or set aside
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any part of the order that is clearly erroneous or is contrary to law.” The magistrate
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judge’s discretion in non-dispositive matters is entitled to great deference. United States
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v. Abonce-Barrera, 257 F.3d 959, 969 (9th Cir. 2001). However, a court “abuses its
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discretion when it makes an error of law.” United States v. Hinkson, 585 F.3d 1247,
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1261-62 (9th Cir. 2009) (en banc).
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III.
Analysis
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A. Timeliness
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MillerCoors first argues Stone’s objection is untimely and that Stone failed to
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obtain a hearing date before filing its objection pursuant to Local Civil Rule 7.1. Opp’n,
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ECF No. 371, 1. While the Court recognizes the apparent ambiguity Stone cites in the
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local rule, the Court also notes that the Parties were previously directed that “[c]ounsel
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for the moving party must obtain a motion hearing date from the law clerk of the judge
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who will hear the motion.” Scheduling Order, ECF No. 72, 3. Further, the Parties were
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warned that “[f]ailure to make a timely request for a motion date may result in the motion
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not being heard.” Id.
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B. Merits
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Stone argues the order contained three errors of law. Mot., ECF No. 367, 14.
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First, Stone argues the order “improperly placed the burden on Stone to expose
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[MillerCoors’s] false discovery responses through a third-party subpoena.” Id. Second,
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Stone argues the order erred in concluding that granting Stone’s motion would require
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reopening discovery. Id. Finally, Stone argues the order incorrectly applied the standard
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for failure to meet a deadline, not the Ninth Circuit’s standard for modifying a scheduling
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order. Id.
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Stone’s first contention is wrong. The argument that it was required to police
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discovery misstates the order. Magistrate Judge Lopez found Stone “failed to diligently
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seek [the third party’s] compliance with the subpoena prior to the close of fact discovery.
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Order, ECF No. 363, 6. She reasoned that although Stone had served the subpoena
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almost five months before the close of fact discovery, Stone took no action to inquire on
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the status of production until May 17, 2019, leaving only two weeks until fact discovery
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closed. During that time, Stone cites no other action it took to ensure that the discovery
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would be produced before the deadline.
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“Attempting to secure discovery after a discovery cutoff date does not cure a
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party’s failure to conduct diligent discovery beforehand.” Cornwell v. Electra Cent.
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Credit Union, 439 F.3d 1018, 1027 (9th Cir. 2006). One month before the fact discovery
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cutoff, the Parties asked the Court for an extension. Order, ECF No. 363, 6. Among the
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reasons cited was the subpoenas issued to third parties for documents that had not yet
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been produced. Id. Magistrate Judge Lopez granted the motion in part, extending the
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discovery deadline but for less time than the Parties requested. Plaintiff subsequently
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asked Magistrate Judge Lopez again for more time but did not mention the subpoena
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compliance issue. Id.
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In short, Stone had the opportunity to bring this issue to the Court’s attention
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before the discovery deadline ran. Stone did not do so. Instead, Stone filed a motion for
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sanctions more than eight months later. Mot., ECF No. 338. Magistrate Judge Lopez did
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not require Stone to police discovery, merely to meet its own obligation of diligence.
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Stone’s second and third contentions are also wrong. The Order correctly applied
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the Pioneer factors. “When an act may or must be done within a specified time, the court
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may, for good cause, extend the time . . . on motion made after the time has expired if the
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party failed to act because of excusable neglect.” Fed. R. Civ. P. 6(b). In determining
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whether there is excusable neglect, the Court considers (1) the danger of prejudice to the
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non-moving party, (2) the length of delay and its potential impact on judicial
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proceedings, (3) the reason for the delay, including whether it was within the reasonable
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control of the movant, and (4) whether the moving party acted in good faith. Pioneer,
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507 U.S. 380 (1993).
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As Magistrate Judge Lopez found, there is clearly a danger of prejudice in
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requiring MillerCoors to once again litigate a motion for sanctions so close to trial.
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Order, ECF No. 363, 8. This would consume time otherwise spent on preparing this case
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for trial on its merits. Moreover, entertaining the motion could derail a case when
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summary judgment motions have been decided, motions to exclude testimony have been
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decided, and a final pretrial conference has been held. The delay in bringing this motion
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was also, as thoroughly set forth above, within Stone’s reasonable control. Stone could
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have brought this issue before the close of fact discovery but did not. As Magistrate
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Judge Lopez noted, Stone “fails to acknowledge [it’s] responsibility to ensure [the third
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party’s compliance] before fact discovery ended or seek assistance from this Court
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regarding [the third party’s] later production in terms of the scheduling order.” Order,
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ECF No. 363, 8 (emphasis added). Finally, the Court assumes that Stone does not bring
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this motion in bad faith.
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Assessing these factors, Magistrate Judge Lopez correctly concluded that Stone’s
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“untimely discovery motion is not the result of excusable neglect.” Id. The Court
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therefore overrules Stone’s Objection.
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The Court is mindful that meeting discovery obligations is important. While the
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Objection overruled, the trial in this case may reveal evidence of discovery violations for
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which sanctions are justified. The Court will address such matters if they arise.
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IV.
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Conclusion
For the foregoing reasons, Plaintiff Stone Brewing Company’s Objection (ECF
No. 367) to Magistrate Judge Lopez’s Order (ECF No. 351) is overruled.
IT IS SO ORDERED.
Date: October 16, 2020
__________________________________
HON. ROGER T. BENITEZ
United States District Judge
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