Aurora Cooperative Elevator Company v. The Cooperative Finance Association, Inc.
Filing
58
MEMORANDUM AND ORDER denying as moot Motion to Extend 47 ; and granting Motion for Leave 48 . (Amended Complaint due by 4/22/2011) IT IS ORDERED: Plaintiff's motion for leave to file amended complaint (Filing No. 48 ) is granted. Plaintiff s hall file its amended complaint on or before April 22, 2011. Defendant's motion to extend summary judgment deadline pending resolution of plaintiff's motion to continue order setting schedule for progression of a civil case (Filing No. 47 ) is denied as moot. Ordered by Senior Judge Lyle E. Strom. (TEL)
IN THE UNITED STATES DISTRICT COURT FOR THE
DISTRICT OF NEBRASKA
AURORA COOPERATIVE ELEVATOR
COMPANY, a Nebraska
corporation,
)
)
)
)
Plaintiff,
)
)
v.
)
)
THE COOPERATIVE FINANCE
)
ASSOCIATION, INC., a Kansas
)
and Missouri corporation,
)
)
Defendant.
)
______________________________)
8:10CV294
MEMORANDUM AND ORDER
This matter is before the Court on plaintiff Aurora
Cooperative Elevator Company’s (“plaintiff”) motion to extend
deadlines and continue pretrial conference and trial (Filing No.
37) and motion for leave to file amended complaint (Filing No.
48), and defendant Cooperative Finance Association Inc.’s
(“defendant”) motion to extend summary judgment deadline pending
resolution of plaintiff’s motion to continue (Filing No. 47).
Upon reviewing the motions, briefs, and the relevant law, the
Court finds both of plaintiff’s motions will be granted.
Pursuant to Rule 16 and 15 of the Federal Rules of
Civil Procedure respectively, plaintiff moves the Court for an
order extending the discovery deadline and continuing the
pretrial conference and trial in this matter and for an order
allowing it to amend its complaint.
This lawsuit is based upon
defendant’s reasons in disallowing plaintiff (a member of
defendant’s association) to participate in an Input Finance
Program (“Program”) offered to members of the defendant
association.
On October 18, 2010, the Court entered its Final
Profession Order (Filing No. 15), establishing certain deadlines
in this case, including a deadline to amend pleadings of November
15, 2010, a discovery deadline of February 15, 2011, and set a
pretrial conference on April 14, 2011, at 9:00 a.m. and a trial
to begin May 2, 2011.
The Final Progression Order may be
modified “for good cause and with the judge’s consent.”
Fed.R.Civ.P. 16(b)(4).
“‘The primary measure of good cause is
the movant’s diligence in attempting to meet the order’s
requirements.’”
Sherman v. Winco Fireworks, Inc., 532 F.3d 709,
717 (8th Cir. 2008) (quoting Rahn v. Hawkins, 464 F.3d 813, 822
(8th Cir. 2006).
Plaintiff claims when it initially filed its
complaint, it has very little information as to why defendant
denied plaintiff membership in the Program, other than
defendant’s general statement that it was the result of
defendant’s “trade territory preference policy.”
Defendant made
plaintiff aware that denial was based upon a preference granted
to other co-ops, but plaintiff claims it did not know any of the
facts, circumstances, or communications surrounding such
preference policy until later during the discovery process.
Plaintiff served its initial discovery requests on
September 23, 2010.
On November 2, 2010, through discovery
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responses served by defendant, plaintiff learned that two other
cooperatives1 (in plaintiff’s opinion) were given the right by
defendant to reject plaintiff from participating in the Program.
After this discovery, defendant maintained objections to certain
relevant discovery requests of plaintiff and some of defendant’s
responses were not served until mid-December and January after
resolution of plaintiff’s motion to compel (See Filing Nos. 27,
29, 31, and 34).
After resolution of those discovery issues, a
30(b)(6) deposition was taken of defendant on February 8, 2011.
As a result, plaintiff claims it now has evidence for additional
potential claims for unfair competition, conspiracy, violations
of applicable consumer protection acts, and illegal restraint of
trade, because plaintiff claims it discovered the two other
cooperatives represented to defendant that if plaintiff joined
the Program, they would decrease or stop doing business with
defendant.
Defendant claims plaintiff’s motions should be denied
because, among other reasons: (1) plaintiff was aware as of
November 2010 there were communications between the two other
cooperatives and defendant, and (2) that the evidence from the
February 8, 2011, deposition supporting plaintiff’s claims
1
The two cooperatives are Cooperative Producers, Inc. and
United Farmers Cooperative.
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concerning communications between the two cooperatives and
defendant does not lead to viable claims.
Plaintiff has shown good cause for a modification of
the Final Progression Order.
Although plaintiff was aware that
conversations occurred between defendant and the other two
cooperatives in November 2010, it was not until February 8, 2011,
that the full substance of these discussions was explored.
In
addition, even if defendant is correct in asserting that
plaintiff’s new potential claims are without merit, ruling on
such issues at this time would be premature.
Furthermore,
defendant served its third set of interrogatories and requests
for production on the date of the current discovery deadline of
February 15, 2011 (Filing No. 36), when under the Court’s Final
Progression Order (Filing No. 15), such discovery requests had to
be “served sufficiently early to allow rule time response before”
the discovery deadline.
Defendant’s action demonstrates at least
some additional time may be needed by the parties.
Thus,
plaintiff’s motion to extend the deadlines will be granted in a
separate Amended Final Progression Order issued by the Court.
Rule 15(a) states that leave to amend a complaint is to
be “freely given as justice so requires.”
A denial of leave to
amend is only appropriate “in those limited circumstances in
which undue delay, bad faith on the part of the moving party,
futility of the amendment, or unfair prejudice to the non-moving
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party can be demonstrated.”
Roberson v. Hayti Police Dep’t, 241
F.3d 992, 995 (8th Cir. 2001) (citing Foman v. Davis, 371 U.S.
178, 182 (1962)).
Under the discovery circumstance explained in
this memorandum, the Court finds no undue delay, bad faith, or
issues of futility prejudicing the non-moving party.
Thus,
plaintiff’s motion to amend its complaint will be granted.
IT IS ORDERED:
1)
Plaintiff’s motion for leave to file amended
complaint (Filing No. 48) is granted.
Plaintiff shall file its
amended complaint on or before April 22, 2011.
2)
Defendant’s motion to extend summary judgment
deadline pending resolution of plaintiff’s motion to continue
order setting schedule for progression of a civil case (Filing
No. 47) is denied as moot.
DATED this 13th day of April, 2011.
BY THE COURT:
/s/ Lyle E. Strom
____________________________
LYLE E. STROM, Senior Judge
United States District Court
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