Charleston and Jones, LLC et al v. Uponor, Inc. et al
Filing
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ORDER that 67 Motion for Relief is DENIED. IT IS FURTHER ORDERED that this matter is DISMISSED without prejudice. Signed by Judge Kent J. Dawson on 6/16/2014. (Copies have been distributed pursuant to the NEF - EDS)
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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CHARLESTON AND JONES, LLC, et al.,
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Case No. 2:11-CV-1637-KJD-GWF
Plaintiffs,
ORDER
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v.
UPONOR, INC, et al.,
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Defendants.
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Before the Court is Plaintiffs’ (Charleston and Jones, LLC, et al.) Response (#67) to the
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Court’s Order to Show Cause (#66). However, Plaintiffs not only respond to the Order to Show
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Cause, but also include in their response what can only be construed as a motion for relief under
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Federal Rule of Civil Procedure 60(b) based on excusable neglect (#67 at 5). While this motion
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should have been filed separately (see Special Order #109 III(F)(4)) the Court will consider it
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here in the interest of judicial economy.
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I. Background
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This matter was brought before the Court in October of 2011. The Court issued a stay in
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February of 2012 “pending the opinion and mandate in Ninth Circuit Case No. 10-15439” (#57).
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The Court became aware in May of 2014 that the opinion and mandate in that case had issued in
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April and May of 2012, respectively. Further, in the intervening two years, no substantive filings
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were made. Accordingly, the Court ordered Plaintiffs to show cause why this matter should not
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be dismissed with prejudice (#66).
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II. Dismissal
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A. Legal Standard
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The Court acknowledges that dismissal is a harsh remedy, to be imposed only in extreme
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circumstances. Henderson v. Duncan, 779 F.2d 1421, 1423 (9th Cir. 1986). In determining
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whether a case should be dismissed, the Ninth Circuit requires courts to consider five factors:
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“(1) the public’s interest in expeditious resolution of litigation; (2) the court’s need to manage its
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docket; (3) the risk of prejudice to the defendants; (4) the public policy favoring disposition of
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cases on their merits and (5) the availability of less drastic sanctions.” Thompson v. Hous. Auth.
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of City of Los Angeles, 782 F.2d 829, 831 (9th Cir. 1986). In reviewing dismissal, the Ninth
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Circuit will also consider a “lack of warning of imminent dismissal of the case.” Oliva v.
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Sullivan, 958 F.2d 272, 274 (9th Cir. 1992).
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B. Analysis
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Turning to the first factor, the stay in this matter expired more than two years ago, and no
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substantive action has been taken by either party during that period. There is no indication that
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this complete lack of action would have changed in the foreseeable future but for the Court’s
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order to show cause. Further, Plaintiffs claim that the property which forms the basis of this
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dispute has been sold, and it remains unknown whether the current owner wishes to proceed with
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the litigation or not (#67 at 6, 9). To sum up, as this case nears its third year, virtually nothing
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has been accomplished—including discovery—and it is entirely unclear whether any dispute
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remains given the change in property ownership. The expeditious resolution of this matter
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strongly favors dismissal.
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Turning to the second factor, Plaintiffs’ case has been pending without substantive action
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nearly from its inception. Further, Plaintiffs claim that their failure to alert the Court of the stay’s
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expiration is because they are awaiting decision on yet another matter in yet another case.
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However, it is not the parties but the Court who determines whether there are grounds to further
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stay this matter. This factor strongly favors dismissal.
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Turning to the third factor, it is unclear whether Plaintiffs’ delay has caused any prejudice
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to Defendants. This is particularly the case where Defendants have similarly failed to notify the
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Court of the expiration of the stay. This factor weighs neither for nor against dismissal.
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Turning to the fourth factor, the Court acknowledges and espouses the strong policy
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favoring disposing of cases on their merits. This factor disfavors dismissal with prejudice, but is
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inapplicable to any lesser sanction.
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Turning to the fifth factor, there are less drastic sanctions available. While not entirely
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serving the public’s interest in expeditious resolution of this litigation, dismissal without
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prejudice fully satisfies the other four factors.
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Lastly, the Court provided ample warning of imminent dismissal of the case.
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Accordingly, this matter is HEREBY DISMISSED without prejudice.
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III. Motion for Relief based on Excusable Neglect
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A. Legal Standard
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Federal Rule of Civil Procedure 60(b) provides in relevant part “On motion and just
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terms, the court may relieve a party or its legal representative from a final judgment, order, or
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proceeding for . . . excusable neglect.” In determining whether the relevant failure was due to
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excusable neglect, the Court looks to four factors: “(1) the danger of prejudice to the opposing
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party; (2) the length of the delay and its potential impact on the proceedings; (3) the reason for
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the delay; and (4) whether the movant acted in good faith.” Ahanchian v. Xenon Pictures, Inc.,
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624 F.3d 1253, 1261 (9th Cir. 2010) (citing Pioneer Inv. Servs. Co. v. Brunswick Assocs. Ltd.
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P’ship, 507 U.S. 380, 395 (1993); Briones v. Riviera Hotel & Casino, 116 F.3d 379, 381 (9th
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Cir. 1997)).
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B. Analysis
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Turning to the first factor, as noted above, it is unclear that there is any danger of
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prejudice to the opposing party. Accordingly, this factor does not disfavor relief.
Turning to the second factor, the delay has been more than two years at this juncture; a
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delay broken only by this Court’s order to show cause. The impacts from this delay are unclear
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given that this matter has lain dormant for this extended period. However, given the extended
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period of the delay, this factor weighs against relief.
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Turning to the third factor, Plaintiffs claim that the delay was because they wanted to
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wait for the outcome of another issue in yet another case. Whether this case should be stayed to
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await the outcome of that other case is a question to be put before this Court. In failing to do so,
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Plaintiffs impermissibly usurped the proper role of the Court in managing its docket and ensuring
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the timely resolution of this matter. It is Plaintiffs’ impermissible usurpation that is the direct
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cause of the delay in this matter. Accordingly, this factor weighs strongly against relief.
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Turning to the fourth factor, while the Court cannot say that Plaintiffs’ inaction is
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necessarily the result of bad faith, it is certainly not the result of good faith. This factor at
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minimum does not weigh in favor of relief.
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Accordingly, the Motion for Relief (#67) is HEREBY DENIED.
IV. Conclusion
In accordance with the above analysis, this matter is HEREBY DISMISSED without
prejudice and the Motion for Relief (#67) is HEREBY DENIED.
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DATED this 16th day of June 2014.
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_____________________________
Kent J. Dawson
United States District Judge
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