Purina Animal Nutrition LLC v. K.C. Dairies, LLP
Filing
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ORDER granting motion to modify scheduling order 29 ;denying Motion to Stay; granting 25 Motion for Leave to amend answer and counterclaim. Discovery deadline is 12/2/2014; motion deadline is 12/29/2014. Signed by U.S. District Judge Karen E. Schreier on 4/17/2014. (KC)
UNITED STATES DISTRICT COURT
DISTRICT OF SOUTH DAKOTA
SOUTHERN DIVISION
PURINA ANIMAL NUTRITION, LLC,
formerly known as Land O'Lakes
Purina Feed LLC,
Plaintiff,
vs.
K.C. DAIRIES, L.L.P.,
Defendant.
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CIV. 13-4099-KES
ORDER
Defendant, K.C. Dairies, L.L.P., moves for leave to amend its answer and
counterclaims. Plaintiff, Purina Animal Nutrition, LLC, opposes the motion and
contends that the motion to amend should be denied because of futility. The
motion is granted. K.C. Dairies also moves to modify and stay the existing
scheduling order until this court decides its motion for leave to amend and
Purina produces all responsive documents.
Rule 15 of the Federal Rules of Civil Procedure states that leave to amend
a pleading “shall be freely given when justice so requires.” Fed. R. Civ. P. 15(a).
The Supreme Court has stated:
In the absence of any apparent or declared reason--such as undue
delay, bad faith or dilatory motive on the part of the movant,
repeated failure to cure deficiencies by amendments previously
allowed, undue prejudice to the opposing party by virtue of
allowance of the amendment, futility of amendment, etc.–the leave
should, as the rules require, be “freely given.”
Foman v. Davis, 371 U.S. 178, 182 (1962). Amendments to pleadings should be
allowed with liberality. Klipsch, Inc. v. WWR Tech., Inc., 127 F.3d 729, 733 (8th
Cir. 1997).
Purina opposes the motion for the sole reason that the amendment would
be futile. In evaluating a motion to amend for futility, the district court should
consider whether the amendments could withstand a motion to dismiss under
Federal Rule of Civil Procedure 12(b). Zutz v. Nelson, 601 F.3d 842, 850-51 (8th
Cir. 2010), cert. denied, 131 S. Ct. 524 (2010). In determining whether the
amended pleading would survive a motion to dismiss, the counterclaim must
state sufficient facts to “state a claim to relief that is plausible on its face.” Retro
Television Network, Inc. v. Luken Commc’n, L.L.C., 696 F.3d 766, 768 (8th Cir.
2012).
After considering each of the counterclaims as alleged in the proposed
amended answer and counterclaims, the court finds that K.C. Dairies has met
its burden of alleging sufficient facts to state a claim to relief that is plausible on
its face. Therefore, K.C. Dairies’ motion for leave to amend its answer and
counterclaim is granted. The amended answer and counterclaim should be
served on Purina by April 21, 2014.
Next K.C. Dairies seeks to modify and stay the existing scheduling order.
A Rule 16 scheduling order “may be modified only for good cause and with the
judge’s consent.” Fed. R. Civ. P. 16(b)(4). A stay may be granted under the
inherent powers of the court for purposes of controlling the docket, conserving
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judicial resources, and providing for a just determination of the cases pending
before the court. Contracting N.W., Inc. v. City of Fredricksburg, Ia., 713 F.2d 382,
387 (8th Cir. 1983).
This action was commenced on September 13, 2013, and this scheduling
order has been modified one previous time based on an agreement of the
parties. Because the court granted the motion to amend the answer and
counterclaims, the scope of discovery has expanded. This alone is sufficient
good cause to modify the existing scheduling order.
K.C. Dairies also contends that Purina has failed to produce all responsive
documents to its discovery requests and in some instances merely indicated
that it will produce documents in the future. K.C. Dairies has moved to compel a
response, however, so the court will not address this issue and will not stay the
scheduling order indefinitely based on this contention.
Purina raises a concern that K.C. Dairies has not paid other vendors and
that the other vendors are in the process of obtaining judgment liens and
foreclosing on K.C. Dairies’ assets. K.C. Dairies responds that the motion for
summary judgment in that case was denied and a scheduling order has not
been entered in that matter. While this is not sufficient reason to deny K.C.
Dairies’ motion to modify the scheduling order, it is good reason to grant only a
short extension of time. As a result, all deadlines in the existing scheduling
order will be extended by three months. Experts will be disclosed by July 14,
2014, with rebuttal by August 19, 2014. All discovery must be completed by
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December 2, 2014. All motions, other than motions in limine, are due by
December 29, 2014. All other provisions of the court’s prior scheduling order
will remain in effect. It is
ORDERED that K.C. Dairies’ motion for leave to amend its answer and
counterclaim (Docket 24) is granted.
IT IS FURTHER ORDERED that K.C. Dairies’ motion (Docket 29) to modify
the scheduling order is granted and the motion to stay the scheduling order is
denied.
Dated April 17, 2014.
BY THE COURT:
/s/ Karen E. Schreier
KAREN E. SCHREIER
UNITED STATES DISTRICT JUDGE
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