Jiao v. Blumenthal et al
Filing
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ORDER granting in part Plaintiff's 18 Motion to Amend. Plaintiff is DIRECTED to docket the proposed revised First Amended Complaint (Dkt. No. 30 at 4-18) within ten (10) days of this order. Signed by U.S. District Judge John C Coughenour. (TH)
THE HONORABLE JOHN C. COUGHENOUR
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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
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JIE JIAO,
CASE NO. C17-1355-JCC
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Plaintiff,
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ORDER
v.
CONNIE BLUMENTHAL, et al.,
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Defendants.
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This matter comes before the Court on Plaintiff Jie Jiao’s motion to amend her complaint
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(Dkt. No. 18). Having thoroughly considered the parties’ briefing and the relevant record, the
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Court GRANTS in part the motion for the reasons explained herein.
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Plaintiff Jiao seeks to amend her complaint to assert additional federal and state causes of
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action and to add Maoqi Zhang and Wei Fan as additional plaintiffs. (Dkt. No. 20.) Jiao, as a
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married woman with separate property, and Zhang and Fan, as married persons with marital
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property (collectively “Plaintiffs”), allege Defendants represented them in purchasing parcels of
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residential real estate in King County from the same seller. (Id. at 6–7.) Plaintiffs further allege
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Defendants failed to disclose a relationship between themselves and the seller, resulting in a
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conflict of interest. (Id. at 10–11.) According to Plaintiffs, this led to Defendants’ breach of their
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common law and statutory duties, breach of their agency agreement with Plaintiffs, and
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violations of federal and state law. (Id. at 15–18.)
ORDER
C17-1355-JCC
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Leave to amend shall be freely given when justice so requires. See Fed. R. Civ. P.
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15(a)(2). This policy should be “applied with extreme liberality.” Owens v. Kaiser Found.
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Health Plan, Inc., 244 F.3d 708, 712 (9th Cir. 2011). In considering motions to amend, this
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Court considers four factors: “bad faith, undue delay, prejudice to the opposing party, and/or
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futility.” Griggs v. Pace Am. Group, Inc., 170 F.3d 877, 880 (9th Cir. 1999). “Generally, this
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determination should be performed with all inferences in favor of granting the motion.” Id. Here,
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Defendants only challenge amendment on the basis of futility. (See Dkt. Nos. 24, 26.)
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Defendant Realogics Brokerage, LLC asserts futility because Plaintiff Jiao fails to join a
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necessary party: her fiancé at the time of purchase, Ke Song. (Dkt. No. 24 at 4.) 1 Under Federal
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Rule of Civil Procedure 19(a), a person must be joined if his or her absence would prevent a
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court from providing complete relief to the existing parties or leave an existing party subject to
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inconsistent obligations. See Dawavendewa v. Salt River Project Agr. Imp. and Power Dist., 276
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F.3d 1150, 1155 (9th Cir. 2002). Realogics asserts that Song is a necessary party because he has
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an interest in Jiao’s suit against Defendants—namely, in the funds Jiao used to purchase the
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residence and/or an interest in the marital estate. (Dkt. No. 24 at 4, 7.) Jiao confirms Song
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provided her the funds to purchase the residence, but claims he did so as a pre-marital gift. (Dkt.
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Nos. 31 at 1, 32 at 1.) Such a gift would remain Jiao’s separate property, absent “direct positive
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evidence to the contrary.” In re Marriage of Skarbek, 997 P.2d 447, 450 (Wash. App. 2000); see
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Scott v. Currie, 109 P.2d 526, 529 (Wash. 1941). Realogics provides no such evidence. (See
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generally Dkt. No. 24.) Therefore, amendment is not made futile by a failure to join Song.
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Plaintiffs’ proposed First Amended Complaint brings a cause of action described as “wire
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fraud,” alleging Defendants defrauded Plaintiffs though use of “interstate wire communications.”
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(Dkt. No. 20 at 17.) Defendant Blumenthal argues this claim is futile because the Court cannot
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afford relief on it. (Dkt. No. 26 at 3.) The Court agrees. Wire fraud is a criminal offense. See 18
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U.S.C. §§ 1341 and 1343 (providing criminal penalties for “frauds and swindles” committed by
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Jiao and Song have since married. (Dkt. No. 31 at 4.)
ORDER
C17-1355-JCC
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“wire, radio, television.”). However, Plaintiffs move to withdraw their wire fraud cause of action
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and fold the underlying allegations into their claim brought pursuant to the Racketeer Influenced
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and Corrupt Organizations Act (RICO), 18 U.S.C. § 1964(c). The Court GRANTS Plaintiff leave
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to do so, thereby mooting Blumenthal’s argument.
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For the foregoing reasons, the motion to amend (Dkt. No. 18) is GRANTED in part.
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Plaintiff is DIRECTED to docket the proposed revised First Amended Complaint (Dkt. No. 30 at
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4–18) within ten (10) days of this order.
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DATED this 27th day of December 2017.
A
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John C. Coughenour
UNITED STATES DISTRICT JUDGE
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ORDER
C17-1355-JCC
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