Judge: David Sotelo, Case: 21STCP01431, Date: 2022-09-14 Tentative Ruling

Case Number: 21STCP01431    Hearing Date: September 14, 2022    Dept: 40

Laura Lenee and Regan Patno's Motion for Leave to Amend [File Second Amended Cross-Complaint] is GRANTED because this request:

(1) conforms with Cal Rules of Court, rule 3.1324(a) by providing a copy of the proposed Answer (see Mot., Cohen Decl., Ex. A [Proposed SAXC]) and providing a memo highlighting in detail the allegations to be added in the Second Amended Cross-Complaint (see Mot., 5:25-27, 6:26-9:6);

(2) conforms with Cal Rules of Court, rule 3.1324 (b) by providing the Cohen Declaration explaining (i) the effect of amendment (Mot., Cohen Decl., ¶ 7 [effect of amendment is to "embellish[] the cause of action based upon fraud in the inducement and adds a prayer for punitive damages based upon such cause of action - [which] ... [Conway Burt] challenge[s] in [his February 22, 2022] Demurrer [to the First Amended Cross-Complaint]"]), (ii) why amendment is necessary and proper (Mot., Cohen Decl., ¶¶ 8-9 [amendments are being made due to Conway Burt's change of stance relating to whether he agreed to allow Empire to pay Lenee and Patno on their investments prior to distribution of equity]), (iii) when the new facts were discovered (see Mot., Cohen Decl., ¶ 12 ["a few months ago"]), and (iv) why request was not made sooner (Mot., Cohen Decl., ¶ 13 [Lenee and Patno first reached out to Conway Burt regarding stipulation to Lenee and Patno filing a Second Amended Cross-Complaint as to "embellish" the Fraud in the Inducement claim, but Conway Burt denied the request, forcing Lenee and Patno to file this motion shortly thereafter]);

(3) is unopposed by Plaintiff Phillip Conway Burt despite the fact that Conway Burt demurred to Laura Lenee and Regan Patno's First Amended Cross-Complaint, filed 2/22/22, opposed by Lenee and Patno on 8/16/22, and set for hearing on 10/7/22.