Judge: Elaine W. Mandel, Case: 23SMCV02836, Date: 2024-02-07 Tentative Ruling

Case Number: 23SMCV02836    Hearing Date: February 7, 2024    Dept: P

Tentative Ruling

Acuitas Group Holdings, LLC vs. X, LLC, et al., Case No.: 23SMCV02836

Hearing Date: Wednesday, February 7, 2024

Plaintiff Acuitas Group’s Motion to Strike Defendant El-Batrawi’s Cross-Complaint/Motion for Leave to File Cross-Complaint

Defendants X, LLC and El-Batrawi allegedly defaulted on a $2,000,000 note from Plaintiff to X, personally guaranteed by El-Batrawi. Plaintiff moves to strike El-Batrawi’s cross-complaint (CCP 436). The parties met and conferred in accordance with CCP §435.5(a).

Plaintiff’s primary contention is that the cross-complaint was not timely filed. El-Batrawi seeks leave to file its amended cross-complaint and argues new party Terren Peizer does not need leave, as the court has not set a trial date. CCP § 428.50.

El-Batrawi concedes the cross-complaint was late filed but argues lack of prejudice. Per CCP §428.50(a) a cross-complaint is to be filed before or at the time as the answer. The Complaint was served July 14, 2023; the parties agreed to an extension to August 29, 2023, which El-Batrawi failed to meet. El-Batrawi had opportunities to file the XC but failed to do so; the papers give no explanation as to the delay.

The issues in the proposed cross-complaint are “inextricably intertwined” with those in the complaint. Were the court to deny the motion, presumably the cross-complaint would be filed as a new complaint, and El-Batrawi would seek to relate and/or consolidate the two matters. No trial date has been set; in fact, the initial status conference will be held concurrent with the hearing on these motions. There is no prejudice to plaintiff for the court to exercise its discretion and allow for filing of the cross-complaint by El-Batrawi. GRANTED. El-Batrawi and Peizer to file their cross-complaint within 10 court days.