Judge: Mark A. Young, Case: 21SMCV01401, Date: 2024-12-19 Tentative Ruling

Case Number: 21SMCV01401    Hearing Date: December 19, 2024    Dept: M

CASE NAME:           Bowmont Holdings LLC, v. CAS Construction, et al.

CASE NO.:                21SMCV01401

MOTION:                  Motion for Leave to Amend to File Third Amended Complaint

HEARING DATE:   12/19/2024

Legal Standard

If a party wishes to amend a pleading after an answer has been filed, or after a demurrer has been filed and after the hearing on the demurrer, or if he or she has already amended the pleading as a matter of course, the party must obtain permission from the court before amendment. (CCP §§ 473(a)(1), 576.)

Motions for leave to amend the pleadings are directed to the sound discretion of the court. “The court may, in furtherance of justice, and on any terms as may be proper, allow a party to amend any pleading . . ..” (CCP § 473(a)(1); see CCP § 576.) Policy favors liberally granting leave to amend so that all disputed matters between the parties may be resolved. (See Howard v. County of San Diego (2010) 184 Cal.App.4th 1422, 1428.) Absent prejudice to the adverse party, the court may permit amendments to the complaint “at any stage of the proceedings, up to and including trial.” (Atkinson v. Elk Corp. (2003) 109 Cal.App.4th 739, 761 [internal quotes omitted].) Where leave is sought to add entirely new claims, the court may grant leave to amend if the new claims are based on the same general set of facts, and the amendment will not prejudice the opposing party. (Austin v. Massachusetts Bonding & Ins. Co. (1961) 56 Cal.2d 596, 600-602; Glaser v. Meyers (1982) 137 Cal.App.3d 770, 777 [holding trial court did not abuse its discretion in permitting amendment of complaint, which originally alleged constructive eviction, to allege retaliatory eviction where the new claim was based on the same general set of facts].)

Although denial is rarely justified, a judge has discretion to deny leave to amend if the party seeking the amendment has been dilatory, and the delay has prejudiced the opposing party. (Morgan v. Superior Court (1959) 172 Cal.App.2d 527, 530; Hirsa v. Superior Court (1981) 118 Cal.App.3d 486, 490). An opposing party is prejudiced where the amendment would necessitate a trial delay along with a loss of critical evidence, added preparation expense, increased burden of discovery, etc. (Magpali v. Farmers Group, Inc. (1996) 48 Cal.App.4th 471, 486-488 [leave properly denied where plaintiff sought leave on the eve of trial, nearly two years after the complaint was originally filed and gave no explanation for the delay which prejudiced defendant who did not discover or depose many of the witnesses who would support the new allegations and had not marshaled evidence in opposition of the new allegations].)

Procedurally, a motion for leave to amend must state with particularity what allegations are to be amended. Namely, it must state what allegations in the previous pleading are proposed to be deleted and/or added, if any, and where, by page, paragraph, and line number. (CRC, Rule 3.1324(a)(2)-(3).) The motion must be accompanied by a declaration specifying: (1) the effect of the amendment; (2) why the amendment is necessary and proper; (3) when the facts giving rise to the amended allegations were discovered; and (4) the reasons why the request for amendment was not made earlier. (CRC, Rule 3.1324(b).) The motion must also be accompanied by the proposed amended pleading, numbered to differentiate it from the prior pleadings or amendments. (CRC, Rule 3.1324(a)(1).) It is within the court’s discretion to require compliance with Rule 3.1324 before granting leave to amend. (Hataishi v. First American Home Buyers Protection Corp. (2014) 223 Cal.App.4th 1454, 1469.)

Analysis

Plaintiffs Haig Tacorian, Gilda Tacorian, and Bowmont Holdings, LLC move for an order granting leave to file their proposed Third Amended Complaint (“TAC”). The TAC does not make any substantive changes to the allegations, ask for new relief, or add any new claims. Instead, Plaintiffs propose that they omit certain pages from Exhibits B-1, B-2, and B-3, which they contend do not comprise the contracts at issue. Plaintiffs explain that current counsel substituted into this matter on June 28, 2023. (Cowles Decl., ¶ 2.) Through discovery and investigation relating to responses to Defendant Geosoils Consultants, Inc.’s written discovery, Plaintiffs realized that not all of the documents attached as Exhibits B1, B2 and B3 were the correct contracts. (¶ 3). Instead, only the first page of each exhibit are the contracts. As a result, Plaintiffs believe that the SAC needs to be amended to correct prior counsel’s error and delete all but the first pages of Exhibits B1-B3.

Given the insubstantial change proposed, the Court is inclined to grant leave. The record does not show that any delay stemming from prior counsel’s mistake and current counsel’s investigation efforts have caused any substantial prejudice to Defendant. The deletions do not expand the scope of discovery or require the parties to undertake further discovery. However, amendment would hinder Defendant’s filed motion for summary adjudication. Thus, the motion for leave to amend will be considered after the summary adjudication motion is heard.

Accordingly, the motion is CONTINUED to January 23, 2025, at 8:30 a.m.