Judge: Michael Shultz, Case: 22CMCV00459, Date: 2024-05-21 Tentative Ruling

INSTRUCTIONS: If the parties wish to submit on the tentative ruling and avoid a court appearance on the matter, the moving party must:

1. Contact the opposing party and all other parties who have appeared in the action and confirm that each will submit on the tentative ruling.

2. No later than 4:00 p.m. on the court day before the hearing, call the Courtroom (310-761-4302) advising that all parties will submit on the tentative ruling and waive hearing; and

3. Serve notice of the Court's ruling on all parties entitled to receive service.

If this procedure is followed, when the case is called the Court will enter its ruling on the motion in accordance with its tentative ruling. If any party declines to submit on the tentative ruling, then no telephone call is necessary, and all parties should appear at the hearing. If there is neither a telephone call nor an appearance, then the matter may either be taken off calendar or ruled on. 

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Case Number: 22CMCV00459    Hearing Date: May 21, 2024    Dept: A

22CMCV00459 Canteen SJC Properties, LLC v. Robertson’s Ready Mix, Ltd., et al.

Tuesday, May 21, 2024 at 8:30 a.m.

 

[TENTATIVE] ORDER GRANTING PLAINTIFF’S MOTION FOR LEAVE TO FILE A FIRST AMENDED COMPLAINT

 

I.       BACKGROUND

      The complaint alleges claims for declaratory relief and partition of real property in which Plaintiff and Defendant, Robertson’s Ready Mix, Ltd., (“Ready-Mix”) are co-owners. Plaintiff alleges that Ready-Mix entered into a lease agreement with Adams Bennett Investments (“Adams”) without Plaintiff’s consent.

II.     ARGUMENTS

Plaintiff argues that after taking the deposition of Ready-Mix’s person most qualified (“PMQ”), Plaintiff discovered facts to support the validity of a lease agreement between Plaintiff and Ready-Mix, that Ready-Mix breached the agreement and failed to surrender the premises on expiration of the lease terms. Defendant’s PMQ testified that Ready-Mix entered into a long-term lease agreement with Adams in order to prevent Ready-Mix’s loss of control over the premises and to provide leverage against Plaintiff. Plaintiff obtained further testimony that Ready-Mix controls Adams and RRM Properties, Ltd. (“Properties”) and uses each as a shell. Therefore, Plaintiff seeks an order amending the complaint to add Properties, exclude the partition claim, and to assert new claims for breach of contract, breach of the implied covenant of good faith and fair dealing, accounting, and ouster.

In opposition, Defendants argue that leave should be denied since the proposed amended complaint will change the nature of the action from partition to one for contract-related claims. Granting the motion will require a continuance of trial, presently set for July 31, 2024. All new claims could have been alleged at the time this action was commenced. Defendants will suffer prejudice from the proposed amendments because Defendants will have one month before discovery cutoff to prepare for an entirely different case.

In reply, Plaintiff argues that Defendants blocked the PMQ depositions for over six months, and then refused to stipulate to the amendments. The parties have a pending stipulation and order to continue trial filed on May 10, 2024.

III.    LEGAL STANDARDS

      Leave to amend is permitted at the court’s discretion upon any terms that may be just. (Code Civ. Proc., § 473 subd. (a)(1).) The statute is liberally construed to permit amendment of the pleadings “unless an attempt is made to present an entirely different set of facts by way of the amendment.” (Atkinson v. Elk Corp. (2003) 109 Cal.App.4th 739, 760.)

      If the motion is timely made, and the granting of the motion will not result in prejudice to the opposing party, it is error to refuse permission to amend. (Morgan v. Superior Court of Cal. In and For Los Angeles County (1959) 172 Cal.App.2d 527, 530.) Where denial of the motion will result in a party being deprived of the right to assert a meritorious cause of action, “it is not only error but an abuse of discretion.” (Id.) Amendments are permitted up to the date of trial or during trial where no prejudice is shown to the adverse party. (Atkinson v. Elk Corp. (2003) 109 Cal.App.4th 739, 761.)

IV.   DISCUSSION

While the proposed amended complaint changes the nature of the case, the Court’s file reflects that the parties stipulated to continue trial to April 14, 2025, which the Court signed and filed on May 13, 2024. Accordingly, any prejudice to Defendants as a result of the newly asserted claims is mitigated.

Based on the foregoing, Plaintiff’s motion is GRANTED. Plaintiff is ordered to file and serve the amended pleading forthwith.