AM Data Service, Inc., and Richard Miller v. Funding Circle USA, Inc.

Summary

The United States District Court for the District of Colorado grants Plaintiffs’ motion for leave to file an amended complaint under Federal Rules of Civil Procedure 16(b) and 15(a)(2). The court finds good cause, concludes that amendment is not shown to be futile or unduly prejudicial, lifts the discovery stay, and directs the parties to propose amended scheduling deadlines.

Holdings

1. Plaintiffs demonstrated good cause because they sought amendment by the deadline set by the district judge after the court first identified the pleading deficiencies and they had timely sought leave to amend in their objection to the recommendation.
2. Leave to amend should be granted because Plaintiffs made a good-faith effort to address the identified pleading deficiencies, Defendant did not establish bad faith, dilatory motive, or undue prejudice, and any alleged futility could appropriately be addressed on a subsequent Rule 12(b)(6) motion.

Questions Presented

1. Whether Plaintiffs established good cause under Federal Rule of Civil Procedure 16(b) to seek amendment after the scheduling-order deadline.
2. Whether leave to amend should be granted under Federal Rule of Civil Procedure 15(a)(2) despite arguments concerning futility, untimeliness, and undue prejudice.

Disposition

other