Xiaoyan Lyu v. Freightstar Expedited, LLC

Summary

The court denied Freightstar Expedited, LLC’s motion to exclude Plaintiff Xiaoyan Lyu’s damages expert and strike the expert report. The court held that Lyu sufficiently pleaded special damages for lost business income under Federal Rule of Civil Procedure 9(g), timely disclosed the expert under Rule 26, and did not warrant exclusion under Rule 37(c)(1), while taking under advisement Defendant’s request for additional discovery and a rebuttal expert.

Holdings

1. Lost profits from a business owned or co-owned by the plaintiff are special damages and must be specifically stated in the complaint under Federal Rule of Civil Procedure 9(g).
2. Plaintiff sufficiently pleaded her claimed lost business income and profits by alleging loss of past and future income and wage/income loss, even though the complaint did not expressly use the phrase business losses or identify a dollar amount.
3. Exclusion under Rule 37(c)(1) was unwarranted because Defendant identified no required Rule 26(a) or Rule 26(e) information that Plaintiff failed to provide, and Plaintiff timely disclosed her expert and report under the scheduling order.

Questions Presented

1. Whether alleged lost profits from Plaintiff's co-owned business constitute special damages that must be specifically stated under Federal Rule of Civil Procedure 9(g).
2. Whether Plaintiff's allegations of past and future income loss and wage/income loss sufficiently pleaded the claimed lost business profits under Rule 9(g).
3. Whether Plaintiff's damages expert and report should be excluded under Federal Rule of Civil Procedure 37(c)(1).

Disposition

denied