Jose Alberto Castillo Abreu, Martha Yvette Diaz, and Rodolfo A. Rodriguez Abreu v. Oscar A. Alvarez, OJS Trucking LLC, Food Haulers Inc., Wakefern Food Corp., and Shop-Rite Supermarkets, Inc.

Summary

The United States District Court for the Eastern District of New York grants Defendants’ motion to amend their answer to add a counterclaim for fraud based on allegations that the motor vehicle accident was staged and that Plaintiffs’ injuries were exaggerated or fabricated. The Court rejects Plaintiffs’ arguments concerning futility, bad faith, undue delay, and undue prejudice, and sets deadlines for filing the amended pleading, responding to it, and proposing limited additional discovery.

Holdings

1. The proposed fraud counterclaim was not futile because Defendants' allegations that Plaintiffs staged the accident and exaggerated or falsified their injuries, supported by allegations derived from discovery and investigation, were sufficient at the pleading stage.
2. Plaintiffs did not establish bad faith or undue delay sufficient to deny leave to amend.
3. Plaintiffs did not establish undue prejudice warranting denial of leave to amend.
4. Defendants' motion for leave to amend their answer to add a fraud counterclaim was granted.

Questions Presented

1. Whether Defendants should be granted leave under Federal Rules of Civil Procedure 15 and 16 to amend their answer to add a fraud counterclaim after the close of discovery.
2. Whether the proposed fraud counterclaim was futile because it failed to state a plausible claim.
3. Whether bad faith, undue delay, or undue prejudice warranted denial of leave to amend.

Disposition

other