Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_10-cv-01542/USCOURTS-azd-2_10-cv-01542-1/pdf.json

Nature of Suit Code: 430
Nature of Suit: Banks and Banking
Cause of Action: 15:1601 Truth in Lending

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Elvin G. Grundy, Jr. and Willie Ruth

Grundy, 

Plaintiffs, 

vs.

JPMorgan Chase Bank, N.A., et al.,

Defendants.

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No. CV10-1542 PHX DGC

ORDER

This order concerns three related motions – Defendant JPMorgan Chase Bank, N.A.’s

(“Chase”) motion to dismiss Plaintiffs’ original complaint (Doc. 8), Plaintiffs’ motion for

leave to amend their complaint (Doc. 13), and Chase’s motion to dismiss the amended

complaint (Docs. 19, 20). Because Defendant suggests that Plaintiffs have filed a bankruptcy

petition (Doc. 24), the Court will rule only on the first two motions (Docs. 8, 13) and order

Plaintiffs to file a status report on their bankruptcy petition within 10 days of this order.

On June 25, 2010, Plaintiffs filed their initial complaint in Maricopa County Superior

Court. Doc. 1-1. Defendant JPMorgan Chase Bank, N.A. (“Chase”) removed the case to

federal court on July 21, 2010. Doc. 1. On July 28, 2010, Defendant filed a motion to

dismiss Plaintiffs’ complaint under Federal Rules of Civil Procedure 8 and 12(b)(6). Doc. 8.

On August 12, 2010, Plaintiffs filed for leave to amend their complaint (Doc. 13) and have

lodged a proposed amended complaint (Doc. 14). On August 17, 2010, Plaintiffs filed a

response in opposition to Defendant’s motion to dismiss (Doc. 17), and Defendant replied

on August 27 (Doc. 19). In its reply, Defendant acknowledged that Plaintiffs did not need

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leave of Court before amending their complaint under Federal Rule of Civil Procedure 15

(Doc. 19), and combined with the reply a motion to dismiss the amended complaint

(Docs. 19, 20). Plaintiffs filed a response on September 17, 2010 (Doc. 23), and on

September 24, 2010, Defendant filed a notice stating that it elects not to file a reply on

account of Plaintiffs’ recent bankruptcy filing (Doc. 24). The motions have been fully

briefed. 

A plaintiff may amend its complaint once without leave of the court within “21 days

after service of a responsive pleading or 21 days after service of a motion under Rule 12(b)

. . . whichever is earlier.” Fed. R. Civ. P. 15(a)(1)(B). Because no answer was filed in this

case and because Plaintiffs’ amended complaint was lodged within 21 days of Defendant’s

12(b)(6) motion, the Plaintiffs’ motion to amend is granted even though leave of Court was

not required. Accordingly, Defendant’s first motion to dismiss (Doc. 8) will be denied as

moot. 

In its latest reply, Defendant suggests that Plaintiffs have filed a petition for

bankruptcy. Doc. 24. Plaintiffs are ordered to file a status report within 10 days of this

order, showing cause why the complaint cannot be adjudicated in bankruptcy court as part

of their bankruptcy petition. In the meanwhile, the Court will stay its ruling on Defendant’s

second motion to dismiss (Doc. 20).

IT IS ORDERED:

1. Plaintiffs’ motion for leave to amend (Doc. 13) is granted. 

2. Defendant’s motion to dismiss (Doc. 8) is denied as moot.

3. Plaintiffs shall file a status report by October 25, 2010. Plaintiffs shall

address whether their claims in this case can be adjudicated in bankruptcy

court, permitting dismissal of this action.

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4. Defendant’s second motion to dismiss (Doc. 20) is stayed pending Plaintiff’s

status report.

DATED this 15th day of October, 2010.

Case 2:10-cv-01542-DGC Document 26 Filed 10/15/10 Page 3 of 3