Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_14-cv-01633/USCOURTS-casd-3_14-cv-01633-1/pdf.json

Nature of Suit Code: 443
Nature of Suit: Civil Rights Accommodations
Cause of Action: 42:3601 Fair Housing Act

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

LANDON WHITBY, et al.,

Plaintiffs,

CASE NO. 14cv1633-LAB (BLM)

ORDER GRANTING MOTIONS TO

DISMISS; AND

ORDER GRANTING IN PART EX

PARTE MOTION FOR LEAVE TO

AMEND

[DOCKET NUMBERS 18, 27, 67.]

vs.

CHELSEA INVESTMENT

CORPORATION, etc., et al.,

Defendants.

This putative class action was brought under the Fair Housing Act by tenants of an

apartment complex in San Diego, the Windwood Village Apartments. They allege Defendants

discriminated against them based on familial status, i.e., being families with children. 

The Defendant identified as MMA PHR CIC, L.P. moved to dismiss for improper

service. (Docket no. 18.) It contended that Plaintiffs served Elizabeth Zepeda in an effort to

effect service on it, but that this was ineffective. This Defendant argued that there is no such

entity as MMA PHR CIC, L.P., that Zepeda instead worked for Chelsea Investment

Corporation as a Risk Coordinator/Risk Manager and was neither an officer nor agent of

MMA PHR CIC, L.P. It also alleged that personal service was not followed by mailing, as

required by law.

Defendants James Schmid, Lynn Harrington Schmid, and the Schmid Family Trust

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also moved to dismiss (Docket no. 27), because the complaint failed to allege what control

they had over the apartment complex or its management. 

Although Plaintiffs opposed these motions, they recently filed an ex parte motion for

leave to amend. (Docket no. 67.) That motion implicitly concedes the essential arguments

in both motions to dismiss (id. at 4:4–4:5) and seeks leave to amend the complaint to correct

them. The motion goes beyond this, though, and seeks to add the claims of one more family

at the Windwood Village Apartments, as well as families at six other complexes owned or

managed by the same Defendants. But because those complexes have other owners as

well, the complaint would need to be amended to name them. The motion says six other

complex are under review for inclusion in the action. And finally, it seeks to add all these

claims into one very large class action.

Under Fed. R. Civ. P. 15(a)(2), leave to amend is freely given when justice so

requires. There is a presumption in favor of granting leave to amend, except where prejudice

to the non-moving party would result. Eminence Capital, LLC v. Aspeon, Inc., 316 F.3d 1048,

1052 (9th Cir. 2003). The decision rests in the sound discretion of the trial court. Int'l Ass'n

of Machinists & Aerospace Workers v. Republic Airlines, 761 F.2d 1386, 1390 (9th Cir.

1985).

Bringing new apartment complexes, new plaintiffs, and new defendants into this action

would not serve the ends of justice. It would only have the effect of consolidating in one

action claims by different plaintiffs against several different sets of defendants. Those claims

could just as easily and efficiently — if not more so — be brought separately, resulting in no

prejudice to any of the existing Plaintiffs or Defendants. The only exception is the request to

add Daud and Shokria Nawaey as Plaintiffs, who can efficiently and without prejudice join

as Plaintiffs in this action because they are also tenants of the Windwood Village Apartments.

/ / /

/ / /

Defendants’ opposition to the motion to dismiss also correctly points out that adding

claims pertaining to different apartment complexes this far into the litigation process, after

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a good deal of discovery has already been taken, would unfairly prejudice Defendants.

The two motions to dismiss are therefore GRANTED, and the complaint is

DISMISSED WITHOUT PREJUDICE. The motion for leave to amend is GRANTED in part.

The proposed amended complaint attached as an exhibit to the motion for leave to amend

is unacceptable in its present form. 

Although the parties have briefed the motion for leave to amend as if it were a motion

to dismiss or a motion for summary judgment, the Court cannot safely say the complaint

cannot be successfully amended. Defendants may renew their arguments in later motions,

if appropriate.

Plaintiffs may, within 14 calendar days of the date this order is entered in the docket,

file an amended complaint addressing the deficiencies addressed in the motions to dismiss

and conceded in the motion for leave to amend. They should also take care that the

amended complaint addresses concerns raised in Defendants’ oppositions to the motion for

leave to amend. They may add Daud and Shokria Nawaey as Plaintiffs, but no one else.

They may correct or clarify the names or identities of Defendants sued in the original

complaint, but must not name any Defendants except those they allege to be liable for Fair

Housing Act violations at the Windwood Village Apartments. After filing the amended

complaint, they should re-serve the Defendant they erroneously sued as MMA PHR CIC,

L.P., within 14 calendar days. 

Except as expressly modified in this order or by Magistrate Judge Major, the case

management dates set by Judge Major remain in place.

IT IS SO ORDERED.

DATED: February 27, 2015

HONORABLE LARRY ALAN BURNS

United States District Judge

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