Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_13-cv-02403/USCOURTS-cand-3_13-cv-02403-13/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1332 Diversity-Account Receivable

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

ATS PRODUCTS, INC,

Plaintiff,

v.

CHAMPION FIBERGLASS, INC.,

Defendant.

Case No. 13-cv-02403-SI 

ORDER GRANTING PLAINTIFF'S 

MOTION FOR LEAVE TO FILE A 

FOURTH AMENDED COMPLAINT

AND SETTING CASE MANAGEMENT 

CONFERENCE FOR SEPTEMBER 4, 

2015 AT 3:30 PM

Re: Dkt. Nos. 104, 115

Plaintiff's motion for leave to file a fourth amended complaint is scheduled for a hearing on 

July 9, 2015. Pursuant to Civil Local Rule 7-1(b), the Court determines that the matter is 

appropriate for resolution without oral argument and VACATES the hearing. 

Plaintiff wishes to file a supplemental complaint (the proposed fourth amended complaint) 

to allege new misappropriation claims and to add four new defendants. Plaintiff seeks to amend 

the complaint based upon discovery recently produced by defendant. Plaintiff asserts that this 

discovery "show[s] that Champion (and the other proposed defendants) each has possession of 

ATS Trade Secret formulations for ingredients, cook, and hardeners, which giv[e] rise to new 

claims by ATS against Champion (and the other proposed defendants) for misappropriation of 

ATS Cooking Trade Secrets and of ATS Hardener Trade Secrets in addition to (further) claims 

against Champion (and the other proposed defendants) for misappropriation of ATS Ingredient 

Trade Secrets." Dkt. 104-1 at 2:15-20. Plaintiff states that if leave to supplement the complaint is 

denied, plaintiff will file a second lawsuit alleging the new claims against Champion and the new 

defendants.

Defendant opposes the proposed amendment, arguing primarily that plaintiff has not been 

Case 3:13-cv-02403-SI Document 118 Filed 07/06/15 Page 1 of 3
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United States District Court

Northern District of California

diligent in seeking to amend and that allowing the amendment will be prejudicial because it will 

impact the discovery and trial schedule. 

Federal Rule of Civil Procedure 15(d) provides that “[u]pon motion of a party the court 

may, upon reasonable notice and upon such terms as are just, permit the party to serve a 

supplemental pleading setting forth transactions or occurrences or events which have happened 

since the date of the pleading sought to be supplemented.” Fed. R. Civ. P. 15(d). "Rule 15(d) is 

intended to give district courts broad discretion in allowing supplemental pleadings." Keith v. 

Volpe, 858 F.2d 467, 473 (9th Cir. 1988). "The rule is a tool of judicial economy and 

convenience. Its use is therefore favored." Id.

The Court finds that permitting plaintiff to supplement the complaint will promote judicial 

efficiency "by enabling [the] court to award complete relief, or more nearly complete relief, in one 

action, and to avoid the cost, delay and waste of separate actions which must be separately tried 

and prosecuted." Id. (internal citation and quotation marks omitted); see also William Inglis & 

Sons Baking Co. v. ITT Continental Baking Co., Inc., 668 F.2d 1014, 1057 (9th Cir. 1982) (“The 

purpose of Rule 15(d) is to promote as complete an adjudication of the dispute between the parties 

as possible by allowing the addition of claims which arise after the initial pleadings are filed.”). 

While plaintiff's counsel could have sought leave to file the supplemental complaint earlier, the 

Court finds that plaintiff has not unduly delayed. The Court also finds that the current trial date of 

June 26, 2016 should provide enough time for all parties, including the new parties, to prepare for 

trial. However, if the schedule needs to be adjusted in light of the filing of the fourth amended 

complaint, the parties may address those issues with the Court at the upcoming case management 

conference.

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United States District Court

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CONCLUSION

Accordingly, the Court GRANTS plaintiff's motion for leave to file a fourth amended 

complaint. Plaintiff shall file and serve the fourth amended complaint no later than July 17, 2015. 

The Court will hold a case management conference on September 4, 2015 at 3:30 p.m.

IT IS SO ORDERED.

Dated: July 6, 2015

________________________

SUSAN ILLSTON

United States District Judge

Case 3:13-cv-02403-SI Document 118 Filed 07/06/15 Page 3 of 3