Adbul-Mumit v. Alexandria Hyundai, LLC
Opinion of the Court
This appeal arises from the dismissal of three consumer actions based on Virginia state law claims. The actions focus on a series of misrepresentations made by Hyundai Motor America ("Hyundai") regarding the Environmental Protection Agency ("EPA") estimated fuel economy for the 2011, 2012, and 2013 models of the Hyundai Elantra. A Judicial Panel on Multidistrict Litigation ("JPML") consolidated dozens of similar consumer suits in the United States District Court for the Central District of California (the "MDL court"). But the JPML remanded to the United States District Court for the Western District of Virginia the three actions at issue in this appeal: Gentry v. Hyundai Motor Am., Inc. , No. 3:13-cv-00030; Adbul-Mumit v. Hyundai Motor Am., Inc. , No. 3:14-cv-00005; and Abdurahman v. Alexandria Hyundai, LLC , No. 3:14-cv-00002.
The Western District of Virginia dismissed with prejudice the claims in all three actions, save one claim in the Gentry action, for failure to satisfy federal pleading standards. Because one claim remains pending before the district court, we dismiss the Gentry appeal for lack of jurisdiction. We affirm the district court's dismissal of the Adbul- Mumit and Abdurahman actions and its denial of the plaintiffs' post-dismissal request for leave to amend their complaints in those actions.
I.
A.
In 2011 and 2012, a series of Hyundai advertisements claimed that 2011-2013 models of the Hyundai Elantra delivered an EPA fuel economy rating of 40 miles per gallon. But according to the United States Department of Justice and the California Air Resources Board, Hyundai used improper testing parameters to calculate greenhouse gas emissions. See United States v. Hyundai Motor Co. ,
*288J.A. 398.
B.
Numerous consumer lawsuits followed. On February 6, 2013, the JPML consolidated more than 50 suits in the Central District of California. Shortly after consolidation, plaintiffs in several consumer suits claimed to have reached a settlement with Hyundai for a single nationwide class. The proposed class consisted of "[a]ny individual who owned or leased a Class Vehicle on or before November 2, 2012." J.A. 1061. The proposed settlement permitted class members to either take a lump sum payment or participate in a reimbursement program offered by Hyundai.
In late 2013 and early 2014, consumers in Virginia filed the three actions at issue in this appeal, alleging state law consumer protection claims. Each asserts the same three Virginia state law causes of action: (1) a Lemon Law claim;
In June 2014, before the district court ruled on the motions to dismiss, the JPML transferred Gentry , Adbul-Mumit , and Abdurahman to the MDL court in the Central District of California so as to participate in the ongoing settlement efforts. And, in 2015, the MDL court certified a class for settlement purposes and approved the settlement that permitted class members to either take a lump sum payment or participate in a reimbursement program offered by Hyundai. The JPML later entered remand orders on September 9, 2015, with respect to Gentry , Adbul-Mumit , and Abdurahman , remanding to the Western District of Virginia all plaintiffs who either (1) opted out of the settlement or (2) were not members of the certified class (i.e. , individuals who purchased Elantras after November 2, 2012).
C.
Upon remand to the Western District of Virginia, the parties filed status reports with the district court. In its status report, Hyundai asserted, "[T]he current complaints are outdated and will only promote confusion going forward" because the complaints "include a mix of pre- and post November 2, 2012 consumers, as well as many settlement class members who did not opt out of the settlement." Hyundai Status Report at 6, *289Gentry v. Hyundai Motor Am. , No. 3:13-cv-00030 (W.D. Va. Aug. 14, 2013; filed Jan. 8, 2016) ECF No. 82.
Nonetheless, the district court granted plaintiffs an additional 20 days to amend. The district court noted that Hyundai had "sought [clarification] from Plaintiffs for almost two years" and that the "cases ha[d] lingered in a state of inactivity for too long." Order Granting Extension at 2, Gentry , ECF No. 89 (filed July 22, 2016). The district court again warned that it did "not intend to further extend this deadline" and that the "prior complaints [will] become operative" if the plaintiffs failed to amend. Id. at 3. Once again, the plaintiffs failed to amend.
On August 22, 2016, Hyundai moved to dismiss all pending claims in Gentry , Adbul-Mumit , and Abdurahman . On January 23, 2017, the district court granted the motion in part, dismissing all claims with the exception of one claim in the Gentry action. In doing so, the district court observed that the complaints did not satisfy the Federal Rule of Civil Procedure 8(a)(2) pleading standard, as explained in Bell Atlantic Corp. v. Twombly ,
The plaintiffs filed a motion to reconsider and sought leave to amend their dismissed complaints. At no point throughout the entirety of the litigation, however, did the plaintiffs provide the district court with proposed amended complaints. The district court denied the motion to reconsider, and the plaintiffs in each action filed a timely notice of appeal. We consolidated the appeals.
II.
Appellate Jurisdiction
At the outset, we must determine the extent of our jurisdiction. In consolidated appeals, "each constituent case must be analyzed individually ... to ascertain jurisdiction." Hall v. Hall , --- U.S. ----,
We possess jurisdiction over the Adbul-Mumit and Abdurahman appeals because the district court dismissed those actions in their entirety. See J.A. 1477 ("[T]he motions to dismiss those cases will be granted."). But with respect to the Gentry appeal, one claim remains pending before the district court. Counsel for Gentry concedes that the district court did not enter a final order in that action. Oral Argument at 12:50, Adbul-Mumit v. Alexandria Hyundai, LLC , No. 17-1582 (4th Cir. May 9, 2018) http://www.ca4.uscourts.gov/oral-argument/listen-to-oral-arguments. Mr. Gentry nonetheless urges us to exercise jurisdiction over his appeal to "correct" a jurisdictional mistake of the district court. Id . He alleges that the district court dismissed claims that were never remanded to the Western District of Virginia by the MDL court. The record belies this allegation. The district court correctly noted, "Mr. Gentry is the only remaining ... plaintiff" in the Gentry action because "the other four named class representatives were not remanded by the MDL." J.A. 1451. Accordingly, we dismiss the Gentry appeal for lack of appellate jurisdiction.
III.
Twombly and Iqbal
We turn to the remaining Adbul-Mumit and Abdurahman appeals.
This court makes "no habit of venturing beyond the confines of the case on appeal to address arguments the parties have deemed unworthy of orderly mention." United Statesv. Holness ,
On this record, we decline to invent an argument in support of Appellants' complaints. The district court could not have been more clear that Appellants' failure to satisfy federal pleading standards constituted an independent basis for dismissal. Indeed, the order contained a separate *291subheading dedicated to the issue: "Abdurahman and Adbul-Mumit -Analysis of Motions to Dismiss. I. Failure to Properly Plead Claims." J.A. 1471.
Upon denying Appellants' motion to reconsider, the district court again reiterated the insufficiency of the pleading:
Most obviously, the Court provided 'independent basis for dismissal' by concluding 'the Abdurahman and Adbul-Mumit Complaints failed to satisfy federal pleading standards': The Complaints do not make a single, specific allegation about even one of hundreds of named plaintiffs, much less about any of the seven, remaining ... plaintiffs. Other arguments ... are simply recapitulations of their previously-rejected arguments that are improper on reconsideration.
Mem. Op. Denying Mot. to Reconsider at 6, Gentry v. Hyundai Motor Am. , No. 3:13-cv-00030 (W.D. Va. Aug. 14, 2013; filed Apr. 6, 2017) ECF No. 119.
Despite these clear holdings, Appellants make no citation to Twombly , Iqbal , or even Rule 8 of the Federal Rules of Civil Procedure (establishing the federal pleading standard) in their 55 page opening brief. And the Virginia state law arguments that Appellants raise are irrelevant to the concern that Appellants' complaints failed to satisfy pleading standards in federal court.
Thus, we hold that Appellants have waived their challenge to the district court's conclusion that the complaints failed to satisfy federal pleading standards. Because this constituted an independent basis for the order below, we affirm the district court's dismissal of the Abdurahman and Adbul-Mumit actions.
IV.
Denial of Leave to Amend
Appellants also argue that the district court improperly denied their post judgment motions for leave to amend their complaints. We review a district court's denial of a postjudgment motion for leave to amend for abuse of discretion. See Laber v. Harvey ,
A.
Appellants contend that the district court abused its discretion because Appellants did not have the benefit of a "definitive ruling" before their complaints were dismissed with prejudice. Oral Argument at 6:55-9:05, *292Adbul-Mumit v. Alexandria Hyundai, LLC , No. 17-1582 (4th Cir. May 9, 2018) http://www.ca4.uscourts.gov/oral-argument/listen-tooral-arguments. According to Appellants, only a district court's "definitive ruling" on the pleadings is sufficient to place a plaintiff on notice of any deficiencies in the complaint and the possibility that the action might be later dismissed with finality. In other words, Appellants see "no need to amend until there's a reason to amend." Id. at 7:30.
Appellants' position has some degree of support in the Second and Seventh Circuits. See Loreley Fin. (Jersey) No. 3 Ltd. v. Wells Fargo Sec., LLC ,
Other circuits do not categorically require a district court to issue a definitive ruling before dismissal with prejudice. See Rollins v. Wackenhut Serv., Inc. ,
Categorically requiring a district court to first provide a "definitive ruling" before dismissal with prejudice impedes a district court's inherent power to manage its docket. See Dietz v. Bouldin , --- U.S. ----,
Instead, we leave the nature of dismissal to the sound discretion of the district court. See Carter ,
*293B.
Plaintiffs whose actions are dismissed are free to subsequently move for leave to amend pursuant to Federal Rule of Civil Procedure 15(b) even if the dismissal is with prejudice. See Laber ,
We review a district court's denial of leave to amend for abuse of discretion. Laber ,
Prejudice to the opposing party "will often be determined by the nature of the amendment and its timing." Laber ,
Reviewing the record here, we discern no abuse of discretion. The circumstances of the litigation below compel our conclusion that the nature and timing of the amendment would prejudice Hyundai.
*294Letter at 2, Gentry , ECF No. 88 (filed July 13, 2016) ("[Hyundai has] been requesting this same information since August, 2014 .... The information is necessary to determine who is actually a plaintiff in the remanded matters."); Meet and Confer Report at 4-5, Gentry , ECF No. 90 (filed Aug. 22, 2016) ("It is in everyone's best interest to know who and how many plaintiffs are involved in this case .... [Hyundai] should not have to devote more resources trying to figure out who is suing them."); Mem. Supp. Mot. to Dismiss at 5, Gentry , ECF No. 91 (filed Aug. 22, 2016) ("Without identification and verification of those individuals actually alleging an injury, plaintiffs' claims should be dismissed."). Given that the MDL court remanded only some of the named plaintiffs' cases because these plaintiffs did not fall within the MDL class, Hyundai's demands were not unreasonable. Further, because the MDL court remanded the claims of only certain plaintiffs to the Western District of Virginia, the barebones complaints rendered impossible the district court's efforts to determine the extent of its jurisdiction.
All of this time and energy, largely focused on the deficiency of the complaints, spanned the entirety of the 2016 calendar year. In June 2016-in the heat of this litigation concerning the sufficiency of the complaints-the district court twice granted Appellants leave to amend and explained "that the complaints may now be stale and in need of updating." Order to Confer at 2, Gentry , ECF No. 86 (filed June 21, 2016). Specifically, the district court stated,
[Amendment] might be further warranted because the [Adbul-Mumit and Abdurahman actions] contain dozens, if not hundreds, of named plaintiffs and defendants. Indeed, parts or all of these cases may be duplicative of Gentry . Furthermore, Defendants previously filed motions to dismiss the complaints in all three cases, but those motions were not resolved on the merits .... Given the proceedings in the MDL, the voluminous nature of the complaints, their possible duplication, and the fact Defendants never had their motions to dismiss adjudicated on the merits, the Court is attuned to the possibility that the complaints may now be stale and in need of updating.
Id . (internal citations omitted). After Appellants failed to meet the district court's original 21 day deadline, the court granted Appellants an additional 20 days. But once again, Appellants failed to amend.
And still, even after status reports, opportunities to amend, dispositive motions, dismissal with prejudice, and a post-judgment motion for leave to amend, Appellants have not once provided the district court with a proposed amendment purporting to cure the deficiencies. See Oral Argument at 6:40-6:55, Adbul-Mumit v. Alexandria Hyundai, LLC , No. 17-1582 (4th Cir. May 9, 2018), http://www.ca4.uscourts.gov/oral-argument/listen-tooral-arguments.
Faced with such resolute adherence to deficient complaints, the district court's decision to dismiss with prejudice was well within its discretion under the facts of this case.
V.
For the foregoing reasons, we dismiss the appeal in the Gentry action and affirm *295the district court's dismissal of the Adbul-Mumit and Abdurahman actions.
DISMISSED IN PART, AFFIRMED IN PART
Citations to the "J.A." refer to the Joint Appendix filed by the parties in this appeal.
Pursuant to Virginia's Lemon Law, "[a]ny consumer who suffers loss by reason of" a motor vehicle manufacturer's failure to "conform the motor vehicle to any applicable warranty" may bring a civil action. Va. Code §§ 59.1-207.13 -14.
The district court did not consolidate the three actions. However, all citations to court filings in this opinion appeared in the proceedings before the Western District of Virginia. Gentry v. Hyundai Motor Am. , No. 3:13-cv-00030,
We refer to the plaintiffs in those actions as "Appellants."
The district court's core concern at dismissal was that "the individual plaintiffs are simply named in the caption [of the complaint] and not mentioned again by name" and that all defendants are "lump[ed]" together with general allegations. J.A. 1471, 1472. The district court held, quite clearly, that this rendered their complaints deficient under Twombly and Iqbal . See id . at 1472 ("While each and every unique fact is not required, federal pleading standards nevertheless control in federal court, and the Complaints here fail those standards." (internal quotation marks and citation omitted) ).
Appellants filed their complaints in Virginia state court, and the actions were later removed to federal court. Responsible pleading practice compels counsel to carefully consider whether his or her complaint satisfies federal pleading standards upon removal. See 14B Charles Alan Wright et al., Federal Practice and Procedure § 3738 (4th ed.) ("[I]t has been settled by numerous cases that the removed case will be governed by the Federal Rules of Civil Procedure and all other provisions of federal law relating to procedural matters.").
Moreover, the misleading and inconsistent assertions made on behalf of Appellants here also indicate bad faith. During oral argument, Appellants' counsel contended that he "asked seven times for leave to amend," but later conceded that these requests occurred "during" the period the district court had already granted leave to amend. Oral Argument at 6:20, 10:30, Adbul-Mumit v. Alexandria Hyundai, LLC , No. 17-1582 (4th Cir. May 9, 2018) http://www.ca4.uscourts.gov/oral-argument/listen-to-oral-arguments. This is nonsensical. Further, these requests were only mentioned, in passing, in emails to the district court. Counsel never brought forward proposed amendments for the district court's consideration.
Counsel also represents that although he repeatedly "attempted" to seek leave, he "didn't think there was jurisdiction to amend" the complaints. Oral Argument at 34:30. Surely both cannot be true. Again-nonsensical.
Appellants allege that Hyundai is also in possession of information that would help inform the district court of the extent of its jurisdiction. Appellants' Br. at 41. This misses the point. The plaintiff is the master of the complaint and it is not incumbent on defendants to cure its deficiencies.
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Lewis Roy W. Lewis Karen Lilley Stephen Lilley Lyle Lindberg Ashley Lippolis-Aviles Billy Llewellyn William Lohmann, Jr. Robin Lovett David W. Loving Ken Lu Michele J. Luis Melinda Lumpkin Dirk Lynch Ginger Lynch Patricia Lyons William Lyons Dinne Macdonald Dwayne Maddox Soraya Mains Melissa Malone Thomas Malone Regina Manning Terrance Manning Kiran Mantrala Andrea Marchese Stanley Marcus Steve Markovits Kenneth Martin Rachel Martin Reynaldo Martinez Ralph Martini Cletious T. Mashburn Lauren Matsko Shawna Mattocks Leo Maynes Penny McCeney Stella McClain William McClellan Robert McClelland Susan McClelland Susan McFadden Richard McGruder Victoria McGruder Donald McIntire Anne McKenna Rachel McKenzie Kenneth McKinney Teresa McLawhorn David Meadows Rita Medley Tommy Medley Robert Meeker Michael Meister Karen Meller Carmen C. Mercado Robert E. Mickle Edmee Miguez-Gerstle Michael E. Miller Lisa Millford Michael Mintz Mary Mitchell Michelle Monroe Chris Mooney Gary Moore Karen Moore Melody Morris Suzanne Mowbray Raymond Mueller Patrick Mulhern David Mulligan Laurence Mulligan Mary Mulligan Billie Mutter Melissa Mutter Kevin Newsome Reverdy Nicholson Susan Noon Sarah Novak Rachel Noversa Todd Nunnally Jonathan O'Brien Darlene O'Donnell James O'Donnell Paul O'Keefe Timothy O'Mara Carolyn O'Neill Paul J. O'Rourke Malcolm O'Sullivan Brian Osborne Sarah Osinski Jessica Outer Herbert C. Overstreet Candace Owens Christopher Palazio Lynette Palmer-Ford Ashley D. Pannell Matthew Park Terri Parker Micah Parman Bhagvati Patel Mukesh Patel Pradip Patel Shreya Patil John Pattie James Pearsall, Jr. Donna Pearson Orest Pelech Chris Pena Roy M. Pennington, III Thomas Pepe Mark Perry Karen Peters John Peterson Mark Peterson Rebecca Petrella Susan Petrie Robert Petruska Claude Pettyjohn Carl Pierce Janet Pietrovito Debra Pines Lindsey Poli Angela Polinko Carlton Pollard David Poore, III Anton Popov Linda M. Pratt Jason Price Robert Puakea Sara Pullen Sarhan Quraishi James Radcliffe Melissa Radcliffe Scott Ramsey Jacqueline Randolph Michael Ranger Nancy Ransome Shellie Renz Sheri Resse Matthew D. Revelle Stephen Ribble Anita Rice Larry Rice Richard Richardson Cari Richardson Michael Richey Sarah Richey Marvin Riddick Danny Riddle Jennifer Rigger Wayne Riley Tamria Risher Daniel Roberts Mary Roberts Susan Roberts Gaye Robertson Skyler Robey Annie Robinson Antonio Robinson Kevin Robinson Pamela Robinson Rocky Rockburn Colette Roots Daryl Roots Gregg Rosenberg Eric Rothman Brian Rowe Virginia A. Rowen Juliet Rowland Paul Roy Ronald Rucker David Ruffner, Jr. Jill Ruffner Kristyn Ruzicka Jennifer Ryan Stephen Ryan Joseph Salazar Racin Sam George Sanchez Bonnie Sandahl Gary Sarkozi Jeff Saunders Jeannette Schaar Aileen L. Schmidt Edward Schnittger Linda Ruth Scott Gwen Seal Amy Seay Anthony Selb Delmar N. Selden Lynn Settle Richard Seymann Sharon Sgavicchio Sha'nesha Sharpe Robert L. Shellhouse Gary Shelor Stephanie Shelor Brenda Shifflett Nina Sibert David Silvernale Jessica Simons Mary Singhas Randall Singhas Donald Skinner Richard E. Smith Suzanne Smith Cynthia L. Snyder Mandy Snyder Howard Snyker Wesley Songer John Sorese Raymond M. Souza Shellie S. Spadaro Tony L. Sparks Linda Spradlin Susan Standridge Nanette Stanley Jonathan Starks Eugenia Starnes Gary Steck Rebecca Steck Andrew Steeley Carolyn Renee Stevens Sara Stevens Sasha Stitt Tim Stoessel Chevon D. Stokes Edward Stokes Nathan Stone Yolanda Sullivan Dennis Sumlin Johnnie Sumlin John Sutor Wanda Sutphin Stella Tang Andrew Taylor Ann Taylor Kimberly Taylor Freddy Telleria Matthew Tengs John Thacker Candace Tillage Christopher Tokar Susie Tortolani Mary Trainor Adeline Trotter Peggy Tsaclas James Turner Robert Turner Rufus Tunstall Lucille Tyler Travis Tysinger John Tyson Cynthia Utley Carrie Van Hook Denise Vangelos Milca Vargas Robert Varner Mary Vaughan Robena D. Vaughan Kelly Verham Kimberly Vest Carol Viergutz Mary Ann Villies Wallace Vingelis Marvin Wade Sandra Wade Scott Waggoner Teresa Waggoner Magi Wagner Jane Wallace Stacy Waller Sheryl Walters Gary Walton Kimberly Ward Catherine Waters Bernard Watts Michael Webb Scott Webb Melissa Webster Sharon Wells Stephany Whipple Sarah Whitlock Robert T. Wiener Christopher Wilcher David Wild Christina Williams George Williams Giner Williams Dagny Wills Gary Wills Dr. Sarah Wilmer Leslie Wilson Robin Wilson Thomas Winston Charles Wiser Sara Wollmacher Mike Woo Wayne H. Wood Wayne Woodhams Stacey T. Woods Arthur Wright Thomas Wright David Wyckoff Gino Yannotti Jamie Young Jong Yun Atef Zayd Angela R. Zimmerman Ringo Yung v. Alexandria Hyundai, LLC Brown's Leesburg Hyundai, LLC Brown's Manassas Hyundai, LLC Checkered Flag Imports, Incorporated Checkered Flag Store 6, LLC Craft Automotive, Incorporated Duncan Imports, Incorporated Fairfax Hyundai, Incorporated First Team, Incorporated Gateway Hyundai, Incorporated Hall Automotive Group, Incorporated Hall Hyundai Newport News, LLC Hall Hyundai, LLC Hyundai Motor America, Incorporated Miller Auto Sales, Incorporated Cavalier Hyundai, Incorporated Harrisonburg Auto Mall, LLC James City County Associates, Incorporated Malloy Hyundai Pohanka Auto Center, Incorporated Price Hyundai Corporation Priority Greenbrier Automotive, Incorporated Priority Imports Newport News, Incorporated Robert Woodall Chevrolet, Incorporated Tysinger Motor Company, IncOrporated WBM, Incorporated, d/b/a West Broad Hyundai Wright Way Automotive, Incorporated, Linda Ruth Scott, individually and on behalf of all other Virginia owners similarly situated Danielle Kay Gilleland Joseph Bowe Michael Desouto, and John William Gentry, individually and on behalf of all other Virginia owners similarly situated v. Hyundai Motor America, Incorporated
- Cited By
- 116 cases
- Status
- Published