throbber
Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 1 of 19
`
`
`
`MORGAN, LEWIS & BOCKIUS LLP
`Eric Meckley, Bar No. 168181
`eric.meckley@morganlewis.com
`Brian D. Berry, Bar No. 229893
`brian.berry@morganlewis.com
`One Market, Spear Street Tower
`San Francisco, CA 94105
`Tel:
`+1.415.442.1000
`Fax: +1.415.442.1001
`
`Attorneys for Defendant
`TWITTER, INC.
`
`
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`SAN FRANCISCO DIVISION
`
`EMMANUEL CORNET, JUSTINE DE
`CAIRES, GRAE KINDEL, ALEXIS
`CAMACHO, AND JESSICA PAN, on behalf
`of themselves and all others similarly situated,
`
`v.
`
`TWITTER, INC.,
`
`Plaintiffs,
`
`Defendant.
`
`Case No. 3:22-cv-06857-JD
`
`DEFENDANT TWITTER, INC.’S
`OPPOSITION TO PLAINTIFFS’
`MOTION FOR LEAVE TO AMEND
`
`Date:
`Time:
`Judge:
`
`January 23, 2023
`9:30 a.m.
`Hon. James Donato
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`
`
`
`
`
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 2 of 19
`
`
`
`I.
`
`II.
`
`TABLE OF CONTENTS
`
`
`Page
`
`INTRODUCTION .............................................................................................................. 1
`
`RELEVANT FACTS .......................................................................................................... 2
`
`A.
`
`B.
`
`Procedural History and Current Schedule of Hearings. .......................................... 2
`
`Pertinent Factual Allegations in the Proposed SAC. .............................................. 3
`
`III.
`
`ARGUMENT ...................................................................................................................... 4
`
`A.
`
`The Court Should Decide Twitter’s Motion to Compel Arbitration Prior to
`Plaintiffs’ Motion for Leave to Amend. .................................................................. 4
`
`B.
`
`Leave to Amend Should Be Denied Under Rule 15. .............................................. 6
`
`1.
`
`2.
`
`3.
`
`Amendment Should Be Denied Based on Prejudice to Twitter. ................. 7
`
`Amendment Should Be Denied Based on Futility. ..................................... 8
`
`The Cases Cited by Plaintiffs’ Are Inapposite. ......................................... 12
`
`IV.
`
`CONCLUSION ................................................................................................................. 13
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS UK LLP
`ATTORNEYS AT LAW
`LONDON
`
`
`
`
`
`Case No. 3:22-cv-06857-JD
`- i -
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 3 of 19
`
`
`
`TABLE OF AUTHORITIES
`
`
`
`Page(s)
`
`Cases
`
`Adema Techs. Inc. v. Wacker Chemie AG,
`657 Fed. Appx. 661 (N.D. Cal. 2014) ..................................................................................... 11
`
`AmerisourceBergen Corp. v. Dialysist West, Inc.,
`465 F.3d 946 (9th Cir. 2006) ................................................................................................. 2, 6
`
`Amparan v. Plaza Home Mortg., Inc.,
`No. C 07-4498 JF (RS), 2009 WL 2776486 (N.D. Cal. Aug. 28, 2009) ................................ 12
`
`Ashcroft v. Iqbal,
`556 U.S. 662 (2009) .................................................................................................................. 8
`
`Atlantic Marine Const. Co. v. U.S. District Court for the Western District of Texas,
`134 S. Ct. 568 (2013) .............................................................................................................. 10
`
`Barren v. Harrington,
`152 F.3d 1193 (9th Cir. 1998) ................................................................................................... 8
`
`Bell Atlantic Corp. v. Twombly,
`550 U.S. 544 (2007) .................................................................................................................. 8
`
`Bonin v. Calderon,
`59 F.3d 815 (9th Cir. 1995) ....................................................................................................... 8
`
`Cafasso v. Gen. Dynamics C4 Sys., Inc.,
`637 F.3d 1047 (9th Cir. 2011) ................................................................................................... 6
`
`Carnival Cruise Lines v. Shute,
`499 U.S. 585 (1991) ................................................................................................................ 10
`
`Coastal Steel Corp. v. Tilghman Wheelabrator Ltd.,
`709 F.2d 190 (3d Cir. 1983) .................................................................................................... 10
`
`Comer v. Micor, Inc.,
`436 F.3d 1098 (9th Cir. 2006) ................................................................................................. 10
`
`Crispo v. Musk,
`CA No. 2022-0666-KSJM, 2022 WL 6693660 (Del. Ch. Oct. 11, 2022) .............................. 12
`
`Diamond Multimedia Systems, Inc. v. Superior Court,
`19 Cal.4th 1036 (1999) ............................................................................................................. 9
`
`E. & J. Gallo Winery v. Andina Licores S.A.,
`446 F.3d 984 (9th Cir. 2006) ................................................................................................... 11
`
`
`
`
`
`- ii -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 4 of 19
`
`
`
`Eminence Capital, LLC v. Aspeon, Inc.,
`316 F.3d 1048 (9th Cir. 2003) ................................................................................................... 7
`
`In re Exodus Communications, Inc. Securities Litigation,
`No. C-01-2661 MMC, 2006 WL 2355071 (N.D. Cal. Aug. 14, 2006) ................................. 4, 5
`
`Fidelity Fin. Corp. v. Fed. Home Loan Bank,
`79 F.3d 1432 (9th Cir. 1986) ..................................................................................................... 6
`
`Foman v. Davis,
`371 U.S. 178 (1962) .................................................................................................................. 6
`
`Franczak v. Suntrust Mortgage Inc.,
`No. 5:12-01453, 2013 WL 4764327 (N.D. Cal. Sept. 5, 2013) ................................................ 5
`
`Fresno Unified School Dist. V. K.U. ex rel. A.D.U.,
`980 F.Supp.2d 1160 ............................................................................................................ 4, 12
`
`Frost v. Diocese of San Bernardino Educ. & Welfare Corp.,
`302 Fed. App’x 729 (9th Cir. 2008) .......................................................................................... 8
`
`Ginoyan v. Barclays Bank Delaware,
`2020 WL 1974030 (C.D. Cal. Mar. 10, 2020) .......................................................................... 5
`
`Ho v. Ernst & Young LLP,
`No. C05-04867 JF, 2007 WL 2070216 (N.D. Cal. July 17, 2007) ......................................... 12
`
`Johnson v. Buckley,
`356 F.3d 1067 (9th Cir. 2004) ................................................................................................... 8
`
`Kramer v. Toyota Motor Corp.,
`705 F.3d 1122 ......................................................................................................................... 10
`
`Lentini v. Kelly Services, Inc.,
`No. C17-03911 WHA, 2017 WL 4354910 (N.D. Cal. Oct. 2, 2017) ..................................... 11
`
`M/S Bremen v. Zapata Off-Shore Co.,
`407 U.S. 1 (1972) .............................................................................................................. 10, 11
`
`McClune v. Shamah,
`593 F.2d 482 (3d Cir. 1979) ...................................................................................................... 5
`
`Miller v. Rykoff–Sexton,
`845 F.2d 209 (9th Cir. 1988) ..................................................................................................... 8
`
`Morris v. Ernst & Young LLP,
`834 F.3d 975 (9th Cir. 2016) ................................................................................................... 13
`
`Myers v. Intuit, Inc.,
`2018 WL 2287425 (S.D. Cal. May 18, 2018) ........................................................................... 6
`
`
`
`
`
`- iii -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 5 of 19
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`National Security Counselors v. Central Intelligence Agency,
`960 F.Supp.2d 101 (D.D.C. 2013) ............................................................................................ 7
`
`Nordyke v. King,
`644 F.3d 776 (9th Cir. 2011) ..................................................................................................... 8
`
`Norwest Mortgage, Inc. v. Superior Court,
`72 Cal.App.4th 214 (1999)........................................................................................................ 9
`
`O’Connor v. Uber Tech., Inc.,
`Case No. 13-cv-3826 (N.D. Cal.) ............................................................................................ 13
`
`O’Connor, et al. v. Uber Technologies, et al.,
`No. 3:13-cv-03826-EMC (N.D. Cal. Nov. 5, 2014) (ECF 193) ............................................. 13
`
`Osakan v. Apple Am. Grp.,
`2010 WL 1838701 (N.D. Cal. May 5, 2010) ............................................................................ 8
`
`Palmer v. Stassinos,
`236 F.R.D. 460 (N.D. Cal. May 18, 2006) .............................................................................. 12
`
`Phillips Petroleum Co. v. Shutts,
`472 U.S. 797 .............................................................................................................................. 9
`
`Sanchez v. Wal Mart Stores, Inc.,
`2009 WL 2971553 (E.D. Cal. Sept. 11, 2009) .......................................................................... 7
`
`Soto v. Castlerock Farming and Transport, Inc.,
`No. 1:09-cv-00701-AWI-JLT, 2011 WL 3489876 (E.D. Cal. Aug. 9, 2011)........................... 6
`
`Sparling v. Hoffman Constr. Co.,
`864 F.2d 635 (9th Cir. 1988) ..................................................................................................... 5
`
`Union Pac. Railroad Co. v. Nev. Power Co.,
`950 F.2d 1429 (9th Cir. 1991) ................................................................................................... 6
`
`Warden v. Crown American Realty Trust,
`1998 WL 725946 (W.D. Pa. 1998) ....................................................................................... 1, 5
`
`Wixon v. Wyndham Resort Development Corp.,
`No. C 07-02361 JSW, 2010 WL 424603 (N.D. Cal. Jan. 27, 2010) ....................................... 12
`
`Yucesoy v. Uber Technologies, Inc., et al.,
`No. 3:15-cv-00262 EMC (N.D. Cal. Mar. 5, 2018) (ECF 287) .............................................. 12
`
`Zero Motorcycles, Inc. v. Pirelli Tyre S.P.A.,
`802 F. Supp. 2d 1078 (N.D. Cal. 2011) (rev’d and remanded on other grounds,
`517 F. App'x 589, 590 (9th Cir. 2013)) ..................................................................................... 8
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`
`
`
`
`- iv -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 6 of 19
`
`
`
`Zucco Partners, LLC v. Digimarc Corp.,
`552 F.3d 981 (9th Cir. 2009) ..................................................................................................... 6
`
`Statutes
`
`United States Constitution 14th Amendment .................................................................................. 9
`
`United States Federal Arbitration Act, 9 U.S.C. §§ 1-16; §§ 201-208; §§ 301-307 ....................... 2
`
`29 U.S.C. § 2101(a)(5), (6) ............................................................................................................. 4
`
`United States Worker Adjustment and Retraining Notification Act of 1988,
`29 U.S.C. §§ 2101–2109 (the “WARN Act”) ............................................................... 2, 3, 4, 9
`
`Federal Rule of Civil Procedure Rule 11 ........................................................................................ 1
`
`Federal Rule of Civil Procedure Rule 12(b)(6) ............................................................................... 8
`
`Federal Rule of Civil Procedure Rule 15 ................................................................................ 1, 6, 7
`
`Federal Rule of Civil Procedure 23(d) ........................................................................................ 2, 7
`
`California Labor Code §§ 1400-1408 (the “California WARN Act”) ....................................... 3, 9
`
`Rules
`
`California Civil Local Rule 6-3....................................................................................................... 3
`
`Other Authorities
`
`https://dol.ny.gov/system/files/documents/2022/11/warn-twitter-nyc-2022-0050-
`11-8-2022_0.pdf ........................................................................................................................ 4
`
`https://fortress.wa.gov/esd/file/warn/Public/SearchWARN.aspx ................................................... 4
`
`
`
`
`
`
`
`- v -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 7 of 19
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`I.
`
`INTRODUCTION
`
`Plaintiffs filed their motion for leave to file a Second Amended Complaint in direct
`
`response to Twitter’s motion to compel the five named Plaintiffs into arbitration and to dismiss
`
`this lawsuit. In requesting leave to add three new named plaintiffs, the current Plaintiffs
`
`admittedly seek some way to keep this lawsuit alive even after the Court compels them to
`
`arbitrate their claims. However, even under the general liberal standards of Rule 15, the Court
`
`should deny the motion for multiple independent reasons.
`
`First, the Court should not entertain Plaintiffs’ repeated attempts during the short life of
`
`this case to litigate various “emergency” issues before the Court has even decided whether
`
`Plaintiffs’ claims belong in court in the first place. The Court should resolve Twitter’s motion to
`
`compel arbitration first, as it is scheduled to be heard on January 12, 2023. Plaintiffs’ motion for
`
`leave to amend is scheduled to be heard later, on January 23, 2023. If the Court grants the
`
`motion to compel and dismisses the operative First Amended Complaint (as it should), then there
`
`will be no pending actionable pleading to be amended and Plaintiffs’ motion to amend will be
`
`moot. Resolving the motions in this sequence is also appropriate because the Court has not yet
`
`ruled on class certification. Warden v. Crown American Realty Trust, 1998 WL 725946 (W.D.
`
`Pa. 1998). Ultimately, because the current Plaintiffs are contractually bound to arbitrate their
`
`claims, they have no genuine stake in the disposition of this motion. And the three new proposed
`
`Plaintiffs – none of whom reside in California – face no harm or prejudice whatsoever because
`
`they may simply file a new action asserting whatever claims they choose (consistent with their
`
`obligations under Rule 11).
`
`Second, where a plaintiff has previously amended a complaint, the Court has more broad
`
`discretion to deny leave to amend. In addition, amendments seeking to add parties should be
`
`granted less freely than amendments adding new claims. These limitations on the generally
`
`liberal interpretation of Rule 15 clearly apply here, because Plaintiffs already have amended their
`
`complaint once (see ECF No 6) and are seeking to add three new proposed plaintiffs (to replace
`
`the five Plaintiffs whose claims will be compelled to arbitration resulting in the dismissal of the
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`lawsuit).
`
`
`
`
`
`- 1 -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 8 of 19
`
`
`
`Third, the Court may deny leave to amend where, as here, allowing the proposed
`
`amendment would prejudice the opposing party or be futile. AmerisourceBergen Corp. v.
`
`Dialysist West, Inc., 465 F.3d 946, 951 (9th Cir. 2006). Plaintiffs here want to use the soon-to-be
`
`dismissed lawsuit as a platform for sending pre-certification notice to putative class members via
`
`their motion for a protective order under Federal Rule of Civil Procedure 23(d), a result that
`
`would unfairly prejudice Twitter’s interests in the orderly administration of its pre-planned
`
`reduction in force. In addition, the proposed claims of the three new plaintiffs outlined in the
`
`proposed Second Amended Complaint would be futile because (a) none of these Washington and
`
`New York state residents can assert claims for violation of the California Labor Code, (b) none of
`
`them can assert claims for federal WARN Act violations as they concededly received sufficient
`
`advance notice of their terminations, and (c) their contract-based claims are premised upon them
`
`suing to enforce the Merger Agreement, which contains a forum-selection provision requiring
`
`them to sue in a Delaware court, not this Court. The futility of amending the complaint to include
`
`these three new persons – who cannot prosecute and state any viable claims before this Court –
`
`further justifies denying Plaintiffs’ motion.
`
`II.
`
`RELEVANT FACTS
`
`A.
`
`Procedural History and Current Schedule of Hearings.
`
`Plaintiffs filed their original Complaint on November 3, 2022. ECF No. 1. This pleading
`
`alleged claims under the federal and California WARN Acts. On November 8, 2022, Plaintiffs
`
`filed their FAC that alleged additional claims for alleged breach of contract and promissory
`
`estoppel. ECF No. 6.
`
`On November 21, 2022, Twitter filed a motion to compel arbitration as to the five named
`
`Plaintiffs, each of whom signed a valid and enforceable Dispute Resolution Agreement subject
`
`to the Federal Arbitration Act, and to dismiss the putative class action claims. ECF No. 18.
`
`Twitter’s motion is scheduled for hearing on January 12, 2023. If the Court grants Twitter’s
`
`motion, the FAC should be dismissed because no plaintiffs or class claims will remain.
`
`/ / /
`
`/ / /
`
`
`
`
`
`- 2 -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 9 of 19
`
`
`
`On November 23, 2022, Plaintiffs filed the present motion for leave to amend to file a
`
`SAC to add three new proposed plaintiffs and additional claims under the California Labor
`
`Code. ECF No. 21. Plaintiffs concededly filed the motion for leave to amend in direct response
`
`to Twitter’s motion to compel and dismiss, admitting they did so to “ensure this case remains
`
`before this Court.” Mot. 1:17-18. Plaintiffs’ motion is scheduled for hearing on January 23,
`
`2023. Plaintiffs moved under California Civil Local Rule 6-3 to shorten time on the hearing of
`
`their motion; Twitter opposed that request. To date, the Court has not ruled on Plaintiffs’
`
`administrative motion.
`
`B.
`
`Pertinent Factual Allegations in the Proposed SAC.
`
`According to the proposed SAC, none of the three proposed new plaintiffs are residents
`
`of California and none of them worked for Twitter in California; specifically: Emily Kim is a
`
`resident of Washington and works for Twitter in Washington. SAC ¶ 14. Miguel Barreto is a
`
`resident of New York and works for Twitter in New York. Id. ¶ 15. Brett Folkins is a resident
`
`of Washington and works for Twitter in Washington. Id. ¶ 16.
`
`In addition, the allegations of the proposed SAC demonstrate that each of the three
`
`proposed new plaintiffs received advance notice of their terminations that fully complied with
`
`applicable WARN Act notice requirements: specifically: Twitter notified Emily Kim on
`
`November 4, 2022 that her employment would terminate on January 4, 2023, which is a period
`
`of 61 days’ notice. Id. ¶ 14. Twitter notified Miguel Barreto on November 4, 2022 that his
`
`employment would terminate on February 4, 2023, which is a period of 91 days’ notice. Id. ¶
`
`15. Brett Folkins communicated to Twitter that he did not intend to continue working at Twitter
`
`when he chose not to click “Yes” on November 17, 2022; Twitter notified Folkins that his
`
`employment would terminate on January 20, 2023, which is a period of approximately 63 days’
`
`notice. Id. ¶¶ 16 52.
`
`Twitter was, at all times, mindful of and in compliance with its obligations under the
`
`WARN Act and all similar state laws, including the California WARN Act. See ECF No. 20-1,
`
`Decl. of Fix Conti, at ¶ 5. On November 4, 2022, Twitter notified approximately 2,600
`
`
`
`
`
`- 3 -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 10 of 19
`
`
`
`employees that they were being involuntarily discharged as part of a reduction in force and that
`
`their last day of employment with Twitter would be January 4, 2023 – more than 60 days after
`
`such notice.1 Id., at ¶ 4. Consistent with its obligations under the WARN Act and applicable
`
`state law, Twitter also timely notified all applicable state and local authorities of the November
`
`4 reduction in force. Id., at ¶ 5. These included the government authorities in Seattle (see
`
`https://fortress.wa.gov/esd/file/warn/Public/SearchWARN.aspx) and New York (see
`
`https://dol.ny.gov/system/files/documents/2022/11/warn-twitter-nyc-2022-0050-11-8-
`
`2022_0.pdf). Similarly, although employees who voluntarily chose not to continue working for
`
`Twitter by not clicking “Yes” on November 17, 2022 were not involuntarily terminated by
`
`Twitter and not required to receive any WARN Notice (see 29 U.S.C. § 2101(a)(5), (6)), Twitter
`
`nonetheless still provided such persons advance notice of termination that was sufficient to
`
`comply with WARN.
`
`III. ARGUMENT
`
`A.
`
`The Court Should Decide Twitter’s Motion to Compel Arbitration Prior to
`Plaintiffs’ Motion for Leave to Amend.
`
`Where, as here, there is no certified class and a pending motion would dispose of the
`
`case, the Court should rule on the merits of the pending motion before considering a proposed
`
`amendment to add a class representative. Otherwise, if the proposed amendment is granted and
`
`the case is subsequently dismissed because the lawsuit is defunct, the amendment becomes
`
`moot. In re Exodus Communications, Inc. Securities Litigation, No. C-01-2661 MMC, 2006
`
`WL 2355071, at *1-2 (N.D. Cal. Aug. 14, 2006) (citations omitted) (granting motion to dismiss
`
`and denying motions to intervene because “where the named plaintiffs in a class action lack
`
`standing, the action must be dismissed and new named plaintiffs with standing may not
`
`intervene” because “intervention will not be permitted to breathe life into a nonexistent
`
`lawsuit”); see also Fresno Unified School Dist. V. K.U. ex rel. A.D.U., 980 F.Supp.2d 1160,
`
`
`1 Impacted employees in states with longer notice requirements were given a different end-date of
`employment consistent with all requirements of applicable state law, including specifically
`proposed plaintiff Barreto who resided in New York and was given more than 90 days’ notice.
`- 4 -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 11 of 19
`
`
`
`1177 (“Courts have been particularly critical of proposed amendments that appear to ‘game’ the
`
`system”); see also Warden, 1998 WL 725946 (W.D. Pa. 1998). Exodus is instructive here. In
`
`that case, the two named plaintiffs had been dismissed for failure to prosecute (the “Fox
`
`Plaintiff”) and for lack of standing (the “Welch Plaintiff”). An individual and an entity filed
`
`separate motions to intervene in the action, and the defendant filed a motion to dismiss based on
`
`lack of subject matter jurisdiction after the motions to intervene had been filed. The court
`
`granted the motion to dismiss and denied the motions to intervene because “intervention will not
`
`be permitted to breathe life into a nonexistent lawsuit.” Exodus, 2006 WL 2355071, at *1-2
`
`(citing McClune v. Shamah, 593 F.2d 482, 486 (3d Cir. 1979)).
`
`Similarly, in Warden, the plaintiffs moved to add an additional class representative in
`
`response to the defendants’ motion to dismiss for lack of standing. The case was still in the pre-
`
`certification stage when the Western District of Pennsylvania granted the defendants’ motion to
`
`dismiss and denied intervention of an additional class representative into “an otherwise defunct
`
`claim.” The court reasoned that “intervention will not be permitted to breathe life into a
`
`nonexistent lawsuit.” Warden, 1998 WL 725946 at 5-7; see also McClune v. Shamah, 593 F.2d
`
`482, 486 (3d Cir. 1979).
`
`This Court is presented with a similar situation and should draw a similar conclusion here.
`
`Twitter’s motion to compel arbitration will eliminate the five named Plaintiffs from this lawsuit
`
`and result in the dismissal of all other claims. See Sparling v. Hoffman Constr. Co., 864 F.2d 635,
`
`638 (9th Cir. 1988) (holding district court acted within its discretion in dismissing action when all
`
`claims are barred by an arbitration provision); Ginoyan v. Barclays Bank Delaware, 2020 WL
`
`1974030, at *4 (C.D. Cal. Mar. 10, 2020) (“[I]n the Ninth Circuit, district courts have discretion
`
`to dismiss a party’s complaint if an arbitration clause ensnares all of the party’s claims.”). The
`
`Court will hear Twitter’s motion on January 12 – prior to Plaintiffs’ motion to amend. Plaintiffs
`
`should not be allowed to “breathe life into a nonexistent lawsuit.” Where, as here, the “true
`
`purpose” of the motion to amend is to prevent a ruling on a pending motion that will eliminate the
`
`case, the Court can deny leave to amend as prejudicial to the defendant. See, e.g., Franczak v.
`
`Suntrust Mortgage Inc., No. 5:12-01453, 2013 WL 4764327, at *4 (N.D. Cal. Sept. 5, 2013)
`
`
`
`
`
`- 5 -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 12 of 19
`
`
`
`(finding the proposed amendment prejudicial to the defendant). In contrast, the proposed three
`
`new plaintiffs will not be prejudiced, because they can choose to file a new separate action.
`
`/ / /
`
`B.
`
`Leave to Amend Should Be Denied Under Rule 15.
`
`The liberality of Rule 15 is greatly diminished because (1) the complaint has already
`
`been amended once, (2) the amendment seeks to add new parties, and (3) no class has been
`
`certified. The Court must view the factors relevant to amendment through that lens.
`
`Specifically, in deciding whether to allow an amendment, district courts in the Ninth Circuit
`
`consider four factors: (1) bad faith of the moving party; (2) undue delay in litigation; (3)
`
`prejudice to the opposing party; and (4) futility of amendment. AmerisourceBergen Corp., 465
`
`F.3d at 951; see also Foman v. Davis, 371 U.S. 178, 182 (1962); Zucco Partners, LLC v.
`
`Digimarc Corp., 552 F.3d 981, 1007 (9th Cir. 2009); Soto v. Castlerock Farming and
`
`Transport, Inc., No. 1:09-cv-00701-AWI-JLT, 2011 WL 3489876, at *2 (E.D. Cal. Aug. 9,
`
`2011); Loehr v. Ventura County Cmty. Coll. Dist., 743 F.2d 1310, 1319 (9th Cir. 1984)). While
`
`leave to amend under Rule 15 should be freely given “when justice so requires,” the Ninth
`
`Circuit has cautioned that “liberality in granting leave to amend is subject to several
`
`limitations,” which include “undue prejudice to the opposing party.” Cafasso v. Gen. Dynamics
`
`C4 Sys., Inc., 637 F.3d 1047, 1058 (9th Cir. 2011) (citations and quotation marks omitted).
`
`The Ninth Circuit also has advised that a “district court’s discretion to deny leave to
`
`amend is particularly broad where plaintiff has previously amended the complaint.” Id. at 1058;
`
`see also Fidelity Fin. Corp. v. Fed. Home Loan Bank, 79 F.3d 1432, 1438 (9th Cir. 1986). In
`
`addition, under Rule 15(c), the paramount consideration for the Court here is the clear rule that
`
`pleadings which seek to amend claims must be differentiated from those seeking to amend to
`
`add parties. Union Pac. Railroad Co. v. Nev. Power Co., 950 F.2d 1429, 1432 (9th Cir. 1991)
`
`(amendments seeking to add parties should be granted less freely than amendments adding
`
`claims). The appropriateness of substituting in a new class representative “is primarily
`
`applicable to cases in which a class has been certified[.]” See also Myers v. Intuit, Inc., 2018
`
`
`
`
`
`- 6 -
`Case No. 3:22-cv-06857-JD
`TWITTER’S OPPOSITION TO MOTION FOR LEAVE TO AMEND
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`MORGAN, LEWIS &
`BOCKIUS LLP
`ATTORNEYS AT LAW
`
`

`

`Case 3:22-cv-06857-JD Document 38 Filed 12/07/22 Page 13 of 19
`
`
`
`WL 2287425 (S.D. Cal. May 18, 2018); Sanchez v. Wal Mart Stores, Inc., 2009 WL 2971553, at
`
`*3 (E.D. Cal. Sept. 11, 2009) (“[L]eave to substitute a different class representative may be
`
`granted when there is a certified class already in place.”). The prejudice and futility factors that
`
`exist here weigh strongly and decidedly against the Court allowing the proposed amendments.
`
`1.
`
`Amendment Should Be Denied Based on Prejudice to Twitter.
`
`The proposed amendment would prejudice Twitter. Eminence Capital, LLC v. Aspeon,
`
`Inc., 316 F.3d 1048, 1052 (9th Cir. 2003) (“Prejudice is the touchstone of the inquiry under rule
`
`15(a).”). The proposed three new plaintiffs have no basis to assert any law claims under
`
`California law or WARN claims, and they have no basis to litigate any contract-based claims in a
`
`California court. Against this background, allowing them to join this litigation would unfairly
`
`and unduly prejudice Twitter’s ability to proceed with its previously planned RIF administration
`
`process because the sole purpose of the amendment is to maintain a vehicle for Plaintiffs’ counsel
`
`to seek an order requiring Twitter to provide notice of the claims in this putative class action
`
`under Rule 23(d), despite the fact that these three new plaintiffs cannot pursue those claims in
`
`this action.
`
`Courts routinely deny motions for leave to amend, even under the Rule 15 standard, where
`
`the purpose of the amendment is to evade an earlier case-dispositive ruling or to create a “moving
`
`target” in the hope of avoiding dismissal. See National Security Counselors v. Central
`
`Intelligence Agency, 960 F.Supp.2d 101, 133-34 (D.D.C. 2013) (a court may “‘properly deny a
`
`motion to amend when it appears that the plaintiff is using Rule 15 to make the complaint a
`
`moving target, to salvage a lost case by untimely suggestion of new theories of recovery, [or] to
`
`present theories seriatim in an effort to avoid dismissal.’”) (citing Minter v. Prime Equip. Co.,
`
`4

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket