Fashion Leaf Garment Co. Ltd v. Ringer Jeans LLC

Background

The court considered a motion by Anhui Garments Import & Export Co., Ltd. to intervene as a party plaintiff. Anhui sought permission under Federal Rule of Civil Procedure 24(a)(2) or, alternatively, Rule 24(b)(1). The existing plaintiffs consented to the motion, and no opposition papers were filed by the deadline, so the court treated the motion as unopposed.

The underlying case concerns the plaintiffs' allegations that the defendants failed to pay invoices for goods sold and delivered, primarily women's clothing. Anhui alleged that a substantial subset of those goods was sold by Anhui to two defendants and that Anhui was therefore entitled to the related payments.

Court's Analysis

Rule 24(b)(1) permits permissive intervention when a timely motion is made by a person or entity whose claim or defense shares a common question of law or fact with the main action. The court found Anhui's motion timely because it was filed near the beginning of discovery and less than two months after the initial case-management order.

The court also found common questions of law and fact because Anhui's claims concerned some of the same goods and alleged unpaid invoices at issue in the underlying action. The court resolved the motion solely under Rule 24(b) and did not address intervention as of right under Rule 24(a).

Ruling

Judge Barbara Moses granted Anhui's motion to intervene pursuant to Rule 24(b). The court ordered Anhui to file its complaint in intervention by May 26, 2020. The parties were also directed to discuss whether the case-management and scheduling order needed to be amended and to submit a proposed amended order, or a joint letter stating that no amendment was required, by June 5, 2020.