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Tj /F7 12.57 Tf -34.80 -55.68 TD (ORDER DENYING RESPONDENTS' SECOND MOTION TO AMEND ANSWER) Tj /F7 11.93 Tf 211.92 -27.12 TD (I.) Tj /F7 12.02 Tf -176.88 -27.60 TD (On February 24, 2009, Respondents submitted a Second Motion to Amend) Tj /F7 12.13 Tf -36.24 -13.92 TD (Answer and Memorandum in Support \("Second Motion to Amend"\). Complaint Counsel) Tj /F7 11.99 Tf 0.48 -13.68 TD (submitted its Memorandum in Opposition to the Second Motion to Amend on March 5,) Tj /F7 11.99 Tf -.24 -13.68 TD (2009 \("Opposition"\).) Tj /F7 12.02 Tf 36.00 -27.36 TD (Having fully considered the Second Motion to Amend and the Opposition, the) Tj /F7 11.94 Tf -35.76 -13.92 TD (Second Motion to Amend is DENIED.) Tj /F7 12.57 Tf 210.24 -27.60 TD (II.) Tj /F8 11.06 Tf -174.72 -27.60 TD (On February 10,2009, pursuant to Commission Rule 3.15,16 C.F.R. 3.15,) Tj /F7 12.01 Tf -36.00 -13.68 TD (Respondents submitted a Motion to Amend their Answer to revise their responses to) Tj /F9 5.00 Tf -.24 -13.68 TD (paragraphs 3, 5 and 14 of ) Tj /F7 12.15 Tf 125.28 0.00 TD (the Complaint \("First Motion to Amend"\). Complaint Counsel) Tj /F8 11.18 Tf -125.28 -13.92 TD (opposed the First Motion to Amend on February 20,2009. On March 4,2009, an order) Tj /F7 12.02 Tf 0.00 -13.68 TD (was issued denying the First Motion to Amend \("Order Denying First Motion to) Tj /F7 12.10 Tf 0.00 -13.68 TD (Amend"\). 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Section) Tj /F14 12.26 Tf -145.92 -14.16 TD (2000bb-l\(a\) and \(c\).) Tj /F14 12.14 Tf -35.52 -28.08 TD (Second Motion to Amend, p.l.) Tj /F14 12.04 Tf 35.76 -27.60 TD (Respondents contend that the proposed amendment "facilitates the determination) Tj /F14 5.00 Tf -36.00 -13.92 TD (of ) Tj /F16 10.97 Tf 12.96 0.00 TD (this controversy and prevents prejudice to Respondents." Second Motion to Amend, p.) Tj /F14 12.11 Tf -12.96 -13.68 TD (2. Respondents further contend that the proposed amendment conforms to the evidence) Tj /F15 5.00 Tf 0.24 -13.92 TD (adduced in discovery, and is in the interest of ) Tj /F14 12.42 Tf 220.08 0.48 TD (justice. Id., at pp. 3-4. Respondents assert) Tj /F14 12.13 Tf -220.32 -14.40 TD (that no prejudice wil result because the amendment does not create the need for any) Tj /F14 12.04 Tf 0.24 -13.68 TD (additional discovery, or delay the proceedings because Complaint Counsel "has been) Tj /F15 5.00 Tf 0.00 -13.92 TD (amply forewarned ofthe religious nature of ) Tj 213.12 0.48 TD (Respondents' ministry and of ) Tj /F14 12.17 Tf 144.72 0.24 TD (their claims of) Tj /F14 12.05 Tf -358.08 -14.40 TD (religious freedom based upon the free exercise guarantee of the First Amendment. See,) Tj /F15 5.00 Tf 0.24 -13.92 TD (e.g., Respondents' Motion to Dismiss and Supporting Memorandum of ) Tj /F14 11.90 Tf 345.60 0.72 TD (Points and) Tj /F14 12.21 Tf -345.60 -14.40 TD (Authorities, pp. 1-4, 17-21." Second Motion to Amend, p. 4. Respondents rely on) Tj /F15 5.00 Tf 0.24 -13.92 TD (federal cases stating that leave to amend under the 鶹ý Rules of ) Tj /F14 11.92 Tf 327.36 0.48 TD (Civil Procedure) Tj /F14 12.26 Tf -327.36 -14.16 TD (should be "freely given." /d.) Tj /F14 12.01 Tf 36.00 -27.60 TD (Complaint Counsel asserts that Respondents unduly delayed seeking leave to) Tj /F14 12.00 Tf -36.00 -13.92 TD (amend the Answer, by waiting four months after submitting their original Answer, one) Tj /F14 12.00 Tf 0.00 -13.68 TD (month after the close of fact discovery, two weeks after submitting their First Motion to) Tj /F14 12.02 Tf 0.00 -13.68 TD (Amend, and one day after Complaint Counsel submitted its Motion for Summary) Tj /F14 11.99 Tf 0.00 -13.68 TD (Decision, and that Respondents have failed to provide any justification for the delay.) Tj /F14 12.00 Tf 0.00 -13.92 TD (Complaint Counsel further argues that Respondents should not be allowed leave to) Tj /F14 12.09 Tf 0.00 -13.68 TD (amend because Respondents did not cooperate in providing discovery. In addition,) Tj /F14 12.02 Tf 0.00 -13.92 TD (Complaint Counsel contends that Respondents should be bound by the parties' joint) Tj /F14 12.00 Tf -6.24 -13.68 TD (. stipulation and subsequent order, pursuant to which all Respondents' affirmative defenses) Tj /F14 12.10 Tf 6.24 -13.68 TD (in their Answer were withdrawn. Complaint Counsel also argues that allowing the) Tj /F14 11.97 Tf -.48 -13.92 TD (proposed amendment would be unduly prejudiciaL. Finally, Complaint Counsel asserts) Tj /F14 11.98 Tf 0.24 -13.68 TD (that the proposed affirmative defense should not be allowed because it has no merit.) Tj /F14 13.06 Tf 208.08 -27.36 TD (III.) Tj /F15 9.74 Tf -164.88 -28.08 TD (A. Standard for Evaluating Motion for Leave To Amend) Tj /F14 12.09 Tf -7.20 -27.36 TD (Commission Rule 3.15\(a\) governs amendments to pleadings. That Rule states in) Tj /F16 10.74 Tf -36.00 -13.92 TD (pertinent part:) Tj /F14 11.95 Tf 36.00 -30.00 TD (\(a\) Amendments-- \(l\) By leave. 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Tj /F21 12.16 Tf 34.80 -27.84 TD (When "a determination of a controversy on the merits wil be facilitated" by) Tj /F21 12.03 Tf -35.76 -13.68 TD (allowing an "appropriate" amendment is not defined in FTC decisions discussing that) Tj /F21 12.06 Tf -.24 -13.92 TD (Rule. In the case of Conley v. Gibson, the Supreme Court explained the federal rule) Tj /F21 12.13 Tf 0.00 -13.68 TD (regarding leave to amend as follows: "The 鶹ý Rules reject the approach that) Tj /F21 12.12 Tf -.24 -13.92 TD (pleading is a game of skil in which one misstep by counsel may be decisive to the) Tj /F21 12.02 Tf 0.24 -13.92 TD (outcome and accept the principle that the purpose of pleading is to facilitate a proper) Tj /F22 8.13 Tf 0.00 -13.68 TD (decision on the merits." Conley v. Gibson, 355 U.S. 41, 48 \(1957\).) Tj /F21 12.00 Tf 36.24 -27.60 TD (In contrast to 鶹ý Rule 15, FTC Rule 3.15\(a\), which requires that leave to) Tj /F21 12.02 Tf -36.00 -13.68 TD (amend be freely granted, FTC Rule 3.15\(a\) provides that "appropriate" amendments) Tj /F21 12.13 Tf -.24 -13.92 TD ("may" be allowed, upon such conditions as wil avoid prejudice to the parties and the) Tj /F22 5.00 Tf -.24 -13.68 TD (public interest, if ) Tj /F21 12.22 Tf 85.20 0.00 TD (the amendments wil facilitate a determination on the merits. 16 C.F.R) Tj /F21 12.21 Tf -84.24 -13.92 TD ( 3.15\(a\)\(I\). Even under the federal rules' liberal amendment policy, thefederal courts) Tj /F23 10.80 Tf -.48 -13.68 TD (exercise discretion to deny leave to amend where there is ''undue delay, bad faith or) Tj /F21 12.10 Tf -.24 -13.68 TD (dilatory motive on the part ofthe movant, repeated failure to cure deficiencies by) Tj /F21 12.21 Tf 0.24 -13.92 TD (amendments previously allowed, undue prejudice to the opposing party by virte of) Tj /F22 5.00 Tf 0.00 -13.68 TD (allowance of ) Tj 64.32 0.00 TD (the amendment, futility of ) Tj /F23 10.94 Tf 129.12 0.00 TD (amendment, etc. . . ." Foman v. Davis, 371 U.S.) Tj /F22 8.12 Tf -192.48 -13.68 TD (178, 182 \(1962\).) Tj /F21 13.11 Tf 42.24 -27.84 TD (B. Proposed Amendment to Add Affirmative Defense Under Religious) Tj /F21 12.87 Tf 28.80 -13.68 TD (Freedom Restoration Act) Tj /F21 12.17 Tf -36.72 -27.36 TD (The Religious Freedom Restoration Act, 42 U.S.c. 2000bb-l \(2008\) \("RFRA"\),) Tj /F21 11.74 Tf -36.00 -13.92 TD (provides:) Tj /F21 12.27 Tf 36.24 -29.76 TD (\(a\) In general. Governent shall not substantially burden a person's) Tj /F21 11.98 Tf 0.00 -11.52 TD (exercise of religion even if the burden results from a rule of general) Tj /F21 11.96 Tf 0.00 -13.92 TD (applicability, except as provided in subsection \(b\).) Tj /F21 11.92 Tf 0.00 -29.76 TD (\(b\) Exception. 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"0(d a ""EkkՅ #C‚anH0B"Qp0Ljx 8b8ЈuDDDDDDIq_ޒRR[zWK $ޔETA-(JڤE6B) 5UT:bWU?)13\LLEvd`a˲#|-X&02IY" 4&& )D0D.(.5 D$%I <&iSixDG됅aNs-QDtl S {[%im^kh[FBgk8;F $P]'9U= k?u.MW_/Kt~CudDPD<)JjPgVk,ԥfk癨R9 G@TKɲ:AǙd"PBSјϏ!U)6)8D$ˀ!i2@PT-EeBЇ9  2C633c$EdE] S%("g 80DK`L 0xx\&hZ 5X&=k~h/"i0ULPM5O aBxL&4 vh0~0&*7n n* 34MDK踢/hz/D"xEE$_RTNPTxU }l!aM"x29AýF "r%4n4^9B'I@kKAiM&$RtN+K[ڤnB '5ſgR wUMHy6״mrC2ýKKanMBA'IM!aӥ=܄Z^}l0 A$J & t0̌3a:vߦҶ '4~OmptuIWa>}NW_~-Wz޷ ^W'_tWI|/ۧ]nOއ\|{\ w(;i}߱V+^uǽ/orwXcZ{1*tM 1]Amȵhϰdv&0X p91{y:l"nWG}~N?﷽;Oa aAok߷k_߷K7/*_uCA?kWvO_]~ldIn<7֗emmW971#.ݿ!0i~շz_i}_봯wr{_{Kn_}jk4=~^kV%ᄯ#.mHU+;=mKJ4~^ 6Kޯlm+IvuKc!Մ;B]4j҈ +a+I ^!0R6m (=Ma+V6>QvA M &a4IӤھȜ]40IJAƘM4La& A {Vh0 6A"[ &}8M Ij+ (nQV)LSID$Mi bPҦ gMZKP^]LUanKaB:h5 O k *~ &m4&:ڄ!M[ 0;NgRb,!'aagZDDDDDDDDDDe ބB1LāxghDGpӡh-^ץ"63??@ endstream endobj 26 0 obj << /Length 5309 >> stream q q 612.00 0.00 0.00 792.00 0.00 0.00 cm /Im27 Do Q Q q BT 3 Tr /F28 11.42 Tf 135.36 707.52 TD (\(1\) is in furtherance of a compellng governental interest; and) Tj /F29 12.16 Tf 0.24 -14.16 TD (\(2\) is the least restrictive means of furthering that compellng) Tj /F29 13.14 Tf -9.36 -11.76 TD (governental interest.) Tj /F29 12.01 Tf 0.24 -30.24 TD (\(c\) Judicial relief. A person whose religious exercise has been burdened in) Tj /F29 12.02 Tf 0.00 -11.52 TD (violation of this section may assert that violation as a claim or defense in a) Tj /F28 11.24 Tf -1.20 -14.16 TD (judicial proceeding and obtain appropriate relief against a governent.) Tj /F29 12.00 Tf 1.68 -13.92 TD (Standing to assert a claim or defense under this section shall be governed) Tj /F29 12.01 Tf -.72 -13.92 TD (by the general rules of standing under article III of the Constitution.) Tj /F29 12.01 Tf 0.24 -27.60 TD (Respondents argue that they should be allowed leave to add RFRA as an) Tj /F30 5.00 Tf -35.52 -14.16 TD (affrmative defense because "\(oJne of ) Tj /F29 11.97 Tf 183.84 0.48 TD (Respondents' foremost claims in this proceeding is) Tj /F29 12.00 Tf -184.08 -14.16 TD (FTC standards governing deceptive and false advertising, as applied to Respondents,) Tj /F30 5.00 Tf 0.24 -13.92 TD (substantially burden Respondents' free exercise of ) Tj /F29 12.10 Tf 245.28 0.48 TD (religion. See Respondents' Objection) Tj /F29 12.00 Tf -245.28 -14.40 TD (and Memorandum in Opposition to Complaint Counsel's Motion to Compel Production) Tj /F29 5.00 Tf 0.00 -13.68 TD (of ) Tj /F29 12.20 Tf 12.72 0.24 TD (Documents, pp. 13-17." Second Motion to Amend, p. 2. Respondents do not explain) Tj /F29 12.18 Tf -12.72 -13.92 TD (or demonstrate why they failed to seek leave to amend until: \(i\) four months after fiing) Tj /F29 12.01 Tf -.24 -13.92 TD (their Answer; \(ii\) nearly two months after submitting their cited Opposition to Complaint) Tj /F29 11.98 Tf 0.48 -13.92 TD (Counsel's Motion to Compel; \(iii\) one month after the close of discovery; \(iv\) two weeks) Tj /F30 5.00 Tf 0.00 -13.68 TD (after filing their First Motion to Amend; \(v\) one day after submission of ) Tj /F29 11.88 Tf 349.20 0.48 TD (Complaint) Tj /F29 11.97 Tf -349.20 -14.40 TD (Counsel's Motion for Summary Decision; and \(vi\) less than two months before the April) Tj /F29 11.83 Tf 0.00 -13.68 TD (23, 2009 trial date.) Tj /F29 12.01 Tf 35.76 -27.36 TD (As in their First Motion to Amend, Respondents do not contend that they) Tj /F29 11.98 Tf -35.76 -14.16 TD (discovered new evidence, or provide any other justification for their undue delay in) Tj /F29 12.31 Tf 0.24 -13.68 TD (seeking to amend. While it has been held that undue delay is insufficient by itself to .) Tj /F29 12.14 Tf -1.44 -13.68 TD (justify denying a motion to amend, e.g., Reifn v. Microsoft Corp., 270 F. Supp. 2d 1132,) Tj /F29 11.94 Tf 2.40 -13.68 TD (1160 \(N.D. Cal. 2003\), it has also been held that "\(uJndue delay 'might give rise to an) Tj /F30 5.00 Tf -.96 -13.68 TD (inference of ) Tj /F29 12.04 Tf 59.76 0.00 TD (bad faith, justifyng denial of leave to amend. '" Wimm v. Jack Eckerd Corp.,) Tj /F30 5.00 Tf -59.52 -13.92 TD (3 F.3d 137, 140 \(5th Cir. 1993\). See Dussouy v. Gulf ) Tj /F29 11.94 Tf 255.84 0.24 TD (Coast Inv. Corp., 660 F.2d at 599) Tj /F30 5.00 Tf -256.08 -16.32 TD (\(stating that absent special circumstances, a party's awareness of ) Tj /F29 11.86 Tf 313.68 2.88 TD (facts and failure to) Tj /F29 11.97 Tf -313.68 -14.40 TD (include them in pleading might give rise to the inference that the party was engaging in) Tj /F29 12.08 Tf -.24 -13.68 TD (tactical maneuvers\). "The burden is on the party who wishes to amend to provide a) Tj /F29 12.10 Tf 0.24 -13.92 TD (satisfactory explanation for the delay, . . ." Cresswell v. Sullvan & Cromwell, 922 F.2d) Tj /F29 12.04 Tf 0.00 -13.68 TD (60, 72 \(2d Cir. 1990\) \(citations omitted\) \(affirming lower court's denial ofleave to) Tj /F29 11.96 Tf 0.00 -13.68 TD (amend complaint to add statutory claim, six months after plaintiffs submitted a prior) Tj /F29 12.05 Tf -.24 -13.92 TD (amended complaint, and after the close of discovery\). Respondents have failed to meet) Tj /F28 10.48 Tf 0.00 -13.68 TD (that burden.) Tj /F29 11.96 Tf 36.00 -27.60 TD (Significantly, on December 18, 2008, more than two months before submitting) Tj /F29 11.95 Tf -36.00 -13.92 TD (the Second Motion to Amend, counsel for Respondents signed a stipulation agreeing to) Tj /F29 12.04 Tf 0.00 -13.68 TD (withdraw all six affirmative defenses raised in their Answer. Complaint Counsel and) Tj /F29 11.96 Tf 0.00 -13.68 TD (Respondents' Stipulation Striking Respondents' Affirmative Defenses from the Answer) Tj /F29 12.08 Tf 0.00 -13.92 TD (and Order, December 30, 2008, p. 1 \("Stipulation"\). According to the document, the) Tj /F30 5.00 Tf 0.24 -13.92 TD (Stipulation was the result of ) Tj /F29 12.12 Tf 136.80 0.24 TD (the paries' Rule 3.22\(f\) conference to resolve Complaint) Tj /F29 12.32 Tf -137.04 -14.16 TD (Counsel's planed Motion to Strike Respondents' affrmative defenses. 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Pursuant to the Stipulation, an order) Tj /F35 12.11 Tf -.24 -13.92 TD (was entered on January 8, 2009 striking Respondents' affirmative defenses. Among the) Tj /F35 12.10 Tf 0.24 -14.16 TD (defenses Respondents agreed to have stricken was their Sixth Affrmative Defense,) Tj /F36 5.00 Tf 0.24 -14.16 TD (alleging "that the actions of ) Tj /F35 12.14 Tf 135.84 0.00 TD (the 鶹ý Trade Commission in fiing the Complaint in the) Tj /F36 5.00 Tf -135.84 -13.92 TD (case are an unconstitutional infrngement of ) Tj /F35 12.01 Tf 214.32 0.24 TD (Respondents' right to practice religion under) Tj /F36 5.00 Tf -214.56 -14.16 TD (the First Amendment to the U.S. Constitution." Answer, p. 6. Given the content of ) Tj /F35 11.79 Tf 405.36 0.00 TD (the) Tj /F35 12.00 Tf -404.88 -13.92 TD (Stipulation, and the undue delay in requesting this amended pleading, Respondents have) Tj /F35 12.01 Tf -.24 -13.68 TD (failed to show how adding an affirmative defense under RFRA is appropriate, or) Tj /F36 5.00 Tf -.24 -13.92 TD (necessary to "facilitate a determination of ) Tj /F36 8.13 Tf 203.76 0.00 TD (the controversy on the merits." 16 C.F.R. ) Tj /F35 11.68 Tf -203.52 -13.92 TD (3.15\(a\)\(1\).) Tj /F35 11.99 Tf 36.00 -27.84 TD (Moreover, allowing the belated amendment, particularly in light of the) Tj /F35 11.99 Tf -35.76 -13.68 TD (Stipulation, would be unduly prejudicial to Complaint Counsel and the adjudicative) Tj /F35 12.10 Tf -.72 -13.92 TD (process. To assert, as Respondents do, that allowing a new affirmative defense to be) Tj /F35 12.00 Tf 0.48 -13.92 TD (added at this point in these proceedings would not require additional discovery or delay) Tj /F37 11.06 Tf -.24 -13.68 TD (the trial belies logic and reason. Complaint Counsel is entitled to rely on the Stipulation,) Tj /F35 12.07 Tf 0.24 -13.68 TD (and the scope of defenses that the Stipulation and resulting order established. While,) Tj /F35 12.00 Tf -.24 -13.92 TD (theoretically, prejudice could be mitigated by allowing additional discovery, and/or) Tj /F35 12.06 Tf 0.24 -13.92 TD (delaying the trial, such remedies are themselves prejudicial - not just to Complaint) Tj /F35 12.07 Tf 0.24 -13.68 TD (Counsel, but also to the adjudicative process, and consequently, the public interest. As) Tj /F37 11.22 Tf -.24 -13.92 TD (the district court noted in Crest Hil Land Dev., LLC v. City of Joliet, No. 03 C 3343,) Tj /F36 8.45 Tf 0.24 -13.68 TD (2004 U.S. Dist. LEXIS 9453, at *8-9 \(N.D. Il. May 24,2004\), af'd 396 F.3d 801 \(7th) Tj /F35 11.97 Tf 0.00 -13.92 TD (Cir. 2005\), to allow such a material amendment after the close of discovery, and after the) Tj /F35 11.94 Tf 0.00 -13.68 TD (filing of a motion for summary judgment, is:) Tj /F37 11.08 Tf 35.28 -27.36 TD (prejudicial to \(the opposing party\) and to the judicial system. See Fort) Tj /F37 10.94 Tf -.24 -13.92 TD (Howard Paper Co. v. Standard Havens, Inc., 901 F.2d 1373, 1379-80 \(7th) Tj /F35 11.91 Tf 0.72 -13.68 TD (Cir. 1990\) \(stating that "it is wholly within a district court's discretion to) Tj /F35 11.99 Tf -.24 -13.68 TD (deny an amendment to the pleadings for delay and prejudice to the) Tj /F35 11.98 Tf 0.00 -13.92 TD (opposing party. . . \(and that\) beyond prejudice to the parties, a trial court) Tj /F35 11.98 Tf 0.00 -13.68 TD (can deny amendment when concerned with the costs that protracted) Tj /F36 5.00 Tf 0.00 -13.68 TD (litigation places ) Tj /F35 11.88 Tf 79.44 -.24 TD (on the courts \(because\) delay impairs the 'public interest) Tj /F36 5.00 Tf -79.44 -13.68 TD (in the prompt resolution oflegal disputes \(and\) the interests of ) Tj /F35 12.12 Tf 300.72 0.00 TD (justice go) Tj /F37 10.90 Tf -301.20 -13.92 TD (beyond the interests of the paries to the particular suit \(and\) extreme,) Tj /F35 11.68 Tf 0.24 -13.68 TD ('delay itself may be considered prejudiciaL. "\) \(quoting Tamari v. Bache &) Tj /F35 12.00 Tf 0.24 -13.68 TD (Co. \(Lebanon\) s.A.L., 838 F.2d 904, 909 \(7th Cir.1988\)\); Jupiter) Tj /F37 11.05 Tf -1.20 -13.68 TD (Aluminum Corp. v. Home Ins. Co., 181 F.R.D. 605, 609 \(N.D. 11.1998\)) Tj /F35 11.97 Tf 0.96 -16.08 TD (\(stating that "an amendment should not be denied merely due to the) Tj /F35 11.95 Tf -.24 -11.76 TD (passage of time between the original filing and the attempted amendment,") Tj /F36 5.00 Tf -.48 -13.68 TD (but should be denied if ) Tj /F35 11.95 Tf 113.76 0.00 TD (there is "undue delay, bad faith or dilatory motive) Tj /F35 11.98 Tf -113.28 -13.92 TD (on the part of the movant, repeated failure to cure deficiencies by) Tj /F35 11.93 Tf 0.24 -13.68 TD (amendments previously allowed, undue prejudice to the opposing party") Tj /F36 5.00 Tf -.24 -13.92 TD (or "futility of ) Tj /F35 11.93 Tf 66.72 0.00 TD (the amendment."\) \(quoting Foman v. Davis, 371 U.S. 178,) Tj /F37 11.13 Tf -65.76 -13.68 TD (182,9 L. Ed. 2d 222,83 S. Ct. 227 \(1962\)\).) 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AB?LWEW(Y00vLײ6ڪ aS|vuO_!g08pӇR|}w $;T_[[ko_yyU^*~xbpWMZk-mMG?K'{F`u/~Kn/C[$yIo+$~K+__J? ]цzvnKۯCK]]mk܉1YBUՄW2B;Nq{T$6Aċ  a4H6ڊ8 u5;TҲ# mDDDDDD0&s"M PAXaDDDDDDDDEHdh# )?@\ȝ Jbl20R )PaDlGAV&"nᇶz/scA6n7z' M(j7+ 7o[UWﶿN_߶qWSh$Ih.p'PPAW}M Z'TNAO>:<&2+\_KЮ]7O[m/k^]_mW_/_ R_ __kDE.8}B %BKDŽoꗿ^tZޗU~K~Dk[R{װ WJKj_`veұ^hzNTl!.kjtA,Bcz  Pk6#a4* p#M0; 4u  DDDDDDDDIG^,-GK)z7WZ| 5W.rq * %T8!]_tomoXa+ )l[ Zc@ endstream endobj 40 0 obj << /Length 3069 >> stream q q 612.00 0.00 0.00 792.00 0.00 0.00 cm /Im41 Do Q Q q BT 3 Tr /F42 12.04 Tf 127.68 710.16 TD (Respondents' other contention, that the amendment is justified because it) Tj /F42 12.04 Tf -36.00 -14.16 TD ("conforms to the evidence," Second Motion to Amend, at p. 3, is also without merit.) Tj /F42 11.73 Tf 0.00 -13.92 TD (Pursuant to Rule 3 .15\( a\)\(2\), "conformance to the evidence" only applies "\( w \)hen issues) Tj /F43 5.00 Tf 0.00 -14.16 TD (not raised by the pleadings or notice of ) Tj 190.32 0.24 TD (hearing but reasonably within the scope of ) Tj /F42 11.79 Tf 207.84 0.00 TD (the) Tj /F42 12.03 Tf -398.16 -14.16 TD (original complaint or notice of hearing are tried by express or implied consent of the) Tj /F43 8.39 Tf -1.44 -13.92 TD (parties." 16 C.F.R. 3.15\(a\)\(2\) \(emphasis added\). See In Re Horizon Corporation, No.) Tj /F44 11.23 Tf 1.68 -14.16 TD (9017,97 F.T.C. 464, 1981 FTC LEXIS 47, at *50 \(May 15, 1981\) \(citing Rule 3.15\(a\)\(2\)) Tj /F42 12.01 Tf 0.00 -13.92 TD (and holding that where claimed section 5 violation was not within the scope of complaint,) Tj /F42 12.02 Tf 0.00 -13.92 TD (and was not tried by the express or implied consent of the parties, no such violation could) Tj /F42 12.08 Tf -.48 -13.92 TD (be found\); In Re Chrysler Corporation, No. 9072, 1979 FTC LEXIS 420, at *2-3 \(April) Tj /F42 12.11 Tf 0.48 -13.68 TD (24, 1979\) \(denying request to amend complaint to add new theory ofliability, allegedly) Tj /F42 12.05 Tf -.24 -13.92 TD (to "conform the pleadings to the evidence already admitted," because theory was not) Tj /F43 5.00 Tf 0.24 -13.68 TD ("reasonably within the scope of ) Tj /F42 12.05 Tf 155.28 0.00 TD (the original complaint or notice" and was not tried by) Tj /F43 8.15 Tf -155.28 -13.92 TD (express or implied consent ofthe parties\). Accordingly, Rule 3.15\(a\)\(2\) does not apply) Tj /F42 12.01 Tf 0.00 -13.92 TD (in this instance and does not provide a basis for granting Respondents' Second Motion to) Tj /F42 11.65 Tf 0.00 -13.68 TD (Amend.) Tj /F42 12.01 Tf 36.00 -27.60 TD (Due to the multiple bases found for denying Respondents' Second Motion to) Tj /F42 11.98 Tf -36.00 -13.92 TD (Amend, the merits of the RFRA defense need not be addressed.) Tj /F42 15.18 Tf 208.56 -27.60 TD (iv.) Tj /F43 5.00 Tf -172.56 -27.60 TD (After full consideration of ) Tj /F42 12.00 Tf 129.12 0.24 TD (Respondents' Second Motion to Amend, and) Tj /F42 12.01 Tf -164.88 -14.16 TD (Complaint Counsel's Opposition thereto, and having fully considered all arguments and) Tj /F42 11.98 Tf 0.00 -13.68 TD (contentions therein, Respondents' Second Motion to Amend their answer is DENIED.) Tj /F42 11.71 Tf 0.00 -54.96 TD (ORDERED:) Tj /F42 29.13 Tf 263.52 -1.44 TD (J\)~ ~"'4) Tj /F42 11.86 Tf -11.28 -12.24 TD (D. Michael Cliappel) Tj /F42 11.99 Tf 0.00 -13.68 TD (Administrative Law Judge) Tj /F44 11.21 Tf -252.48 -41.52 TD (Dated: March 9, 2009) Tj /F42 10.56 Tf 212.40 -215.04 TD (6) Tj ET Q endstream endobj 45 0 obj << /Title (CPY Document) >> endobj xref 1 2 0000319292 00000 n 0000319351 00000 n 38 8 0000319456 00000 n 0000319620 00000 n 0000360218 00000 n 0000320148 00000 n 0000319767 00000 n 0000319896 00000 n 0000320021 00000 n 0000363353 00000 n trailer << /Size 46 /Prev 318965 /Root 1 0 R /Info 45 0 R /ID [(11891172842309330055) (90081064104903907) ] >> startxref 363405 %%EOF 1 0 obj <>/ViewerPreferences<>/Metadata 921 0 R/Pages 2 0 R/StructTreeRoot 707 0 R/Type/Catalog/Lang(EN-US)>> endobj 3 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageB]>>/Type/Page>> endobj 10 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageB]>>/Type/Page>> endobj 17 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageB]>>/Type/Page>> endobj 24 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageB]>>/Type/Page>> endobj 31 0 obj 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t#vx=F~u6(bJll׶y[uR.`/k{I8,G˯@^~-GɞZN^^^rK"^^G ̉r.~*ܦ)/28>~LqyʤO}+7dL endstream endobj 914 0 obj <>stream /Artifact <>BDC q 612 0 0 792 0 0 cm /Im0 Do Q EMC BT /P <>BDC /T1_0 1 Tf 3 Tr 12.04 0 0 12.04 127.68 710.16 Tm (Respondents' other contention, that the amendment is justified because i\ t )Tj -2.99 -1.176 Td ("conforms to the evidence," Second Motion to Amend, at p. 3, is also wit\ hout merit. )Tj 11.73 0 0 11.73 91.68 682.08 Tm (Pursuant to Rule 3 .15\( a\)\(2\), "conformance to the evidence" only ap\ plies "\( w \)hen issues )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 91.68 667.92 Tm (not raised by the pleadings or notice of )Tj 38.064 0.048 Td (hearing but reasonably within the scope of )Tj /T1_0 1 Tf 11.79 0 0 11.79 489.84 668.16 Tm (the )Tj EMC /P <>BDC 12.03 0 0 12.03 91.68 654 Tm (original complaint or notice of hearing are tried by express or implied \ consent of the )Tj EMC /P <>BDC /T1_1 1 Tf 8.39 0 0 8.39 90.24 640.08 Tm (parties." 16 C.F.R. \247 3.15\(a\)\(2\) \(emphasis added\). See In Re Ho\ rizon Corporation, No.\001 )Tj EMC /P <>BDC /T1_2 1 Tf 11.23 0 0 11.23 91.92 625.92 Tm (9017,97 F.T.C. 464, 1981 FTC LEXIS 47, at *50 \(May 15, 1981\) \(citing \ Rule 3.15\(a\)\(2\) )Tj EMC /P <>BDC /T1_0 1 Tf 12.01 0 0 12.01 91.92 612 Tm (and holding that where claimed section 5 violation was not within the sc\ ope of complaint, )Tj 12.02 0 0 12.02 91.92 598.08 Tm (and was not tried by the express or implied consent of the parties, no s\ uch violation could )Tj 12.08 0 0 12.08 91.44 584.16 Tm (be found\); In Re Chrysler Corporation, No. 9072, 1979 FTC LEXIS 420, at\ *2-3 \(April )Tj 12.11 0 0 12.11 91.92 570.48 Tm (24, 1979\) \(denying request to amend complaint to add new theory ofliab\ ility, allegedly )Tj 12.05 0 0 12.05 91.68 556.56 Tm (to "conform the pleadings to the evidence already admitted," because the\ ory was not )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 91.92 542.88 Tm ("reasonably within the scope of \001)Tj EMC /P <>BDC /T1_0 1 Tf 12.05 0 0 12.05 247.2 542.88 Tm (the original complaint or notice" and was not tried by )Tj EMC /P <>BDC /T1_1 1 Tf 8.15 0 0 8.15 91.92 528.96 Tm (express or implied consent ofthe parties\). Accordingly, Rule 3.15\(a\)\(\ 2\) does not apply\001 )Tj EMC /P <>BDC /T1_0 1 Tf 12.01 0 0 12.01 91.92 515.04 Tm (in this instance and does not provide a basis for granting Respondents' \ Second Motion to )Tj 11.65 0 0 11.65 91.92 501.36 Tm (Amend. )Tj EMC /P <>BDC 12.01 0 0 12.01 127.92 473.76 Tm (Due to the multiple bases found for denying Respondents' Second Motion t\ o )Tj 11.98 0 0 11.98 91.92 459.84 Tm (Amend, the merits of the RFRA defense need not be addressed. )Tj EMC /LI_Label <>BDC 15.18 0 0 15.18 300.48 432.24 Tm (iv. )Tj EMC /P <>BDC 12 0 0 12 257.04 404.88 Tm (Respondents' Second Motion to Amend, and )Tj 12.01 0 0 12.01 92.16 390.72 Tm (Complaint Counsel's Opposition thereto, and having fully considered all \ arguments and )Tj 11.98 0 0 11.98 92.16 377.04 Tm (contentions therein, Respondents' Second Motion to Amend their answer is\ DENIED. )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 127.92 404.64 Tm (After full consideration of \001)Tj EMC /P <>BDC /T1_0 1 Tf 11.71 0 0 11.71 92.16 322.08 Tm (ORDERED: )Tj EMC /P <>BDC 29.13 0 0 29.13 355.68 320.64 Tm (J\)~ ~"'4)Tj EMC /LI_Label <>BDC 11.86 0 0 11.86 344.4 308.4 Tm (D.)Tj EMC /LI_Title <>BDC ( Michael Cliappel )Tj 11.99 0 0 11.99 344.4 294.72 Tm (Administrative Law Judge )Tj EMC /P <>BDC /T1_2 1 Tf 11.21 0 0 11.21 91.92 253.2 Tm (Dated: March 9, 2009 )Tj EMC /P <>BDC /T1_0 1 Tf 10.56 0 0 10.56 304.32 38.16 Tm (6\001 )Tj EMC ET endstream endobj 915 0 obj <>stream /Artifact <>BDC q 612 0 0 792 0 0 cm /Im0 Do Q EMC BT /P <>BDC /T1_0 1 Tf 3 Tr 12.12 0 0 12.12 90.72 711.36 Tm (stipulated that Respondents' affrmative defenses were the "same defenses\ raised in the )Tj 12.11 0 0 12.11 90.72 697.44 Tm (general denial section of the Answer." /d. at i\2411. Pursuant to the St\ ipulation, an order )Tj -0.02 -1.149 Td (was entered on January 8, 2009 striking Respondents' affirmative defense\ s. Among the )Tj 12.1 0 0 12.1 90.72 669.36 Tm (defenses Respondents agreed to have stricken was their Sixth Affrmative \ Defense, )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 90.96 655.2 Tm (alleging "that the actions of \001)Tj EMC /P <>BDC /T1_0 1 Tf 12.14 0 0 12.14 226.8 655.2 Tm (the 鶹ý Trade Commission in fiing the Complaint in the )Tj EMC /P <>BDC 12.01 0 0 12.01 305.28 641.52 Tm (Respondents' right to practice religion under)Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 90.96 641.28 Tm (case are an unconstitutional infrngement of \001)Tj EMC /P <>BDC -0.048 -2.784 Td (the First Amendment to the U.S. Constitution." Answer, p. 6. Given the c\ ontent of )Tj /T1_0 1 Tf 11.79 0 0 11.79 496.08 627.36 Tm (the )Tj EMC /P <>BDC 12 0 0 12 91.2 613.44 Tm (Stipulation, and the undue delay in requesting this amended pleading, Re\ spondents have )Tj 12.01 0 0 12.01 90.96 599.76 Tm (failed to show how adding an affirmative defense under RFRA is appropria\ te, or )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 90.72 585.84 Tm (necessary to "facilitate a determination of )Tj 8.13 0 0 8.13 294.48 585.84 Tm (the controversy on the merits." 16 C.F.R. \247\001 )Tj EMC /P <>BDC /T1_0 1 Tf 11.68 0 0 11.68 90.96 571.92 Tm (3.15\(a\)\(1\). )Tj EMC /P <>BDC 11.99 0 0 11.99 126.96 544.08 Tm (Moreover, allowing the belated amendment, particularly in light of the )Tj -2.982 -1.141 Td (Stipulation, would be unduly prejudicial to Complaint Counsel and the ad\ judicative )Tj 12.1 0 0 12.1 90.48 516.48 Tm (process. To assert, as Respondents do, that allowing a new affirmative d\ efense to be )Tj 12 0 0 12 90.96 502.56 Tm (added at this point in these proceedings would not require additional di\ scovery or delay )Tj EMC /P <>BDC /T1_2 1 Tf 11.06 0 0 11.06 90.72 488.88 Tm (the trial belies logic and reason. Complaint Counsel is entitled to rely\ on the Stipulation, )Tj EMC /P <>BDC /T1_0 1 Tf 12.07 0 0 12.07 90.96 475.2 Tm (and the scope of defenses that the Stipulation and resulting order estab\ lished. While, )Tj 12 0 0 12 90.72 461.28 Tm (theoretically, prejudice could be mitigated by allowing additional disco\ very, and/or )Tj 12.06 0 0 12.06 90.96 447.36 Tm (delaying the trial, such remedies are themselves prejudicial - not just \ to Complaint )Tj 12.07 0 0 12.07 91.2 433.68 Tm (Counsel, but also to the adjudicative process, and consequently, the pub\ lic interest. As )Tj EMC /P <>BDC /T1_2 1 Tf 11.22 0 0 11.22 90.96 419.76 Tm (the district court noted in Crest Hil Land Dev., LLC v. City of Joliet, \ No. 03 C 3343, )Tj EMC /P <>BDC /T1_1 1 Tf 8.45 0 0 8.45 91.2 406.08 Tm (2004 U.S. Dist. LEXIS 9453, at *8-9 \(N.D. Il. May 24,2004\), af'd 396 F\ .3d 801 \(7th\001 )Tj EMC /P <>BDC /T1_0 1 Tf 11.97 0 0 11.97 91.2 392.16 Tm (Cir. 2005\), to allow such a material amendment after the close of disco\ very, and after the )Tj 11.94 0 0 11.94 91.2 378.48 Tm (filing of a motion for summary judgment, is: )Tj EMC /P <>BDC /T1_2 1 Tf 11.08 0 0 11.08 126.48 351.12 Tm (prejudicial to \(the opposing party\) and to the judicial system. See Fo\ rt )Tj 10.94 0 0 10.94 126.24 337.2 Tm (Howard Paper Co. v. Standard Havens, Inc., 901 F.2d 1373, 1379-80 \(7th \ )Tj EMC /P <>BDC /T1_0 1 Tf 11.91 0 0 11.91 126.96 323.52 Tm (Cir. 1990\) \(stating that "it is wholly within a district court's discr\ etion to )Tj 11.99 0 0 11.99 126.72 309.84 Tm (deny an amendment to the pleadings for delay and prejudice to the )Tj 11.98 0 0 11.98 126.72 295.92 Tm (opposing party. . . \(and that\) beyond prejudice to the parties, a tria\ l court )Tj 0 -1.142 TD (can deny amendment when concerned with the costs that protracted )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.72 268.56 Tm (litigation places \001)Tj EMC /P <>BDC /T1_0 1 Tf 11.88 0 0 11.88 206.16 268.32 Tm (on the courts \(because\) delay impairs the 'public interest )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.72 254.64 Tm (in the prompt resolution oflegal disputes \(and\) the interests of \001)Tj EMC /P <>BDC /T1_0 1 Tf 12.12 0 0 12.12 427.44 254.64 Tm (justice go )Tj EMC /P <>BDC /T1_2 1 Tf 10.9 0 0 10.9 126.24 240.72 Tm (beyond the interests of the paries to the particular suit \(and\) extrem\ e, )Tj EMC /P <>BDC /T1_0 1 Tf 11.68 0 0 11.68 126.48 227.04 Tm ('delay itself may be considered prejudiciaL. "\) \(quoting Tamari v. Bac\ he & )Tj 12 0 0 12 126.72 213.36 Tm (Co. \(Lebanon\) s.A.L., 838 F.2d 904, 909 \(7th Cir.1988\)\); Jupiter )Tj EMC /P <>BDC /T1_2 1 Tf 11.05 0 0 11.05 125.52 199.68 Tm (Aluminum Corp. v. Home Ins. Co., 181 F.R.D. 605, 609 \(N.D. 11.1998\) )Tj EMC /P <>BDC /T1_0 1 Tf 11.97 0 0 11.97 126.48 183.6 Tm (\(stating that "an amendment should not be denied merely due to the )Tj 11.95 0 0 11.95 126.24 171.84 Tm (passage of time between the original filing and the attempted amendment,\ " )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 125.76 158.16 Tm (but should be denied if \001)Tj EMC /P <>BDC /T1_0 1 Tf 11.95 0 0 11.95 239.52 158.16 Tm (there is "undue delay, bad faith or dilatory motive )Tj 11.98 0 0 11.98 126.24 144.24 Tm (on the part of the movant, repeated failure to cure deficiencies by )Tj 11.93 0 0 11.93 126.48 130.56 Tm (amendments previously allowed, undue prejudice to the opposing party" )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.24 116.64 Tm (or "futility of \001)Tj EMC /P <>BDC /T1_0 1 Tf 11.93 0 0 11.93 192.96 116.64 Tm (the amendment."\) \(quoting Foman v. Davis, 371 U.S. 178, )Tj EMC /P <>BDC /T1_2 1 Tf 11.13 0 0 11.13 127.2 102.96 Tm (182,9 L. Ed. 2d 222,83 S. Ct. 227 \(1962\)\). )Tj EMC /P <>BDC /T1_0 1 Tf 9.6 0 0 9.6 303.12 39.6 Tm (5 )Tj EMC ET endstream endobj 916 0 obj <>stream /Artifact <>BDC q 612 0 0 792 0 0 cm /Im0 Do Q EMC BT /LI_Label <>BDC /T1_0 1 Tf 3 Tr 11.42 0 0 11.42 135.36 707.52 Tm (\(1\))Tj EMC /LI_Title <>BDC ( is in furtherance of a compellng governental interest; and )Tj EMC /LI_Label <>BDC /T1_1 1 Tf 12.16 0 0 12.16 135.6 693.36 Tm (\(2\))Tj EMC /LI_Title <>BDC ( is the least restrictive means of furthering that compellng\001 )Tj 13.14 0 0 13.14 126.24 681.6 Tm (governental interest.\001 )Tj EMC /LI_Label <>BDC 12.01 0 0 12.01 126.48 651.36 Tm (\(c\))Tj EMC /LI_Title <>BDC ( Judicial relief. A person whose religious exercise has been burdened in\ )Tj 12.02 0 0 12.02 126.48 639.84 Tm (violation of this section may assert that violation as a claim or defens\ e in a )Tj EMC /P <>BDC /T1_0 1 Tf 11.24 0 0 11.24 125.28 625.68 Tm (judicial proceeding and obtain appropriate relief against a governent. )Tj EMC /P <>BDC /T1_1 1 Tf 12 0 0 12 126.96 611.76 Tm (Standing to assert a claim or defense under this section shall be govern\ ed )Tj 12.01 0 0 12.01 126.24 597.84 Tm (by the general rules of standing under article III of the Constitution. \ )Tj EMC /P <>BDC 0.02 -2.298 Td (Respondents argue that they should be allowed leave to add RFRA as an )Tj EMC /P <>BDC 11.97 0 0 11.97 274.8 556.56 Tm (Respondents' foremost claims in this proceeding is )Tj 12 0 0 12 90.72 542.4 Tm (FTC standards governing deceptive and false advertising, as applied to R\ espondents, )Tj EMC /P <>BDC /T1_2 1 Tf 5 0 0 5 90.96 556.08 Tm (affrmative defense because "\(oJne of \001)Tj EMC /P <>BDC /T1_1 1 Tf 12.1 0 0 12.1 336.24 528.96 Tm (religion. See Respondents' Objection )Tj 12 0 0 12 90.96 514.56 Tm (and Memorandum in Opposition to Complaint Counsel's Motion to Compel Pro\ duction )Tj EMC /P <>BDC /T1_2 1 Tf 5 0 0 5 90.96 528.48 Tm (substantially burden Respondents' free exercise of \001)Tj EMC /P <>BDC /T1_1 1 Tf 12.2 0 0 12.2 103.68 501.12 Tm (Documents, pp. 13-17." Second Motion to Amend, p. 2. Respondents do not \ explain )Tj 12.18 0 0 12.18 90.96 487.2 Tm (or demonstrate why they failed to seek leave to amend until: \(i\) four \ months after fiing )Tj 12.01 0 0 12.01 90.72 473.28 Tm (their Answer; \(ii\) nearly two months after submitting their cited Oppo\ sition to Complaint )Tj 11.98 0 0 11.98 91.2 459.36 Tm (Counsel's Motion to Compel; \(iii\) one month after the close of discove\ ry; \(iv\) two weeks )Tj EMC /P <>BDC 5 0 0 5 90.96 500.88 Tm (of )Tj EMC /P <>BDC 11.88 0 0 11.88 440.4 446.16 Tm (Complaint )Tj 11.97 0 0 11.97 91.2 431.76 Tm (Counsel's Motion for Summary Decision; and \(vi\) less than two months b\ efore the April )Tj 11.83 0 0 11.83 91.2 418.08 Tm (23, 2009 trial date. )Tj EMC /P <>BDC /T1_2 1 Tf 5 0 0 5 91.2 445.68 Tm (after filing their First Motion to Amend; \(v\) one day after submission\ of \001)Tj EMC /P <>BDC /T1_1 1 Tf 12.01 0 0 12.01 126.96 390.72 Tm (As in their First Motion to Amend, Respondents do not contend that they \ )Tj 11.98 0 0 11.98 91.2 376.56 Tm (discovered new evidence, or provide any other justification for their un\ due delay in )Tj 12.31 0 0 12.31 91.44 362.88 Tm (seeking to amend. While it has been held that undue delay is insufficien\ t by itself to . )Tj 12.14 0 0 12.14 90 349.2 Tm (justify denying a motion to amend, e.g., Reifn v. Microsoft Corp., 270 F\ . Supp. 2d 1132, )Tj 11.94 0 0 11.94 92.4 335.52 Tm (1160 \(N.D. Cal. 2003\), it has also been held that "\(uJndue delay 'mig\ ht give rise to an )Tj EMC /P <>BDC /T1_2 1 Tf 5 0 0 5 91.44 321.84 Tm (inference of \001)Tj EMC /P <>BDC /T1_1 1 Tf 12.04 0 0 12.04 151.2 321.84 Tm (bad faith, justifyng denial of leave to amend. '" Wimm v. Jack Eckerd Co\ rp., )Tj EMC /P <>BDC 11.94 0 0 11.94 347.52 308.16 Tm (Coast Inv. Corp., 660 F.2d at 599 )Tj EMC /P <>BDC 11.86 0 0 11.86 405.12 294.72 Tm (facts and failure to )Tj EMC /P <>BDC /T1_2 1 Tf 5 0 0 5 91.68 307.92 Tm (3 F.3d 137, 140 \(5th Cir. 1993\). See Dussouy v. Gulf \001)Tj EMC /P <>BDC -0.048 -3.216 Td (\(stating that absent special circumstances, a party's awareness of \001\ )Tj EMC /P <>BDC /T1_1 1 Tf 11.97 0 0 11.97 91.44 280.32 Tm (include them in pleading might give rise to the inference that the party\ was engaging in )Tj 12.08 0 0 12.08 91.2 266.64 Tm (tactical maneuvers\). "The burden is on the party who wishes to amend to\ provide a )Tj EMC /P <>BDC 12.1 0 0 12.1 91.44 252.72 Tm (satisfactory explanation for the delay, . . ." Cresswell v. Sullvan & Cr\ omwell, 922 F.2d )Tj EMC /P <>BDC 12.04 0 0 12.04 91.44 239.04 Tm (60, 72 \(2d Cir. 1990\) \(citations omitted\) \(affirming lower court's \ denial ofleave to )Tj EMC /P <>BDC 11.96 0 0 11.96 91.44 225.36 Tm (amend complaint to add statutory claim, six months after plaintiffs subm\ itted a prior )Tj 12.05 0 0 12.05 91.2 211.44 Tm (amended complaint, and after the close of discovery\). Respondents have \ failed to meet )Tj EMC /P <>BDC /T1_0 1 Tf 10.48 0 0 10.48 91.2 197.76 Tm (that burden. )Tj EMC /P <>BDC /T1_1 1 Tf 11.96 0 0 11.96 127.2 170.16 Tm (Significantly, on December 18, 2008, more than two months before submitt\ ing )Tj 11.95 0 0 11.95 91.2 156.24 Tm (the Second Motion to Amend, counsel for Respondents signed a stipulation\ agreeing to )Tj 12.04 0 0 12.04 91.2 142.56 Tm (withdraw all six affirmative defenses raised in their Answer. Complaint \ Counsel and )Tj 11.96 0 0 11.96 91.2 128.88 Tm (Respondents' Stipulation Striking Respondents' Affirmative Defenses from\ the Answer )Tj 12.08 0 0 12.08 91.2 114.96 Tm (and Order, December 30, 2008, p. 1 \("Stipulation"\). According to the d\ ocument, the )Tj EMC /P <>BDC 12.12 0 0 12.12 228.24 101.28 Tm (the paries' Rule 3.22\(f\) conference to resolve Complaint )Tj 12.32 0 0 12.32 91.2 87.12 Tm (Counsel's planed Motion to Strike Respondents' affrmative defenses. The \ parties )Tj EMC /P <>BDC /T1_2 1 Tf 5 0 0 5 91.44 101.04 Tm (Stipulation was the result of \001)Tj EMC /P <>BDC /T1_1 1 Tf 11.04 0 0 11.04 303.36 38.16 Tm (4\001 )Tj EMC ET endstream endobj 917 0 obj <>stream /Artifact <>BDC q 612 0 0 792 0 0 cm /Im0 Do Q EMC BT /P <>BDC /T1_0 1 Tf 3 Tr 12.03 0 0 12.03 126.48 712.56 Tm (Law Judge may, upon such conditions as are necessary to avoid )Tj EMC /P <>BDC 11.97 0 0 11.97 355.2 698.64 Tm (the parties, allow)Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.24 698.4 Tm (prejudicing the public interest and the rights of \001)Tj EMC /P <>BDC /T1_2 1 Tf 10.66 0 0 10.66 368.16 684.72 Tm (hearing . . . .)Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.48 684.48 Tm (appropriate amendments to pleadings or notice of \001)Tj EMC /LI_Label <>BDC /T1_0 1 Tf 12 0 0 12 126.72 654.24 Tm (\(2\))Tj EMC /LI_Title <>BDC ( Conformance to evidence. When issues not raised by the pleadings or )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.48 642.48 Tm (notice of \001)Tj EMC /P <>BDC /T1_0 1 Tf 12.14 0 0 12.14 171.84 642.48 Tm (hearing but reasonably within the scope ofthe original complaint )Tj EMC /P <>BDC /T1_2 1 Tf 10.48 0 0 10.48 426.72 628.8 Tm (the parties,)Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.48 628.56 Tm [(or notice of )-3864(hearing are tried by express or implied consent of \001)]TJ EMC /P <>BDC /T1_0 1 Tf 12.03 0 0 12.03 126.48 614.64 Tm (they shall be treated in all respects as if they had been raised in the \ )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.48 600.72 Tm (pleadings or notice of )Tj 21.504 0.048 Td (hearing; and such amendments of \001)Tj EMC /P <>BDC /T1_0 1 Tf 11.99 0 0 11.99 398.88 600.96 Tm (the pleadings or )Tj 12.01 0 0 12.01 126.48 586.8 Tm (notice as may be necessary to make them conform to the evidence and to )Tj -0.02 -1.159 Td (raise such issues shall be allowed at any time. )Tj EMC /P <>BDC 11.9 0 0 11.9 91.68 545.28 Tm (16 C.F.R. \247 3.15\(a\) \(italics in original\). )Tj EMC /P <>BDC 12.16 0 0 12.16 126.48 517.44 Tm (When "a determination of a controversy on the merits wil be facilitated"\ by )Tj 12.03 0 0 12.03 90.72 503.76 Tm (allowing an "appropriate" amendment is not defined in FTC decisions disc\ ussing that )Tj 12.06 0 0 12.06 90.48 489.84 Tm (Rule. In the case of Conley v. Gibson, the Supreme Court explained the f\ ederal rule )Tj 12.13 0 0 12.13 90.48 476.16 Tm (regarding leave to amend as follows: "The 鶹ý Rules reject the appro\ ach that )Tj 12.12 0 0 12.12 90.24 462.24 Tm (pleading is a game of skil in which one misstep by counsel may be decisi\ ve to the )Tj 12.02 0 0 12.02 90.48 448.32 Tm (outcome and accept the principle that the purpose of pleading is to faci\ litate a proper )Tj /T1_1 1 Tf 8.13 0 0 8.13 90.48 434.64 Tm (decision on the merits." Conley v. Gibson, 355 U.S. 41, 48 \(1957\). )Tj EMC /P <>BDC /T1_0 1 Tf 12 0 0 12 126.72 407.04 Tm (In contrast to 鶹ý Rule 15, FTC Rule 3.15\(a\), which requires that \ leave to )Tj 12.02 0 0 12.02 90.72 393.36 Tm (amend be freely granted, FTC Rule 3.15\(a\) provides that "appropriate" \ amendments )Tj 12.13 0 0 12.13 90.48 379.44 Tm ("may" be allowed, upon such conditions as wil avoid prejudice to the par\ ties and the )Tj /T1_1 1 Tf 5 0 0 5 90.24 365.76 Tm (public interest, if )Tj EMC /P <>BDC /T1_0 1 Tf 12.22 0 0 12.22 175.44 365.76 Tm (the amendments wil facilitate a determination on the merits. 16 C.F.R )Tj 12.21 0 0 12.21 91.2 351.84 Tm (\247 3.15\(a\)\(I\). Even under the federal rules' liberal amendment pol\ icy, thefederal courts )Tj EMC /P <>BDC /T1_2 1 Tf 10.8 0 0 10.8 90.72 338.16 Tm (exercise discretion to deny leave to amend where there is ''undue delay,\ bad faith or )Tj EMC /P <>BDC /T1_0 1 Tf 12.1 0 0 12.1 90.48 324.48 Tm (dilatory motive on the part ofthe movant, repeated failure to cure defic\ iencies by )Tj 12.21 0 0 12.21 90.72 310.56 Tm (amendments previously allowed, undue prejudice to the opposing party by \ virte of )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 90.72 296.88 Tm (allowance of )Tj 12.864 0 Td (the amendment, futility of \001)Tj EMC /P <>BDC /T1_2 1 Tf 10.94 0 0 10.94 284.16 296.88 Tm (amendment, etc. . . ." Foman v. Davis, 371 U.S. )Tj EMC /P <>BDC /T1_1 1 Tf 8.12 0 0 8.12 91.68 283.2 Tm (178, 182 \(1962\).\001 )Tj EMC /LI_Label <>BDC /T1_0 1 Tf 13.11 0 0 13.11 133.92 255.36 Tm (B.)Tj EMC /LI_Title <>BDC ( Proposed Amendment to Add Affirmative Defense Under Religious )Tj 12.87 0 0 12.87 162.72 241.68 Tm (Freedom Restoration Act )Tj EMC /P <>BDC 12.17 0 0 12.17 126 214.32 Tm (The Religious Freedom Restoration Act, 42 U.S.c. \247 2000bb-l \(2008\) \ \("RFRA"\), )Tj 11.74 0 0 11.74 90 200.4 Tm (provides: )Tj EMC /LI_Label <>BDC 12.27 0 0 12.27 126.24 170.64 Tm (\(a\))Tj EMC /LI_Title <>BDC ( In general. Governent shall not substantially burden a person's )Tj EMC /P <>BDC 11.98 0 0 11.98 126.24 159.12 Tm (exercise of religion even if the burden results from a rule of general )Tj 11.96 0 0 11.96 126.24 145.2 Tm (applicability, except as provided in subsection \(b\). )Tj EMC /LI_Label <>BDC 11.92 0 0 11.92 126.24 115.44 Tm (\(b\))Tj EMC /LI_Title <>BDC ( Exception. Government may substantially burden a person's exercise )Tj EMC /P <>BDC 5 0 0 5 126 103.68 Tm (of )Tj /T1_1 1 Tf 2.592 0.048 Td (religion only ifit demonstrates that application of )Tj /T1_0 1 Tf 11.92 0 0 11.92 380.64 103.68 Tm (the burden to the )Tj 11.89 0 0 11.89 125.76 90 Tm (person-\255)Tj EMC /P <>BDC 9.12 0 0 9.12 303.6 40.56 Tm (3 )Tj EMC ET endstream endobj 918 0 obj <>stream /Artifact <>BDC q 612 0 0 792 0 0 cm /Im0 Do Q EMC BT /P <>BDC /T1_0 1 Tf 3 Tr 11.88 0 0 11.88 126.72 694.8 Tm (FIRST AFPlRMA TIVE DEFENSE )Tj EMC /P <>BDC 12.04 0 0 12.04 126.72 666.72 Tm (As and for a first separate, distinct and affirmative defense, Responden\ ts )Tj EMC /P <>BDC 12.06 0 0 12.06 242.88 653.04 Tm (the 鶹ý Trade Commission in filing the )Tj 12.04 0 0 12.04 126.96 638.64 Tm (Complaint and seeking the Order included therewith substantially burden \ )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.96 652.56 Tm (allege that the action of \001)Tj EMC /P <>BDC /T1_0 1 Tf 12.2 0 0 12.2 272.88 625.2 Tm (religion in violation of 42 U.S.c. Section )Tj 12.26 0 0 12.26 126.96 611.04 Tm (2000bb-l\(a\) and \(c\). )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 126.96 624.96 Tm (Respondents' free exercise of \001)Tj EMC /P <>BDC /T1_0 1 Tf 12.14 0 0 12.14 91.44 582.96 Tm (Second Motion to Amend, p.l. )Tj EMC /P <>BDC 12.04 0 0 12.04 127.2 555.36 Tm (Respondents contend that the proposed amendment "facilitates the determi\ nation )Tj EMC /P <>BDC 5 0 0 5 91.2 541.44 Tm (of )Tj EMC /P <>BDC /T1_2 1 Tf 10.97 0 0 10.97 104.16 541.44 Tm (this controversy and prevents prejudice to Respondents." Second Motion t\ o Amend, p. )Tj EMC /LI_Label <>BDC /T1_0 1 Tf 12.11 0 0 12.11 91.2 527.76 Tm (2.)Tj EMC /LI_Title <>BDC ( Respondents further contend that the proposed amendment conforms to the\ evidence )Tj EMC /P <>BDC 12.42 0 0 12.42 311.52 514.32 Tm (justice. Id., at pp. 3-4. Respondents assert )Tj 12.13 0 0 12.13 91.2 499.92 Tm (that no prejudice wil result because the amendment does not create the n\ eed for any )Tj 12.04 0 0 12.04 91.44 486.24 Tm (additional discovery, or delay the proceedings because Complaint Counsel\ "has been )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 91.44 513.84 Tm (adduced in discovery, and is in the interest of \001)Tj EMC /P <>BDC /T1_0 1 Tf 12.17 0 0 12.17 449.28 473.04 Tm (their claims of )Tj 12.05 0 0 12.05 91.2 458.64 Tm (religious freedom based upon the free exercise guarantee of the First Am\ endment. See, )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 91.44 472.32 Tm (amply forewarned ofthe religious nature of )Tj 42.624 0.096 Td (Respondents' ministry and of \001)Tj EMC /P <>BDC -42.624 -5.616 Td (e.g., Respondents' Motion to Dismiss and Supporting Memorandum of )Tj /T1_0 1 Tf 11.9 0 0 11.9 437.04 445.44 Tm (Points and )Tj EMC /P <>BDC 12.21 0 0 12.21 91.44 431.04 Tm (Authorities, pp. 1-4, 17-21." Second Motion to Amend, p. 4. Respondents \ rely on )Tj EMC /P <>BDC /T1_1 1 Tf 5 0 0 5 91.68 417.12 Tm (federal cases stating that leave to amend under the 鶹ý Rules of )Tj /T1_0 1 Tf 11.92 0 0 11.92 419.04 417.6 Tm (Civil Procedure\001 )Tj 12.26 0 0 12.26 91.68 403.44 Tm (should be "freely given." /d.\001 )Tj EMC /P <>BDC 12.01 0 0 12.01 127.68 375.84 Tm (Complaint Counsel asserts that Respondents unduly delayed seeking leave \ to )Tj 12 0 0 12 91.68 361.92 Tm (amend the Answer, by waiting four months after submitting their original\ Answer, one )Tj 0 -1.14 TD (month after the close of fact discovery, two weeks after submitting thei\ r First Motion to )Tj 12.02 0 0 12.02 91.68 334.56 Tm (Amend, and one day after Complaint Counsel submitted its Motion for Summ\ ary )Tj 11.99 0 0 11.99 91.68 320.88 Tm (Decision, and that Respondents have failed to provide any justification \ for the delay. )Tj 12 0 0 12 91.68 306.96 Tm (Complaint Counsel further argues that Respondents should not be allowed \ leave to )Tj 12.09 0 0 12.09 91.68 293.28 Tm (amend because Respondents did not cooperate in providing discovery. In a\ ddition, )Tj 12.02 0 0 12.02 91.68 279.36 Tm (Complaint Counsel contends that Respondents should be bound by the parti\ es' joint )Tj EMC /P <>BDC 12 0 0 12 85.44 265.68 Tm (. stipulation and subsequent order, pursuant to which all Respondents' a\ ffirmative defenses )Tj 12.1 0 0 12.1 91.68 252 Tm (in their Answer were withdrawn. Complaint Counsel also argues that allow\ ing the )Tj 11.97 0 0 11.97 91.2 238.08 Tm (proposed amendment would be unduly prejudiciaL. Finally, Complaint Couns\ el asserts )Tj 11.98 0 0 11.98 91.44 224.4 Tm (that the proposed affirmative defense should not be allowed because it h\ as no merit. )Tj EMC /LI_Label <>BDC 13.06 0 0 13.06 299.52 197.04 Tm (III. )Tj EMC /LI_Label <>BDC /T1_1 1 Tf 9.74 0 0 9.74 134.64 168.96 Tm (A.)Tj EMC /LI_Title <>BDC ( Standard for Evaluating Motion for Leave To Amend\001 )Tj EMC /P <>BDC /T1_0 1 Tf 12.09 0 0 12.09 127.44 141.6 Tm (Commission Rule 3.15\(a\) governs amendments to pleadings. That Rule sta\ tes in )Tj EMC /P <>BDC /T1_2 1 Tf 10.74 0 0 10.74 91.44 127.68 Tm (pertinent part: )Tj EMC /LI_Label <>BDC /T1_0 1 Tf 11.95 0 0 11.95 127.44 97.68 Tm (\(a\))Tj EMC /LI_Title <>BDC ( Amendments-- \(l\) By leave. If and whenever determination of a )Tj 12.1 0 0 12.1 127.44 86.16 Tm (controversy on the merits wil be facilitated thereby, the Administrative\ )Tj EMC /P <>BDC 10.56 0 0 10.56 304.56 37.2 Tm (2\001 )Tj EMC ET endstream endobj 919 0 obj <>stream /Artifact <>BDC q 612 0 0 792 0 0 cm /Im0 Do Q EMC BT /P <>BDC /T1_0 1 Tf 3 Tr 12.64 0 0 12.64 217.68 667.68 Tm (UNITED STATES OF AMERICA )Tj EMC /P <>BDC /T1_1 1 Tf 12.37 0 0 12.37 212.88 653.76 Tm (FEDERAL TRADE COMMISSION )Tj EMC /P <>BDC /T1_0 1 Tf 10.61 0 0 10.61 198.72 641.52 Tm (OFFICE OF ADMINISTRATIVE LAW JUDGES )Tj EMC /TH <>BDC 9.37 0 0 9.37 306.96 584.4 Tm (\) )Tj EMC /TH <>BDC 12.11 0 0 12.11 90.24 572.64 Tm (In the Matter of )Tj EMC /TD <>BDC 10.09 0 0 10.09 306.72 570.48 Tm (\) )Tj EMC /TD <>BDC 0 -1.38 TD (\) )Tj EMC /TH <>BDC 11.96 0 0 11.96 90 544.8 Tm (DANIEL CHAPTER ONE, )Tj EMC /TD <>BDC 10.09 0 0 10.09 306.72 542.64 Tm (\) )Tj EMC /TH <>BDC 11.99 0 0 11.99 126 531.12 Tm (a corporation, and )Tj EMC /TD <>BDC 10.09 0 0 10.09 306.72 528.96 Tm (\) )Tj EMC /TD <>BDC 11.93 0 0 11.93 342.96 531.36 Tm (DOCKET NO. 9329 )Tj EMC /TD <>BDC 10.09 0 0 10.09 306.72 515.04 Tm (\) )Tj EMC /TH <>BDC 11.89 0 0 11.89 90 503.28 Tm (JAMES FEIJO, )Tj EMC /TD <>BDC 10.09 0 0 10.09 306.72 501.36 Tm (\) )Tj EMC /TH <>BDC 11.87 0 0 11.87 126 489.6 Tm (Respondents. )Tj EMC /TD <>BDC 10.09 0 0 10.09 306.72 487.44 Tm (\) )Tj EMC /TD <>BDC 0 -1.308 TD (\) )Tj EMC /P <>BDC 12.57 0 0 12.57 91.2 433.92 Tm (ORDER DENYING RESPONDENTS' SECOND MOTION TO AMEND ANSWER )Tj EMC /LI_Label <>BDC 11.93 0 0 11.93 303.12 406.8 Tm (I. )Tj EMC /P <>BDC 12.02 0 0 12.02 126.24 379.2 Tm (On February 24, 2009, Respondents submitted a Second Motion to Amend )Tj 12.13 0 0 12.13 90 365.28 Tm (Answer and Memorandum in Support \("Second Motion to Amend"\). Complaint\ Counsel )Tj 11.99 0 0 11.99 90.48 351.6 Tm (submitted its Memorandum in Opposition to the Second Motion to Amend on \ March 5, )Tj -0.02 -1.141 Td (2009 \("Opposition"\). )Tj EMC /P <>BDC 12.02 0 0 12.02 126.24 310.56 Tm (Having fully considered the Second Motion to Amend and the Opposition, t\ he )Tj 11.94 0 0 11.94 90.48 296.64 Tm (Second Motion to Amend is DENIED. )Tj EMC /LI_Label <>BDC 12.57 0 0 12.57 300.72 269.04 Tm (II. )Tj EMC /P <>BDC /T1_1 1 Tf 11.06 0 0 11.06 126 241.44 Tm (On February 10,2009, pursuant to Commission Rule 3.15,16 C.F.R. \247 3.1\ 5, )Tj EMC /P <>BDC /T1_0 1 Tf 12.01 0 0 12.01 90 227.76 Tm (Respondents submitted a Motion to Amend their Answer to revise their res\ ponses to )Tj EMC /P <>BDC /T1_2 1 Tf 5 0 0 5 89.76 214.08 Tm (paragraphs 3, 5 and 14 of \001)Tj EMC /P <>BDC /T1_0 1 Tf 12.15 0 0 12.15 215.04 214.08 Tm (the Complaint \("First Motion to Amend"\). Complaint Counsel )Tj EMC /P <>BDC /T1_1 1 Tf 11.18 0 0 11.18 89.76 200.16 Tm (opposed the First Motion to Amend on February 20,2009. On March 4,2009, \ an order )Tj EMC /P <>BDC /T1_0 1 Tf 12.02 0 0 12.02 89.76 186.48 Tm (was issued denying the First Motion to Amend \("Order Denying First Moti\ on to )Tj 12.1 0 0 12.1 89.76 172.8 Tm (Amend"\). Respondents again seek leave to amend their Answer, pursuant t\ o Rule 3.15, )Tj 12.13 0 0 12.13 89.76 158.88 Tm (this time to add a First Affrmative Defense, as follows: )Tj EMC ET endstream endobj 920 0 obj <> endobj 921 0 obj <>stream application/pdf D-9329 Administrative Law Judge's Order Denying Respondents' Second Motion to Amend Answer FTC 2009-03-26T09:42:45-04:00 2009-03-26T09:42:45-04:00 2009-03-26T09:42:45-04:00 uuid:586178a3-3b92-4366-934b-9879671fe2d4 uuid:3d2f469b-0c33-4f6c-8e37-bb15ef525af0 endstream endobj xref 0 2 0000000482 65535 f 0000363772 00000 n 3 1 0000363937 00000 n 10 1 0000364181 00000 n 17 1 0000364427 00000 n 24 1 0000364673 00000 n 31 1 0000364920 00000 n 38 1 0000365167 00000 n 46 15 0000365417 00000 n 0000365526 00000 n 0000365633 00000 n 0000366786 00000 n 0000367941 00000 n 0000369095 00000 n 0000369202 00000 n 0000369311 00000 n 0000370465 00000 n 0000370572 00000 n 0000370679 00000 n 0000371834 00000 n 0000372988 00000 n 0000373097 00000 n 0000374251 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