Aim Small, Win Big
After two decades, I believe the single-greatest contributor to overly-protracted litigation is not crowded dockets or overworked court staff or massive discovery obligations. The root cause is almost always found in a party’s belief that it may recover to damages to which it is not entitled as a matter of law.
A plaintiff’s complaint will often adequately state a cause of action, making a traditional Rule 12(b) motion to dismiss somewhat unattractive. Many clients don’t want to file a motion to dismiss unless they can knock out the entire case. After all, why spend $30-50k on a motion if you have to keep coming back to the courthouse?
But many times, simply limiting the scope of a litigation can dramatically change the dynamic, particularly if a party can limit the damages that might be available to a plaintiff. For most clients, turning a $65 million bet-the-company litigation into a $5 million problem — or a $3 million case into a six-figure nuisance — can be tantamount to victory.
Especially in breach of contract actions — where the interpretation of an unambiguous contract is entirely within the Court’s province — aiming a little smaller than dismissing an entire case can reap major rewards.
One of the more under-utilized weapons to change the scope of a case is the motion for judgment on the pleadings. Under Rule 12(c) of the Federal Rules of Civil Procedure, any party may — after the pleadings are closed but early enough not to delay trial — file a motion for judgment on the pleadings.
When an adversary suggests an interpretation of a contract that I believe is incorrect as a matter of law, 12(c) alarm bells go off in my head. The plaintiff’s interpretation of the contract — right or wrong — dictates everything from document requests to deposition questions to requests for admissions.
Using Rule 12(c) motions over the years, we have convinced courts to provide early guidance on the meaning of contract terms in ways that have foreclosed certain discovery and eliminated millions in damages.
12(c) motions can be particularly devastating if rolled out after the deadline to amend pleadings in a Court-issued case management order.