Plastic2Oil Inc (PTOI)

[Johnik]

The judge basically granted JBI's motion to dismiss for failure to state a claim, but gave Kidd 20 days to amend his complaint to state an actual claim. I am assuming that along with the substitution of counsel will be a motion for extension of time within which to file an amended complaint.

I agree completely. I am also anticipating a motion for an extension of time to file an amended complaint in an effort to correct the deficiency in Kidd's pleading. That 20 day grace period for filing an amendment expires at the end of the day Feb. 28 (if I calculated correctly), so I assume we will see such motion on the docket very soon, if there will be one.

If and when Kidd files an amended complaint in accordance with the court's prior order, the issue will then be whether such amendment corrects the deficiency. If the amendment fails to do so (again, assuming a timely filing), then the court will undoubtedly reject the amendment and dismiss the case once it comes up for status review.

From my perspective:

---pro JBI: The court, according to the docket, has already dismissed the case once without affording Kidd a hearing. Allowance of JBI's motion to dismiss prior to the scheduled hearing suggests that the court greatly doubts the potential merits of Kidd's claims, in my opinion.

---con JBI: Courts are very lenient at the initial stages of a lawsuit, and are thus very hesitant to grant a motion to dismiss. In most cases, the court accepts the plaintiff's version of the facts, and affords the plaintiff (here Kidd) all reasonable inferences drawn therefrom. By changing counsel, it is at least plausible that Kidd could reframe his complaint in a manner that would survive the minimal hurdle of a motion to dismiss.

I expect to see some form of curative motion from Kidd within the next several days. I'm curious as to whether such amendment will revitalize Kidd's presently dismissed case against JBI. We should find out very soon.