A. Cherney Disposal Co. v. Chicago & Suburban Refuse Disposal Corp.

68 F.R.D. 383, 1975 U.S. Dist. LEXIS 16515
District Court, N.D. Illinois·Decided August 19, 1975·No. No. 70 C 1052·Published·Cited by 32 cases

Opinion

RULING ON MOTION

AUSTIN, District Judge.

Plaintiffs filed the original complaint in this action on May 4, 1970, joining 29 defendants and stating a single claim under Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1, 2 (1970). More than five years later, after extensive [385] discovery and a successful appeal from a dismissal on the jurisdictional question still to be resolved, plaintiffs now have moved to amend and supplement their complaint by adding six new defendants and three new counts. As amended, the complaint would name all the new defendants under the present single count, but would name only a few of the original defendants under the four new counts. Two of the proposed counts assert claims only against new defendants.

Under Rule 15(a) of the Federal Rules of Civil Procedure, a party may amend a pleading after a responsive pleading has been filed, but “only by leave of court or by written consent of the adverse party.” Rule 15(d) gives the court similar discretionary power to permit supplementary pleadings. Nothing in the Rules prohibits the addition of new claims and defendants by amendment.

Rule 15(a) provides that “leave shall be freely given when justice so requires,” and the Supreme Court has held that leave should be freely given “[i]n the absence of any apparent or declared reason — such as undue delay, bad faith or dilatory motive on the part of movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, etc. . . . ” Foman v. Davis, 371 U.S. 178, at 182, 83 S.Ct. 227, at 230, 9 L.Ed.2d 222 (1962). That language infers, and the precedent is nearly unanimous in holding, that denial of a motion to amend may not be based solely on the fact that it is offered late in the case. 3 Moore’s Federal Practice ¶ 15.08. The proper inquiry, and the one to be undertaken here, is whether the amendment would result in undue prejudice to defendants. United States v. Hougham, 364 U.S. 310, 316, 81 S.Ct. 13, 5 L.Ed.2d 8 (1960) ; Hageman v. Signal L. P. Gas, Inc., 486 F.2d 479, 484 (6th Cir. 1973); Howey v. United States, 481 F.2d 1187, 1190 (9th Cir. 1973); Strauss v. Douglas Aircraft, 404 F.2d 1152, 1158 (2d Cir., 1968); United States v. International Business Machines Corp., 1975 Trade Cases ¶ 16,104 (S.D.N.Y.); 3 Moore’s Federal Practice ¶ 15.08 [4]. Where substantial prejudice is demonstrated, the amendment will be denied. See, e. g., Suehle v. Markem Machine Co., 38 F.R.D. 69 (E.D.Pa.1965). A similar analysis is required under Rule 15(c). See Reid v. International Union, 479 F. 2d 517 (10th Cir. 1973), cert. denied, 414 U.S. 1076, 94 S.Ct. 572, 38 L.Ed.2d 483 (1973); Montgomery Environmental Coalition v. Fri, 366 F.Supp. 261, 265-66 (D.D.C.1973).

Prejudice is generally found in cases characterized by some or all of the following circumstances: The motion comes on the eve of trial after many months or years of pretrial activity; e. g., Dale Hilton v. Triangle Publications, 5 Fed.R.Serv.2d 185 (S.D.N.Y.1961); Data Digests, Inc. v. Standard & Poor’s Corp., 57 F.R.D. 42 (S.D.N.Y.1972); the amendment would cause undue delay in the final disposition of the case; e. g., Bradick v. Israel, 377 F.2d 262 (2d Cir. 1967); Johnson v. Sales Consultants, 61 F.R.D. 369 (N.D.Ill.1973); Suehle v. Markem Machine Co., supra; the amendment brings entirely new and separate claims, adds new parties, or at least entails more than an alternative claim or a change in the allegations of the complaint; e. g., Collings v. Bush Mfg. Co., 19 F.R.D. 297 (S.D.N.Y.1956); Data Digests, Inc. v. Standard & Poor’s Corp., supra; Johnson v. Sales Consultants, supra; Suehle v. Markem Machine Co., supra; witnesses have become unavailable for examination and the memories of others may have dimmed; e. g., Data Digests, Inc. v. Standard & Poor’s Corp., supra; Kemwel Auto Co. v. Ford Motor Co., 10 Fed.R.Serv.2d 239 (S.D.N.Y.1966); and, the amendment would require expensive and time-consuming new discovery; e. g., Data Digests v. Standard & Poor’s Corp., supra; McPhail v. Bangor Punta Corp., 58 F.R.D. [386]*386638 (E.D.Wis.1973); Suehle v. Markem, supra.

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A. Cherney Disposal Co. v. Chicago & Suburban Refuse Disposal Corp., 68 F.R.D. 383, 1975 U.S. Dist. LEXIS 16515 (N.D. Ill. 1975).

68 F.R.D. 383 (A. Cherney Disposal Co. v. Chicago & Suburban Refuse Disposal Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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