Baybank Connecticut, N.A. v. Kravitz

170 F.R.D. 343, 37 Fed. R. Serv. 3d 685, 1997 U.S. Dist. LEXIS 1536, 1997 WL 64095
CourtDistrict Court, D. Massachusetts
DecidedFebruary 6, 1997
DocketCivil Action No. 95-30240-FHF
StatusPublished
Cited by1 cases

This text of 170 F.R.D. 343 (Baybank Connecticut, N.A. v. Kravitz) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baybank Connecticut, N.A. v. Kravitz, 170 F.R.D. 343, 37 Fed. R. Serv. 3d 685, 1997 U.S. Dist. LEXIS 1536, 1997 WL 64095 (D. Mass. 1997).

Opinion

MEMORANDUM AND ORDER WITH REGARD TO DEFENDANT BARBARA KRAVITZ’S MOTION TO AMEND ANSWER (Docket No. 17) and MOTION TO AMEND of DEFENDANT ROBERT KRAVITZ, EXECUTOR OF THE ESTATE OF WALTER KRAVITZ (Docket No. 20)

NEIMAN, United States Magistrate Judge.

I. INTRODUCTION

The instant matter concerns the efforts by Plaintiff BayBank Connecticut, N.A. (“Bay-Bank”), to collect on a note executed on March 1, 1992 by Walter Kravitz and to enforce the terms of a certain Preferred Ship Mortgage (“mortgage”) granted as security for the note. The mortgage was signed on May 14, 1992, by Walter Kravitz as guarantor and, ostensibly, by Barbara Kravitz as mortgagor.

At the time the mortgage was executed, Barbara Kravitz was the sole owner of the vessel known as “Barb’s Way.” Because the vessel was beyond the limits of the United States at the time this action was commenced, BayBank sought and was granted a writ of attachment in the amount of $30,000 on the real property of Barbara Kravitz located in Longmeadow, Massachusetts.

On December 28, 1995, subsequent to the issuance of the writ of attachment, Walter Kravitz and Barbara Kravitz answered the complaint and, in applicable part, admitted that Barbara Kravitz had executed the mortgage. Curiously, Walter Kravitz denied that, as guarantor, he executed and delivered the very same mortgage to BayBank. In any [344]*344case, the parties have since informed the Court that no discovery was undertaken pursuant to the scheduling order, which had otherwise required that written discovery requests be filed by May 15,1996.

Walter Kravitz died on May 23,1996 and a suggestion of death was filed shortly thereafter. (See Docket No. 16.) Robert Kravitz, Walter Kravitz’s son and Barbara Kravitz’s stepson, was appointed executor of the estate on November 6, 1996. Soon thereafter, Robert Kravitz moved to substitute the estate for Walter Kravitz as a party to the action, which motion was allowed. (See Docket No. 18.)

Robert Kravitz, as executor of the estate of Walter Kravitz, and Barbara Kravitz (collectively “Defendants”) now seek to amend the answer originally provided, describing that answer as “untrue and in error.”1 In essence, Defendants assert that Walter Kravitz not only signed his own name to the mortgage as guarantor, but signed Barbara Kravitz’s name as mortgagor. Both Defendants now assert that “[sjaid signature is a forgery.” Barbara Kravitz herself further asserts that she never instructed, authorized or allowed Walter Kravitz to sign her name, that she was not aware of the forgery and that when she received a demand from Bay-Bank relative to the mortgage, and indeed the complaint itself, Walter Kravitz indicated to her that he would handle the entire matter. Historically, Barbara Kravitz continues, Walter Kravitz had undertaken all business dealings with BayBank concerning the note and that she “had no part in the preparation and formation of the Answer to the complaint herein, the matter having been directed solely by Walter Kravitz.” Moreover, both Defendants assert that “[throughout the pendency of this suit, Barbara Kravitz was unaware of the status of the suit, the existence of the forgery and of the admissions attributed to her.” 2

II. DISCUSSION

Although admissions in pleadings are generally binding on the party who made them, see, e.g. Action Mfg., Inc. v. Fairhaven Textile Corp., 790 F.2d 164, 165 (1st Cir.1986); Romero Reyes v. Marine Enterprises, Inc., 494 F.2d 866, 868-69 (1st Cir.1974), Rule 15(a) of the Federal Rules of Civil Procedure provides that leave to amend “shall be freely given when justice so requires.” The United States Supreme Court has stated that the liberal amendment policy of Rule 15(a) is a mandate to be heeded. Even so, an amendment need not be granted in the face of “undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, futility of amendment, etc.” Foman v. Davis, 371 U.S. 178, 182, 183, 83 S.Ct. 227, 230, 9 L.Ed.2d 222 (1962). See also Correa-Martinez v. Arrillaga-Belendez, 903 F.2d 49, 59 (1st Cir.1990) (amendment that “would be futile or would serve no legitimate purpose” should not be allowed). Applying these policies to Defendants’ motions to amend their answers, the Court allows Barbara Kravitz’s motion, but denies Robert Kravitz’s motion as executor of Walter Kravitz’s estate.

A Barbara Kravitz

With respect to Barbara Kravitz, her motion was filed in a timely manner given the information she had. Thus, as both she and Robert Kravitz assert, Barbara Kravitz was only made aware of the forgery at some time after the death of her husband. It was [345]*345then that she learned from Robert Kravitz, as it turns out, that her' husband had admitted to Robert Kravitz that he had forged her name to the mortgage; she then examined the mortgage for the first time and saw the forgery. It therefore cannot be said that her request to amend results from any bad faith or dilatory motive. Cf Garwood v. Int’l Paper Co., 666 F.2d 217, 219-20 (6th Cir.1982) (mistake in the answer learned immediately prior to motion).

Neither is there any apparent, futility to the amendment. Assuming the truth of Barbara Kravitz’s allegations, the amendment creates not only a possible defense to Bay-Bank’s action, but a potential cross-claim against Walter Kravitz’s estate as well. As indicated, the vessel “Barb’s Way” is solely owned by Barbara Kravitz and has been encumbered by a mortgage which she may not have granted.3

The Court has considered, as it must, that its allowance of Barbara Kravitz’s motion may result in some prejudice to BayBank. See Palumbo v. Roberti, 884 F.Supp. 46, 54 (D.Mass.1993) (citing eases). Thus, as Bay-Bank argues, it did not pursue or need to pursue any discovery given the admissions in the original answer. Were the amendments allowed, BayBank argues, it would necessarily have to undertake discovery without the presence of Walter Kravitz, who had otherwise admitted the genuineness of the executed mortgage. In the Court’s view, however, this prejudice is not “undue” with respect to Barbara Kravitz, and she should have the opportunity to pursue not only this defense but potential cross-claims against the estate. See St. Paul Fire and Marine Insurance Company v. United States, 31 Fed.Cl. 151, 153 (1994) (defendant entitled to file amended answer when there is no showing of undue prejudice) (citing cases).

In short, at this stage of the proceedings, there is no indication that the amendment to Barbara Kravitz’s answer would be futile or serve no legitimate purpose. Because the underlying facts and circumstances relied upon by Barbara Kravitz appear to be a proper subject of relief, she ought to be afforded an opportunity to test her pleading on the merits.

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170 F.R.D. 343, 37 Fed. R. Serv. 3d 685, 1997 U.S. Dist. LEXIS 1536, 1997 WL 64095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baybank-connecticut-na-v-kravitz-mad-1997.