Stanford v. Rosebud County

839 P.2d 93, 254 Mont. 474, 49 State Rptr. 828, 1992 Mont. LEXIS 261
CourtMontana Supreme Court
DecidedSeptember 22, 1992
Docket92-190
StatusPublished
Cited by11 cases

This text of 839 P.2d 93 (Stanford v. Rosebud County) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stanford v. Rosebud County, 839 P.2d 93, 254 Mont. 474, 49 State Rptr. 828, 1992 Mont. LEXIS 261 (Mo. 1992).

Opinion

JUSTICE GRAY

delivered the Opinion of the Court.

Appellants Boyd and Mavis Kincheloe appeal from an order of the Sixteenth Judicial District Court, Rosebud County, denying their Motion to Amend and Supplement their pleadings. We affirm.

The sole issue on appeal is whether the District Court abused its discretion in denying appellants’ motion to amend their pleadings.

The facts in this case are set forth in our opinion in Stanford v. Rosebud County (1991), 251 Mont. 128, 822 P.2d 1074. Litigation over the disputed royalty interest began with an interpleader action in the federal district court in Billings, Montana, in 1978. On destruction of diversity jurisdiction, that action was removed to the Sixteenth Judicial District, Rosebud County where it subsequently was consolidated with this action by plaintiffs/respondents Stanford. The litigation has proceeded, albeit intermittently, since that time.

The procedural events relevant to the issue before us begin with the District Court’s scheduling conference on March 21, 1989, at which the case was set for trial on January 9,1990. After a subsequent hearing on various motions by the parties, the District Court entered an order which, in pertinent part, directed the parties to file a statement of their claims, “setting forth all right, title and interest they claim in and to the remaining 3.125% royalty interest.” The parties’ statements of claim were filed by September 18,1989. Appel *476 lants claimed title to a 75% proportional share in the royalty interest based on their underlying mineral interest.

Appellants subsequently moved for, and were granted, summary judgment on their claim. We reversed on appeal on December 16, 1991. After denial of appellants’ petition for rehearing, the case remitted to the District Court on January 15, 1992.

Appellants moved to amend their pleadings on January 17, 1992, to add a new theory of recovery based on constructive trust. Respondents Hoefle and Cranston moved to join a real party in interest on February 3,1992. The District Court granted respondents’motion on March 13, and denied appellants’ motion on March 30, 1992.

Did the District Court abuse its discretion in denying appellants’ motion to amend their pleadings?

The District Court denied leave to amend based on its 1989 order mandating statements of all claim, the length of time the case had been pending, and the lack of a showing of good cause why the claim appellants sought to assert was not raised prior to the summary judgment ruling. Appellants contend that the court abused its discretion.

Appellants rely on Rule 15, M.R.Civ.P., which requires that leave to amend be freely granted. They cite Village Bank v. Cloutier (1991), 249 Mont. 25, 813 P.2d 971, for the proposition that refusal to allow an amendment offered at an opportune time and necessary in the furtherance of justice is an abuse of discretion.

It is axiomatic that Rule 15, M.R.Civ.P, requires that leave to amend be freely given when justice so requires. Our cases in support of liberality in allowing amendments are so numerous and well-settled as to require no recitation here. In the case before us, the significant fact is that appellants’ motion was made after this Court held that they had established no claim to title. Appellants’ argument is that, even after judgment against them, they are entitled to amend under the liberality doctrine. Acceptance of this argument essentially would revise Rule 15 to require leave to amend at any time and remove all discretion from the district courts. Neither the Rule nor our cases support such a result.

In addition, while appellants correctly state the principles regarding liberality in allowing amendments to pleadings from Cloutier, they fail to take into account the facts of that case. In Cloutier, defendants moved to amend; for the most part, the amendments sought to redesignate as defenses matters originally pleaded as counterclaims. The district court did not rule on the motion. Some *477 five months later, the district court entered summary judgment against defendants on the basis of their original pleading. We reversed, concluding that the court abused its discretion in refusing to permit amendments offered at an opportune time and resulting in little, if any, prejudice to plaintiff. Cloutier, 249 Mont. at 28, 813 P.2d at 973.

The facts before us differ significantly from those in Cloutier. In August, 1989, the District Court directed the parties to file statements of claim setting forth all right, title and interest to the disputed royalty. Appellants’ statement of claim did not assert the constructive trust theory they now seek to add. At no time prior to their motion for summary judgment did appellants seek leave to amend; instead, they successfully proceeded to summary judgment on their asserted claim in the District Court. Only after reversal of that judgment, based on a conclusion by this Court that appellants failed to demonstrate any claim to title whatsoever, did appellants attempt to assert — for the first time in this litigation which has been ongoing for nearly fourteen years — a claim based on a constructive trust theory. Under these facts, there is nothing “opportune” about the timing of appellants’ motion for leave to amend.

Appellants also rely on other Montana cases which they assert support their entitlement to amend their pleadings: Priest v. Taylor (1987), 227 Mont. 370, 740 P.2d 648; White v. Lobdell (1984), 208 Mont. 295, 678 P.2d 637; Prentice Lumber Co. v. Hukill (1972), 161 Mont. 8, 504 P.2d 277. None of these cases involved an effort to amend pleadings after the party had lost on its original claim.

Appellants’ final argument relates to the fact that the District Court allowed respondents Stanford to amend to add a real party in interest after our Stanford decision, while denying their motion to amend. We need note only briefly that the two situations are not analogous. Other differences aside, judgment has not been entered against the Stanfords on their claims.

Appellants have cited no authority for the proposition that, under Rule 15 and the liberality doctrine, they are entitled to amend their pleadings when the motion to amend is made after judgment has been entered against them and that denial of such a motion constitutes an abuse of discretion. Indeed, both common sense and authority are to the contrary. The result contended for would allow seriatim assertion of claims. Under such a process, one of the important thrusts of the rules of civil and appellate procedure — that actions contain all related claims and parties in order that cases proceed in an orderly

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Bluebook (online)
839 P.2d 93, 254 Mont. 474, 49 State Rptr. 828, 1992 Mont. LEXIS 261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stanford-v-rosebud-county-mont-1992.