Wendy's International, Inc. v. Nu-Cape Construction, Inc.

169 F.R.D. 680, 1996 U.S. Dist. LEXIS 16981, 1996 WL 663486
District Court, M.D. Florida·Decided November 14, 1996·No. No. 93-162-CIV-FTM-17D·Published·Cited by 64 cases

Opinion

KOVACHEVICH, Chief Judge.

This cause of action is before the Court on the Defendant’s motion to alter or amend or, in the alternative, for relief from this Court’s order entered on April 14, 1996, denying defendant’s request for costs and attorney fees and granting plaintiffs motion for Rule 11 sanctions (Docket No. 93), and the plaintiffs response thereto (Docket No. 95).

BACKGROUND

This cause of action originated out of a fire which damaged a Wendy’s International, Inc. (Wendy’s) owned restaurant in Cape Coral, Florida (hereinafter “the restaurant”). On June 17, 1993, Wendy’s filed a complaint against Hobart Corporation (Hobart), the' manufacturer of the instrumentality which allegedly caused Wendy’s damages. (Docket No. 1). After learning through discovery that Nu-Cape Construction, Inc. (Nu-Cape) was the general contractor for the construction of the restaurant, Wendy’s filed an amended complaint naming Nu-Cape as-an additional party defendant. (Docket No. 20)

In the first amended complaint, Wendy’s alleged that Nu-Cape, as the general contractor, was responsible for the restaurant’s construction through either its employees, agents, subcontractors, or servants. Wendy’s alleged that Nu-Cape was negligent, through acts, errors, or omission, in overseeing the construction. Furthermore, Wendy’s [684]*684alleged that Nu-Cape breached its construction contract with Wendy’s.

Wendy’s settled its claim against Hobart and another co-defendant, and as a condition to settlement, Wendy’s dismissed its claims against all remaining defendants. Nu-Cape refused to stipulate to voluntary dismissal and Wendy’s was therefore required to file a motion with the Court to dismiss. The Court entered an order granting voluntary dismissal on September 26, 1995. (Docket No. 77)

Nu-Cape subsequently filed a motion for attorney fees pursuant to Federal Rule of Civil Procedure 41(a). (Docket No. 78). Thereafter, Wendy’s filed a motion for sanctions under Federal Rule of Civil Procedure 11, alleging that Nu-Cape’s motion for costs and attorney fees was improper and frivolous. (Docket No. 82). This Court entered an order on March 14, 1996, denying Nu-Cape’s motion for costs and fees and granting Wendy’s request for Rule 11 sanctions against Nu-Cape’s attorney, Robert Burandt (hereinafter “Burandt”), only as to the reasonable attorney fees and costs incurred in responding to Nu-Cape’s motion for costs and attorney fees and in filing its motion for sanctions. (Docket No. 85). The parties were ordered to attempt to reach a stipulation as to reasonable costs and fees, and if no agreement could be reached, Wendy’s would be allowed thirty (30) days to submit proper documentation.

On April 5, 1996, Nu-Cape filed a motion to alter or amend judgment which this Court denied on April 15 for failure to comply with local rules. (Docket No. 86). On April 12, Nu-Cape filed a motion for extension of time to comply with the Court’s March 14th order regarding the stipulation of attorney fees and costs. (Docket No. 89). On April 17, 1996, this Court granted a thirty (30) day extension to submit documentation in support of costs and fees. (Docket No. 91).

On May 23, the parties filed a joint stipulation as to attorney fees and costs, which stated that Burandt’s right to appeal would not be prejudiced, and that stipulation was accepted by this Court on May 31, 1996. (Docket No. 92). On June 5, 1996, Nu-Cape filed a second motion to alter or amend the Court’s March 14th order pursuant to Rule 59(e), or, in the alternative, for relief pursuant to Rule 60(b) of the Federal Rules of Civil Procedure, which is the motion underlying this order. (Docket No. 93).

DISCUSSION

The Federal Rules of Civil Procedure allow a litigant, subject to an adverse judgment, to file either a motion to alter or amend under Rule 59(e) or a motion seeking relief from judgment under Rule 60(b). Rule 59(e) and Rule 60(b) “are distinct; they serve different purposes and produce different consequences.” Van Skiver v. United States, 952 F.2d 1241 (10th Cir.1991), cert. denied, 506 U.S. 828, 113 S.Ct. 89, 121 L.Ed.2d 51 (1992). Whether a motion challenging a judgment on the merits should be considered as a motion to alter or amend, or as a motion for relief from judgment turns upon the time at which the motion is served. If it is served within ten (10) days of rendition of the judgment, the motion should be considered as one to alter or amend, and if it is served after that time, it should be considered a motion for relief from judgment. Mounkes v. Conklin, 922 F.Supp. 1501 (D.Kan.1996); Hindin/Owen/Engelke, Inc. v. GRM Industries, Inc., 869 F.Supp. 539 (N.D.Ill.1994).

Standard of Review for Motion to Alter or Amend Pursuant to Rule 59(e)

The decision of whether to grant or deny a Rule 59(e) motion is discretionary. Matter of Prince, 85 F.3d 314 (7th Cir.1996). The Court may properly reconsider its grant of sanctions and denial of attorney fees and costs upon the timely filing of a motion to alter or amend by one of the parties. Federal Rule of Civil Procedure 59(e) (hereinafter “Rule 59(e)”). A motion to alter or amend a judgment must demonstrate why the court should reconsider its prior decision and “set forth facts or law of a strongly convincing nature to induce the court to reverse its prior decision.” Cover v. Wal-Mart Stores, Inc., 148 F.R.D. 294 (M.D.Fla.1993). This Court has recognized three (3) grounds justifying reconsideration of an order: (1) an intervening change in controlling law; (2) the availability of new evidence; and (3) the need to correct clear error or manifest injustice. [685]*685Sussman v. Salem, Saxon & Nielsen, P.A., 153 F.R.D. 689, 694 (M.D.Fla.1994); see also Kern-Tulare Water Dist. v. City of Bakersfield, 634 F.Supp. 656, 665 (E.D.Cal.1986). However, this Court recognizes that reconsideration of a previous order is an extraordinary remedy to be employed sparingly in the interests of finality and conservation of scarce judicial resources. Pennsylvania Ins. Guar. Ass’n v. Trabosh, 812 F.Supp. 522 (E.D.Pa.1992). Nu-Cape relies on the need to correct clear error and manifest injustice to justify reconsideration of this Court’s previous order.

Untimely Filing

Nu-Cape seeks relief under Rule 59(e); however, such motion is precluded due to untimely filing. A motion to alter or amend a judgment must be served “not later than 10 days after entry of the judgment.” Rule 59(e). Time periods for filing motions for amendment to or relief from judgment are mandatory and jurisdictional. Wright v. Preferred Research, Inc., 891 F.2d 886 (11th Cir.1990); Scutieri v. Estate of Revitz, 829 F.Supp. 387 (S.D.Fla.1993).

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Wendy's International, Inc. v. Nu-Cape Construction, Inc., 169 F.R.D. 680, 1996 U.S. Dist. LEXIS 16981, 1996 WL 663486 (M.D. Fla. 1996).

169 F.R.D. 680 (Wendy's International, Inc. v. Nu-Cape Construction, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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