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7th Circuit reverses on relation back issue

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A plaintiff attempting to sue his employer for breach of contract should have been able to file an amended complaint with relation back to the date of the original complaint in order to correct the defendant even though the statute of limitations had expired, the 7th Circuit Court of Appeals concluded today.

In Rex M. Joseph Jr., trustee of the bankruptcy estate of Timothy Wardrop v. Elan Motorsports Technologies Racing Corp., No. 10-1420, Timothy Wardrop originally sued Elan Motorsports Technology Racing Corp. alleging breach of a written employment contract. Several years later, Wardrop, who at some point during the litigation went bankrupt, discovered he named the wrong defendant and his employer was actually Elan Motorsports Technologies Inc. He sought leave to amend the complaint to change the defendant to Elan Inc. with relation back to the date of the original complaint.

The District judge ruled the proposed amended complaint didn’t relate back, relying on Hall v. Norfolk Southern Ry., 469 F.3d 590, 596 (7th Circ. 2006), saying it was Wardrop’s responsibility to determine the proper party to sue and do so before the statute of limitations expires. The District judge dismissed the suit after concluding there was no controversy between the parties.

But that was an error, the 7th Circuit ruled, citing Krupski v. Costa Crociere S.p.A., 130 S.Ct. 2485 (2010), which changed what courts had understood to be the proper standard for deciding whether an amended complaint relates back to the date of the filing of the original complaint. The only two inquires a District Court is allowed to make regarding this issue is whether the defendant who is sought to be added by the amendment knew or should have known that the plaintiff, had it not been for a mistake, would have sued him instead; and whether even if so, the delay in the plaintiff’s discovering the mistake impaired the new defendant’s ability to defend himself.

“The fact that the plaintiff was careless in failing to discover his mistake is relevant to a defendant’s claim of prejudice; the longer the delay in amending the complaint was, the likelier the new defendant is to have been placed at a disadvantage in the litigation. But carelessness is no longer a ground independent of prejudice for refusing to allow relation back,” wrote Judge Richard Posner.

Elan Inc. knew that Wardrop intended to sue it instead of Elan Racing but did nothing to clear up the confusion. It knew that Wardrop had his employment contract with Elan Inc. In addition, Elan Inc. brought on itself any harm it has suffered from the delay and can’t be allowed to gain an advantage from doing that, he continued.

The judges ordered the District Court to allow the amended complaint substituting Elan Inc. as the defendant with relation back to the original date of the complaint. Also on remand, the District judge should consider whether the differences between the amendment complaint and the original warrant rejection of the amended complaint.
 

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  1. Some are above the law in Indiana. Some lined up with Lodges have controlled power in the state since the 1920s when the Klan ruled Indiana. Consider the comments at this post and note the international h.q. in Indianapolis. http://www.theindianalawyer.com/human-trafficking-rising-in-indiana/PARAMS/article/42468. Brave journalists need to take this child torturing, above the law and antimarriage cult on just like The Globe courageously took on Cardinal Law. Are there any brave Hoosier journalists?

  2. I am nearing 66 years old..... I have no interest in contacting anyone. All I need to have is a nationality....a REAL Birthday...... the place U was born...... my soul will never be at peace. I have lived my life without identity.... if anyone can help me please contact me.

  3. This is the dissent discussed in the comment below. See comments on that story for an amazing discussion of likely judicial corruption of some kind, the rejection of the rule of law at the very least. http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774#comment

  4. That means much to me, thank you. My own communion, to which I came in my 30's from a protestant evangelical background, refuses to so affirm me, the Bishop's courtiers all saying, when it matters, that they defer to the state, and trust that the state would not be wrong as to me. (LIttle did I know that is the most common modernist catholic position on the state -- at least when the state acts consistent with the philosophy of the democrat party). I asked my RCC pastor to stand with me before the Examiners after they demanded that I disavow God's law on the record .... he refused, saying the Bishop would not allow it. I filed all of my file in the open in federal court so the Bishop's men could see what had been done ... they refused to look. (But the 7th Cir and federal judge Theresa Springmann gave me the honor of admission after so reading, even though ISC had denied me, rendering me a very rare bird). Such affirmation from a fellow believer as you have done here has been rare for me, and that dearth of solidarity, and the economic pain visited upon my wife and five children, have been the hardest part of the struggle. They did indeed banish me, for life, and so, in substance did the the Diocese, which treated me like a pariah, but thanks to this ezine ... and this is simply amazing to me .... because of this ezine I am not silenced. This ezine allowing us to speak to the corruption that the former chief "justice" left behind, yet embedded in his systems when he retired ... the openness to discuss that corruption (like that revealed in the recent whistleblowing dissent by courageous Justice David and fresh breath of air Chief Justice Rush,) is a great example of the First Amendment at work. I will not be silenced as long as this tree falling in the wood can be heard. The Hoosier Judiciary has deep seated problems, generational corruption, ideological corruption. Many cases demonstrate this. It must be spotlighted. The corrupted system has no hold on me now, none. I have survived their best shots. It is now my time to not be silent. To the Glory of God, and for the good of man's law. (It almost always works that way as to the true law, as I explained the bar examiners -- who refused to follow even their own statutory law and violated core organic law when banishing me for life -- actually revealing themselves to be lawless.)

  5. to answer your questions, you would still be practicing law and its very sad because we need lawyers like you to stand up for the little guy who have no voice. You probably were a threat to them and they didnt know how to handle the truth and did not want anyone to "rock the boat" so instead of allowing you to keep praticing they banished you, silenced you , the cowards that they are.

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