ILNews

7th Circuit reverses on relation back issue

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Linda, I sure hope you are not seeking a law license, for such eighteenth century sentiments could result in your denial in some jurisdictions minting attorneys for our tolerant and inclusive profession.

  2. Mazel Tov to the newlyweds. And to those bakers, photographers, printers, clerks, judges and others who will lose careers and social standing for not saluting the New World (Dis)Order, we can all direct our Two Minutes of Hate as Big Brother asks of us. Progress! Onward!

  3. My daughter was taken from my home at the end of June/2014. I said I would sign the safety plan but my husband would not. My husband said he would leave the house so my daughter could stay with me but the case worker said no her mind is made up she is taking my daughter. My daughter went to a friends and then the friend filed a restraining order which she was told by dcs if she did not then they would take my daughter away from her. The restraining order was not in effect until we were to go to court. Eventually it was dropped but for 2 months DCS refused to allow me to have any contact and was using the restraining order as the reason but it was not in effect. This was Dcs violating my rights. Please help me I don't have the money for an attorney. Can anyone take this case Pro Bono?

  4. If justice is not found in a court room, it's time to clean house!!! Even judges are accountable to a higher Judge!!!

  5. The small claims system, based on my recent and current usage of it, is not exactly a shining example of justice prevailing. The system appears slow and clunky and people involved seem uninterested in actually serving justice within a reasonable time frame. Any improvement in accountability and performance would gain a vote from me. Speaking of voting, what do the people know about judges and justice from the bench perspective. I think they have a tendency to "vote" for judges based on party affiliation or name coolness factor (like Stoner, for example!). I don't know what to do in my current situation other than grin and bear it, but my case is an example of things working neither smoothly, effectively nor expeditiously. After this experience I'd pay more to have the higher courts hear the case -- if I had the money. Oh the conundrum.

ADVERTISEMENT