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Beeck v. Aquaslide 'N' Dive Corp.

United States Court of Appeals for the Eighth Circuit · 1977 · Civil Procedure

Civil ProcedurepleadingamendmentRule 15relation backRule 15(a)Rule 42(b)amendment of pleadings

Facts

Jerry Beeck was severely injured while using a water slide at Kimberly Village. Aquaslide initially admitted in its answer, and later in interrogatory answers, that it designed, manufactured, assembled, and sold the slide, relying on investigations by three insurers that had all concluded the slide was an Aquaslide product. About six and one-half months after the statute of limitations expired, Aquaslide's president personally inspected the slide and determined it was not Aquaslide's product, after which Aquaslide moved to amend its answer to deny manufacture. The district court granted leave to amend and later ordered a separate trial limited to whether Aquaslide designed, manufactured, or sold the slide.

Issue

Did the district court abuse its discretion by allowing Aquaslide to amend its answer after the statute of limitations had run so that it could deny manufacture of the slide? Did the district court also abuse its discretion by ordering a separate trial on the manufacture issue under Rule 42(b)?

Rule

Under Rule 15(a), once issue is joined, a pleading may be amended only by leave of court or written consent of the adverse party, and leave shall be freely given when justice so requires. In deciding whether to allow amendment, the court considers factors such as undue delay, bad faith or dilatory motive, repeated failure to cure deficiencies, undue prejudice to the opposing party, and futility; prejudice must be shown, and the burden is on the party opposing amendment. A district court's ruling on leave to amend and on ordering separate trials under Rule 42(b) is reviewed only for abuse of discretion. Under Rule 42(b), a separate trial may be ordered in furtherance of convenience, to avoid prejudice, or when conducive to expedition and economy.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

In a diversity products suit in federal court in Omaha, Nora Feld sued Prairie Crest Recreation Systems, alleging it manufactured a backyard zipline that collapsed. Prairie Crest admitted manufacture in its answer based on reports from two insurers and a retailer file, but after the limitations period expired its engineering director inspected the device and concluded it was made by another company, then promptly moved to amend the answer to deny manufacture.

How should the district court most likely rule on Prairie Crest's motion for leave to amend?

Explanation. Under the majority's Rule 15(a) analysis, leave to amend should be freely given absent reasons such as bad faith, undue delay, or undue prejudice. The fact that the defendant earlier admitted manufacture does not automatically bar amendment, even after limitations has run. The opposing party bears the burden of showing prejudice, and the court may allow amendment so the defendant can litigate the material factual issue on the merits.