FILED U.S. COURT OF AP P E A LS E LE V EN T HC IRC U IT JUNE 6, 2005 THOMAS K. KAH

N CLERK [ DO NO T P UB L I S H]
I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 04- 10361

________________________ D. C . Do c k e tNo . 0 2
- 2 3 2 4 8
- C V- UU B M A X S A E W I T Z , L Y N N S A E W I T Z , P la in tif f s - A p p e lle e s , v ersu s L E X I N G T O N I N S U R A N C E C O M P A N Y , a f o r e ig n c o rp o r a tio n , D e f e n d a n t- A p p e lla n t.

________________________ A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f orthe S outhe rn D i s tr i c tof F l or i da

_________________________ ( J une 6, 2005)
B efo re D U B IN A , P R Y O R , an d R O N E Y , C i rcu i tJu d g es. P E R C U R I A M: L e xi ngt on I ns ur a nc e C om pa ny ( L e xi ngt on) appe a l s s e ve r a l rul i ngs of the2

d is tr ic t c o u r t in f

a v o ro f M a x a n d L y n n S a e w itz , h o m e o w n e r s w h o s u b m itte d to L e x in g to n a c la im f

o re x te n s iv e d a m a g e c a u s e d b y a le a k f r o m th e c o m m e r c ia lgrade re fr i gera t or on the se cond fl oo r of the S ae w i t ze s’ ho m e. T hi s app ea l pr e s e nt s f

ouri s s ue s ( 1) w he the rthe pa r t i a l pa y m e ntof the S a e w i t z e s ’ c l a i m by L e xi ngt on c ons t i tut e d a n a dm i s s i on of c ove r a ge f

ortha ta m ount ; ( 2) w he the rthe di stri ctcourtcorr ec t l y r ef used t o al l ow L exi ng t on t o am end i t s pl ea di ng s a nd as se rt
an affi rm at i v e d efen se o f frau d an d co n ceal m en tm o re th an a m o n th aft er th e cl o se of di sc ov ery a nd si x m on ths af t erthe deadl i ne for a m endi ng pl ea di ng s; (3) w hether the di s tr i c tc our tc orr e c t l y l i m i t e d the t e s t i m ony of a n e xpe r tw i tne s s L e xi ngt on c a lle d b e c a u s e p le n a ry te s tim o n y b y th e e x p e r t w o u ld h a v e b e e n u n d u ly pr e j udi c i a l ; a nd ( 4) w he the rthe di s tr i c tc our ta bus e d i t s di s c r e t i on w he n i tde ni e d a
m ot i on f orr e m i tt i turbe c a us e the m ot i on w a s c ontr a ry t o the j ury i ns truc t i ons a nd
v e r d ic t f o r m to w h ic h L e x in g to n d id n o t o b je c t. W e a f

f ir m . I . B AC KG RO UN D T hi s appe a l a r i s e s f

r om a c om pl a i ntf

orbr e a c h of

c ontr a c tf

i l e d by the S a e w i t z e s a ga i ns tL e xi ngt on. W e be gi n by r e c ount i ng the f a c t s tha tl e d t o the f ilin g o f th e S a e w itz e s ’ c o m p la in t a n d th e n a d d r e s s th e p r o c e d u r a l h is to ry o f th is litig a tio n .3 A
. Fac tual

B ac k gr ound O n O c t obe r15, 1999, the hom e of M a x a nd L y nn S a e w i t z i n C oc onut G rove, F l ori da, w as ext ensi vel y dam aged by H urri ca ne Ir ene. T he S ae w i t ze s e n g a g e d a p u b lic in s u r a n c e a d ju s te rto e v a lu a te th e irlo s s e s , w h ic h th e y r e p o r te d to the i ri ns ur a nc e c a rr i e r s . I n M a r c h 2000, G e r a l d D e M a r c o w a s a s s i gne d by the S a e w itz e s ’ f

lo o d a n d w in d s to r m in s u r a n c e c a rr ie rto e v a lu a te th e d a m a g e to th e ir h o m e . D e M a r c o r e p o rte d tw o e v a lu a tio n s o f th e d a m a g e in c u rr e d b y th e S a e w itz ho m e, com pl et e w i th p ho t og raph s, i n A pri l 20 00 . B y O ct ob er20 00 , the S ae w i t ze s r e c e iv e d th e irf

in a l in s u r a n c e p a y m e n t to c o m p e n s a te th e m f o rth e ap p r o x im a te ly $1. 1 m i l l i on i n da m a ge t o the i rhom e c a us e d by the hurr i c a ne . N one of the da m a ge c a us e d by H urr i c a ne I r e ne w a s c ove r e d by the S a e w i t z e s ’ pol i c y w i th L e xi ngt on, w h ic h th e y p u r c h a s e d in M a y 2 0 0 0 . O n J ul y 5, 2000, the S a e w i t z e s di s c ove r e d a w a t e rl e a k f r om the l a r ge r e f r i ge r a t ori n the i rs e c ond- f l oorki t c he n. T he r e f

r i ge r a t ori s f

e d by c onde ns e r s on the r oof of the hous e , a nd a dr a i n pa n unde rne a th the r e f r i ge r a t orhol ds
a c c um ul a t e d c onde ns a t i on f r om the uni tunt i l the c onde ns a t i on e vapor a t e s . T he
re fr i gera t or re pai rm an w ho fi rs ti nspect ed the l ea k sai d thatthe l i nes thatconn ec t ed the re fr i gera t or and t he roof cond ense rs w er e produ ci ng cond ensa t i on , w hi ch w as da m a gi ng the w a l l be hi nd the r e f r i ge r a t or , a nd the dr a i n l i ne f r om the r e f

r i ge r a t or4

w a s c l ogge d, w hi c h c a us e d a n ove r f l ow i n the dr a i n pa n be c a us e the de vi c e i n the f r e e z e rth a t h e lp e d e v ap o r a te ru n - o f f c o n d e n s a tio n w a s n o t w o r k in g c o rr e c tly
. T h e S a e w itz e s p r o m p tly h ir e d a p u b lic in s u r a n c e a d ju s te rw h o r e p o r te d th is p r o b le m to L e x in g to n , a n d L e x in g to n a s s ig n e d a n in s u r a n c e a d ju s te rto e v a lu a te the c l a i m . T he i ns ur a nc e a dj us t e rhi r e d by L e xi ngt on e nga ge d a n e ngi ne e ra nd a general cont ra ct or, and i n Jul y 200 0 they i nspect ed the ar eaof the ho use dam aged by the re fr i gera t or l ea k. A ft erthe i nspect i on s w er e c om pl et e, the engi neerre po rt ed thatthe w oo d roti n the j oi st s a nd sub-fl oo r of the ki t chen w as so pron ou nced that th e b a c k le g s o f

th e r e f r ig e r a to rs u n k in to th e r o tte d f lo o r ; th e r e w a s w o o d r o t in the w al l behi nd the re fr i gera t or; and t here w as w oo d rotand d am age t o the ce dar cl o setth atsh ared th e w al l ab u tt i n g th e rear o f th e refrigerator. T h e S aew i t zes al so c l a i m e d da m a ge t o the c e da rc l os e ton the f i r s tf l oor , w hi c h w a s l oc a t e d be l ow the d a m a g e d c lo s e t th a t s h a r e d th e w a ll a d jo in in g th e r e a ro f

th e r e f r ig e r a to r . L e xi ngt on a nd the S a e w i t z e s e xc ha nge d e s t i m a t e s f orr e pa i rw or k,
r e pl a c e m e ntof

the da m a ge d w ood, a nd the c os tof r e - t i l i ng the f

l oorof the S aew i t zes’ k i t ch en aft er th e w o rk o n th e su b -fl o o r w as co m p l et ed
. E v en tu al l y, L exi ng t on offe re d t o p ay the S ae w i t ze s $24 0, 05 5. 81 t o cov erthei r l osse s, w hi ch the y a c c e pt e d, on M a y 1, 2001, a s a pa r t i a l pa y m e ntf orthe i rc l a i m . L e xi ngt on a nd the S ae w i t ze s c on t i nu ed t o d i sput e the re m ai ni ng am ou ntow ed t o the S ae w i t ze s5

u n d e rth e irp o lic y . B
. P ro cedu ra l Histo ry T he S a e w i t z e s s ue d L e xi ngt on i n the S outhe rn D i s tr i c tof F l or i da on N ove m be r5, 2002. T he y s oughtpa y m e ntunde rthe i ri ns ur a nc e pol i c y t o r e pa i rthe dam age f rom the re fr i gera t or l ea k t o the se cond fl oo r ki t chen, i ncl ud i ng the cl oset th atad j o i n ed th e w al l atth e rear o f th e refrigerator, and th e d am ag e t o th e fi rst fl oo r of thei r hom e w here the w at erthatl ea ked from the re fr i gera t or had see ped dow n. L e xi ngt on a ns w e r e d a nd a s s e r t e d s e ve n a f f i r m a t i ve de f

e ns e s . L e xi ngt on as se rt ed as on e a ff

i rm at i ve defense thatthe dam age t o the S ae w i t ze s’ ho m e w as c a us e d by H urr i c a ne I r e ne , r a the rtha n the r e f r i ge r a t orl e a k, butL e xi ngt on di d not
s e e k r e pa y m e ntof

the $240, 055. 81 i tha d a l r e a dy pa i d t o the S a e w i t z e s f orthe
r e f r ig e r a to rle a k
. T he S a e w i t z e s de s i gna t e d D e M a r c o, f or m e r l y e m pl oy e d by the i rf l ood a nd
w i nds t or m i ns ur a nc e c a rr i e r s , a s a n e xpe r tw ho w oul d t e s t i f y r e ga r di ng the da m a ge to th e f irst flo o r a n d stru ctu re o f th eir h o m e. T h e S ae w it ze s d isclo se d D eM ar co ’s
e xpe r tr e por tt o L e xi ngt on, a nd D e M a r c o w a s de pos e d dur i ng di s c ove ry . A s the l i t i ga t i on pr ogr e s s e d, the S a e w i t z e s a ba ndone d the c l a i m f orda m a ge s r e l a t e d t o the fi rstfl o o r o f th ei r h o m e. T h e S aew i t zes w i th d rew D eM arco as an ex p ertw i tn ess, a n d th e y m o v e d to e x c lu d e D e M a r c o ’s te s tim o n y a n d e x p e r t r e p o r t a t tr ia l if6

L e x in g to n s o u g h t to in tr o d u c e th a t a s e v id e n c e . T h e d is tr ic t c o u r t ru le d th a t,
a l though D e M a r c o’ s t e s t i m ony a nd r e por tw e r e r e l e va ntt o both a ba ndone d a nd liv e c la im s , a llo w in g L e x in g to n to c a ll D e M a r c o o rr e ly o n h is e x p e r t r e p o r t w o u ld
r e s u lt in u n f

a irp r e ju d ic e to th e S a e w itz e s . T he S a e w i t z e s a l s o m ove d f orpa r t i a l s um m a ry j udgm e nta ga i ns tL e xi ngt on base d o n the M ay 1, 20 01 , paym entof $2 40 , 05 5. 81 by L exi ng t on t o sett l e a por t i on of

the S a e w i t z e s ’ c l a i m . T he di s tr i c tc our tc onc l ude d tha t , unde rF l or i da la w , th e p a r tia l s e ttle m e n t b y L e x in g to n c o n s titu te d a n a d m is s io n o f c o v e r a g e in f a vorof the S a e w i t z e s f

or$240, 055. 81. T he di s tr i c tc our te xpl a i ne d tha tthe “p a y m e n t c o n s titu te s a c o n f e s s io n th a t” th e lo s s e s f o rw h ic h L e x in g to n “p a id $240, 055. 81 w e r e c ove r e d unde rthe pol i c y a nd w e r e c a us e d by the r e f r i ge r a t or l ea k. ” O n A ug ust20 , 20 03 , L exi ng t on m ov ed t o am end i t s a nsw er , un der F eder al R ul e s of C i vi l P r oc e dur e 15 a nd 16, t o a s s e r ta n a f f i r m a t i ve de f

e ns e of f r a ud a nd
c o n c e a lm e n t. L e x in g to n a r g u e d th a t, b e c a u s e o f in f o r m a tio n it le a rn e d d u r in g its
r e c e ntde pos i t i on of

the S a e w i t z e s ’ e xpe r t s , L e xi ngt on c oul d a s s e r tf r a ud a nd
c onc e a l m e nton the ory tha ts om e of the c l a i m e d da m a ge s w e r e , i n f a c t , c a us e d by H urri ca ne Ir ene. T he di stri ctcourtrul ed thatL exi ng t on w ou l d n otbe al l ow ed l e a ve t o a m e nd i t s a ns w e rf ortw o r e a s ons : f

i r s t , the m ot i on f

orl e a ve t o a m e nd,7

fi l ed m ore than si x m on ths af t erthe deadl i ne for a m endm entof pl ea di ng s, w as un t i m el y; and sec on d, the di stri ctcourtw as un w i l l i ng t o reopen d i sc ov ery, w hi ch th e c o u r t h a d a lr e a d y e x te n d e d f o ro n e m o n th p a s t th e in itia l d e a d lin e . T h e S a e w itz e s ’ s u it a g a in s t L e x in g to n w e n t to tr ia l in N o v e m b e r2 0 0 3 . A f t e raf our - da y j ury tr i a l , the j ur y r e turne d a ve r di c ti n f a vorof the S a e w i t z e s a nd
a w a r de d the m $260, 000 i n da m a ge s . A f t e rthe j ury r e tur ne d i t s ve r di c t , L e xi ngt on r e ne w e d i t s m ot i on f

orj udgm e nta s a m a tt e rof l a w or , i n the a l t e rna t i ve , a m ot i on f o ra n e w tr ia l o r , a s a th ir d a lte rn a tiv e , a m o tio n to r e m it th e d a m a g e s to $ 4 9 4 4 .1 9 . T h e d is tr ic t c o u r t d e n ie d th a t m o tio n . L e x in g to n th e n f ile d th is ap p e a l. II. A N A L Y S IS L e xi ngt on appe a l s m a tt e r s tha toc c urr e d be f or e a nd a f

t e rtr i a l
. L e xi ngt on c ha l l e nge s the rul i ngs of the di s tr i c tc our ton the thr e e pr e tr i a l m ot i ons , a nd L e xi ngt on a r gue s tha tthe di s tr i c tc our te rr e d w he n i tde ni e d the m ot i on f or r e m i tt i tur . W e a ddr e s s e a c h a r gum e nti n turn. A
. P ar t i al

Sum m ar y J udgm e nt W as Appr opr i at e U

nde rFl or i da L aw , B e c aus e the P r e tr ia l P a

y m e n t o f $ 2 4 0 ,0 5 5 .8 1 W

a s a n A dm is s io n o

f L ia b ility
. T he fi rs tpretri al rul i ng thatL exi ng t on appeal s i s the grantof sum m ary j ud gm entt o the S ae w i t ze s r egar di ng the $2 40 , 05 5. 81 L exi ng t on pai d as par t i al
s e ttle m e n t o f

th e irc la im . L e x in g to n a r g u e s th a t th e d is tr ic t c o u r t e rr o n e o u s ly
r e m o v e d f

r o m th e ju ry th e d e c is io n w h e th e rth e S a e w itz e s ’ c la im s o c c u rr e d w ith in8

th e p o lic y c o v e r a g e d a te s a n d , th e r e f o r e , e lim in a te d th e o p p o r tu n ity f o rth e ju ry to d e c id e if th e d a m a g e s f

o rw h ic h L e x in g to n p a id w e r e c a u s e d b y H u rr ic a n e I r e n e . L exi ng t on al so ar gu es thatthe fa ct s kno w n w hen sum m ary j ud gm entw as grant ed di d n otshow the ext entt o w hi ch the S ae w i t ze s w er e c om pensat ed by ot her in s u r a n c e c o m p a n ie s f

o rth e irlo s s e s in H u rr ic a n e I r e n e .

“ W e r e vi e w a gr a ntof

s um m a ry j udgm e ntde novo, ” a nd w e “ vi e w the
r e c or d a nd dr a w a l l r e a s ona bl e i nf e r e nc e s i n the l i ghtm os tf a vor a bl e t o” L exi ng t on . H i gd on v. Ja ckson, 39 3 F . 3d 12 11 , 12 18 (11t h C i r. 20 04 ). “ S um m ary j udgm e nti s appr opr i a t e w he n the r e i s no ge nui ne i s s ue a s t o a ny m a t e r i a l f a c ta nd the m ov i ng party i s e nt i t l ed t o a j ud gm entas a m att erof l aw . A genu i ne fa ctual di s put e e xi s t s i f

the j ury c oul d r e turn a ve r di c tf orthe non- m ovi ng pa r ty . ” I d. ( i nt e rna l c i t a t i ons a nd quot a t i on m a r ks om i tt e d) T he re cord i s und i sput ed thatL exi ng t on m ade a$2 40 , 05 5. 81 part i al p a y m e n t o f

th e S a e w itz e s ’ c la im in M a y 2 0 0 1 . “ In F l ori da, the paym entof a
se tt l em entcl ai m i s the funct i on al equi val entof a c on fe ss i on of j ud gm entor a ve r di c ti n f

a vorof the i ns ur e d. ” P e ppe r ’ s S t e e l & A l l oy s , I nc . v. U ni t e d S t a t e s , 850 S o. 2d 462, 465 ( F l a . 2003) ( c i t i ng W ol l a r d v. L l oy d’ s & C os . of L l oy d’ s , 439 S o. 2d 217, 218- 19 ( F l a . 1983) )
. T he di s tr i c tc our tc or r e c t l y rul e d tha tthe pa y m e ntof $240, 055. 81, a por t i on of the da m a ge s the S a e w i t z e s s ought , w a s a n a dm i s s i on of9

c o v e r a g e u n d e rth e p o lic y . L e x in g to n d id n o t p r e s e r v e its r ig h t to c o n te s t c o v e r a g e . L e x in g to n c o u ld ha ve m a de i t s pa r t i a l pa y m e ntw i th a r e s e r va t i on of r i ght s , a l l e ge d a n a f

f i r m a t i ve d e f e n s e o f f r a u d o rm is ta k e r e g a r d in g its p a r tia l p a y m e n t, o rf ile d a c o u n te r c la im
a ga i ns tthe S a e w i t z e s t o r e c ove rthe $240, 055. 81. L e xi ngt on di d notc hoos e a ny of th o s e th r e e c o u r s e s o f

a c tio n . I n s te a d , L e x in g to n a s s e r te d th a t th e a m o u n t it p a id
s houl d ha ve be e n r e ga r de d a s di s put e d by the pa r t i e s . B e c a us e of the f a i l ur e of L e xi ngt on t o pr e s e r ve a ny a r gum e ntt o the c ontr a ry , the pa y m e ntby L e xi ngt on of$2 40 , 05 5. 81 i n M ay 20 01 as a par t i al se tt l em entof the S ae w i t ze s’ cl ai m s w as an a d m is s io n o f

liab ility f

o rth a t a m o u n t. B
. T he D is tr i c t

C our t D i d N ot A bus e I t s D is c r e t i on W

he n I t R e f us e d to A l l ow L ex i ng ton to A m end It

s P l eadi ngs A

f t erthe C l ose of

D isc over

y. L e xi ngt on a r gue s tha tthe di s tr i c tc our te rr e d w he n i tde ni e d L e xi ngt on the oppor tuni ty t o a m e nd i t s pl e a di ngs a nd a s s e r ta ne w a f f i r m a t i ve de f

e ns e of f r a ud
a nd c onc e a l m e nta ga i ns tthe S a e w i t z e s . L e xi ngt on c ont e nde d tha tonl y a f t e rthe depo si t i on of the S ae w i t ze s’ expert s di d i tl ea rn of the op er at i ve fa ct s t o sup po rt th e d e f e n s e . W e d is a g r e e . T o con st i tut e r ever si bl e e rr or, the di stri ctcourtm usthave com m i tt ed a “ cl ea r a b u s e o f d is c r e tio n ” w h e n it d e n ie d L e x in g to n th e o p p o r tu n ity to a m e n d
. C a rru th e r s v . B S A A d v e r tis in g , I n c ., 3 5 7 F .3 d 1 2 1 3 , 1 2 1 8 ( 1 1 th C ir . 2 0 0 4 )
.10

A lth o u g h th e d e c is io n to a llo w a p a r ty le a v e to a m e n d is d is c r e tio n a ry , u n d e rR u le 1 5 ( a ) “le a v e s h a ll b e f

r e e ly g iv e n w h e n ju s tic e s o r e q u ir e s .” F e d . R . C iv . P . 1 5 ( a )
.

“ In m aki ng thi s det erm i nat i on , a c ou rtshou l d con si der w hether there has bee n undue de l a y i n f

i l i ng, ba d f

a i th ordi l a t ory m ot i ve s , pr e j udi c e t o the oppos i ng pa r t i e s , a nd the f

ut i l i ty of the a m e ndm e nt . ” L oc a l 472 of U ni t e d A s s ’ n of J ourne y m e n & A ppr e nt i c e s of P l um bi ng & P i pe f

i tt i ng v. G a . P ow e rC o. , 684 F . 2d 7 2 1 , 7 2 4 ( 1 1 th C ir . 1 9 8 2 ) ( c itin g F o m a n v . D a v is , 3 7 1 U .S . 1 7 8 , 1 8 2 , 8 3 S . C t. 2 2 7 , 2 3 0 ( 1 9 6 2 ) )
. B e c a us e L e xi ngt on m ove d t o a m e nd a f t e rthe de a dl i ne i n the s c he dul i ng o rd er, F ed eral R u l e o f C i v i l P ro ced u re 1 6 , w h i ch req u i res a sh o w i n g o f g o o d cau se to m o d if y a s c h e d u lin g o r d e r , is a ls o r e le v a n t: D i stri ctcourt s are re qu i re d t o “ ent era sch ed u li ng order that lim its th e tim e to ... jo in o t h e r p a r tie s a n d to a m e n d th e p le a d in g s ....” F e d. R . Ci v . P. 1 6 ( b )
. Su c h o r d e r s “ c o n tr o l th e s u b s e q u e n t c o u r s e of th e a c t i o n unl e s s mo d i f i e d b y a s u b s e q u e n to r d e r , ” Fe d
. R. Ci v . P. 1 6 ( e ) , a n d m a y b e m o d if ie d o n ly “u p o n a s h o w in g o f g o o d c a u s e .” F ed. R . C i v. P . 16 (b). T hi s goo d cause st andard precl ud es m od i fi ca t i on un l es s the sc hedu l e c anno t“ be m etd es p i t e the di l i gence of the party s ee ki ng the ext ensi on . ” F ed . R . C i v. P . 16 advi sory c o m m itte e ’s n o te ; s e e a ls o J o h n s o n v . M a m m o th R e c r e a tio n s , I n c ., 975 F . 2d 604, 609 ( 9th C i r . 1992) ( “ I f [a] pa r ty w a s notdi l i ge nt , the [goo d cause ] i nq ui ry shou l d end
. ”)
. S o s a v . A irp r in t S y s te m s , I n c ., 1 3 3 F .3 d 1 4 1 7 , 1 4 1 8 ( 1 1 th C ir . 1 9 9 8 )
. A to ta l la c k o f

d ilig e n c e b y L e x in g to n d o o m e d its r e q u e s t f o rle a v e to11

a m e nd. L e xi ngt on notonl y kne w of the pot e nt i a l ove r l ap i n the c l a i m s f orda m a ge c a us e d by H urr i c a ne I r e ne be f or e the de a dl i ne f

ora m e ndm e ntof

pl e a di ngs e xpi r e d, L e x in g to n k n e w o f

a n d h a d d o c u m e n ta tio n to s u p p o r t th e f a c ts u n d e r ly in g its
n ew l y-p ro p o sed affi rm at i v e d efen se b efo re l i t i g at i o n ev en b eg an . B ecau se L e xi ngt on f

a i l e d, i n e ve ry r e s pe c t , t o s how di l i ge nc e i n pr e s e nt i ng i t s a f f i r m a t i ve d efen se o f frau d an d co n ceal m en tt o th e d i stri ctco u rt , L ex i n g t o n d i d n o test ab l i sh go od cause t o m od i fy the sc hedu l i ng order. S osa, 13 3 F . 3d at14 18 . T he di stri ct c our tdi d notc om m i ta “ c l e a ra bus e of di s c r e t i on, ” C a rruthe r s , 357 F . 3d a t1218,
w he n i tde ni e d L e xi ngt on l e a ve t o a m e nd m or e tha n s i x m onths a f t e rthe de a dl i ne so L exi ng t on coul d ass erta new af fi rm at i ve defense and reopen d i sc ov ery m ore th a n a m o n th a f

te rth e a lr e a d y - e x te n d e d tim e f o rd is c o v e ry h a d c lo s e d . T h is c a s e is th e c l a s s i c e x a mp l e o f

a n “ u n d u e d e l a y i n f

i l i n g . ” Fo ma n , 3 7 1 U . S. a t1 8 2 , 8 3 S. C t. a t 2 3 0 .

C
. T he D is tr i c t

C our t C or r e c t l y G r ant e d the Mot i on i n L i m i ne R eg a r d in gD eM

a r c o ’s T e s tim o n y a n d th e U s e o f His R e p o r t. T h e th ir d a r g u m e n t o f

L e x in g to n is th a t th e d is tr ic t c o u r t e rr o n e o u s ly g ran t ed th e m o t i o n i n l i m i n e th atp rev en t ed D eM arco , w h o w as fo rm erl y l i st ed as a t e s t i f y i ng e xpe r tby the S a e w i t z e s , f r om t e s t i f

y i ng r e ga r di ng hi s w or k on be ha l f of the S ae w i t ze s or di sc l osi ng hi s r eportt o the j ury. “ T he di stri ctcourthas broad d is c r e tio n in d e te r m in in g w h e th e rto a d m it o re x c lu d e e x p e r t te s tim o n y , a n d its12

de c i s i on w i l l be di s turbe d on appe a l onl y i f i ti s m a ni f

e s t l y e rr one ous . ” E va ns v. M a thi s F une r a l H om e , I nc . , 996 F . 2d 266, 268 ( 11th C i r . 1993)
. T hi s a r gum e nt fai l s. L e xi ngt on a r gue s tha tthe di s tr i c tc our te rr e d be c a us e D e M a r c o c oul d ha ve t e s t i f i e d tha ts om e of

the da m a ge s tha tthe S a e w i t z e s c l a i m e d w e r e c a us e d by the
re fr i gera t or l ea k w er e, i n fac t , caused by H urri ca ne Ir ene, bu tthe di stri ctcourt c o rr e c tly r e lie d o n o u rp r e c e d e n ts r e g a r d in g F e d e r a l R u le o f E v id e n c e 4 0 3 . W e have expl ai ned t hat“ the un fa i r pre j ud i ce re sul t i ng fr om di sc l osi ng ” the fa ctthatan e xpe r tw a s pr e vi ous l y r e t a i ne d by a pl a i nt i f f , butw a s c a l l e d t o t e s t i f y onl y by the de f e nda nt“ us ua l l y outw e i ghs a ny pr oba t i ve va l ue . ” P e t e r s on v. W i l l i e , 81 F . 3d 1033, 1038 ( 11th C i r . 1996)
. T he di s tr i c tc our ta l l ow e d tw o othe rw i tne s s e s f or L exi ng t on t o p re se ntt es t i m on y s ub st ant i al l y s i m i l art o the t es t i m on y D eM ar co w as prevent ed fr om gi vi ng . T he di stri ctcourtal so al l ow ed D eM ar co t o t es t i fy as a f ac t
w i tne s s r e ga r di ng hi s obs e r va t i ons a nd i m pr e s s i ons f or m e d dur i ng the i ns pe c t i on o f th e S a e w itz h o m e a f

te rH u rr ic a n e I r e n e . A n y f u r th e rte s tim o n y L e x in g to n c o u ld ha ve e l i c i t e d f

r om D e M a r c o l i ke l y w oul d ha ve s uppor t e d the f r a ud a nd
co n ceal m en tth eo ry L ex i n g t o n w as sp eci fi cal l y p ro h i b i t ed fro m p resen t i n g b ecau se of i t s f ai l ure t i m el y t o am end i t s a nsw ert o ass ertthattheory. S ee P artII . B . Itw as not“ m a ni f

e s t l y e rr one ous ” f

orthe di s tr i c tc our tt o pr e ve ntD e M a r c o f r om13

t e s t i f y i ng r e ga r di ng the w or k he di d f orthe S a e w i t z e s a s a n e xpe r t . E va ns , 996 F . 2d 268. D
. T he D istri ct

C ou rt D i d N otA bu se It

s D isc re t i on w hen It

D eni ed the Mot i on f

orR e m i t t i turof

L ex i ngton. T h e f in a l a r g u m e n t o f

L e x in g to n is th a t th e d is tr ic t c o u r t e rr e d w h e n it deni ed the m ot i on for r em i tt i tur. L exi ng t on ar gu es thatre m i tt i tur w as nece ss ary be c a us e the j ury a w a r de d the S a e w i t z e s a n a m ountof t ot a l da m a ge s , f

r om w hi c h a d e d u c tio n o f

th e $ 2 4 0 ,0 5 5 .8 1 L e x in g to n p a id a s a p a r tia l s e ttle m e n t w a s n e c e s s a ry . T h i s arg u m en tal so fai l s. W e r e v ie w th e d e n ia l o f a m o tio n f

o rr e m ittitu rf

o ra b u s e o f

d is c r e tio n . Ma s o n v . F o r d Mo t o rC o . , I n c . , 3 0 7 F . 3 d 1 2 7 1 , 1 2 7 6 ( 1 1 th C i r . 2 0 0 2 )
. As L exi ng t on conceded i n i t s i ni t i al bri ef , the j ury i nstruct i on s a nd verdi ctform w er e

“ pl a i n a nd una m bi guous . ” T he i ns truc t i ons t o the j ury e xpl a i ne d tha t , i f the $240, 055. 81 L e xi ngt on pa i d a s a pa r t i a l s e tt l e m e ntw a s the onl y a m ounttha tthe S a e w itz e s w e r e o w e d , th e n th e ju ry w o u ld h a v e to r e tu rn a d e f e n s e v e r d ic t: I ti s undi s put e d tha ton M a y 1, 2001, the de f e nda ntpa i d t o the p l ai n t i ffs $ 2 4 0 , 0 5 5 . 8 1 as p art i al p aym en tfo r d am ag es cau sed b y a re fr i gera t or l ea k. T hi s C ou rthas det erm i ned t hatun der F l ori da l aw de f e nda nt ’ s pa y m e ntc ons i tut e s a c onf e s s i on tha tthe da m a ge s f or w hi ch i tpai d $ 24 0, 05 5. 81 w er e c ov er ed un der the po l i cy and w er e c a u s e d b y th e r e f

r ig e r a to rle a k
. P la in tif f s c o n te n d th a t a d d itio n a l d a m a g e w a s c a u s e d to th e ir h o m e a s a r e s u lt o f

th e le a k f

o rw h ic h th e d e f

e n d a n t h a s r e f

u s e d to p a y . ...14 I f y ou f i nd f r om a pr e ponde r a nc e of the e vi de nc e tha tthe defe nd antpai d for al l dam ages re sul t i ng fr om the re fr i gera t or l ea k w hen i tm ade pay m enti n M ay 20 01 , and n o o ther dam ages w er e c a us e d t o the hom e by the r e f r i ge r a t orl e a k, the n y ourve r di c tm us tbe i n fav o r o f th e d efen d an t s an d ag ai n stth e p l ai n t i ffs. L e x in g to n d id n o t o b

je c t to th e ju ry in s tru c tio n s . T h e v e r d i c tf

o r m wa s s i m i l a r l y wo r d e d a n d p r e s e n t e d th e j u ry wi th two qu es t i on s: fi rs t , w hether L exi ng t on fa i l ed t o p ay the S ae w i t ze s a ny dam ages caused by the r e f

r i ge r a t orl e a k a nd, s e c ond, i f L e xi ngt on ow e d the S a e w i t z e s a ny da m a ge s , how m uc h w a s ow e d: 1. D o you fi nd fr om a pre po nd er ance of the evi dence that D e f e nda ntf a i l e d t o pa y f

ora ny of

the da m a ge s caus e d by the r e f r i ge r a t orl e a k. Y E S ____ N O ____ I f y o u r a n s w e r t o th e f

i r s t q u e s t i o n i s N o , th e n y o u s h o u l d p r o c e e d no f u r th e ra s y o u rv e r d ic t is f o rth e D e f

e n d a n t, a n d y o u s h o u ld p r o c e e d to si gn a nd da t e thi s V e r di c tF or m a nd r e tur n i tt o the C our t . I f y our a ns w e rt o th e f

i r s tq u e s t i o n i s Y e s , th e n p l e a s e a n s w e rth e f o l l ow i ng q u est i o n s. 2. W ha ts um of

m one y do y ou fi n d f

r om a pr e ponde r a nc e of the e vi de nc e t o be the am o u n t o f the P l a i nt i f

f s ’ da m a ge s r e s ul t i ng f r om the r e f

r i ge r a t orl e a k? T he j ury m arked t he fi rs tqu es t i on “ ye s” and t hen answ er ed thatthe S ae w i t ze s w er e e n title d to $ 2 6 0 ,0 0 0 in d a m a g e s . L e x in g to n d id n o t o b je c t to th e v e r d ic t f

o r m . L exi ng t on ar gu es thatthe i nstruct i on s a nd verdi ctform , w hen read t og ether,
r e qui r e d the di s tr i c tc our tt o de duc tthe a m ountof the pa r t i a l s e tt l e m e ntf

r om the15

da m a ge s i n the ve r di c t , buttha ta r gum e nti s di r e c t l y c ontr a ry both t o ourr e a di ng of the ve r di c tf

or m a nd the unde r s t a ndi ng of the ve r di c tf

or m tha tthe a tt orne y f

or L e xi ngt on e xpl a i ne d dur i ng hi s c l os i ng a r gum e nt . T he a tt or ne y f orL e xi ngt on a r gue d r e pe a t e dl y tha tthe j ury s houl d pr e ve ntthe S a e w i t z e s f r om t a ki ng a ny thi ng a bove the pa r t i a l s e tt l e m e ntL e xi ngt on pa i d i n M a y 2001 by a ns w e r i ng “ no” on the
v e r d i c tf o r m: Th e q u e s t i o n th a t y o u ’ r e g o i n g t o b e c a l l e d u p o n t o a ns w e r on the ve r di c tf

or m , i ts a y s : D o y ou f i nd f r om a pr e pon d erance of the evi dence that[L exi ng t on ] fa i l ed t o p ay for any of the dam ages caused by the r e f

r i ge r a t orl e a k. A nd that ’s a que s t i on that y ou sh o u ld a ns w e rno. L e xi ngt on di d notf a i l t o pa y f

or an y o f the da m a ge s c a us e d by the r e f r i ge r a t or l ea k i n thi s c as e. Itdi dn ’ tpay f or al l the dam ages t o the ho use. D id n ’t p a y [ th e S a e w itz e s ] f o re v e ry th in g th a t th e y w a n t to b e p a id f or . D i d n ’ t p ay the m f

orH ur r i c a ne I r e ne da m a ge onc e the y f ound out w h a t w a s r e a lly g o in g o n i n t h is c a s e . B u t [ L e x in g to n ] d id p a y f o ra ll o f th e d a m a g e s c a u s e d b y th e r e f r ig e r a to rle a k
. N ow , the othe ri ns truc t i ons , ors om e of the othe ri ns truc t i ons t ha t t he Co u r ti s g o i n g t o g i v e y o u , th e J u d g e i s g o i n g t o i n s tru c ty ou thatL exi n g t on ’ s pay m entconst i tut ed a c on fe ss i on thatthe dam ages for w hi ch i tpai d $ 24 0, 00 0, nam el y, thatdi sc re t e grou p o f th in gs they pa i d f or , w e r e c ove red u n d erthe pol i c y a nd w e r e c a us e d by the re fr i gera t or l ea k. S o w e c an’ tdi sput e that
. W he th er w e m ade a m i s t a ke ornot , i t ’ s a qui r k of the l aw an d w e’ r e s tuc k w i th tha t , a nd tha t ’ s f i ne . W e ’ r e notl ooki n g t o g e tourm one y ba c k f orw ha tw e di d. T he a tt orne y f

orL e xi ngt on l a t e rr e m i nde d the j ur y tha t , be c a us e the S a e w itz e s w e r e e n title d to n o th in g a b o v e th e p a r tia l s e ttle m e n t, th e ju ry s h o u ld
a n s w e r“ n o ” o n th e v e r d i c tf o r m:16 S o , h a v e th e y b e e n p a id e n o u g h m o n e y a s a r e s u lt o f th is r e f r ig e r a to rle a k ? Y e s , th e y h a v e , la d ie s a n d g e n tle m e n . O n thatverdi ctform –you ’ re go i ng t o b e s entback t o the j ury room . I w on ’ thave a chance t o talk to yo u agai n. I w on ’ thave a c h a n c e to r e s p o n d to a n y th in g th a t [ th e S a e w itz e s ’ a tto rn e y ] s a y s to y o u . But on th a tv e r d i c tf o r m i t ’ s g o i n g t o a s k y o u d o y o u f i n d f r o m a pr e ponde r a nc e of

the e vi de nc e tha t [L e xi ngt on] f a i l e d t o pa y f

ora ny o f th e d a m a g e s c a u s e d b y th e r e f r i g e r a to rle a k . A n d y o u ’r e g o in g to be i nstruct ed i t ’ s gott o b e d am ag e thatoccurre d d uri ng thi s pol i cy t e r m. A nd the ans w e rto that is , n o , L ex i ngton di d not f ai l to pay f or leg itim a te da m a g e s r e s u ltin gfr o m th is r e fr ig e r a to rle a k
. T h e p la i nt i ff h a s be e n p a i d e n o u g h mo n e y f o rth e d a ma g e s t o h i s h o u s e . I t ’ s t i me for the gravy tra i n t o end as fa r a s this c l ai m and t he dam age thatthey h a v e to th is h o u s e . I n hi s f i na l rhe t or i c a l f

l our i s h, the a tt orne y f

orL e xi ngt on r e i t e r a t e d tha tthe S a e w itz e s w e r e n o t e n title d to d a m a g e s b e y o n d th e irp a r tia l s e ttle m e n t:

W h atth ey cl ai m i s n o tfr o m a r e f ri g erat o r l eak
. S o , I w o u l d ask th a t y o u d o th e r ig h t th in g . D o ju s tic e . Say no to the plai nt i f f s f orany m o r e m o n e

y h e r e . N othi ng m ore f or you, M r. an d M rs . S ae w i t z. E nough i s e nough. W i th a l l du e resp ec t , y ou’ ve be e n f a i r l y a nd ad eq u ately c o m p en sa ted fo r th is d am ag e to yo u r h o u se . It d id n ’t h ap p en d u rin g th e p o li cy term . D id n ’th ap p en as a r es u lto f th is . I t’ s som ethi ng thatw as there before, and you ’ re no tent i t led to geti tun der th i s p o l i cy. T he a tt orne y f

orL e xi ngt on m a i nt a i ne d thr oughouthi s c l os i ng a r gum e nttha tthe onl y w a y t o ke e p the S a e w i t z e s f r om t a ki ng a ny thi ng a bove the $240, 055. 81 L exi ng t on al re ady pai d w as for the j ury t o m ark “ no ” on t he verdi ctform . A ft er th e ju ry a n s w e r e d “y e s ,” th e ju ry d e te r m in e d th e a m o u n t o f d a m a g e s s till o w e d to th e S aew i t zes.17

T he a r gum e ntL e xi ngt on m a ke s now i s i nvi t e d e rr or . “ I ti s a c a r di na l rul e of appel l at e r evi ew thata par ty m ay no tchal l enge as error arul i ng or ot her tri al p r o c e e d in g in v ite d b y th a t p a r ty .” B ir m in g h a m S te e l C o rp . v . T e n n . V a lle y A u th ., 353 F . 3d 1331, 1341 n. 5 ( 11th C i r . 2003) ( quot i ng F or d e x r e l
. E s t a t e of F or d v. G a r c ia , 2 8 9 F .3 d 1 2 8 3 , 1 2 9 3
- 9 4 ( 1 1 th C ir . 2 0 0 2 ) ) . L e x in g to n d id n o t o b je c t to e i the rthe j ury i ns truc t i ons orthe ve r di c tf or m . T he f

i r s tc om pl a i ntof

L e xi ngt on c a m e w he n i tf

i l e d i t s m ot i on f

orr e m i tt i tur , w hi c h di r e c t l y c ontr a di c t e d the c l os i ng a r g u m e n t o f

its a tto rn e y . T h e d is tr ic t c o u r t d id n o t ab u s e its d is c r e tio n w h e n it d e n ie d th a t m o tio n . I I I . CONCL US I ON T h e d i stri ctco u rtco rrect l y g ran t ed p art i al su m m ary j u d g m en tag ai n st L exi ng t on because, un der F l ori da l aw , the M ay 20 01 paym entas a par t i al
s e ttle m e n t w a s a n a d m is s io n o f liab ility f

o rth a t a m o u n t. T h e d is tr ic t c o u r t a ls o d id nota bus e i t s di s c r e t i on w he n i tde ni e d the be l a t e d m ot i on of L e xi ngt on t o a m e nd i t s a nsw erand g ra nt ed the S ae w i t ze s’ m ot i on i n l i m i ne. F i nal l y, the di stri ctcourt d i d n o tab u se i t s d i scret i o n w h en i td en i ed th e m o t i o n fo r rem i tt i tu r, b ecau se coun se l for L exi ng t on advo ca t ed the re adi ng of the verdi ctform abou tw hi ch L e x in g to n n o w c o m p la in s . T h e ru lin g s o f th e d is tr ic t c o u r t a r e , th e r e f o r e , AF F I RME D.