F IL ED

M a r ch 31, 1999

C eci l C r o w son , Jr .

A p p e l l a t e C o u r t C l e r k

I N TH E CO U R T O F APP EALS OF TENNESS E E

AT NAS HVI L L E

F I D E L I T Y & CAS UAL T Y CO. )

O F NE W YORK, )

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P l a i n tiff / A p p e lla n t , ) A ppea l N o .

) 01- A - 01- 9804- C H - 00203

v . )

) W i l l i a m son C han cer y

GRE GORY E N T E R T A I N M E N T , I NC. ) N o . I I 24914R 2 

)

D e f end ant / A p p e l l ee. )

A P P EAL F ROM THE CHANCERY COURT OF

W I L L I A M S ON CO UNTY AT F RANKLI N , TE NNES S E E

T H E HONORAB L E HE NRY DE N M ARK B E L L , J UDGE

DAVI D A. L U F K I N

L U F K I N HE N L E Y & CONNE R

A tto r n e y s a t L a w

5 3 0 S. G a y St . 7 t h Fl oor

K noxvi l l e , T enne s s e e 37902

A tto r n e y fo r P l a i n tiff / A p p e lla n t

J . RU S S ELL FAR R A R

J OHN E . CAR T E R

F ARRA R & BATES , L. L . P .

211 Seve n t h A venue , N . , Sui t e 320

N a s hvi l l e , T enne s s e e 37219- 1823

A tto r n e y s fo r D e f e n d a n t/A p p e lle e

REVE R S ED AND R E M ANDED

PATR I C I A J . CO TTRELL, J U D G E

CONC UR:

KOCH, J .

CAI N , J .
2

M E M ORANDUM OPI N I O N

T h e pri m a r y i s s ue i n t h i s cas e i s w het her t he t r i a l co u r t s houl d have

g r ant e d P l a i n tiff ’ s m o tio n to a m e n d its c o m p l a i n t to c o r r e c t d e fic i enci es t hat

w e r e r a i s ed by D e f enda n t i n a m o t i on f o r j udgm ent on t he pl e a d i ngs . Pl a i n t i f f

d i s put e s th a t th e C o m p l a i n t is d e fic i e n t , but r eque s t ed t o be al l o w ed t o am end t h e

C o m p l a i n t by at t achi n g d i scoverabl e docum ent s t hat w oul d have bee n i n t r oduce d

a t t r i a l . W e a r e of t he opi n i on t hat l e a ve t o am end s houl d have bee n gr ant ed.

T h e under l y i ng l a w s u i t i nvol ves t he A ppel l ant i n s u r e r’s a tte m p t s t o col l ect

pay m ent f o r w o r ker s com pens a t i on i n s u r anc e c over age w h i ch A ppel l ant ass e r t s

w a s pr ovi ded a nd A ppel l e e deni e s w a s pur cha s ed. T h e p art i es’ filin g s in th e tria l

cour t in d ica te th a t t h e y w e r e cl ear l y aw a r e o f th e b a s i s o f th e d i s p u t e . F i d e lity

and C a s u a lty c l a i m s it p r o v i d e d a b e n e fit (w o r k e rs’ c o m p e n s a t i o n in s u r a n c e

cov e r age) and t hat G r egor y En t e r t a i n m ent f a i l ed t o pr ovi de c o m pens a t i on f o r

t h a t bene f it. F r o m t he be g i nni ng of t he l a w s u i t , G r egor y Ent e r t a i n m ent has

def ende d on t he ba s i s i t neve r s i gned a c o n tra c t w ith F i d e lity a n d C a s u a lty to

p r ovi de t he i n s u r anc e c over age .

W h a t coul d have b een a re l a tiv e l y s tra i g h tfo r w a r d la w s u it b e c a m e

p r oce dur a l l y com p l i c a t ed. A di s cove r y di s put e e m e r ged w hen G r egor y

E n t e rta i n m e n t s ought t o depos e F i d e l i t y ’ s e m p l o y ee w h o se af f i dav i t w as at t ached

t o t he C o m p l a i n t . T he de pos i t i on w a s not i c e d fo r tw o d a y s b e f o r e C h ris t m a s , b y

not i c e dat ed D ecem ber 3. I n i tia l l y , on D e c e m ber 22, Fi del i t y r e s i s t ed t h e

depos i t i o n cl a i m i ng no know l edge of t hat em p l oye e , and r eque s t i ng t hat any

depos i t i ons of F i d e lity b e ta k e n a t F i d e lity ’ s o f f i c e o r b y te l e p h o n e o r in w ritin g .

L a t e r, F i d e lity a tte m p t e d to c o r r e c t its e r r o r r e g a r d i n g its em p l oye e , but s ought

t o have t he de pos i t i on of t he out - o f - s t a t e e m p l o y e e tak e n b y w rit ten in terro g a t o r y

o r by t e l ephone .

M eanw h i l e , ot her s k i r m i shes w e r e escal a t i n g . T he C o m p l a i n t on S w orn

A c c ount w a s file d A ugu s t 28, 1997; t he A n s w e r w a s f i l ed O c t ober 13, 1997;

P lain t i f f f i l ed a M o t i on f o r D e f aul t J udgm ent ; an A m ende d A n s w e r ( under oat h )

w a s f i l ed on O c t ober 27, 1997; D e f enda n t f i l ed a M o t i on f o r J udgm ent on t h e

P l e a d i ngs on J anua r y 12, 1998, al l egi ng Pl a i n t i ff f a i l ed t o st a t e a cl a i m and ,

a lte r n a tiv e l y r equ est ed a cont i nuanc e of t he t r i a l w h i ch ha d bee n s e t f o r Febr uar y

b y agr e e d or der w h i ch a l s o w i t hdr e w t he m o t i on f o r def aul t j udgm ent ; on
3

January 28, 1998, Pl a i n t i f f r eque s t ed a cont i nuanc e of t he he a r i ng on th e m o tio n

f o r j udgm ent on t he pl e a d i ngs , w h i ch he a r i ng had b e e n se t f o r J anua r y 26; on

Febr uar y 6, 1 9 9 8 , P l a i n tiff file d a R e s pons e t o D e f enda n t ’ s M o t i on f o r J udgm ent

o n t h e Pl e a d i n g s ; on Fe b r uar y 6 , 1998, t he t r i a l cour t di s m i s s ed t he c o m p l a i n t

w i t hout pr e j udi c e , f i ndi ng def enda n t ’ s m o t i on t o be w e l l t ake n , appa r ent l y

fin d i n g a de f e c t under T enn. R . C i v . P. 10. 03 i n t he f a i l u r e t o at t a c h doc u m ent ( s )

under l y i n g th e la w s u it. T h e tria l c o u rt n o t e d th a t P l a i n t iff h a d s ugges t ed a n y

s uch de f e c t coul d be c u r ed by am endm ent .

R u l e 15. 01 of th e T enn ess ee R u l es of C i v i l P r oced ure pr o v i des t hat l eave

t o am e n d “sh all b e fr e e l y g i v e n w h e n j u s t i c e so re q u ires . ” O u r Supr e m e C our t

has r e c ogni z e d t hat t h i s l angua ge i n R u l e 15. 01 “ s ubs t ant i a l l y l e s s ens t h e

e x erci s e o f p r e - t r i a l d i s c r e tio n o n th e p a r t o f a tr i a l ju d g e . ” B r anch v . W a r r e n ,

527 S . W . 2 d 89 at 91, 92 ( T enn. 1975) ; see a l s o C r a v e n v. L a w s o n , 534 S. W . 2 d

653, 655 ( T enn. 1976) .

I n th e in s t ant ca s e , j udgm ent on t he pl e a d i ngs w a s r ende r ed i n f avor of

def enda n t re s u ltin g in d i s m i s s a l o f t he a c t i on. I n cons i der i ng w het her t o gr ant

a m end m ent , a t r i a l cour t s houl d cons i der s eve r a l f a c t o r s , i ncl udi ng “ undue del a y

i n filin g th e a m e n d m e n t, la ck of not i c e t o t he opp o s i ng par t y , bad f a i t h by t h e

m ovi n g par t y , and t he f u t i l i t y of am endm ent . ” G a r d i n e r v. W o r d , 731 S. W . 2 d

889, 891- 9 2 ( T enn. 1987) . T he t r i a l cour t di d not addr e s s any of t hes e f a c t o r s ,

and bas ed upo n our r evi e w of t he e n t i r e r e c o r d , w e a r e una b l e t o f i nd any of t h e

f a c t o r s m ilita tin g a g a i n s t a m e n d m e n t o r a n y in j u s tic e w h ich w o u l d re s u l t fro m

a m end m ent .

S i nce P l a i n tiff o f f e r e d to a m e n d its C o m p l a i n t to a tta c h d o cum e n t s , th i s

C our t need no t add r ess t he i s s ue o f w het her T enn ess ee R u l e of C i v i l P r oced ure

10. 0 3 re q u ire d th a t t he doc u m ent s be a t t a c hed t o t he C o m p l a i n t . I t ap p e a rs t o u s

t h a t am end m ent is th e m o st stra i g h tfo r w a r d m e t h o d to fu rth e r r e s o l u tio n o f th i s

app a r ent l y s t r a i g h t f o r w a r d d i s p u t e . R u l e 1 of t he T enn ess ee R u l e of C i v i l

P r oce d u r e provi des, “T hese r u l es s hal l be co nst r ued t o secure t he j ust , spee d y ,

and i nexpe n s i ve de t e r m i nat i on of eve r y a c tio n . ” T h i s p o lic y is fu rth e r e d in th i s

case by al l o w i n g am end m ent .

T h e o r d e r o f th e tria l c o u rt d i s m i s s i n g p l a i n tiff ’ s c o m p l a i n t and, t her eby,

deny i n g p lain t i ff’s r equ est f or l eave t o am end i s vacat e d a n d p l a i n tiff is a llo w e d

t o am end t he c o m p l a i n t . 
4

T h i s c a s e is re m a n d e d to th e tria l c o u rt f o r f u rth e r p r o c e e d i n g s . In v i e w

o f t he p r oced ural hi s t ory of t h i s cas e , t he co s t s of app eal ar e t axe d t o A ppel l ant .

_______________ ____________ ____ _

PATR I C I A J . CO TTRELL, J U D G E

CONC UR:

_______________________ _ _

W I L L I A M C. KOCH, J UDGE

_______________________ ___

W I L L I A M B. CAI N , J UDGE