Opinion ID: 2172812
Heading Depth: 1
Heading Rank: 2

Heading: amendment to the answer

Text: The decision of the Vice-Chancellor declaring the options valid was filed on June 23, 1965. In the following August, the appellees asked leave to file an amendment to the answer by asserting a counterclaim seeking money damages for the refusal to honor the options. We do not think that the amendment is correctly described as a counterclaim. The Vice-Chancellor properly treated it as an application for further relief under 10 Del.C. § 6502, and granted the application to amend. That section provides: Further relief based on a declaratory judgment or decree may be granted whenever necessary or proper. The application shall be by petition to a court having jurisdiction to grant the relief. If the application be deemed sufficient, the court shall, on reasonable notice, require any adverse party, whose rights have been adjudicated by the declaration, to show cause why further relief should not be granted forthwith. Appellant contends that the claim for damages is barred by 10 Del.C. § 8106, which provides a three-year limitation for the bringing of actions to recover damages generally. We agree with the Vice-Chancellor that § 8106 has no application in the present situation. Appellees, by their amendment, have not pleaded a cause of action which was not previously asserted. Their original answer asked the Court to declare the options valid, and specifically prayed for an order requiring appellant to issue the stock, although the answer also included a prayer for such other relief as may be just and equitable. The amendment simply adds a prayer for a different form of relief. The cases in other jurisdictions are in accord with the holding that this case falls within the bounds of 10 Del.C. § 6502. Burgard v. Mascoutah Lumber Company, 6 Ill. App.2d 210, 127 N.E.2d 464; Edward B. Marks Music Corp. v. Charles K. Harris Music Pub. Co., 2 Cir., 255 F.2d 518; Case v. Blood, 71 Iowa 632, 33 N.W. 144; 34 Am. Jur. 218. Cf. Clemente v. Greyhound Corp., 2 Storey 223, 155 A.2d 316. The authorities cited by appellant are not pertinent because they involved attempts to assert a new cause of action after the limitation period had expired. Cf. Greer v. Moore, 19 Del.Ch. 281, 166 A. 403; Delaware Chemicals v. Reichhold Chemicals, 35 Del.Ch. 493, 121 A.2d 913. Appellant's final contention is that the amendment should not be allowed because of appellees' long delay in presenting it. We think the Vice-Chancellor acted well within his discretion in permitting the change. From the beginning, appellant was aware of the statute (10 Del.C. § 6502), as well as the original alternative prayer for relief, and is charged with knowledge that appellees might ask for money relief if the options were held valid; until that declaration was made, there was little point in discussing what relief ought to be granted. The fact that an additional hearing may be necessary does not require a different result. We note with concern that the time which elapsed between the date this action was begun and the date of entry of the Court's order appears unreasonably long. The complaint was filed November 21, 1961, and the trial took place in October, 1963. The opinion on the merits was delivered on June 23, 1965, and the motion to amend the answer was filed two months later. The decision to allow the amendment was made in April, 1967. We do not know the explanation for this lapse of time. Conceivably, the delays, and the possible consequence thereof, may become important in the ascertainment of damages, should the case proceed that far. The order entered in the Court below will be affirmed.