Opinion ID: 458963
Heading Depth: 1
Heading Rank: 3

Heading: futility of the amendment

Text: 9 Henderson contends that even if the reasons advanced by the district court are unconvincing, the court did not abuse its discretion as the offered amendments were futile. If a complaint as amended is still subject to dismissal, leave to amend need not be given. Pan Islamic Trade Corp. v. Exxon Corp., 632 F.2d 539 (5th Cir.1980), cert. denied, 454 U.S. 927, 102 S.Ct. 427, 70 L.Ed.2d 236 (1981). 1 Henderson argues that the federal securities claims appellant attempted to advance in the amended complaint were also arbitrable. Thus the district court was correct in denying leave and compelling arbitration. 10 At the time of the proposed amendment adding presumably nonarbitrable claims to the litigation, this circuit's doctrine of intertwining was in effect. Under that doctrine, when arbitrable and nonarbitrable claims arising out of the same transaction are sufficiently intertwined factually and legally, the district court could in its discretion deny arbitration on the arbitrable claims and try all the claims together in federal court. Since the time the district court acted in this case, however, the Supreme Court decided Dean Witter Reynolds, Inc. v. Byrd, --- U.S. ----, 105 S.Ct. 1238, 84 L.Ed.2d 158 (1985), in which the Court rejected the intertwining doctrine. The Court held that in the case of arbitrable and nonarbitrable claims under the securities laws, the district court should compel arbitration of arbitrable claims, and retain jurisdiction over the nonarbitrable claims. The concurring opinion in Byrd suggested that neither proceeding should be delayed. 105 S.Ct. at 1245 (White, J., concurring). This circuit, however, has not yet decided whether district court proceedings should be stayed pending completion of arbitration. Shihadeh v. Dean Witter Reynolds, Inc., 766 F.2d 461 (11th Cir. July 22, 1985). We need not consider this question because we hold in section IV, infra, that the claims offered in the amendment are arbitrable, and therefore there is no need for further proceedings in the district court. 11