Opinion ID: 874212
Heading Depth: 2
Heading Rank: 2

Heading: Did the District Court Err in Denying Taco Time's Motion to Amend Its Complaint?

Text: In its complaint, Taco Time alleged that its total damages were $295,160; that it recovered one-half of those damages, plus interest, from the sign company; and that it was entitled to recover the other half of the damages, plus interest, from Subcontractor. Taco Time did so because it believed that it was required to deduct the amount of its settlement with the sign company from any recovery against Subcontractor. It later concluded that it was not required to do so, and on August 29, 2008, it filed a motion to amend its complaint. On the same day, it also filed the amended complaint alleging that Subcontractor was liable for the full amount of Taco Time's damages, plus interest. The district court denied Taco Time's motion to file its amended complaint on the ground that it too was barred by the economic loss rule. Taco Time now asks us to reverse the order denying its motion to file an amended complaint. The district court's denial of Taco Time's motion to file an amended complaint was based upon the erroneous belief that Taco Time's cause of action was barred by the economic loss rule. We therefore vacate the order denying the motion to file an amended complaint.