Opinion ID: 1153977
Heading Depth: 3
Heading Rank: 1

Heading: Did Gilbert Waive The Defense of Statute of Limitations?

Text: Blake argues that Gilbert waived the affirmative defense of statute of limitations because he did not plead it in his initial answer. Gilbert cites three Alaska cases for the proposition that the failure to plead limitations constitutes a waiver of the defense: Hitt v. J.B. Coghill, Inc., 641 P.2d 211 (Alaska 1982); Municipality of Anchorage v. Sisters of Providence in Washington, 628 P.2d 22, 34-35 (Alaska 1981); Barrett v. Byrnes, 556 P.2d 1254 (Alaska 1977). In Barrett, the defendant did not plead the defense of limitations, originally or by amendment, nor did she raise it prior to trial, or in her opening statement. Rather, she raised it for the first time after the plaintiff had rested her case. Thus, the defendant waived the defense, by operation of Civil Rule 12(h), which read in part: A party waives all defenses and objections which he does not present either by motion ... or, ... in his answer or reply ... (emphasis added). [16] The Barrett holding does not apply here. Gilbert did not wait until Blake rested his case. He raised the defense in his July 1983 motion and again in the amended answer of November 1983. Nothing in Hitt or Sisters of Providence suggests that the defense of limitations is waived if made by way of motion in lieu of pleadings. The general rule is that a defending party may, at any time, move for summary judgment on the basis of the statute of limitations. 6 J. Moore, Moore's Federal Practice ¶ 56.17[58], at 56-1058 (2d ed. 1982). While there is some authority that a defendant waives this defense if he fails to plead it and then later asserts it in a motion for summary judgment, this is an unduly technical holding which sound judicial administration cannot support. Id. Moore explains that this position is not tenable in view of the general purpose of the Rules that decision should go on the merits and not on pleading technicalities, and for the further reason that the Rules prescribe most liberally for the amendment of pleadings. Id. ¶ 56.17[4], at 56-737. At the hearing on the motion for summary judgment, Judge Madsen granted Gilbert's oral motion to amend the answer to add the limitations defense apparently because it would not result in prejudice to Blake. Blake cites many cases where delays ranging from ten months to four years constituted waivers of the limitations defense. Most of these cases hold that the delay constituted a waiver because of the substantial prejudice which the delay caused the plaintiff; if the defense had been raised earlier, the plaintiff could have instituted his suit in a non-time barred jurisdiction or could have taken other measures to avoid being frozen out completely. See Hayden v. Ford Motor, 497 F.2d 1292 (6th Cir.1974); Strauss v. Douglas Aircraft, 404 F.2d 1152, 1155 (2d Cir.1968). Here, Blake did not forego other avenues of relief in reliance on defendant's failure to raise the defense. Pierce v. County of Oakland, 652 F.2d 671, 673 (6th Cir.1981) (statute of limitations defense not waived despite three and one-half year delay); Estes v. Kentucky Utilities, 636 F.2d 1131, 1134 (6th Cir.1980) (delay alone is insufficient reason to deny motion to amend; no substantial prejudice in 41 month delay in raising defense). The record is unclear as to what occurred during the more than three year delay in this case. Blake claims he suffered substantial prejudice because he spent $4,000 litigating the case before Gilbert raised the limitations defense. Given Blake's claim that two million dollars is at stake in this litigation, it does not appear that $4000 in litigation costs is prejudice substantial enough to warrant preclusion of the limitations defense in a pretrial motion for summary judgment. See Pierce, 652 F.2d at 673; Estes, 636 F.2d at 1134; cf. McGraw v. Matthaei, 388 F. Supp. 84 (E.D.Mich. 1972) (motion made on last day of trial to amend pleadings to add limitations defense denied where considerable expense incurred in preparing and trying case ). We are unable to say that Judge Madsen abused his discretion in allowing Gilbert to raise the limitations defense in the manner and at the time he did.