Opinion ID: 1226014
Heading Depth: 1
Heading Rank: 3

Heading: Motion to amend the complaint to name personal representative

Text: A wrongful death action must be brought by the personal representative of the decedent's estate and cannot be maintained by the decedent's children or other survivors. RCW 4.20.020; Benton v. Associated Indem. Corp., 195 Wash. 446, 449, 81 P.2d 507 (1938). Here, Beal was appointed as guardian ad litem for Melissa Fernandez's children within two months of her death on June 1, 1989, and was authorized to retain attorney Smith to maintain a wrongful death action. The complaint in the action was filed three years to the day after Fernandez's death, the last day of the three year statute of limitations period. See RCW 4.16.080. However, when the complaint was filed, neither Beal nor anyone else had been appointed personal representative of the estate of the decedent. Thus, the action was not brought by the personal representative of the decedent's estate as required. Although the complaint did describe Beal as the personal representative, attorney Smith knew when the complaint was filed that Beal had not been appointed as personal representative and knew that the action had to be brought by the personal representative. Although petitioner agrees that he was improperly named as a plaintiff by his ex parte CR 15(a) motion, he contends the trial court should have granted his motion to amend the complaint under CR 17(a). [2] CR 17(a) provides that every action shall be brought in the name of the real party in interest and states: No action shall be dismissed on the ground that it is not prosecuted in the name of the real party in interest until a reasonable time has been allowed after objection for ratification of commencement of the action by, or joinder or substitution of, the real party in interest; and such ratification, joinder, or substitution shall have the same effect as if the action had been commenced in the name of the real party in interest. Where a state rule parallels a federal rule, analysis of the federal rule may be looked to for guidance, though such analysis will be followed only if the reasoning is found to be persuasive. American Mobile Homes of Wash., Inc. v. Seattle-First Nat'l Bank, 115 Wash.2d 307, 313, 796 P.2d 1276 (1990). CR 17(a) is identical to Fed.R.Civ.P. 17(a). The last sentence (with the relation back provision) was added to the federal rule by amendment in 1966. The Advisory Committee Note to the amendment states that the sentence was added in the interests of justice.... [T]he modern function of the rule in its negative aspect is simply to protect the defendant against a subsequent action by the party actually entitled to recover, and to insure generally that the judgment will have its proper effect as res judicata. 3A James Wm. Moore et al., Moore's Federal Practice § 17.01[8] (2d ed. 1996). The Court of Appeals in this case also recognized a second purpose of the rule: to expedite litigation by not permitting technical or narrow constructions to interfere with the merits of legitimate controversies. Beal, 83 Wash.App. at 223, 920 P.2d 1235 (citing In re Estate of Crane, 9 Wash.App. 853, 856, 515 P.2d 552 (1973)); see also Rinke v. Johns-Manville Corp., 47 Wash.App. 222, 227, 734 P.2d 533 (1987); Fitch v. Johns-Manville Corp., 46 Wash.App. 867, 869, 733 P.2d 562 (1987). The plain language of CR 17(a) supports Petitioner's position. However, as one commentator has noted, a literal interpretation of the last sentence of subsection (a) would make it applicable to every case where an inappropriate plaintiff had been named. 6A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure, § 1555 (2d ed. 1990). In accord with the purpose to avoid injustice, it has been held that when the determination of the right party to bring the action was not difficult and when no excusable mistake has been made, then the last sentence of Rule 17(a) was not applicable and the action should be dismissed. 6A Wright et al., Federal Practice and Procedure § 1555; see Rinke, 47 Wash. App. at 228, 734 P.2d 533. The Court of Appeals in Rinke explained that this limitation is read into CR 17(a) to prevent plaintiffs from using the rule to join or substitute persons whose interests were not contemplated from the beginning of the action. Rinke, 47 Wash.App. at 230, 734 P.2d 533. In this case, the Court of Appeals initially concluded that under CR 17(a) no mistake had been made at all. It then reasoned that where the failure to name the real party in interest occurred in the face of a clear understanding of who that party is, the trial court is well within its discretion in applying the standard developed in cases construing CR 15(c), and indeed should apply that standard. Beal, 83 Wash.App. at 225-26, 920 P.2d 1235. Where CR 15(c) is concerned, this court has held that if the plaintiff's delay in adding a party is due to inexcusable neglect, or a conscious decision, strategy or tactic joinder is not permitted. PUD of Klickitat County v. Walbrook Ins. Co., 115 Wash.2d 339, 349, 797 P.2d 504 (1990); North St. Ass'n v. City of Olympia, 96 Wash.2d 359, 368, 635 P.2d 721 (1981), disapproved on other grounds by, Sidis v. Brodie/Dohrmann, Inc., 117 Wash.2d 325, 815 P.2d 781 (1991). The trial court and the Court of Appeals considered both rules in deciding the propriety of the amendment in this case. Therefore, in order to decide whether the motion to amend should have been granted under CR 17(a), we will first consider petitioner's contention that the trial court and the Court of Appeals erroneously imported the standards for relation back of amendments pursuant to CR 15(c) to CR 17(a). Petitioner argues that where addition or substitution of a party is concerned, CR 15(c) by its terms applies only to a change in defendants. CR 15(c) provides: Whenever the claim or defense asserted in the amended pleading arose out of the conduct, transaction, or occurrence set forth or attempted to be set forth in the original pleading, the amendment relates back to the date of the original pleading. An amendment changing the party against whom a claim is asserted relates back if the foregoing provision is satisfied and, within the period provided by law for commencing the action against him, the party to be brought in by the amendment (1) has received such notice of the institution of the action that he will not be prejudiced in maintaining his defense on the merits, and (2) knew or should have known that, but for a mistake concerning the identity of the proper party, the action would have been brought against him. Contrary to petitioner's view, although its language is limited to a change in defendants, CR 15(c) applies by analogy in the case of newly added plaintiffs. Haberman v. Washington Pub. Power Supply Sys., 109 Wash.2d 107, 173, 744 P.2d 1032, 750 P.2d 254 (1988). The holding in Haberman follows from the federal Advisory Committee's Note to the 1966 amendment to Fed.R.Civ.P. 15(c), when the language concerning a change in parties was added, stating that the policy expressed in the rule applies by analogy to amendments changing plaintiffs. 3 James Wm. Moore et al., Moore's Federal Practice § 15.01[9] (2d ed. 1996); see id. § 15.15[4]; see generally Clif J. Shapiro, Note, Amendments that Add Plaintiffs Under Federal Rule of Civil Procedure 15(c), 50 Geo.Wash.L.Rev. 671 (1982). As noted in Haberman, once the notice and prejudice requirements of CR 15(c) have been satisfied, any amendment changing plaintiffs does not subvert the policies of the statute of limitations. Haberman, 109 Wash.2d at 173, 744 P.2d 1032 (citing North St. Ass'n, 96 Wash.2d at 368, 635 P.2d 721). Additionally, the Advisory Committee Note to rule 15(c) indicates that federal Rules 15(c) and 17(a) are related. 3 Moore et al., Moore's Federal Practice § 15.01[9]. The rules are sometimes applied in tandem. 6A Wright et al., Federal Practice and Procedure § 1501; see, e.g., Holmes v. Pennsylvania New York Cent. Transp. Co., 48 F.R.D. 449 (N.D.Ind.1969); Corbin v. Blankenburg, 39 F.3d 650 (6th Cir.1994); cf. Calvert v. Tulsa Pub. Schools, Independent Sch. Dist. No. 1, 932 P.2d 1087 (Okla.1996) (under state versions of rules 15 and 17). Thus, while a motion to amend a complaint changing the capacity of the plaintiff may be resolved under CR 17(a), as in Fitch and Rinke, Haberman indicates the inexcusable neglect standard of CR 15(c) also applies where a change in plaintiffs is made. Accordingly, we find the Court of Appeals properly considered the standards set forth in CR 15(c). Under CR 15(c), a change in plaintiffs should not be permitted if the defendant will be prejudiced in presenting a defense, nor where the defendant has no notice (actual or constructive) that the action would be brought against defendant if brought by the proper party. These requirements assure that statute of limitations purposes are not subverted, as indicated in Haberman. Where a change in the capacity of the plaintiff bringing suit is the only change, CR 15(c) requirements regarding notice and lack of prejudice are necessarily satisfied, provided that the complaint adequately sets out the claim. Here, for example, the same natural person serves two fiduciary roles, as guardian ad litem and as personal representative of the decedent's estate. The same claim is involved, and the beneficiaries, if the action is successful, remain the same. The City of Seattle will not suffer any prejudice in preparing a defense if the change in capacity is allowed, nor is there any doubt that notice was had that suit would be brought against the City if the proper party sued. Thus, express requirements of CR 15(c) are satisfied. Nevertheless, as the Court of Appeals concluded here, there was no honest or understandable mistake, in fact no mistake at all, because the determination of the real party in interest was not difficult and indeed plaintiff's counsel actually knew who the proper party was before the complaint was filed. Beal, 83 Wash.App. at 225, 920 P.2d 1235. Counsel simply ran out of time to file the necessary paperwork to have Beal appointed before the statute of limitations ran. Id. at 224, 920 P.2d 1235. Thus, the issue for this court is whether the inexcusable neglect standard under CR 15(c) or the honest or understandable mistake standard under CR 17(a), or both, should be applied when the amendment involves only a change in representative capacity to maintain the action, as in this case. [3] A number of federal courts have been lenient in allowing relation back of amendments to complaints reflecting a change in the capacity in which the plaintiff brings the action. Recently, such cases have often involved application of Fed.R.Civ.P. 15. See, e.g., Flores v. Cameron County, 92 F.3d 258 (5th Cir.1996) (survival action by mother of decedent originally brought in individual capacity; amendment of pleading allowed to permit change in capacity to that of personal representative of decedent's estate and change related back to date of filing of original complaint; appointment as personal representative occurred after statute of limitations ran); Longbottom v. Swaby, 397 F.2d 45 (5th Cir.1968) (relation back of amendment to date of original pleading allowed after statute of limitations ran where only change is in description of capacity in which plaintiff sues); Frankel v. Styer, 209 F.Supp. 509 (E.D.Pa.1962) (amendment of complaint in wrongful death action substituting plaintiff as administrator of estate for plaintiff as guardian ad litem of decedent's minor children did not change cause of action but was merely change of fiduciaries of persons in whose behalf action was brought; relation back of amendment allowed though appointment as administrator occurred after statute of limitations ran). In none of these cases was there any discussion of any mistake in identifying the proper party to bring the action. The Court of Appeals in this state has similarly applied the relation back provisions of CR 17(a) without discussing mistake or excusable neglect. Fitch, 46 Wash.App. at 869, 733 P.2d 562; see generally Jerald J. Director, Annotation, Amendment of Pleading to Add, Substitute, or Change Capacity of, Party Plaintiff as Relating Back to Date of Original Pleading, Under Rule 15(c) of Federal Rules of Civil Procedure, so as to Avoid Bar of Limitations, 12 A.L.R. Fed. 233, § 9 (1972). The relevant inquiry has been whether defendant was prejudiced. Other courts have explicitly found that application of the inexcusable neglect or honest mistake standards to a mere change in capacity is the kind of technical bar to a legitimate claim which CR 17(a) is designed to avoid. In similar cases, the Oklahoma courts have reasoned that the administrative requirements for filing a wrongful death action should not override the substantive right of recovery of the potential beneficiaries, and, particularly where the parties have remained the same, a substitution in the capacity of personal representative for individual capacity should be permitted under rule 17. Calvert, 932 P.2d at 1090; Weeks v. Cessna Aircraft Co., 895 P.2d 731 (Okla.Ct.App. 1994). The purpose of CR 15(c), as mentioned earlier, is to permit amendment provided the defendant is not prejudiced and has notice. The purpose of CR 17(a) is to protect the defendant against a subsequent action by the party actually entitled to recover and to expedite litigation by not permitting technical or narrow constructions to interfere with the merits of legitimate controversies. Application of the inexcusable neglect or honest mistake standard to a change in representative capacity undermines the goals, as well as the literal language of the rules. Although we recognize the potential for abuse in a literal interpretation of CR 17(a) if applied in every circumstance, we conclude that allowing an amendment where the only change is a change in the capacity (guardian ad litem as opposed to personal representative of the decedent's estate) in which the suit is brought, when there is no prejudice to the defendant, better meets the literal language of CR 17(a), as well as the purposes of CR 17(a) and CR 15(c). Finally, on this point, the City argues that because only the personal representative of the estate can maintain this action, the failure to join the personal representative within the statute of limitations period means that the court lacks jurisdiction over the estate, citing Sutton v. Hirvonen, 113 Wash.2d 1, 775 P.2d 448 (1989) and Murray v. Joe Gerrick & Co., 172 Wash. 365, 20 P.2d 591 (1933). The argument appears to be that in the absence of jurisdiction within the statute of limitations period, any attempt to amend the complaint to add the personal representative after the limitations period ran could not confer jurisdiction on the court. In neither Sutton nor Murray is there any indication that any attempt was made to amend the pleadings to name the personal representative as plaintiff, and accordingly neither case addresses the argument the City advances here. The City's contention is inconsistent with the Court of Appeals' decisions in Rinke, 47 Wash.App. at 228, 734 P.2d 533, where appointment as personal representative and the amendment to the complaint occurred after the limitations period expired, and Fitch, 46 Wash.App. 867, 733 P.2d 562, where reappointment as personal representative and the motion to amend occurred after the limitations period expired. [4] Moreover, CR 17(a) by its terms states that ratification of commencement of the action shall have the same effect as if the action had been commenced in the name of the real party in interest. Under this provision, we conclude that a court has jurisdiction over the estate if amendment is permitted under the rule. In summary, we find that CR 17(a) and CR 15(c) do not bar amendment of the complaint and relation back in this case because the change is only in the representative capacity in which the suit is brought and the City is not prejudiced by the amendment.