Opinion ID: 1599753
Heading Depth: 1
Heading Rank: 3

Heading: Allison-Kesley's Application to Amend Their Initial Complaint.

Text: In Allison-Kesley's final asserted error, it contends that the district court improperly denied its application to amend the initial complaint against Farmers Coop. The application to amend, which was filed over three months after trial and approximately thirty days after submission of written briefs and arguments, claims that Farmers Coop breached an implied-in-fact contract with Allison-Kesley in which they agreed not to lift the stop-payment order in exchange for an indemnification agreement. The district court denied the application on the basis that it was untimely. Iowa Rule of Civil Procedure 88 is relevant to our analysis. A party may amend a pleading once as a matter of course at any time before a responsive pleading is served or, if the pleading is one to which no responsive pleading is required and the action has not been placed upon the trial calendar, the party may so amend it at any time within twenty days after it is served. Otherwise, a party may amend a pleading only by leave of court or by written consent of the adverse party. Leave to amend, including leave to amend to conform to the proof, shall be freely given when justice so requires. Elaborating upon the rule 88 standard for amendments, we have said: Allowance of an amendment to a pleading is the rule and denial the exception, although an amendment is not permissible which will substantially change the issue. Additionally, a trial court has considerable discretion as to whether an appropriate request for leave to amend should be granted or denied and we will reverse only where a clear abuse of discretion is shown. M-Z Enter. Inc. v. Hawkeye Sec. Ins. Co., 318 N.W.2d 408, 411 (Iowa 1982). Thus, the timing of an attempt to amend is not the determinative factor; instead, the critical determination is whether the proposed amendment substantially changes the issues before the court. Kitzinger v. Wesley Lumber Co., 419 N.W.2d 739, 741 (Iowa App.1987). The relevant issues are established either by the initial pleadings, see Davis v. Ottumwa Young Mens Christian Assoc., 438 N.W.2d 10, 14-15 (Iowa 1989), or by those matters on which the parties have consented to litigate, either expressly or impliedly. See Iowa R.Civ.P. 249. Allison-Kesley contends that their proposed amendment falls into the latter category, and thus they are entitled to amend their pleadings under Iowa Rules of Civil Procedure 88, 106, and 249, all of which provide for amendment of the pleadings so as to conform with the evidence presented. After considering the trial transcript, we note that evidence concerning the existence vel non of an implied-in-fact contract between Allison-Kesley and Farmers Coop was given by several witnesses, including Moser, Abbas, and Maurice Hyde, president of Farmers Coop's parent company. We also note that allowance of a conforming amendment is the rule and denial the exception. B & B Asphalt Co. v. T.S. McShane Co., 242 N.W.2d 279, 284 (Iowa 1976). Finally, amendments to conform to the proof are acceptable at any time, even after judgment has been rendered. Iowa R.Civ.P. 106; see also Smith v. Village Enter., Inc., 208 N.W.2d 35, 37 (Iowa 1973). Nevertheless, a trial court has considerable discretion in ruling on a motion for leave to amend, and we will reverse only when a clear abuse of discretion is shown. Id. (emphasis added); Atlantic Veneer Corp. v. Sears, 232 N.W.2d 499, 503 (Iowa 1975). More specifically, when the movant seeks to amend based upon trial testimony that the movant knew or should have known about beforehand, amendments that might well have otherwise been allowed earlier in the course of the proceedings may properly be denied by the district court judge. Mora v. Savereid, 222 N.W.2d 417, 422-23 (Iowa 1974) (denying an amendment at the close of evidence when the trial testimony presented no surprises); Trask v. Gibbs, 200 N.W.2d 565, 568-69 (Iowa 1972) (same); Salter v. Freight Sales Co., 357 N.W.2d 38, 43 (Iowa App.1984). In the present dispute, Allison-Kesley knew or should have known as of the inception of their suit that Hyde and Abbas were prepared to offer testimony that they had secured an agreement with Moser whereby Farmers Coop would not release their stop payment in exchange for a promise of indemnification by Allison-Kesley. Under these circumstances, we are unable to conclude that the district court's denial of Allison-Kesley's application for amendment, filed three months after the evidence was closed and thirty days after the submission of final arguments and briefs, was an abuse of discretion. Accordingly, the decision of the court of appeals is hereby vacated, and the decision of the district court is affirmed. DECISION OF COURT OF APPEALS VACATED; DISTRICT COURT JUDGMENT AFFIRMED.