Opinion ID: 276851
Heading Depth: 1
Heading Rank: 2

Heading: Refusal of Leave to Amend

Text: 32 The other issue presented by the appeal may be readily disposed of. This action was commenced on April 10, 1964. The parties and the court proceeded expeditiously, and summary judgment was granted Continental on January 2, 1965, subject to a later hearing to determine the size of the attorneys' fee to be awarded Continental on Count I, and the amount due on the open account pleaded in Count II. More than eight months after the grant of summary judgment and shortly before the October term of the district court was to open, Freeman filed, on September 7, 1965, a motion to amend his answer and counterclaim; and on October 6, 1965, Freeman filed his motion to set aside or reopen the summary judgment previously granted, and for leave to amend his answer and counterclaim. The proposed amendment would have charged Continental with fraud in making the oral promises and representations earlier held properly excluded under the 'parol evidence rule' when offered to show breach of contract. These motions were denied by the district court. 33 It is clear, of course, that the 'parol evidence rule' does not bar extrinsic evidence to show fraud. McArthur v. Fillingame, 184 Miss. 869, 186 So. 828, 829 (1939); Restatement, Contracts 238(b) (1932). Whether the facts alleged by Freeman would support a charge of fraud is extremely doubtrul. In Mississipp, fraud 'must relate to past or presently existing facts, as facts, and cannot consist of promises, except in some cases when a contractual promise is made with the present undisclosed intention of not performing it.    But the mere fact that a promise was broken is not in itself sufficient proof that the promisor so intended at the time made, for this would be, in practical effect, to convert the exception into the general rule.' McArthur v. Fillingame, 184 Miss. 869, 186 So. 828, 829 (1939). See also Brown v. Ohman, 42 So.2d 209, 215 (Sup.Ct.Miss. in banc, 1949). Thus the proposed amendment might well have been refused on the ground that it would be futile. The trial court, however, denied leave to amend because of undue delay in making the motion. The question is whether it abused its discretion in so ruling. 34 Rule 15(a) requires leave of court for such an amendment as this, but says that 'leave shall be freely given when justice so requires.' As this court has observed before, this 'is not a mechanical absolute and the circumstances and terms upon which such leave is to be 'freely given' is committed to the informed, careful judgment and discretion of the Trial Judge as he superintends the development of a cause toward its ultimate disposition.' Lone Star Motor Import, Inc. v. Citroen Cars Corp., 288 F.2d 69, 75 (5 Cir., 1961). In that case, the refusal to permit amendment where no reason whatever had been offered for denying leave was reversed. Where the trial court has had a reason for refusing to allow amendment, this court has left its action undisturbed. Jones v. Metzger Dairies, Inc., 334 F.2d 919, 926 (5 Cir., 1964); Calhoun County, Fla. v. Roberts, 148 F.2d 901, 904 (5 Cir., 1945). In Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 230, 9 L.Ed.2d 222 (1962), the Supreme Court held that though leave is to be 'freely given,' it need not be allowed if there is some 'apparent or declared reason-- such as undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed undue prejudice to the opposing party by virtue of allowance of the amendment, futility of amendment, etc.' 35 It is clear that lack of diligence is reason for refusing to permit amendment. So holding is Wheeler v. West India S.S. Co., 205 F.2d 354 (2 Cir., 1953), a decision concurred in by the draftsmen of the Federal Rules. Where there has been such lack of diligence, the burden is on the party seeking to amend to show that the delay 'was due to oversight, inadvertence, or excusable neglect.' Frank Adam Electric Co. v. Westinghouse Electric & Mfg. Co., 146 F.2d 165, 167 (8 Cir., 1945). Leave will be denied unless he shows some 'valid reason for his neglect and delay.' Carroll v. Pittsburgh Steel Co., 103 F.Supp. 788, 790 (W.D.Pa.1952). 36 The motion to amend in this case was made more than three years after the events in question had occurred. It was made fourteen months after the filing of Freeman's original answer, in which no claim of fraud was raised, and more than eight months after the court had granted summary judgment to Continental. In his brief in this court, Freeman suggests that extended negotiations for settlement after the grant of summary judgment accounted for the delay in then presenting his proposed amendment. There is nothing in the record to support this; and counsel for Continental, in their brief, deny its correctness in point of fact. Even assuming, however, that this would be a sufficient explanation for the delay from January to September, it does not explain the failure to propose such an amendment prior to the grant of summary judgment. The facts on which the claim of fraud is based were fully known to Freeman from the outset of the lawsuit and, indeed, were relied on by him, though under a different theory, in his original answer. It was not until that theory was rejected by the trial court-- correctly as we have held above-- that the amendment was tendered seeking to make out a showing of fraud from those facts. 37 A busy district court need not allow itself to be imposed upon by the presentation of theories seriatim. Liberality in amendment is important to assure a party a fair opportunity to present his claims and defenses, but 'equal attention should be given to the proposition that there must be an end finally to a particular litigation.' Friedman v. Transamerica Corp., 5 F.R.D. 115, 116 (D.Del., 1946). Some courts have refused as untimely amendments sought after a motion for summary judgment has been made. E.g., Eisenmann v. Gould-National Batteries, Inc., 169 F.Supp. 862, 864 (E.D.Pa., 1958); Gaylord Shops, Inc. v. South Hills Shoppers' City, Inc., 33 F.R.D. 303 (W.D.Pa., 1963). There is even more reason for refusing to allow amendment long after summary judgment has been granted. See County of Marin v. United States, 150 F.Supp. 619, 623 (N.D.Cal., 1957), reversed on other grounds, 356 U.S. 412, 78 S.Ct. 880, 2 L.Ed.2d 879 (1958); Carroll v. Pittsburgh Steel Co., 103 F.Supp. 788 (W.D.Pa., 1952). This court has frequently cautioned against use of summary judgment procedure in cases for which that procedure is not designed. E.g., Whitaker v. Coleman, 115 F.2d 305, 307 (5 Cir., 1940); Alabama Great Southern R. Co. v. Louisville & Nashville R. Co., 224 F.2d 1, 5, 50 A.L.R.2d 1302 (5 Cir., 1955); Gauck v. Meleski, 346 F.2d 433 (5 Cir., 1965). It has been equally insistent, however, that in the kind of case defined in Rule 56, where there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law, 'summary judgments are looked upon with favor.' United States for Use of Edward E. Morgan Co. v. Maryland Cas. Co., 147 F.2d 423, 425 (5 Cir., 1945); Bruce v. Travelers Ins. Co., 266 F.2d 781, 786 (5 Cir., 1959); also see O'Neill v. Corporate Trustees, Inc., 376 F.2d 818 (5 Cir., 1967). Much of the value of summary judgment procedure in the cases for which it is appropriate-- and we have held this to be such a case-- would be dissipated if a party were free to rely on one theory in an attempt to defect a motion for summary judgment and then, should that theory prove unsound, come back long thereafter and fight on the basis of some other theory. 38 We deem that these principles apply equally to so much of the proposed amended answer as purported to be a supplemental pleading sunder Rule 15(d). 39 We hold that a district court does not abuse its discretion in refusing to allow amendment of pleadings to change the theory of a case if the amendment is offered after summary judgment has been granted against the party, and no valid reason is shown for failure to present the new theory at an earlier time. 40 The judgment of the district court is in all things 41 Affirmed.