Murray v. City of New York, 30 N.Y.2d 113 (1972): Discretion to Amend Answer to Plead Statute of Limitations

Murray v. City of New York, 30 N.Y.2d 113 (1972)

A court’s discretion to deny an amendment to an answer to plead the statute of limitations exists only where clear and disabling prejudice will be worked to the plaintiff; however, if the trial court’s decision was based on a matter of law, not discretion, the appellate court’s affirmance of the findings of fact is ineffectual.

Summary

This case addresses the discretion of a trial court to allow the amendment of an answer to include a statute of limitations defense. The Court of Appeals held that while such amendments should be liberally granted, the trial court retains discretion to deny them if the plaintiff would suffer clear and disabling prejudice. However, the Court found that the trial court’s decision was based on an interpretation of law, not on discretionary considerations, rendering the appellate division’s affirmance of the findings of fact ineffectual. The case was remitted for a factual determination.

Facts

The specific facts underlying the plaintiff’s claim are not detailed in this memorandum decision. The key fact is that the defendant, City of New York, sought to amend its answer to include a statute of limitations defense. The trial court’s decision regarding the amendment was appealed.

Procedural History

The trial court made a decision regarding the defendant’s motion to amend its answer. The Appellate Division affirmed the trial court’s findings of fact. The Court of Appeals reviewed the Appellate Division’s order.

Issue(s)

Whether the Appellate Division’s affirmance of the findings of fact was effectual, given that the Trial Term’s decision was rendered as a matter of law, rather than in the exercise of discretion.

Holding

No, because the Trial Term’s decision was based on a matter of law, not discretion; therefore, the Appellate Division’s affirmance of the findings of fact was ineffectual.

Court’s Reasoning

The Court of Appeals stated that amendments to plead the statute of limitations should be liberally granted unless the plaintiff would experience “clear and disabling prejudice.” However, the Court emphasized that the trial court’s discretion remains a factor. The central issue was whether the trial court’s decision was an exercise of discretion, which the Appellate Division affirmed factually, or a decision based on a point of law. The Court of Appeals found that the trial court treated the issue as one of law, not discretion. Because of this, the Court found the Appellate Division’s affirmance of the findings of fact to be ineffectual. The Court reasoned that the appellate court was affirming a legal conclusion rather than a discretionary decision. The case was remitted to the Supreme Court for a determination of the factual issues.