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Williams v. Citigroup Inc. - 659 F.3d 208 (2d Cir. 2011)


In the ordinary course, the Federal Rules of Civil Procedure provide that courts should freely give leave to amend a complaint when justice so requires. Fed. R. Civ. P. 15(a)(2). This permissive standard is consistent with courts' strong preference for resolving disputes on the merits. Where, however, a party does not seek leave to file an amended complaint until after judgment is entered, Rule 15's liberality must be tempered by considerations of finality. As a procedural matter, a party seeking to file an amended complaint post-judgment must first have the judgment vacated or set aside pursuant to Fed. R. Civ. P. 59(e) or 60(b). To hold otherwise would enable the liberal amendment policy of Rule 15(a) to be employed in a way that is contrary to the philosophy favoring finality of judgments and the expeditious termination of litigation.


Plaintiff Linda Grant Williams filed a complaint in federal district court alleging that defendants Citigroup Inc. and Citigroup Global Markets Inc. ("Citigroup) violated §§ 1 and 2 of the Sherman Act; Williams also asserted state law claims. Specifically, Williams alleged that Citigroup and others conspired to block the use of Williams' patent-pending structure for Airline Special Facility bonds. The district court granted Citigroup's motion to dismiss and denied Williams' motions, under Fed. R. Civ. P. 59(e) and 60(b), for reargument and reconsideration. In addition, by exercising supplemental jurisdiction, the district court denied the remaining state law claims. Williams appealed, arguing that the district court erred by dismissing the complaint without granting leave to replead sua sponte. 


Did the court err in dismissing the complaint?




The district court's dismissal of Williams' federal claims was affirmed. The court saw no abuse of discretion in the district court's failure to grant leave to replead sua sponte. The nature of the relief that Williams sought in her post-judgment motion was leave to amend her complaint. The district court denied the motion because Williams did not explain why she should have been granted leave to replead when she failed to request an opportunity to replead in the first instance. The court found that the denial of the motion for this reason was not a proper exercise of the district court's discretion because the district court applied a standard that overemphasized considerations of finality at the expense of the liberal amendment policy embodied in the Federal Rules of Civil Procedure. On remand, the district court should address whether the proposed amendments would have been futile. Finally, the court construed the post-judgment motion as seeking leave to amend the complaint in ways that related not only to Williams' federal claims, but also to her state law claims. Accordingly, he court vacated so much of the district court's judgment as dismissed the state law claims with prejudice.

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