Legal Memorandum: Standard for Amendments to Pleadings

Issue: In arbitration and under the law of the Second Circuit, whether it is possible to submit a Memorandum of Law supporting a motion to amend a Statement of Claim, when additional information that clarifies the issues in the Preliminary Statement is obtained.

Area of Law: Alternative Dispute Resolution, Litigation & Procedure
Keywords: Amended statement of claim; Deficiencies of the preliminary statement cured; Arbitration
Jurisdiction: Federal
Cited Cases: 794 F.2d 834; 46 F.3d 230; 204 F.3d 326; 786 F.2d 101; 214 F.3d 275; 745 F.2d 781
Cited Statutes: Code of Arb. Proc. R. 10328, Rule 10314(b); Fed. R. Civ. P. 15(a)
Date: 10/01/2005

The Code of Arbitration Procedure, which includes NASD’s Rules governing arbitration, addresses amendments to pleadings as follows:

(a) After the filing of any pleadings, if a party desires to file a new or different pleading, such change must be made in writing and filed with the Director of Arbitration with sufficient additional copies for each arbitrator. The party filing a new or different pleading shall serve on all other parties, a copy of the new or different pleading in accordance with the provisions set forth in Rule 10314(b). The other parties may, within ten (10) business days from the receipt of service, file a response with all other parties and the Director of Arbitration in accordance with Rule 10314(b).


(b) If a new or amended pleading increases the amount in dispute, all filing fees, hearing session deposits, surcharges, and process fees required under Rules 10332 and 10333 will be recalculated based on the amended amount in dispute.


(c) After a panel has been appointed, no new or different pleading may be filed except for a responsive pleading as provided for in (a) above or with the panel’s consent.

Code of Arb. Proc. R. 10328 (at http://www.nasdadr.com/arb_code/arb_code2.asp#10328). Therefore, the Code of Arbitration Procedure provides no harsh restrictions or challenging standards for granting motions to amend; the only condition to an amendment once a panel has been appointed is “consent.”  NASD panels and […]

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