Pursuing part of a claim in federal court while another part is in administrative resolution may lead to the loss of substantive rights, according to a new federal appellate decision that follows a circuit trend. In Arrigo v. Link, the U.S. Court of Appeals for the Seventh Circuit considered, on an issue of first impression in that jurisdiction, whether denial of a request to amend to assert unique legal claims served to bar those claims when brought as part of a new case.
February 20, 2017 feature
Procedural Dismissal Leads to Substantive Loss
Denial of untimely motion to amend precludes claims in subsequent suit
By Adam E. Lyons
The sole basis for the denial was procedural, based on the plaintiff not bringing the motion to amend by the agreed-on deadline to do so. Under principles of res judicata, or claim preclusion, the appellate court determined that the first decision prevented bringing the claims in a new suit. When facing a situation where only part of a claim is ripe for adjudication due to administrative requirements, a plaintiff is required to either stay her entire suit or run the risk of losing substantive causes of action, according to the decision.
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