Diana's Great Idea, LLC v. Crazy Mountain Wind, LLC
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The Supreme Court affirmed in part and reversed in part the order of the district court denying Appellants leave to amend their answer and dismissing their counterclaims with prejudice, holding that the district court correctly disallowed the amendments as untimely but erred in concluding that their counterclaims were compulsory and dismissing them with prejudice.
The dispute that led to this litigation was the construction of a wind farm. Appellees filed a complaint alleging that the construction constituted a private, public, and anticipatory nuisance. Appellants answered the complaint but did not assert any counterclaims. After a hearing, the district court granted Appellees' request for a preliminary injunction. After the district court issued a scheduling order Appellants filed an amended answer and counterclaim and then moved to file a second and third amended answer and counterclaim. The district court concluded (1) the counterclaims were compulsory under Mont. R. Civ. P. 13(a) and that their late-added counterclaims were untimely; and (2) Mont. R. Civ. P. 15(a)(2) barred the amendments. The Supreme Court reversed in part, holding (1) the district court acted within its discretion in denying Appellants' amendments; (2) the district court erred in concluding that Appellants' counterclaims were compulsory under Rule 13(a) and dismissing them with prejudice.
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