Hayduk v. Lanna, No. 85-1191

CourtU.S. Court of Appeals — First Circuit
Writing for the CourtBefore CAMPBELL, Chief Judge, BOWNES; BOWNES
Citation775 F.2d 441
PartiesRobert G. HAYDUK, et al., Plaintiffs, Appellants, v. Vincent T. LANNA, et al., Defendants, Appellees.
Docket NumberNo. 85-1191
Decision Date23 October 1985

Page 441

775 F.2d 441
3 Fed.R.Serv.3d 264
Robert G. HAYDUK, et al., Plaintiffs, Appellants,
v.
Vincent T. LANNA, et al., Defendants, Appellees.
No. 85-1191.
United States Court of Appeals,
First Circuit.
Argued Sept. 6, 1985.
Decided Oct. 23, 1985.

Page 442

John B. Hopkins, Barnstable, Mass., for plaintiffs, appellants.

Charles S. McLaughlin Jr., Hyannis, Mass., with whom Mycock, Kilroy, Green & McLaughlin P.C., Hyannis, Mass., were on brief for defendants, appellees Mid-Cape Racquet Club, Inc. and Eugene Majewski.

Daniel J. Fern, Hyannis, Mass., for defendant, appellee The Finance Co. of America.

Before CAMPBELL, Chief Judge, BOWNES, Circuit Judge, and CEREZO, * District Judge.

BOWNES, Circuit Judge.

This is an appeal by plaintiffs-appellants Robert G. Hayduk, et al. from the district judge's grant of judgment, pursuant to Federal Rule of Civil Procedure 54(b), for defendants-appellees Finance Company of America (FCA), Mid-Cape Racquet Club, Inc. (Racquet), and Eugene W. Majewski. The court found that the only claims against appellees, fraud and conspiracy to commit fraud, failed to meet the particularity requirements of Federal Rule of Civil Procedure 9(b).

The original action was commenced in the Superior Court for Barnstable County, Massachusetts, in June 1978 by Robert G. Hayduk, Willie H. Hayduk, and Mid-Cape Tennis, Inc. (Tennis). The action was a result of the demise of Tennis and the Hayduks' business holdings therein allegedly caused by the mismanagement and fraudulent behavior of defendants Vincent T. and Josephine Lanna, Frank Bellino, Jr., Eve Lenel, Indoor Tennis Consultants, Inc. (ITCI), and FCA. The case was removed to the federal district court pursuant to 28 U.S.C. Secs. 1441(a) and 1332. Plaintiffs filed an amended complaint of right which added Racquet and Eugene W. Majewski as defendants. On November 17, 1980, the district court dismissed the amended complaint granting leave to the plaintiffs to file a second amended complaint.

In a hearing on all defendants' motions for dismissal of the second amended complaint and/or for summary judgment, the district court dismissed with prejudice Counts One, Two, Four, and Five of the amended complaint for failure to meet the particularity requirements of Federal Rule of Civil Procedure 9(b) when pleading fraud. This court dismissed plaintiffs' appeal of that ruling because it was not a final judgment. Hayduk v. Lanna, Misc. No. 81-8063 (1st Cir. Oct. 21, 1981).

Subsequently, defendants FCA, Racquet, and Majewski moved for entry of judgment pursuant to Federal Rule of Civil Procedure 54(b) on the grounds that the remaining counts did not state a claim against them. On February 14, 1985, the district court granted the motions and dismissed the case as to these defendants. This appeal ensued.

The issues on appeal are whether the district court erroneously ruled that the dismissed counts of plaintiffs' complaint

Page 443

did not meet the particularity requirements of Federal Rule of Civil Procedure 9(b) and, even if it did not, whether it was an abuse of the district court's discretion to refuse to allow plaintiffs to amend their complaint a third time.

Although state law governs the burden of proving fraud at trial, the procedure for pleading fraud in federal courts in all diversity suits is governed by the special pleading requirements of Federal Rule of Civil Procedure 9(b). Simcox v. San Juan Shipyard, Inc., 754 F.2d 430, 439 n. 9 (1st Cir.1985); 5 C. Wright and A. Miller, Federal Practice and Procedure, Secs. 1204, 1296 (1969). Rule 9(b) states: "In all averments of fraud or mistake, the circumstances constituting fraud or mistake shall be stated with particularity. Malice, intent, knowledge, and other conditions of mind of a person may be averred generally." Thus, while a federal court will examine state law to determine whether the elements of fraud have been pled sufficiently to state a cause of action, the Rule 9(b) requirement that the circumstances of the fraud must be stated with particularity is a federally imposed rule. One of the main purposes of the rule is to apprise the defendant of fraudulent claims and of the acts that form the basis for the claim. Simcox, 754 F.2d at 439; McGinty v. Beranger Volkswagon, Inc., 633 F.2d 226, 228-29 (1st Cir.1980); Felton v. Walston and Co., 508 F.2d 577, 582 (2d Cir.1974). In other words, "[i]n cases in which fraud lies at the core of the action, the rule does not permit a complainant to file suit first, and subsequently to search for a cause of action." Lopez v. Bulova Watch Co., Inc., 582 F.Supp. 755, 766 (D.R.I.1984) (citing Deyhle v. Barclay Investments, Inc., No. 82-0662, slip op. at 4 (D.R.I. Oct. 13, 1983)) (emphasis added).

Appellants first...

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290 practice notes
  • Pell v. Weinstein, No. 3:CV-88-1905.
    • United States
    • United States District Courts. 3th Circuit. United States District Court of Middle District of Pennsylvania
    • March 20, 1991
    ...and belief, supporting facts on which this belief is 759 F. Supp. 1119 founded must be set forth in the complaint. Hayduk v. Lanna, 775 F.2d 441, 444 (1st The amended complaint fails to set forth any specifics regarding the alleged fraud. In particular, the plaintiffs do not even attempt to......
  • Survine v. Cottle, CASE NO. CV F 12-1453 LJO JLT
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Eastern District of California
    • January 8, 2013
    ...particularity is a federally imposed rule." Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1103 (9th Cir. 2003) (quoting Hayduk v. Lanna, 775 F.2d 441, 443 (1st Cir. 1995)(italics in original)). 7. "In some cases, the plaintiff may allege a unified course of fraudulent conduct and rely entire......
  • Heinrich v. Sweet, Civil Action No. 97-12134-WGY.
    • United States
    • United States District Courts. 1st Circuit. United States District Courts. 1st Circuit. District of Massachusetts
    • April 30, 1999
    ...of Fed.R.Civ.P. 9(b) should apply to the Plaintiffs' theory, as it rests on an alleged conspiracy to defraud. See Hayduk v. Lanna, 775 F.2d 441, 444 (1st Cir.1985) ("[I]n actions alleging conspiracy to defraud or conceal, the particularity requirements of Rule 9[b] must be met."). This may ......
  • Ayon v. JPMorgan Chase Bank, N.A., CASE NO. CV F 12-0355 LJO SKO
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Eastern District of California
    • April 9, 2012
    ...particularity is a federally imposed rule." Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1103 (9th Cir. 2003) (quoting Hayduk v. Lanna, 775 F.2d 441, 443 (1st Cir. 1995)(italics in original)). 6. "In some cases, the plaintiff may allege a unified course of fraudulent conduct and rely entire......
  • Request a trial to view additional results
290 cases
  • Pell v. Weinstein, No. 3:CV-88-1905.
    • United States
    • United States District Courts. 3th Circuit. United States District Court of Middle District of Pennsylvania
    • March 20, 1991
    ...and belief, supporting facts on which this belief is 759 F. Supp. 1119 founded must be set forth in the complaint. Hayduk v. Lanna, 775 F.2d 441, 444 (1st The amended complaint fails to set forth any specifics regarding the alleged fraud. In particular, the plaintiffs do not even attempt to......
  • Survine v. Cottle, CASE NO. CV F 12-1453 LJO JLT
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Eastern District of California
    • January 8, 2013
    ...particularity is a federally imposed rule." Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1103 (9th Cir. 2003) (quoting Hayduk v. Lanna, 775 F.2d 441, 443 (1st Cir. 1995)(italics in original)). 7. "In some cases, the plaintiff may allege a unified course of fraudulent conduct and rely entire......
  • Heinrich v. Sweet, Civil Action No. 97-12134-WGY.
    • United States
    • United States District Courts. 1st Circuit. United States District Courts. 1st Circuit. District of Massachusetts
    • April 30, 1999
    ...of Fed.R.Civ.P. 9(b) should apply to the Plaintiffs' theory, as it rests on an alleged conspiracy to defraud. See Hayduk v. Lanna, 775 F.2d 441, 444 (1st Cir.1985) ("[I]n actions alleging conspiracy to defraud or conceal, the particularity requirements of Rule 9[b] must be met."). This may ......
  • Ayon v. JPMorgan Chase Bank, N.A., CASE NO. CV F 12-0355 LJO SKO
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Eastern District of California
    • April 9, 2012
    ...particularity is a federally imposed rule." Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1103 (9th Cir. 2003) (quoting Hayduk v. Lanna, 775 F.2d 441, 443 (1st Cir. 1995)(italics in original)). 6. "In some cases, the plaintiff may allege a unified course of fraudulent conduct and rely entire......
  • Request a trial to view additional results

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