Delaware Business Litigation Report

Court Of Chancery Applies Relation Back Rule

Central Mortgage Company v. Morgan Stanley Mortgage Capital Holdings LLC, C.A. 5140-CS (August 7, 2012)

When a complaint is amended, the issue sometimes arises whether any new claims relate back to the original filing date so as to avoid the expiration of the statute of limitations.  In this decision, the Court explains that when the breach of contract alleged in the amended complaint arises out of different facts and is a different breach than in the original contract, then it does not relate back. Hence, it is a bad idea to wait to amend a complaint.

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