On January 5, 2023, Justice Reed of the New York County Commercial Division issued a decision in Magnetic Parts Trading Ltd. v. National Air Cargo Group, Inc., 2023 NY Slip Op. 30166(U), holding that delay without prejudice is an insufficient basis for denying a motion to amend, explaining:
It is well settled that leave to amend a pleading should be freely granted in the absence of prejudice to the nonmoving party where the amendment is not patently lacking in merit. A party opposing leave to amend must overcome a heavy presumption of validity in favor of permitting amendment, by demonstrating prejudice or surprise or that the proposed amendment is palpably insufficient or patently devoid of merit.
Plaintiff’s argument that the amendment should be denied because of undue delay is unpersuasive. Here, plaintiff argues that defendant waited more than two years after filing its answer to move for relief, but mere lateness is insufficient to warrant denial for leave to amend. A showing of lateness must be coupled with significant prejudice to the other side to warrant relief.
Prejudice exists where a party has been hindered in the preparation of its case or has been prevented from taking some measure in support of its position. Here, neither party is precluded from seeking additional time to complete discovery. Plaintiff has not demonstrated having suffered any operative prejudice. Furthermore, defendant’s two-year delay is not so significant as to warrant denial of the motion.
(Internal quotations and citations omitted).