Motion to Amend Answer Should Have Been Allowed—Prejudice in this Context Explained

In reversing Supreme Court in a case concerning whether an assault was covered under an insurance policy, the Fourth Department determined the defendant insurance company’s motion for leave to amend its answer should have been granted and plaintiffs’ motion for summary judgment should have been denied.  After finding that the amendment was meritorious, the Fourth Department explained how to analyze whether an amendment would “prejudice” the defendant:

“ ‘Prejudice may be found where a party has incurred some change in position or hindrance in the preparation of its case which could have been avoided had the original pleading contained the proposed amendment’ ”… . Here, the alleged prejudice would not have been avoided had the original answer contained the proposed amendment.    “[T]he fact that an amended pleading may defeat a party’s cause of action is not a sufficient basis for denying [a] motion to amend”….  Williams… v New York Central Fire Insurance Company, 705, 4th Dept 7-5-13