RUSS KENDIG, Bankruptcy Judge.
Defendant's motion for leave to file an amended answer is before the court. Defendant seeks to add two affirmative defenses, the first concerns dormant judgments and the second is a statute of limitations defense. Plaintiff-trustee opposes the motion, primarily arguing that the amendment is futile because Defendant cannot avail himself of either defense.
The court has jurisdiction of this proceeding under 28 U.S.C. § 1334(b) and the general order of reference entered by the United States District Court on April 4, 2012. This is a statutorily core proceeding under 28 U.S.C. § 157(b)(2)(E) and the court has authority to issue final entries. Pursuant to 11 U.S.C. § 1409, venue in this court is proper.
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In 1991, Debtor and Defendant divorced. As part of the settlement, Debtor was
(M. Def. Leave to File Am. Ans., Exh. B, ECF No 17-2) Although the third condition triggered Defendant's obligation to pay in 1991, he has not paid anything to Debtor. When Debtor filed bankruptcy, she listed her interest in the stock in her petition. Plaintiff-trustee now seeks turnover of the value of Debtor's interest in the stock as property of the bankruptcy estate.
Defendant moves to amend his answer under Bankruptcy Rule 7015, the bankruptcy component of Federal Civil Rule 15. Because of the applicable time frames set forth in the rule, Defendant either needs the written consent of Plaintiff to file the amendment, which has not been given, or the court's leave. The court "should freely give leave when justice so requires." Fed.R.Civ.Pro. 15(a)(2). Justice does not require granting leave in situations involving `undue delay in filing, lack of notice to the opposing party, bad faith by the moving party, repeated failure to cure deficiencies by previous amendment, undue prejudice to the opposing party, and futility of amendment.'
Plaintiff only contests Defendant's motion on grounds of futility. Futility is defined as the inability to survive a 12(b)(6) motion to dismiss.
Relying on O.R.C. § 2325.15 et seq., Defendant seeks to add dormancy and failure to timely revive a dormant judgment as an affirmative defense. He also seeks to add a statute of limitations defense under O.R.C. § 2305.06. The question for this court is whether the allegations of the complaint support application of defenses of this nature. The question is not whether the defenses are legally viable. Whether an affirmative defense is sustainable is better resolved on a motion for summary judgment or similar.
The complaint allegations reference a court-issued divorce decree dated January 5, 1981. The allegations also reference October 25, 1991 as the triggering condition for Defendant's payment obligation and the date that interest began to accumulate on his obligation. Both dates occurred more than twenty-five years ago. Considering the statutory provisions cited by Defendant reference much shorter time frames for judgments and contracts, specifically eight and ten years, the defenses are not facially implausible. Consequently, the court finds Plaintiff's futility argument is not well-taken.
In spite of finding futility inapplicable, the court will also consider whether amendment would not be unduly prejudicial to Plaintiff. Some courts find post-discovery amendments prejudicial.
An order will be issued with this opinion.