Michael Chunn v. Southeast Logistics, Inc.

Summary

Sixth Circuit affirmed dismissal of fraud claim as time-barred under Tennessee's three-year statute of limitations. Plaintiff failed to plausibly plead fraudulent concealment or unsound-mind exceptions, as required by Rule 9(b) particularity and Rule 12(b)(6) plausibility. Proposed amendment was futile because it still did not show timely filing.

Holdings

1. The complaint failed to plead fraudulent concealment with particularity as required by Rule 9(b), and did not show that the plaintiff exercised reasonable diligence or that the defendant took steps to prevent discovery of the fraud.
2. The complaint failed to plead facts showing that the plaintiff was unable to manage his day-to-day affairs due to mental disability, which is required under Tennessee law.
3. The district court did not abuse its discretion because amendment would be futile; the proposed amended complaint suffered from the same timeliness defects.

Questions Presented

1. Whether the district court properly dismissed the complaint as barred by the statute of limitations because the plaintiff failed to plead either the fraudulent concealment exception or the unsound mind exception.
2. Whether the district court abused its discretion in denying leave to amend the complaint.

Disposition

affirmed