State, Comm'r of INS. v. Chur C/w 85728

Summary

The court held that the district court abused its discretion by denying the Commissioner leave to amend the complaint after an intervening decision materially changed the pleading standard for claims against corporate directors. The proposed amendment was not futile because it alleged intentional misconduct and knowing violations of law, related back to the timely original complaint, and stated a potentially viable statutory claim. The court reversed the judgment for the Directors, vacated the order denying their attorney fees and costs, and remanded for further proceedings.