Albers v. Sprayrite Manufacturing Co.

115 F.R.D. 579, 1987 U.S. Dist. LEXIS 3984
CourtDistrict Court, N.D. Indiana
DecidedMay 5, 1987
DocketNo. L 85-117
StatusPublished

This text of 115 F.R.D. 579 (Albers v. Sprayrite Manufacturing Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Albers v. Sprayrite Manufacturing Co., 115 F.R.D. 579, 1987 U.S. Dist. LEXIS 3984 (N.D. Ind. 1987).

Opinion

MEMORANDUM AND ORDER

ALLEN SHARP, Chief Judge.

This case is before the court on defendant/third-party plaintiffs, Sprayrite Manufacturing Company (Sprayrite), Motion For Joinder, pursuant to Rules 19 and 20 of the Federal Rules of Civil Procedure, filed on November 28, 1986. On December 9, 1986, third-party defendant, Hull Brothers, Inc. (Hull), filed a response in opposition; further, on January 9, 1987, the plaintiffs, Carl Albers and Alvira Albers, filed a response in opposition.

The complete text of Rule 19(a) states: A person who is subject to service of process and whose joinder will not deprive the court of jurisdiction .over the subject matter of the action shall be joined as a party in the action if (1) in his absence complete relief cannot be accorded among those already parties, or (2) he claims an interest relating to the subject of the action and is so situated that the disposition of the action in his absence may (i) as a practical matter impair or impede his ability to protect that interest or (ii) leave any of the persons already [580]*580parties subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations by reason of his claimed interest. If he has not been so joined, the court shall order that he be made a defendant, or, in a proper case, an involuntary plaintiff. If the joined party objects to venue and his joinder would render the venue of the action improper, he shall be dismissed from the action.

Fed.R.Civ.P. 19(a) (emphasis added). Counsel for Sprayrite omitted the portion of Rule 19(a) which limits joinder if complete diversity would be destroyed. Rule 19(b) states:

If a person as described in subdivision (a)(l)-(2) hereof cannot be made a party, the court shall determine whether in equity and good conscience the action should proceed among the parties before it, or should be dismissed, the absent person being thus regarded as indispensable. The factors to be considered by the court include: first, to what extent a judgment rendered in the person’s absence might be prejudicial to him or those already parties; second, the extent to which, by protective provisions in the judgment, by the shaping of relief, or other measures, the prejudice can be lessened or avoided; third, whether a judgment rendered in the person’s absence will be adequate; fourth, whether the plaintiff will have an adequate remedy if the action is dismissed for nonjoinder.

Fed.R.Civ.P. 19(b). In addition, Rule 20(a) states:

All persons may join in one action as plaintiffs if they assert any right to relief jointly, severally, or in the alternative in respect of or arising out of the same transaction, occurrence, and if any question of law or fact common to all these persons will arise in the action. All persons (and any vessel, cargo or other property subject to admiralty process in rem) may be joined in one action as defendants if there is asserted against them jointly, severally, or in the alternative, any right to relief in respect of or arising out of the same transaction, occurrence, or series of transactions or occurrences and if any question of law or fact common to all defendants will arise in the action. A plaintiff or defendant need not be interested in obtaining or defending against all the relief demanded. Judgment may be given for one or more of the plaintiffs according to their respective rights to relief, and against one or more defendants according to their respective liabilities.

The facts relevant to the issues before this court are as follows. The plaintiffs filed this case on September 3, 1985, and were granted leave to file an amended complaint on March 7, 1986. The jurisdiction alleged in the plaintiffs’ complaint is diversity under Section 1332 of Title 28 of the United States Code. The plaintiffs’, residents of Ohio, complaint alleged a products liability claim against Sprayrite. Prior to filing their case in federal court, the plaintiffs filed, on August 22,1985, a case in the Common Pleas Court of Mercer County, Ohio, that complaint alleged a products liability claim. That complaint named as defendants Sprayrite Manufacturing Co.; Spencerville Implement, Inc. (Spencerville), allegedly a franchised regional agent for sales and service and an Ohio corporation; and Hull Brothers, Inc., allegedly a “sub-agent”, and an Ohio corporation. The defendant in this case, on June 2, 1986, was granted leave to file a third-party complaint against Spencerville; Hull; and Walm, Inc., a/k/a Agrobotics, Inc. (Walm), allegedly a manufacturer of a component part of the product. Another fact which Sprayrite believes is relevant is paragraph eleven of the Distribution and Sales Agreement between Sprayrite and Walm which states:

In the event that any legal action involving products liability, negligence or warranty is instituted against either WALM or Sprayrite in regard to the SIS unit, then WALM and Sprayrite shall jointly defend and bear the expense of such action; however, WALM shall hold Sprayrite harmless on any damages re-[581]*581suiting from product liability, negligence or warranty of the hardware and component parts of the dispenser; and, likewise, Sprayrite shall hold WALM harmless on any damages resulting from product liability, negligence or warranty resulting from failure of design specifications. Both WALM and Sprayrite shall maintain product liability insurance coverage in a minimum amount of $1,000,-000.00 to cover each incident.

Sprayrite is now attempting, through Rules 19 and 20, to change parties who are presently third-party defendants to defendants under the plaintiffs’ complaint.

The Court of Appeals for the Seventh Circuit has adopted a two-step analysis under which if diversity would be destroyed by joinder the court looks directly to the four factors expressed in Rule 19(b). Pasco International (London) Ltd. v. Stenography Corp, 637 F.2d 496, 500 (7th Cir.1980); see also Provident Tradesmens Bank & Trust Co. v. Patterson, 390 U.S. 102, 108, 88 S.Ct. 733, 737, 19 L.Ed.2d 936 (1968); Bio-Analytical Services, Inc. v. Edgewater Hospital, Inc., 565 F.2d 450, 452 (7th Cir.1977), cert. denied, 439 U.S. 820, 99 S.Ct. 84, 58 L.Ed.2d 111 (1978). It is clear from the record in this case that diversity would be destroyed if the court joined the third-party defendants as defendants under the plaintiffs’ complaint. Therefore, the court will analyze the relevant facts under the four factors of Rule 19(b).

All Rule 19 cases should be analyzed based on the specific facts and circumstances relevant to each ease. Provident, 390 U.S. 102, 88 S.Ct. 733, 19 L.Ed.2d 936 (1968); LeBeau v. Libby-Owens-Ford Co.,

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Bluebook (online)
115 F.R.D. 579, 1987 U.S. Dist. LEXIS 3984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/albers-v-sprayrite-manufacturing-co-innd-1987.