Allen & Whalen, Inc. v. John C. Grimberg Co.

185 A.2d 337, 229 Md. 585, 1962 Md. LEXIS 599
CourtCourt of Appeals of Maryland
DecidedNovember 5, 1962
Docket[No. 28, September Term, 1962.]
StatusPublished
Cited by21 cases

This text of 185 A.2d 337 (Allen & Whalen, Inc. v. John C. Grimberg Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen & Whalen, Inc. v. John C. Grimberg Co., 185 A.2d 337, 229 Md. 585, 1962 Md. LEXIS 599 (Md. 1962).

Opinion

Bruñe, C. J.,

delivered the opinion of the Court.

This is an appeal by the original defendant-third party plaintiff from an order of the Circuit Court for Montgomery County sustaining, without leave to amend, a third-party defendant’s demurrer to the amended thirty-party complaint filed against it.

*586 A party to this case, but not to this appeal, Thomas W. Yoder Co., Inc. (Yoder) was the prime contractor under some construction contract (not in the record) with the United States Government to be performed for the Army at Fort Detrick. Yoder entered into a subcontract with the appellant Allen & Whalen, Inc. (A. & W.) for the purchase of air conditioning and/or cooling equipment. A. & W. in turn entered into a contract with Worthington Corporation (Worthington) for the purchase of this equipment (a large Diesel engine, we were told at the argument). Yoder also entered into a subcontract with the. appellee, John C. Grimberg Co., Inc. (Grim-berg) for the installation of the equipment. Worthington sued A. & W. for some $47,736.00 representing the balance alleged to be due on the purchase price of the equipment, and A. & W. filed the general issue pleas and a counterclaim for $45,000.00. In the latter it charged Worthington with breach of warranty and with negligence in the installation of the equipment. A. & W. also filed a thirty-party complaint, later amended, purportedly under Maryland Rule 315, against Grimberg charging it with breach of an implied warranty under its subcontract with Yoder and with negligence in the installation of the equipment. Grimberg demurred to A. & W.’s amended thirty-party complaint, and the trial court sustained the demurrer without leave to amend.

Maryland Rule 315 dealing with third-party practice is modeled largely upon Rule 14 of the Federal Rules of Civil Procedure, as amended in 1946. Northwestern National Insurance Co. v. Rosoff, 195 Md. 421, 73 A. 2d 461; Gorn v. Kolker, 213 Md. 551, 133 A. 2d 65; Reporter’s Notes to General Rules of Practice and Procedure, Part Two, III, Rule 4, Code (1947 Supp.) pp. 2103-2105. Rule 4, supra, was the predecessor of the present Rule 315. Rule 315 (a) provides that “Where the defendant in an action claims that a person not a party to the action is or may be liable to him for all or part of the plaintiff’s claim against him, he may * * * cause to be served a summons and third party claim * * * upon such third party.” The most important question raised by Grim-berg’s demurrer is whether or not the liability which A. & W. seeks to assert against it is for any part of the original plaintiff’s *587 (Worthington’s) claim against the original defendant (A. & W.).

The fact that Worthington’s claim against A. & W. is in contract and A. & W.’s claim against Grimberg is or may be in tort does not seem to preclude the filing of a third-party complaint in view of the joinder provisions of Maryland Rule 313, particularly Rule 313 (f). Cf. McCormick v. St. Francis De Sales Church, 219 Md. 422, 149 A. 2d 768, and Lee’s, Inc. v. Transcontinental Underwriters, etc., 9 F.R.D. 470 (D.C., Md., Chesnut, J.).

However, not every liability of any kind which Grimberg may have to A. & W., in any way related to the equipment which A. & W. bought from Worthington may be made the basis for a third-party complaint by A. & W. against Grim-berg in the Worthington v. A. & W. suit. The language above quoted of Rule 315 a requires that the liability of the third-party defendant to the original defendant must be for all or a part of the claim of the original plaintiff against the original defendant. This was recognized in the Northwestern Insurance case. The test was there met, as it was in a similar case, Lee’s, Inc. v. Transcontinental Underwriters, etc., supra, involving F.R.C.P. 14 (a), which was removed to a Federal court on the basis of diversity of citizenship; but in both Northwestern and Lee’s, the third-party complaint was rejected for other reasons as a matter of the exercise of the discretionary power of the trial court.

Cases which turn upon that part of F.R.C.P. 14 (a) requiring that the third-party defendant is or may be liable to the original defendant are not apposite here. (The alternative basis for impleader provided in the original Rule 14 (a), that the third-party defendant is or may be liable to the plaintiff, was eliminated by the 1946 amendment, though its memory occasionally seems to linger on at least enough to call for mention, as here.)

The usual basis for third-party impleader is that the third-party defendant is or may be secondarily liable for all or some part of the plaintiff’s claim against the original defendant as in the case of an indemnitor, guarantor, surety or insurer or a joint tortfeasor obligated by substantive law to 'make contribu *588 tion. (See 3 Moore’s Federal Practice (2nd Ed.), §§ 14.10, 14.11, 14.12; United States v. Jollimore, 2 F.R.D. 148 (D.C., Mass.). Of course, the underlying purpose of such Rules as Md. Rule 315 a and 314 c (providing for bringing in additional parties) and 503 (permitting the consolidation of cases for trial) is, in proper cases, to simplify and expedite proceedings and to avoid the useless duplication, expense and possible uncertainty of more than one trial. Each of the Rules just cited is complementary to, but separate from, the others. It does not follow that because a particular result can or might be effected under one of our Rules, just referred to, it may be effected under any of them. That, we think, is an obstacle to our following what was said in New York, New Haven & Hartford R. Co. v. United States, 21 F.R.D. 328, with regard to avoiding circuity by upholding a third-party complaint under F.R.C.P. 14, where the same party and the same claim could have been brought in under F.R.C.P. 13 (h). (The court also spoke of avoiding a construction which would render subdivision (b) of F.R.C.P. 14 “inadequate and meaningless.” It did not discuss the possibility of any such effect of the decision on F.R.C.P. 13 (h), to which our Md. Rule 314 c corresponds.) The avoidance of circuity was perhaps more persuasive in that case than here, since under both Federal Rules 13 (h) and 14 prior court action or approval was a prerequisite to bringing in the other or third-party defendant.

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Bluebook (online)
185 A.2d 337, 229 Md. 585, 1962 Md. LEXIS 599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-whalen-inc-v-john-c-grimberg-co-md-1962.