Gutierrez-Morales v. Planck

318 F.R.D. 332, 95 Fed. R. Serv. 3d 143, 2016 U.S. Dist. LEXIS 99815, 2016 WL 4068499
CourtDistrict Court, E.D. Kentucky
DecidedJuly 29, 2016
DocketAction No. 5:15-CV-158-JMH
StatusPublished
Cited by3 cases

This text of 318 F.R.D. 332 (Gutierrez-Morales v. Planck) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gutierrez-Morales v. Planck, 318 F.R.D. 332, 95 Fed. R. Serv. 3d 143, 2016 U.S. Dist. LEXIS 99815, 2016 WL 4068499 (E.D. Ky. 2016).

Opinion

ORDER

Joseph M. Hood, Senior U.S. District Judge

This matter is before the Court upon Defendants’ Motion for Leave to File a Third-Party Complaint. [DE 53]. Plaintiffs have filed a response [DE 55] and Defendants have replied in further support of their motion [DE 57], thus, Defendants’ motion is ripe for review. Having reviewed the motion, response, and reply, and being otherwise adequately advised, the Court will deny Defendants’ motion for the reasons set forth below.

I. Background

On May 28, 2015, Plaintiffs, who consist of nine migrant farm workers from Mexico, filed suit against Defendants, Earl Lee Planck, Jr., B.S. Land and Cattle Company, LLC, John D. Watkins, High Point Farms, LLC, and Chad Price. [DE 1]. Plaintiffs allege that they were recruited, hired, employed, and housed by Defendants for the purpose of performing agricultural work on Defendants’ tobacco farms via temporary work visas pursuant to 8 U.S.C. § 1101(a)(15)(H)(ii)(a)(the “H-2A program”) during the 2013-2014 and 2014-2015 farming seasons. Id, Plaintiffs allege that while employed by Defendants, Defendants paid Plaintiffs wages below their promised contract wage and less than the Fair Labor Standards Act (“FLSA”) wage, housed Plaintiffs in sub-standard facilities, and unlawfully confiscated Plaintiffs’ passports and other personal documents in an attempt to prevent Plaintiffs from leaving their employment before the end of the season. Id. Plaintiffs have asserted the following causes of action against Defendants: violation of the FLSA minimum wage requirement, breach of contract as set forth in the U.S. Department of Labor (“DOL”) clearance orders, and unlawful conduct under 18 U.S.C. § 1597(a)(3) with respect to Plaintiffs’ immigration documents. Id. Defendants filed them Answer to Plaintiffs’ Complaint on August 7, 2015. [DE 13].

[334]*334The Scheduling Order was entered for this matter on September 1, 2015, which provides, among other deadlines, that all motions to amend pleadings or join additional parties shall be filed by January 4, 2016. [DE 20 at ¶ 4]. In light of settlement negotiations, the Scheduling Order was amended, in part, on March 2, 2016, setting the discovery deadline for September 30, 2016 with trial to begin on March 7, 2017. [DE 41]. No amendments were made to the January 4, 2016 deadline to amend or join. [DE 41].

On June 20, 2016, pursuant to Fed. R. Civ. P. 14, Defendants filed the instant Motion for Leave to File Third-Party Complaint against ALS, Inc. (“ALS”) along with their proposed third-party complaint. [DE 53; 53-8]. As a basis for their motion, Defendants contend that ALS contracted with Defendants to act as Defendants’ representative in the process of obtaining H-2A laborers during the 2013-2014 and 2014-2015 farming seasons. Id. As such, Defendants base their third-party liability argument on various Agency and Indemnity Agreements entered into between Defendants and ALS, arguing that if they are found liable to Plaintiffs, ALS is derivatively liable to them. [DE 53-2, 53-3, 53-4]. Plaintiffs oppose Defendants’ motion on the ground that the third-party claims are independent of Plaintiffs’ main claims and because the motion is untimely and prejudicial. [DE 55].

II. Standard

A defendant may serve a “complaint on a nonparty who is or may be liable to it for all or part of the claim against it.” Fed. R. Civ. P. 14(a)(l)(emphasis added). “A third party complaint may be maintained in those cases where the third party defendant would be liable secondarily to the original defendant in the event the original defendant is held liable to the plaintiff.” Baker v. Moors, 51 F.R.D. 507, 509 (W.D.Ky.1971); see also Amer. Zurich Ins. Co. v. Cooper Tire & Rubber Co., 512 F.3d 800, 805 (6th Cir.2008) (“The purpose of Rule 14 is to permit additional parties whose rights may be affected by the decision in the original action to be joined so as to expedite the final determination of the rights and liabilities of all the interested parties in one suit.” (citing Dishong v. Peabody Corp., 219 F.R.D. 382, 385 (E.D.Va.2003))).

Where, as here, a defendant seeks to file a third-party complaint more than fourteen days after filing its original answer, it must first request the Court’s permission. Fed. R. Civ. P. 14(a)(1). Whether to grant leave for a third-party complaint is within the discretion of the trial court. Gen. Elec. Co. v. Irvin, 274 F.2d 175, 178 (6th Cir.1960). The timeliness of such a motion is “an urgent factor governing the exercise of such discretion.” Id. at 178. “[TJimely motions for leave to implead third parties should be freely granted [... ]unless to do so would prejudice the plaintiff, unduly complicate the trial, or would foster an obviously unmeritorious claim.” Trane U.S. Inc. v. Meehan, 250 F.R.D. 319, 322 (N.D.Ohio 2008)(quoting Nova Prods., Inc. v. Kisma Video, Inc., 220 F.R.D. 238, 240 (S.D.N.Y.2004)).

III. Discussion

The Court finds that Defendant’s motion for leave to file a third-party complaint must be denied for the following reasons.

First and foremost, Defendants’ motion is untimely. The Scheduling Order provides “[t]hat all motions to amend pleadings or join additional parties shall be filed by January 4, 2016.” [DE 20 at ¶ 4]. The motion at hand was not filed until June 20, 2016, which is more than a year after the complaint was filed and more than six months after the deadline for amending pleadings and joining parties. Defendants cite change of counsel and settlement attempts as reasons for their delay in filing their motion to file a third-party complaint, neither of which excuse the Court finds persuasive.1

Second, as the Sixth Circuit explained, “[t]hird-party pleading is appropriate only where the third-party defendant’s liability to the third-party plaintiff is dependent on the outcome of the main claim; one that merely [335]*335arises out of the same set of facts does not allow a third-party defendant to be implead-ed.” Zurich, 512 F.3d at 805. Here, Defendants base their third-party liability claims on Agency and Indemnity Agreements between Defendants and ALS, in which ALS agreed to prepare and process all forms and documents required for the H-2A workers on behalf of Defendants pursuant to the regulations of the state agency, DOL, and U.S. Customs and Immigration Service (“US-CIS”). [DE 53-8].

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318 F.R.D. 332, 95 Fed. R. Serv. 3d 143, 2016 U.S. Dist. LEXIS 99815, 2016 WL 4068499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gutierrez-morales-v-planck-kyed-2016.