Payan v. Continental Tire North America, Inc.

232 F.R.D. 587, 63 Fed. R. Serv. 3d 385, 2005 U.S. Dist. LEXIS 31418, 2005 WL 1949958
CourtDistrict Court, S.D. Texas
DecidedAugust 10, 2005
DocketNo. Civ.A. G-05-337
StatusPublished
Cited by5 cases

This text of 232 F.R.D. 587 (Payan v. Continental Tire North America, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Payan v. Continental Tire North America, Inc., 232 F.R.D. 587, 63 Fed. R. Serv. 3d 385, 2005 U.S. Dist. LEXIS 31418, 2005 WL 1949958 (S.D. Tex. 2005).

Opinion

ORDER DENYING CONTINENTAL TIRE NORTH AMERICA, INC.’S MOTION TO DISMISS FOR FAILURE TO JOIN A PARTY UNDER FRCP RULE 19 AND ORDERING PARTIES TO RESPOND WITHIN 10 DAYS ON VENUE ISSUES

KENT, District Judge.

This case arises out of a one-car accident allegedly caused by the tread separating from a tire on a Ford truck. Now before the Court comes the Motion to Dismiss for Failure to Join an Indispensable Party by Continental Tire North America, Inc. (“CTNA”). For the following reasons, CTNA’s Motion is respectfully DENIED.

I. Background

In July 2004, Plaintiffs were involved in a one-car accident. In September 2004, Plaintiffs filed suit in state court in Dallas County, Texas against the current Defendants as well as against Roy Reyes d/b/a Amigos Tires & Mufflers (“Reyes”). Plaintiffs eventually dropped their state-court suit and immediately filed suit in this Court. Plaintiffs did not sue Reyes, who is a Texas resident. CTNA claims Plaintiffs have not sued Reyes because they did not like the progress of their case in state court, and they know that suing Reyes would destroy this Court’s diversity jurisdiction. CTNA argues that Reyes is an indispensable party under Fed. R.Civ.P. 19, and the Court should therefore dismiss the suit because Reyes cannot be joined.

Plaintiffs initially sued Reyes on the theory that he improperly repaired punctures in the tire, and these improper repairs contributed to the tread separation. Plaintiffs now state that, based on the report of their tire expert, the repairs did not cause the problem, and therefore they do not have a valid claim against Reyes.

II. Legal Standard

Fed.R.Civ.P. 12(b)(7) allows for motions to dismiss for failure to join a party required by Fed.R.Civ.P. 19. A person is a necessary party if:

(1) in the person’s absence complete relief cannot be accorded among those already parties, or (2) the person claims an interest relating to the subject of the action and is so situated that the disposition of the action in the person’s absence may (i) as a practical matter impair or impede the person’s ability to protect that interest or (ii) leave any of the persons already parties subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations by reason of the claimed interest.

Fed.R.Civ.P. 19(a). If a person is found to be necessary but cannot be joined, the Court must then determine whether that person is indispensable and whether “in equity and good conscience” the action should be dismissed. Fed.R.Civ.P. 19(b); see also Provident Tradesmens Bank & Trust Co. v. Patterson, 390 U.S. 102, 108-9, 88 S.Ct. 733, 737, 19 L.Ed.2d 936 (1968). To determine whether such a person is indispensable, the Court must consider whether the person’s absence would be prejudicial to the person or those [589]*589already parties; whether the Court can shape the relief granted to lessen or avoid the prejudice; “whether a judgment rendered in the person’s absence will be adequate,” and “whether the plaintiff will have an adequate remedy if the action is dismissed for nonjoinder.” Fed.R.Civ.P. 19(b).

III. Analysis

The burden is on CTNA to show that Reyes meets one of the criteria to be a necessary party, and then to show that Reyes is also indispensable. See Clark v. Kick, 79 F.Supp.2d 747, 753 (S.D.Tex.2000). CTNA has not shown that Reyes meets the first criterion for a necessary party — that his absence would prevent the Court from according complete relief to all those already Parties. If the judgment favors Plaintiffs, then Plaintiffs will obtain complete relief against CTNA and the other Defendants. See James v. Valvoline, Inc., 159 F.Supp.2d 544, 551 (S.D.Tex.2001). If the judgment favors Defendants and Plaintiffs take nothing, then Defendants will be absolved as to Plaintiffs’ direct claims against them.

The second possibility for CTNA is that Reyes’s absence impairs his ability to protect his own interests. The Court does not believe that this is the case. First, no judgment can be entered against Reyes since he is not a party. Second, the Court doubts that Reyes is interested in the expense and in convenience of answering and defending a suit in which Plaintiffs state that they have no case against him.

CTNA’s last resort is to show that Reyes’s absence subjects it to a substantial risk of multiple or inconsistent obligations. Joint tortfeasors are not typically indispensable parties, and the general rule is that a plaintiff cannot be forced to sue a joint tortfeasor on the theory that an absent joint tortfeasor automatically subjects the other defendants to a risk of multiple or inconsistent obligations. See Temple v. Synthes Corp., 498 U.S. 5, 7, 111 S.Ct. 315, 316, 112 L.Ed.2d 263 (1990); Nottingham v. Gen. Am. Communications Corp., 811 F.2d 873, 880 (5th Cir.1987).

An exception to that rule is when the joint tortfeasor is an “active participant” in the tort. See Haas v. Jefferson Nat’l Bank, 442 F.2d 394, 398 (5th Cir.1971). CTNA suggests that Reyes was an active participant. Plaintiffs, though, do not seek to impose liability on CTNA for Reyes’s acts. See Freeman v. Northwest Acceptance Corp., 754 F.2d 553, 559 (5th Cir.1985). Reyes’s role in repairing the tire does not necessarily make him an active participant for the purpose of this suit. CTNA’s citation to two cases in which courts found airplane owners to be necessary parties in eases involving questions of proper maintenance does not support the mandatory joinder of Reyes. See Kern v. Jeppesen Sanderson, Inc., 867 F.Supp. 525, 537 (S.D.Tex.1994); Whyham v. Piper Aircraft Corp., 96 F.R.D. 557, 560-61 (M.D.Pa.1982). Although Reyes may have repaired the tire at some point, Plaintiffs — not Reyes — were the owners responsible for proper maintenance. To the extent that CTNA wishes to argue improper maintenance of the tire, it is free to do so, with or without Reyes as a party. Therefore, while Reyes may have been an “active participant” with regard to a few moments in the tire’s history, he was not necessarily an active participant in the allegedly negligent behavior or in any behavior that would subject CTNA to a second suit and a double obligation, as in Haas. See Haas, 442 F.2d at 398. Plaintiffs’ allegations against CTNA do not involve any activity by Reyes.

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232 F.R.D. 587, 63 Fed. R. Serv. 3d 385, 2005 U.S. Dist. LEXIS 31418, 2005 WL 1949958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/payan-v-continental-tire-north-america-inc-txsd-2005.