R-Delight Holding LLC v. Anders

246 F.R.D. 496, 2007 U.S. Dist. LEXIS 85102, 2007 WL 4104096
CourtDistrict Court, D. Maryland
DecidedNovember 16, 2007
DocketCivil Action No. RDB-07-56
StatusPublished
Cited by17 cases

This text of 246 F.R.D. 496 (R-Delight Holding LLC v. Anders) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R-Delight Holding LLC v. Anders, 246 F.R.D. 496, 2007 U.S. Dist. LEXIS 85102, 2007 WL 4104096 (D. Md. 2007).

Opinion

[498]*498 MEMORANDUM OPINION

RICHARD D. BENNETT, District Judge.

This breach of contract action arises out of a Complaint filed by R-Delight Holding LLC (“Plaintiff’ or “R-Delight”) against Mary Anders (“Defendant”) alleging that she breached a contract to purchase real property located in Baltimore City, Maryland. Pending before this Court is Defendant’s Motion to Dismiss pursuant to Rule 12(b)(7) of the Federal Rules of Civil Procedure on the grounds that Plaintiffs failure to join Defendant’s son, Stephen Anders, as a defendant constitutes a failure to join a necessary and indispensable party under Rule 19. Plaintiff contends that this Court has diversity jurisdiction pursuant to 28 U.S.C. § 1332. The parties’ submissions have been reviewed and no hearing is necessary on this motion. See Local Rule 105.6 (D.Md.2004). For the reasons stated below, Defendant’s Motion to Dismiss is GRANTED.

BACKGROUND

On November 18, 2005, Stephen Anders signed a contract at an auction to purchase some real property in Baltimore, Maryland, in the amount of $1,785,500. (Compl. ¶ 4; Def.’s Mem. Supp. Mot. Dismiss ¶¶ 11-13.) R-Delight Holding LLC signed the contract on behalf of RD 16 LLC, the owner and seller of the property. (Compl. ¶¶ 1, 4.) Mary Anders, the mother of Stephen Anders, was involved in the transaction, although there is a dispute as to the extent of her involvement, as discussed infra in Part I.B.1.a. (Id. ¶¶ 4-5, 7; Def.’s Mem. Supp. Mot. Dismiss ¶¶ 8-10.) Ultimately, the parties were unable to close under the contract. (Compl. ¶ 4; Def.’s Mem. Supp. Mot. Dismiss ¶ 16.) Stephen Anders spent $17,400.00 on fees associated with the property purchase. (Stephen Anders Aff. ¶ 17.) In addition, Alex Cooper Auctioneers, Inc. is currently holding a deposit placed towards the purchase of the property. (Def.’s Mem. Supp. Mot. Dismiss ¶ 17; see also Compl. ¶ 8.) At a subsequent auction occurring September 21, 2006, the property in question sold for $1,500,000. (Compl.¶ 6.)

R-Delight filed a Complaint for breach of contract in this Court on January 9, 2007 against Mary Anders. Plaintiff contends this Court has diversity jurisdiction pursuant to 28 U.S.C. § 1332, because Plaintiff R-Delight Holding LLC “is a limited liability corporation formed in Maryland, with its principal place of business in Baltimore, Maryland” and Defendant Mary Anders is a resident of the District of Columbia. (Id. ¶¶ 1-3.) Prior to being served with the Complaint in this case, Stephen and Mary Anders filed a complaint in the Circuit Court for Montgomery County, Maryland, on January 19, 2007 against R-Delight, RD 16 LLC, an individual manager of R-Delight, and Alex Cooper Auctioneers, Inc. for various tort, contract, and equity claims. (Def.’s Mem. Supp. Mot. Dismiss ¶ 18.) That complaint was recently amended “to clarify a few inartfully drafted paragraphs and to make clear Stephen Anders’ own interests in the proceeding.” (Id.)

Defendant filed a Motion to Dismiss in this Court on April 2, 2007. (Paper No. 8.) Defendant moves pursuant to Rules 12(b)(7) and 19 of the Federal Rules of Civil Procedure to dismiss Plaintiffs Complaint on the grounds that complete relief cannot be granted without joining Stephen Anders, an indispensable party, and because joinder of him as a defendant would destroy diversity jurisdiction.1 (Def.’s Mot. Dismiss 1.)

STANDARD OF REVIEW

Rule 12(b)(7) of the Federal Rules of Civil Procedure allows a court to dismiss an action for failure to join a party in accordance with Rule 19. This Court’s analysis under a Rule 12(b)(7) motion to dismiss for failure to join an indispensable party involves a two-step inquiry. Owens-Illinois, Inc. v. Meade, 186 F.3d 435, 440 (4th Cir.1999). First, this Court must determine whether the party is “necessary” to the action pursuant to Rule 19(a). Id. The Rule requires that the party be subject to service of process and dictates that the party be joined if:

(1) in the person’s absence complete relief cannot be accorded among those already parties, or (2) the person claims an interest [499]*499relating 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). “The inquiry contemplated by Rule 19(a) is a practical one, and is addressed to the sound discretion of the court.” Heinrich v. Goodyear Tire & Rubber Co., 532 F.Supp. 1348, 1359 (D.Md.1982) (citing Coastal Modular Corp. v. Laminators, Inc., 635 F.2d 1102, 1108 (4th Cir.1980)).

Second, if this Court deems the party necessary, but the party cannot be joined because its joinder would destroy diversity, as here, this Court must then consider whether the party is indispensable pursuant to Rule 19(b) such that the case must be dismissed. Owens-Illinois, Inc., 186 F.3d at 440. Under Rule 19(b), “the court shall determine whether in equity and good conscience the action should proceed among the parties before it, or should be dismissed....” Fed.R.Civ.P. 19(b). In considering indispensability, the Court looks to four factors:

[F]irst, to what extent a judgment rendered in the person’s absence might be prejudicial to the person 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). This analysis is not formalistic and the Court must consider the particular factual setting presented. Schlumberger Indus. Inc., v. Nat’l Sur. Corp., 36 F.3d 1274, 1286 (4th Cir.1994); see also Owens-Illinois, Inc., 186 F.3d at 441 (“Such a decision ‘must be made pragmatically, in the context of each ease, rather than by procedural formula ... by considering ‘the practical potential for prejudice’ to all parties, including those not before it.” (citation omitted)). The Court’s determination under Rule 19(b) is an equitable one left to the Court’s discretion. See Provident Tradesmens Bank & Trust Co. v. Patterson,

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246 F.R.D. 496, 2007 U.S. Dist. LEXIS 85102, 2007 WL 4104096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-delight-holding-llc-v-anders-mdd-2007.