Tough Mudder, LLC v. Mita Sengupta
Filing
UNPUBLISHED PER CURIAM OPINION filed. Originating case number: 3:14-cv-00056-GMG Copies to all parties and the district court/agency. [999610037].. [14-2200]
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UNPUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
No. 14-2200
TOUGH MUDDER, LLC; PEACEMAKER NATIONAL TRAINING CENTER,
LLC; GENERAL MILLS, INC.; GENERAL MILLS SALES, INC.,
Plaintiffs - Appellants,
v.
MITA SENGUPTA, Individually and as Personal Representative
of Avishek Sengupta; BIJON SENGUPTA; PRIYANKA SENGUPTA,
Defendants - Appellees.
Appeal from the United States District Court for the Northern
District of West Virginia, at Martinsburg.
Gina M. Groh,
District Judge. (3:14-cv-00056-GMG)
Submitted:
June 23, 2015
Before SHEDD and
Circuit Judge.
HARRIS,
Decided:
Circuit
Judges,
and
June 26, 2015
DAVIS,
Senior
Affirmed by unpublished per curiam opinion.
Robert N. Kelly, Michele L. Dearing, JACKSON & CAMPBELL, PC,
Washington, D.C.; Alonzo D. Washington, FLAHERTY SENSABAUGH &
BONASSO, PLLC, Morgantown, West Virginia, for Appellants.
Robert P. Fitzsimmons, Clayton J. Fitzsimmons, FITZSIMMONS LAW
FIRM PLLC, Wheeling, West Virginia; Robert J. Gilbert, Edward J.
Denn, GILBERT & RENTON LLC, Andover, Massachusetts, for
Appellees.
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Unpublished opinions are not binding precedent in this circuit.
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PER CURIAM:
Tough
LLC,
Mudder,
General
Mills,
(collectively
dismissing
Peacemaker
Inc.,
“Appellants”)
their
jurisdiction.
Mita
LLC,
and
General
appeal
petition
to
National
the
compel
Training
Center,
Mills
Sales,
Inc.,
district
court’s
order
arbitration
for
lack
of
Appellants filed their petition to compel against
Sengupta,
invoking
the
district
court’s
diversity
jurisdiction, 28 U.S.C. § 1332(a) (2012), after Sengupta filed a
state
court
Pittman,
wrongful
and
action
Airsquid
district
court
against
Ventures,
petition,
the
Maryland
citizenship
indispensable
death
party
with
under
Inc.
held
Fed.
R.
In
that
Sengupta,
Civ.
joinder would defeat complete diversity.
Appellants,
dismissing
Pittman,
was
P.
Travis
a
19,
who
shared
necessary
and
the
that
and
his
Appellants argue that
the district court erred when it held that Pittman was both a
necessary and indispensable party.
Finding no error, we affirm.
The threshold issue of subject matter jurisdiction is a
question of law that we review de novo.
Home Buyers Warranty
Corp. v. Hanna, 750 F.3d 427, 432 (4th Cir. 2014).
We review
the district court’s dismissal of an action pursuant to Fed. R.
Civ. P. 19 for abuse of discretion, and review the district
court’s factual findings underlying the Rule 19 dismissal for
clear error.
Nat’l Union Fire Ins. Co. v. Rite Aid of S.C.,
Inc., 210 F.3d 246, 250 (4th Cir. 2000).
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For a court to have jurisdiction over an action pursuant to
28 U.S.C. § 1332(a), “diversity must be complete such that the
state of citizenship of each plaintiff must be different from
that of each defendant.”
Home Buyers Warranty Corp., 750 F.3d
at 433 (internal quotation marks omitted).
district
court
must
dismiss
an
action
Under Rule 19, a
brought
in
diversity
jurisdiction if a nondiverse, nonjoined party is “necessary” and
“indispensable” to the action.
F.3d at 433.
Home Buyers Warranty Corp., 750
In deciding whether to dismiss an action, Rule 19
is to be applied “pragmatically, in the context of the substance
of each case, and courts must take into account the possible
prejudice to all parties, including those not before it.”
Id.
(internal quotation marks and citation omitted).
Among
other
reasons
provided
in
Rule
19,
a
party
is
necessary to an action where “that person claims an interest
relating to the subject of the action and is so situated that
disposing of the action in the person’s absence may . . . leave
an existing party subject to a substantial risk of incurring
double, multiple, or otherwise inconsistent obligations because
of
the
interest.”
Fed.
R.
Civ.
P.
19(a)(1)(B)(ii).
The
district court did not abuse its discretion in concluding that
Pittman was a necessary party under Rule 19(a)(1)(B)(ii) because
(1) Pittman, as a defendant seeking to compel arbitration in the
state action, had an interest in the validity of the arbitration
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provision;
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and
(2)
Sengupta
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faced
the
substantial
risk
of
inconsistent results regarding the validity of the arbitration
provision, potentially causing her to simultaneously pursue her
claims through arbitration and trial.
See Owens-Illinois v.
Meade, 186 F.3d 435, 438-41 (4th Cir. 1999) (holding that party
faces “conflicting legal obligations” and is necessary to an
action to compel arbitration where failure to join creates a
“high potential for inconsistent judgments”).
Having found Pittman a necessary party, we must assess, as
did
the
district
court,
whether
he
is
an
indispensable
one.
Four factors control whether a necessary party is indispensable:
(1) “the extent to which a judgment rendered in the person’s
absence might prejudice that person or the existing parties”;
(2) “the extent to which any prejudice could be lessened or
avoided”;
(3)
“whether
a
judgment
rendered
in
the
person’s
absence would be adequate”; and (4) “whether the plaintiff would
have
an
adequate
nonjoinder.”
remedy
if
the
action
were
dismissed
for
Fed. R. Civ. P. 19(b); see Home Buyers Warranty
Corp., 750 F.3d at 435-36.
Because Sengupta faces a substantial
risk of inconsistent obligations, the first and third factors
support the conclusion that Pittman is an indispensable party.
See Owens-Illinois, 186 F.3d at 441-42 (noting that first and
third factors of indispensable evaluation “address much the same
concerns as the Rule 19(a)[(1)(B)] analysis”).
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Regarding the
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second
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factor,
Appellants
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suggested
no
way
to
mitigate
prejudice to Sengupta, and no remedy is apparent.
the
Home Buyers
Warranty Corp., 750 F.3d at 435-36; Owens-Illinois, 186 F.3d at
442.
Finally, as to the fourth factor, the West Virginia state
courts provide Appellants an adequate forum to seek enforcement
of the arbitration provision and the state courts are better
positioned to apply West Virginia law to determine the validity
of the provision. *
Owens-Illinois, 186 F.3d at 442.
All four factors support the conclusion that Pittman is an
indispensable
abuse
its
party.
discretion
Therefore,
when
it
the
held
district
that
required joining Pittman as a petitioner.
to
the
court
action
lacked
would
defeat
jurisdiction
complete
under
properly dismissed the petition.
28
court
Fed.
R.
did
Civ.
P.
not
19
As Pittman’s joinder
diversity,
the
U.S.C.
1332(a),
§
district
and
Home Buyers Warranty Corp.,
750 F.3d at 436; Owens-Illinois, 186 F.3d at 442.
Accordingly,
order.
legal
we
affirm
the
district
court’s
dismissal
We dispense with oral argument because the facts and
contentions
are
adequately
*
presented
in
the
materials
Sengupta’s brief to this court notes that the state
circuit court denied Appellants’ motion to compel arbitration,
and that Appellants are seeking appellate review of this denial
in the West Virginia Supreme Court.
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before
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this
court
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and
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argument
would
not
aid
the
decisional
process.
AFFIRMED
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