Press Rentals, Inc v. Genesis Fluid Solutions, LTD et al
Filing
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ORDER GRANTING 36 DEFENDANT'S MOTION FOR LEAVE TO FILE THIRD PARTY COMPLAINT AND DENYING PLAINTIFF'S MOTION TO SEVER WITHOUT PREJUDICE. Defendant is ordered to file the complaint within 7 days of the date of this order and serve it immediately. Signed by Magistrate Judge Howard R. Lloyd on 11/16/11. (hrllc1, COURT STAFF) (Filed on 11/16/2011)
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** E-filed November 16, 2011 **
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IN THE UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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For the Northern District of California
NOT FOR CITATION
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United States District Court
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SAN JOSE DIVISION
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PRESS RENTALS, INC., formerly known as
EAGLE NORTH AMERICA, INC.,
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Plaintiff,
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v.
GENESIS FLUID SOLUTIONS, LTD.; and
MICHAEL HODGES,
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No. C11-02579 HRL
ORDER GRANTING DEFENDANT’S
MOTION FOR LEAVE TO FILE
THIRD PARTY COMPLAINT AND
DENYING PLAINTIFF’S MOTION TO
SEVER THIRD PARTY COMPLAINT
[Re: Docket No. 31]
Defendants.
____________________________________/
Plaintiff Press Rentals Inc. fka Eagle North America (“Eagle”) sues defendants Genesis
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Fluid Solutions, Ltd. and Michael Hodges (collectively “Genesis”) for money allegedly due because
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Genesis defaulted on payments required under a settlement agreement. Genesis seeks to file a third
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party complaint against the entities that reportedly caused the default to occur. On October 6,
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Genesis brought an Amended Motion for Leave to File a Third Party Complaint against Blue Earth,
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Inc., its former parent company, and US Bancorp. Docket No. 35. It pleads breach of contract,
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promissory estoppel, and negligence against Blue Earth, Inc., and breach of contract, wrongful
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dishonor, and negligence against US Bancorp. Docket No. 36 (“Third Party Complaint”). Eagle
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opposed the motion and moved, in the alternative, to sever the third party complaint. Docket No. 38.
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Oral argument was heard on November 15, 2011. Based on the moving papers and counsel’s
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arguments at hearing, the court GRANTS the defendant’s motion for leave to file the third party
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complaint and DENIES the plaintiff’s motion to sever WITHOUT PREJUDICE.
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DEFENDANT’S MOTION FOR LEAVE TO FILE THIRD PARTY COMPLAINT
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“A defending party may, as third-party plaintiff, serve a summons and complaint on a
leave if it files the third-party complaint more than 14 days after serving the original answer.” Fed.
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R. Civ. P. 14(a). “The purpose of this rule is to promote judicial efficiency by eliminating the
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necessity for the defendant to bring a separate action against a third individual who may be
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secondarily or derivatively liable to the defendant for all or part of the plaintiff's original claim.
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Southwest Admrs., Inc. v. Rozay's Transfer, 791 F.2d 769, 777 (9th Cir. 1986) (citing 6 C. Wright
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& A. Miller, Federal Practice and Procedure § 1442, 202-03 (1971)). The decision . . . is addressed
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For the Northern District of California
nonparty who is or may be liable to it for all or part of the claim against it . . . [with] the court’s
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United States District Court
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to the sound discretion of the trial court. Id. (citing United States v. One 1977 Mercedes Benz, 708
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F.2d 444, 452 (9th Cir. 1983), cert. denied, 464 U.S. 1071 (1984)). Courts may consider: (1)
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whether the case is still in its initial stages; (2) prejudice to the original plaintiff; (3) likelihood that
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the trial will be delayed; and (4) issues of judicial economy. Pinnacle Fitness & Rec. Mgmt., LLC v.
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Jerry & Vickie Moyes Family Trust, 2010 U.S. Dist. LEXIS 78275, *5 (S.D. Cal. Aug. 3, 2010).
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Here, the case is still in its early stages, with five months remaining for discovery, and trial
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set for over a year from now, making delay of trial unlikely. Further, judicial economy is served
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when a third-party complaint arises out of the same transaction as the underlying Complaint, and
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where one action will avoid unnecessary expense and a multiplicity of litigation. See Standard Wire
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& Cable, 697 F. Supp. 368, 376 (C.D. Cal. 1988). Plaintiff’s argument that the third party complaint
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raises issues unrelated to the original action is unconvincing. See Docket No. 36, pp. 5-6. Finally,
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the court feels that, at present, prejudice to the original plaintiff is not present as there is no
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significant complication of the issues or likelihood of unacceptable delay.
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Therefore, good cause appearing, the court GRANTS defendant’s motion. Genesis is ordered
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to file its Third Party Complaint within seven days of the date of this order and serve it immediately.
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PLAINTIFF’S MOTION TO SEVER
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Any party may move to sever a third party complaint from the main action. Fed. R. Civ. P.
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14(a). If a party will suffer prejudice by joinder of the third-party claims, severance is appropriate.
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Southwest Admrs., 791 F.2d at 777. As discussed supra, there is no evidence of significant
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prejudice to the plaintiff at this time. Thus, the motion to sever is DENIED WITHOUT
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PREJUDICE.
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IT IS SO ORDERED.
Dated: November 16, 2011
HOWARD R. LLOYD
UNITED STATES MAGISTRATE JUDGE
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For the Northern District of California
United States District Court
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C11-02579 HRL Notice will be electronically mailed to:
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Randel Jay Campbell
Wallace M. Tice
Gregory D. Rankin
Bruce E. Disenhouse
Todd A. Weber
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rcampbell@lgglaw.com
wtice@lgglaw.com
grankin@lanealton.com
Bdisenhouse@krsattys-riv.com
tweber@lanealton.com
Counsel are responsible for distributing copies of this document to co-counsel who have not
registered for e-filing under the court’s CM/ECF program.
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For the Northern District of California
United States District Court
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