Opinion ID: 146487
Heading Depth: 1
Heading Rank: 4

Heading: An Indispensable Party Issue.

Text: Alternatively, the representatives argue that the district court's orders should be affirmed applying pre- Vaden § 4 diversity case law because the non-diverse nursing home administrators are necessary parties under Rule 19(a)(1) who cannot be joined without destroying diversity jurisdiction, requiring dismissal of the actions under Rule 19(b). The district court rejected this argument in denying Rutherford's motion to dismiss at an early stage of that lawsuit. The argument is inconsistent with the Supreme Court's decision that Rule 19 did not change the longstanding rule that it is not necessary for all joint tortfeasors to be named as defendants in a single lawsuit. Temple, 498 U.S. at 7, 111 S.Ct. 315. In the arbitration context, to our knowledge every circuit to consider the issue has concluded that a party joined in a parallel state court contract or tort action who would destroy diversity jurisdiction is not an indispensable party under Rule 19 in a federal action to compel arbitration. See Brown v. Pac. Life Ins. Co., 462 F.3d 384, 393-94 (5th Cir.2006); Am. Gen. Life, 429 F.3d at 92-93; PaineWebber, Inc. v. Cohen, 276 F.3d 197, 202-06 (6th Cir.2001); MS Dealer Serv. Corp., 177 F.3d at 946; Distajo, 66 F.3d at 446; Bio-Analytical Servs., Inc. v. Edgewater Hosp., Inc. 565 F.2d 450, 453 & n. 3 (7th Cir.1977). We agree with these decisions. We find the contrary ruling in Cytec Industries, Inc. v. Powell, 630 F.Supp.2d 680, 686-87 & n. 2 (N.D.W.Va. 2009), unpersuasive. The orders of the district court dismissing these cases for lack of subject matter jurisdiction are reversed, and the cases are remanded with directions to re-enter the prior orders compelling arbitration.