Opinion ID: 896145
Heading Depth: 1
Heading Rank: 2

Heading: Unity in Interest of the Codefendants

Text: [¶ 7] Gessner asserts even though she failed to properly serve Minot and the statute of limitations has run for obtaining proper timely service, she should be allowed to now serve Minot and have the service relate back to her service upon the District as a codefendant united in interest with Minot under N.D.C.C. § 28-01-38: An action is commenced as to each defendant when the summons is served on him, or on a codefendant who is a joint contractor or otherwise united in interest with him..... Under this statute an action is deemed to have been commenced against a defendant when the summons is served upon a party who is united in interest with that defendant. We have not previously construed the phrase united in interest in the context of this statute. However, New York has a similar provision, and we look for guidance from its court's interpretations to construe our statute. [1] [¶ 8] The New York Court of Appeals has held that parties are united in interest if the subject matter of the action is such that both parties stand or fall together and ... judgment against one will similarly affect the other. Mondello v. New York Blood Center, 80 N.Y.2d 219, 604 N.E.2d 81, 85, 590 N.Y.S.2d 19 (1992), citing Prudential Ins. Co. v. Stone, 270 N.Y. 154, 159, 200 N.E. 679 (1936). Under those circumstances, the party not timely served is charged with notice of the institution of the action and, because of the relationship with the timely served party, is deemed not prejudiced in maintaining a defense on the merits of the otherwise barred claim. Mondello, 590 N.Y.S.2d 19, 604 N.E.2d at 85. Thus, for instance, partners are united in interest because they are personally and vicariously liable for the torts of their co-partners committed within the scope of the partnership business. Connell v. Hayden, 83 A.D.2d 30, 443 N.Y.S.2d 383, 395 (1981). Where, however, the action is one to recover for tort persons who are charged with concurrent negligence producing plaintiff's injuries will not be held to be `united in interest' absent some relationship between them giving rise to vicarious liability for the acts of the other. Connell, 443 N.Y.S.2d at 396-97. [¶ 9] Parties are not united in interest under the New York statute if each could assert different defenses to the plaintiff's claims, such that untimely service upon one of them may prevent that party from conducting an appropriate investigation of a defense which the timely served defendant has no interest or desire to pursue. See, e.g., Mfrs. & Traders Trust Co. v. Lindauer, 135 Misc.2d 132, 513 N.Y.S.2d 629, 637-38 (1987). Under New York's interpretations of the united-in-interest concept the most important consideration is whether the party timely served is obligated by necessity to protect the nonserved defendant by investigating and preparing all defenses available to both parties. Under those circumstances, timely service of process on the original party acts to satisfy the underlying purpose of the statute of limitations to ensure a defendant has a fair opportunity to prepare a defense. [¶ 10] The New York decisions provide helpful guidance for construing and applying the term united in interest under N.D.C.C. § 28-01-38. We conclude two parties are united in interest when they are in such relation to each other with regard to the subject matter of the plaintiff's action that they will necessarily stand or fall together, a judgment against one will necessarily result in liability upon the other, and neither can reasonably raise a defense which is unavailable to the other. Under that definition, we conclude Minot and the District are not codefendants united in interest. [¶ 11] In reading the allegations in the pleadings, it is readily apparent Minot and the District have available different defenses and may not stand or fall together on the plaintiff's claims against them. For example, Minot could argue the District had a non-delegable duty to design and construct a flood control structure not unreasonably dangerous to children, but failed to do so. The factfinder could conclude Minot's agreement to maintain and operate the structure after it was completed was not an assumption of the duty to design and construct a reasonably safe structure and the operation and maintenance of it was not the proximate cause of the victim's death. Contrarily, the District could argue Minot became an independent contractor when it resolved to undertake all operation and maintenance of the structure and the victim's death was proximately caused by Minot's failure, after several years of operation and observation of the danger it posed, to use reasonable care in maintaining the structure to make it reasonably safe for children. The District could further argue it owed no duty to the victim to maintain the structure in a reasonably safe condition. [¶ 12] The question of agency is a fact question for the trier of fact. E.g., Red River Commodities, Inc. v. Eidsness, 459 N.W.2d 805, 810 (N.D.1990). The factfinder could also determine Minot was acting as the agent of the District in providing maintenance and care of the flood control structure and the District is vicariously liable on a theory of respondeat superior for the city's negligence in that undertaking. [¶ 13] All of these potential defenses hinge upon factual determinations not yet fully developed on the record. It is enough that these defendants do not necessarily stand or fall together on plaintiff's claims against them. Significant and separate defenses are available to each of them, and their interests may be more aptly described as being antagonistic than united. We therefore hold service of the summons upon the District did not constitute commencement of the action against Minot, under N.D.C.C. § 28-01-38. The district court did not err in dismissing Gessner's complaint against Minot for insufficiency of service of process.