Opinion ID: 364791
Heading Depth: 1
Heading Rank: 3

Heading: severance of seven-up's third-party claim for indemnity

Text: OR CONTRIBUTION 32 In light of our disposition of this appeal on the issues of liability, the only other question we need to consider is the question of severance on retrial of the case. Seven-Up argues that the third-party claims should not have been severed. We disagree. 33 The District Court did not abuse its discretion under Rules 14(a) 30 and 42(b), 31 Fed.R.Civ.P., in severing for separate trial Seven-Up's third-party claim against the bottling company and the carton manufacturer. Presentation of the case in a joint trial, including presentation of the third-party indemnity and contribution claims, could require the parties, the jury and the court to address and consider the following basic issues: (1) Seven-Up's liability on theories of negligence and breach of implied warranty; (2) if Seven-Up is liable, the amount of damages to be awarded against it; (3) the liabilities of the bottler and the carton manufacturer for negligence and breach of implied warranty, if Seven-Up is found liable; (4) if liability is established against Seven-Up And either the bottler or the carton manufacturer, or both, the responsibility of the other parties either to indemnify Seven-Up or to bear an equal share of the damages under principles of contribution. 34 Although it might have been possible to handle this situation by devising provisional questions for the jury to answer in the form of special verdicts, or by bifurcating or trifurcating the trial, the District Judge determined that such a procedure would unduly complicate the trial and lead to confusion. He was required to balance the convenience and economy to be gained by conducting a single trial against the complexity of the legal theories which the jury would have to understand in order to decide the case properly, the possibility of inconsistent verdicts, and the possibility that the jury would misunderstand the role of the third-party defendants at the trial. The District Judge was no doubt aware of the confusion that surrounds questions of indemnity and contribution in products liability cases and the difficulty of clarifying the factors that the jury would have to consider in deciding between indemnity and contribution. 32 For these reasons, and for the additional reasons discussed by Chief Judge Phillips in Dewald v. Minster Press Co., 494 F.2d 795 (6th Cir. 1974), the trial judge did not abuse his discretion in ordering a separate trial on the third-party complaint. 33 35 For the reasons stated above, the judgment entered on the jury verdict is reversed and the case is remanded to the District Court for a new trial.