Opinion ID: 475444
Heading Depth: 2
Heading Rank: 4

Heading: Dismissal of the Third Party Complaint

Text: 39 The district court also granted BancTexas' motion to dismiss the appellants' third party complaint against it severed from the California action and consolidated with this case. The district court did so because of appellants' failure to request that any instructions concerning the third party action be submitted to the jury. 40 The district court submitted this case to the jury in the form of a series of specific questions on all material factual issues. Fed.R.Civ.P. 49. A party's failure to object to the omission of any issue in these questions is considered a waiver. Molex, Inc. v. Nolen, 759 F.2d 474, 478 (5th Cir.1985). 41 Appellants argue that in this particular situation their failure to object to the omission of any issues with regard to their third party complaint against BancTexas did not constitute a waiver. The underlying claims in appellants' third-party action against BancTexas, they argue, were identical to those presented in appellants' original action. Thus, they insist that there was no need to present additional questions to the jury on these issues. 42 The breach of fiduciary duty claim was dismissed on its merits in appellants' original action against the bank. So additional questions to the jury were irrelevant. The rule 10b-5 and negligent misrepresentation claims, however, were dismissed for a lack of evidence as to damages. Underlying liability on these claims was established. With regard to these issues then additional jury questions on liability under the third party complaint were not required. 43 Jury questions, nonetheless, were still necessary to determine the extent of indemnity or contribution owed by the bank to appellants. As appellants requested no questions on these points, they waived their third-party claims against BancTexas on these issues. Contrary to appellants' argument, a finding of liability on the third-party action would not necessarily make BancTexas responsible for all possible damages that appellants might have been ordered to pay the investors in the California suit. 44 We note briefly that appellants also argue that the district court was not authorized to enter judgment in a separate action, the third party action, on the basis of the special verdict. The contention is without merit. The third-party action was not a separate action, but one consolidated with the original case in Texas in order to sort out liability as completely as possible between these same parties on issues arising out of the same circumstances and transactions. A district court has the authority to grant judgment upon a third-party complaint made conditional upon the outcome of the original action. See 6 Wright & Miller Federal Practice and Procedure: Civil, Sec. 1451.