Opinion ID: 771983
Heading Depth: 3
Heading Rank: 1

Heading: Baroda's Motion to Dismiss, Stay or Strike the Fourth-Party Complaint

Text: 16 On August 10, 1990, Baroda moved to dismiss or stay the fourth-party complaint without answering, based on the pendency of the 1987 Action, or alternatively, to strike that complaint as an improper impleader under Federal Rule of Civil Procedure 14(a). In support of its motion, Baroda argued that both the fourth party action and the pending 1987 Action involved virtually the same parties, . . . arise out of the same facts and circumstances, . . . [and] involve the same claims, and that Indu Craft would not be prejudiced by dismissing or staying the fourth party action pending resolution of the 1987 Action. Alternatively, Baroda argued that the fourth party complaint was not a proper impleader complaint under Rule 14 because Indu Craft's fourth-party claim against [Baroda] in the [BOI Action] is not dependent on, or derivative of, BOI's main claim against Trendi or Trendi's third-party claim against Indu Craft. 17 In response, Indu Craft, on September 17, 1990, cross-moved to sever the fourth party action and to consolidate it with the pending 1987 Action. In support of its motion to sever and consolidate, Indu Craft asserted that while the liability aspects of the fourth-party claims . . . are essentially identical to those in the [1987 Action], the damages claimed [in the fourth-party action] are entirely distinct from those it has previously claimed against Baroda in the [1987 Action]. In addition, Indu Craft asserted that the third-party claims asserted by Trendi could not possibly be adjudicated in the [1987 Action] absent the consolidation . . . sought by Indu Craft. 18 Judge Martin heard oral argument on these motions on October 5, 1990. He thereafter stayed the fourth-party action pending resolution of the 1987 Action. He explained that, in the event of an adverse decision by Judge Duffy in the 1987 Action, Indu Craft would be gone in the BOI Action. However, Judge Martin did not address Baroda's motion to dismiss or to strike the fourth-party complaint. In addition, with respect to Indu Craft's motion to sever and consolidate its fourth-party action, Judge Martin referred Indu Craft to Judge Duffy, stating that [y]ou should be telling [Judge Duffy] that he should take these [Trendi] damages into consideration in his case.