RODNEY W. SIPPEL, District Judge.
This matter is before me on third-party defendant Diversified Ingredients, Inc.'s motion to dismiss the Blue Buffalo Company, Ltd.'s claims against it. Blue Buffalo's claims against Diversified arise out of an underlying action in which Nestle Purina Petcare Company alleged that Blue Buffalo falsely advertised its pet foods as free of poultry by-product meal in violation of the Lanham Act, 15 U.S.C. § 1125. Blue Buffalo now admits that poultry by-product was in some of its pet foods. However, it claims that its ingredient supplier, Wilbur-Ellis, and ingredient broker, Diversified Ingredients, deceived Blue Buffalo when they sold it by-product meal instead of chicken and turkey meal. Blue Buffalo brings third-party claims against Wilbur-Ellis and Diversified, alleging that the ingredient suppliers are liable to it for indemnity and contribution for any harm Blue Buffalo is found to have committed against Purina, as well as for additional damages under theories of breach of contract, breach of warranty, fraud, misrepresentation, negligence, unjust enrichment, unfair competition, and other statutory violations.
Diversified now moves to dismiss Blue Buffalo's claims against it for failure to state a claim upon which relief can be granted. For the reasons that follow, I will grant in part and deny in part Diversified's motion.
In ruling on a motion to dismiss brought under Fed. R. Civ. P. 12(b)(6), I must accept as true all factual allegations in the complaint and view them in the light most favorable to the plaintiff.
Diversified argues that I should dismiss Blue Buffalo's third-party claims against it because a) Blue Buffalo cannot seek indemnity or contribution for any Lanham Act liability as a matter of law, and b) Blue Buffalo's remaining claims are improperly joined under Fed. R. Civ. P. 14(a) because they are not derivative of Purina's false advertising claims against Blue Buffalo. In the alternative, Diversified argues that I should sever Blue Buffalo's claims against it from the underlying case between Purina and Blue Buffalo to avoid needless delay, confusion, and complication.
Diversified argues that there is no right to indemnity or contribution for Lanham Act claims. Despite Blue Buffalo's policy argument otherwise, I agree with Diversified that Blue Buffalo's claims for indemnity and contribution for its alleged violation of the Lanham Act are barred as a matter of law. There is no federal common law right to indemnity or contribution under which Blue Buffalo can assert claims for its potential Lanham Act liability.
Diversified also argues that Blue Buffalo may not obtain indemnity or contribution for any liability it is found to have under Purina's claims for unjust enrichment and unfair competition under Missouri common law because they are intentional torts. Under the "intentional misconduct rule," Missouri courts prohibit claims for contribution or indemnity among willful joint tortfeasors.
Here, Purina's claims against Blue Buffalo for unjust enrichment and unfair competition are pleaded broadly enough to encompass both intentional and negligent conduct. Moreover, at this stage of the case, I must accept Blue Buffalo's factual allegations as true, including its allegation that that the byproduct was in its food without its knowledge or intent. Additionally, the extent or basis of Blue Buffalo's potential liability on these claims is yet to be determined. As a result, I cannot say that Blue Buffalo has failed to state a claim for indemnity or contribution for Purina's unjust enrichment and unfair competition claims.
Diversified argues that I should dismiss Blue Buffalo's remaining claims as improperly joined under Fed. R. Civ. P. 14. because they are independent actions not derived from Purina's claims against Blue Buffalo. Rule 14(a)(1) allows a defendant to, "as a third-party plaintiff, serve . . . a nonparty who is or may be liable to it for all or part of the claim against it." Diversified concedes that in addition to permitting impleader of third-party defendants when they may have derivative liability, joinder is also proper under Rule 14 if a party is secondarily liable for claims of contribution and indemnity. Having already found that Blue Buffalo may maintain its third-party claims for contribution and indemnity arising out of Purina's unfair competition and unjust enrichment claims, it follows that joinder of Diversified is proper under Rule 14. Additionally, to the extent that any of Blue Buffalo's remaining claims are not based on derivative liability, they are still properly joined under Fed. R. Civ. P. 18. Rule 18 provides that "[a] party asserting a . . . third-party claim may join, as independent or alternate claims, as many claims as it has against an opposing party." Fed. R. Civ. P. 18(a). As a result, I will not dismiss Blue Buffalo's remaining claims against Diversified.
Diversified's final argument is that I should sever the claims and case against it from the underlying action filed by Purina against Blue Buffalo because confusion, delay, and needless complication will result if Diversified remains in the action. The right to implead third parties is not automatic and the decision to permit impleader rests within the sound discretion of the trial court.
There is a risk that allowing Blue Buffalo's third-party claims to proceed will prejudice and impose additional expense on the third-party defendants. However, the addition of the thirdparty defendants is not likely to complicate the issues at trial because whether the third-parties are in the action or not, the focus of the suit will remain the same: determining what is in Blue Buffalo's food, and Blue Buffalo's knowledge, if any. Additionally, although the third-party defendants may incur some additional expense related to their inclusion in this admittedly highly contentious suit, Diversified need not participate in any issues that arise solely between Purina and Blue Buffalo that do not relate to Blue Buffalo's claims against Diversified. Furthermore, if the parties were required to litigate these same issues in a separate suit, they would also incur expenses that could have been avoided by trying the claims in one action. Moreover, settling all related matters in one suit greatly benefits the other parties to the suit and interests in judicial economy.
Accordingly,