JOSEPH H. McKINLEY, Chief District Judge.
This matter is before the Court on motion by Third Party Defendant Quest Diagnostics Clinical Laboratories, Inc., for Summary Judgment. [DN 43]. Fully briefed, this matter is ripe for decision.
Third Party Defendant, Quest Diagnostic Clinical Laboratories, Inc. (hereinafter "Quest") contracted with Defendant Carhartt (hereinafter "Carhartt"), "pursuant to which Quest agreed to provide certain laboratory testing, biometric measurements, and health questionnaire services to Carhartt['s employees]". (Carhartt's Resp. [DN 61] at 2.) Quest entered into a contract with Plaintiff, Martha Mitchell, in which she would perform said medical examination services for Carhartt's employees. (Quest's Mem. Supp. Mot. Summ. J. [DN 43-1] at 2.) Mitchell was to travel to Carhartt's facility and perform her services as an independent contractor in order to fulfill portions of the contract between Quest and Carhartt. (
Now before the Court is Quest's Motion requesting that the Court grant summary judgment in its favor and dismiss Carhartt's Third Party Complaint seeking indemnification. (Quest's Mem. Supp. Mot. Summ. J. [DN 43-1] at 13.)
Carhartt acknowledges that its common law indemnity claim should be dismissed given the fact that the Court granted Carhartt summary judgment against Mitchell. Therefore, the common law indemnity claim asserted against Quest is dismissed, without prejudice.
Quest seeks summary judgment on Carhartt's contractual indemnity claim as well. It is important to understand the nature of that claim now that summary judgment has been granted in favor of Carhartt against the Plaintiff Mitchell. Rule 14(a) of the Federal Rules of Civil Procedure allows a defendant to implead a third party defendant "who is or may be liable to him for all or part of the plaintiff's claim against him." Impleader, or third party practice, is only available when the third party defendant's liability is secondary to, or a derivative of, the original defendant's liability on the original plaintiff's claim.
"Underlying Rule 14 is a desire `to promote economy by avoiding the situation where a defendant has been adjudicated liable and then must bring a totally new action against a third party who may be liable to him for all or part of the original plaintiff's claim against him.'"
Here, a portion of Carhartt's Third Party Complaint was a proper impleader under Rule 14(a) because it sought indemnification from Quest for all or part of the claims asserted against it by the Plaintiff Mitchell. That portion of the third party claim for contractual indemnity is derivative of the original action between Mitchell and Carhartt. Quest's potential liability for that portion of the claim is dependent on the outcome of the litigation in that original action. Now that the Court has granted Carhartt's Motion for Summary Judgment, the derivative portion of the contractual claim must be dismissed. There is nothing to recover under that portion of the claim now. However, there is another aspect of Carhartt's Third Party Complaint which is not derivative of the outcome of the litigation in that original action. It was properly joined under Fed. R. Civ. P. 18. Specifically, Carhartt claims that in "the indemnification provision of the [c]ontract" between Carhartt and Quest, Quest agreed to "indemnify Carhartt from and against any and all damages, including attorneys' fees, arising out of or attributable to Quest or Quest's employees, servants, or agents." (Carhartt's Resp. [DN 61] at 8.) Thus, the matter of defense costs is still at issue in this case and the success of that claim depends on a finding of negligence on the part of Ms. Mitchell, an agent of Quest.
Quest is correct that there has been no such finding. The Court rejects Carhartt's suggestion that the summary judgment it issued in its favor necessarily means that Ms. Mitchell was negligent. All that decision means is that Ms. Mitchell did not come forward with enough evidence to support her claim that Carhartt was negligent. Negligence is defined as "conduct which falls below the standard established by law for the protection of others against unreasonable risk of harm." Restatement (Second) of Torts § 282 (1965). Negligence depends on breach of a duty. Indeed, Ms. Mitchell fell. But, did she owe Carhartt a legal duty not to fall? Whether a duty exists depends on whether Carhartt's interests are entitled to legal protection against Ms. Mitchell's conduct.
A number of other interesting questions are presented by this lingering claim. Presumably, the Court originally had supplemental jurisdiction under 28 U.S.C. § 1367(a) over the Third Party Complaint.
But even if the claims are so related, should the Court choose to exercise supplemental jurisdiction of this matter now that the underlying claim has been dismissed? Under 28 U.S.C. § 1367(c), the Court has discretion to decline to exercise supplemental jurisdiction if: "(1) the claim raises a novel or complex issue of State law, (2) the claim substantially predominates over the claim or claims over which the district court has original jurisdiction, (3) the district court has dismissed all claims over which it has original jurisdiction, or (4) in exceptional circumstances, there are other compelling reasons for declining jurisdiction." Since the underlying action has been dismissed, the Court would be inclined not to exercise supplemental jurisdiction over this remaining portion of Carhartt's third party claim.
However, if there is an independent basis for subject matter jurisdiction supporting the Third Party Complaint, then the Court has no discretion to dismiss the matter—it must decide the issue.
For the reasons set forth above,