MARTIN REIDINGER, District Judge.
This is an action for declaratory judgment brought by the Plaintiff Richard Scalzo, the former President and principal shareholder of Gaia Herbs, Inc. ("Gaia"), against the Defendant James Etson Brandenburg, Gaia's former Chief Financial Officer and a member of its Board of Directors. [Doc. 1-1]. Specifically, the Plaintiff seeks a declaration regarding the parties' obligations under a Stock Appreciation Rights Agreement executed by the Plaintiff and the Defendant. [
The Plaintiff now seeks summary judgment on the Defendant's counterclaim. [Doc. 24]. In his Response to the Plaintiff's Motion for Summary Judgment, the Defendant states that there is currently pending a motion to compel discovery against the Plaintiff. Additionally, the Defendant states that he is awaiting a response from Gaia to a subpoena served by the Defendant. [Doc. 27 at 24]. As explained in the Defendant's Affidavit, the requested discovery is necessary for him to prove the occurrence of a "Payment Event" within the meaning of the parties' contract and to prove the amount of damages to which he is purportedly entitled. [
The arguments and materials submitted by the Defendant in opposition to the Plaintiff's motion for summary judgment cause the Court to question whether Gaia is a necessary party to this action. The Plaintiff argues that the Defendant violated a provision in the contract and forfeited his right to those units by working for one of Gaia's competitor within two years of working there. [Doc. 25 at 2]. The Defendant counters that he is entitled to those stock units because the forfeiture provision is unenforceable. [Doc. 27 at 1]. According to the Defendant, however, the Plaintiff no longer serves as President of Gaia and no longer owns any units of Gaia stock. [Doc. 27 at 2; Doc. 27-1 at 2]. The Defendant argues that because the Plaintiff no longer works at Gaia or owns any of its stock, any harm caused by the Defendant's violation of the forfeiture provision is directed at Gaia, not the Plaintiff. [Doc. 27 at 8]. The Defendant also argues that the forfeiture provision in the contract is designed to protect Gaia's interests, not the Plaintiff's, which should factor into the Court's unconscionability analysis. [
Rule 19 of the Federal Rules of Civil Procedure states that "[a] party must be joined if they are subject to service of process and. . . joinder will not deprive the court of subject-matter jurisdiction" if "in that person's absence, the court cannot accord complete relief among existing parties" or "that person claims an interest relating to the subject of the action and. . . disposing of the action in the person's absence may. . . impair or impede the person's ability to protect the interest [or]. . . leave an existing party subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations because of the interest." Fed. R. Civ. Pro. 19(a). Failure to join such a necessary party may lead the Court to dismiss the action.