RICHARD G. KOPF, Senior District Judge.
Reinke Manufacturing Co., Inc., brings this action against Elecsys Corporation and AgJunction generally alleging that AgJunction supplied defective global positioning system ("GPS") units to Elecsys, which placed the units in "Blue Box Assemblies" and sold the assemblies to Reinke. Reinke then installed such assemblies in its center-pivot irrigation systems. Reinke alleges that shortly after it began using the Blue Box Assemblies, it began receiving customer complaints, and Reinke was ultimately required to replace the defective products at the cost of $3,000,000. In turn, AgJunction sues Hemisphere GNSS (USA) Inc., ("HGNSS") for supplying the defective GPS products to AgJunction that resulted in Reinke's lawsuit against AgJunction. As against HGNSS, AgJunction asserts claims for breach of contract, contractual indemnity, and common-law indemnity or contribution. (Filing No. 95, Amended Third-Party Complaint.) Contrary to HGNSS counsel's statement that AgJunction "does not specifically cite any allegations in the [Amended Third-Party Complaint] that are pled in the alternative" (Filing No. 108 at CM/ECF p. 8), AgJunction's Amended Third-Party Complaint expressly alleges its equitable indemnity and contribution claim "[a]lternatively." (Filing No. 95 at CM/ECF p. 9.)
In what has resulted in 361 pages of briefing and evidence
When confronted with a Rule 12(b)(6) motion, all the factual allegations contained in the complaint are accepted as true, and the complaint is reviewed to determine whether its allegations show that the pleader is entitled to relief. Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 556-57 (2007). If the complaint does not state "enough facts to state a claim to relief that is plausible on its face," it must be dismissed for failure to state a claim. Id. at 570. The plaintiffs must state enough facts to "nudge[] their claims across the line from conceivable to plausible." Id. "[A] well-pleaded complaint may proceed even if it strikes a savvy judge that actual proof of those facts is improbable, and that a recovery is very remote and unlikely." Id. at 556 (internal quotation and citation omitted).
The basis for HGNSS's Rule 12(b)(6) motion is that when parties have expressly contracted regarding the duty to indemnify, "the independent doctrines of equitable indemnity or contribution" are inapplicable. Therefore, HGNSS argues, AgJunction's claims for equitable indemnity and contribution must be dismissed because the parties have a written agreement that defines HGNSS's duty to indemnify AgJunction. (Filing No. 99, Motion to Dismiss, at CM/ECF p. 2.)
There is a difference between pleading and actual recovery. While the state law applicable to AgJunction's claims against HGNSS might preclude simultaneous recovery under both contractual and equitable theories of indemnity, the Federal Rules of Civil Procedure
Resolution of a contractual indemnity claim hinges upon application of the language of the indemnity agreement to the claim, including determining whether the court must interpret the contractual indemnity language due to ambiguity, whether the indemnity language is enforceable, and whether the claim and alleged damages fall within the scope of the indemnity provision. Scott M. Seaman & Jason R. Schulze, Allocation of Losses in Complex Insurance Coverage Claims § 16:4 (Dec. 2017 Update). These are not matters to be taken up at the pleading stage when parties are entitled to cover their bases by pleading alternative theories of recovery under Fed. R. Civ. P. 8(a) and (d).
Accordingly, HGNSS's Motion to Dismiss pursuant to Fed. R. Civ. P. 12(b)(6) (Filing No. 99) will be denied.
IT IS ORDERED that HGNSS's Motion to Dismiss AgJunction's third claim for relief for equitable indemnity and contribution pursuant to Fed. R. Civ. P. 12(b)(6) (Filing No. 99) is denied without prejudice to reassertion in a properly supported motion for summary judgment.