CATHY BISSOON, District Judge.
For the reasons that follow, Defendant's Motion to Dismiss the Complaint Pursuant to Rule 12(b)(7), or Alternatively, Motion for a More Definite Statement Pursuant to Rule 12(e) (
On July 23, 1986, a Ground Lease and Addendum ("the Lease") were executed between McDonald's Corporation ("Plaintiff" or "Lessee") and the predecessor in interest to East Liberty Station Associates ("Defendant" or "Lessor"). Compl. (Doc. 1) at ¶ 24, Ex. A at § 1. The Lease pertains to the rental of a property in the Village of Eastside Shopping Center on Penn Avenue in Pittsburgh, Pennsylvania ("the Premises"), for a term of 20 years with the option to extend for five successive periods of five years each.
On June 7, 2012, Plaintiff informed Defendant that it was exercising its option to purchase the Premises pursuant to the terms of the Lease.
Pittsburgh Police have alleged that on January 29, 2014, an employee of the franchisee made a drug sale on the Premises.
In March, 2014, Plaintiff filed a three-count complaint against Defendant: 1) requesting a declaratory judgment that, inter alia, Plaintiff properly exercised its purchase option; Defendant is in breach of the lease for refusing to honor the option to purchase; Plaintiff is entitled to a 30-day cure period after notice of an alleged default on the Lease; and Plaintiff is not in default of the Lease; 2) alleging that Defendant materially breached the Lease by refusing to honor Plaintiff's exercise of the purchase option and by denying Plaintiff an option to cure the alleged default, causing monetary injury; and 3) alleging that Defendant materially breached the Lease by ignoring Plaintiff's exercise of the purchase option and by denying Plaintiff an option to cure the alleged default, meriting a remedy of specific performance. Compl. at ¶¶ 83-102.
Defendant filed a Motion to Dismiss the Complaint pursuant to Federal Rule of Civil Procedure 12(b)(7) or, in the alternative, a Motion for a More Definite Statement pursuant to Federal Rule of Civil Procedure 12(e). Def.'s Mot. (Doc. 7). Defendant argues that the franchisee is an indispensable party under Federal Rule of Civil Procedure 19, as the franchisee is in possession of the Premises. According to Defendant, if the Lease is found to be terminated in this action, complete relief cannot be accorded to Defendant in the event of nonjoinder of the franchisee. Defendant also moves, in the alternative, that the Court order Plaintiff to plead more definitely its allegations relating to the franchisee, including the franchisee's identity and domicile. Def.'s Br. (Doc. 8) at 7.
With respect to a Federal Rule of Civil Procedure 12(b)(7) motion, the Court must accept all factual allegations in the complaint as true and draw all reasonable inferences therefrom in the light most favorable to the non-moving party.
The Court's inquiry begins with an analysis under Rule 19.
Necessary parties are "persons having an interest in the controversy, and who ought to be made parties, in order that the court may act."
(emphasis added).
The Court first disposes of Defendant's argument for compulsory joinder under Federal Rule of Civil Procedure 19(a)(1)(B), as there is no allegation before the Court that the franchisee has claimed any interest in the current suit. Defendant alleges that it is unknown whether or not the franchisee is aware of these proceedings "[h]owever, undoubtedly, the franchisee will claim that it has an interest" in this case. Def.'s Br. at 5. Defendant makes various arguments for joinder of the franchisee, laid out infra, none of which addresses the threshold issue: the absence of indication that the franchisee claims any interest in this suit. Without a claim of interest from the absent party, this subsection of Rule 19 is inapplicable. Fed. R. Civ. P. 19(a)(1)(B).
Even if the franchisee did claim an interest in the current suit, the Court is not persuaded that the franchisee in fact has a direct, legally-protected interest that would be impaired in the event of nonjoinder. Nowhere is it alleged that the franchisee is a signatory or third party beneficiary to the Lease — the sole document that serves as the basis for the current dispute and to which Plaintiff and Defendant are the sole parties. The franchisee almost certainly has an interest with respect to Plaintiff, presumably pursuant to a separate agreement between those two parties. However, regardless of the outcome here, the franchisee may later assert any interests it may have with respect to the McDonald's Corporation. Given the franchisee's lack of connection to the Lease, it is unclear what interests, if any, the franchisee could assert in the instant matter.
The mere fact that the disposition of this case will likely impact the franchisee does not create a legal interest of the franchisee in the current suit.
Defendant also argues that, if not joined, the franchisee will have to assert its rights with respect to Plaintiff and Defendant in subsequent litigation, leaving both parties at risk of being subject to inconsistent litigation. Once again, Defendant has not alleged a potential basis for this hypothetical franchisee suit related to the instant action, as it does not appear that there is any contract in existence between the franchisee and Defendant and the franchisee would seem not to have standing in such a case. It further appears that any suit the franchisee could potentially bring would necessarily arise after litigation in this forum comes to a close and our ruling is clear, for absent such a ruling the franchisee's presumed rights to possess the Premises appear to remain unaffected.
The law is clear that "the possibility that the successful party to the original litigation might have to defend against a subsequent suit by [an absent party] does not make [that party] a necessary party to the action."
Further, Defendant's arguments pursuant to subsection (a)(1)(A) of Rule 19 — alleging that the absent franchisee prevents the Court from according complete relief — are not persuasive. Joinder is required when nonjoinder prevents the Court from effecting complete relief between the parties to the suit.
Defendant has not demonstrated that the franchisee is a necessary party pursuant to Federal Rule of Civil Procedure 19(a). As such, Defendant necessarily fails to make a successful claim for dismissal of this action based on nonjoinder of the franchisee, as a party that is not necessary is also not indispensable.
In the alternative, Defendant requests a more definite statement, pursuant to Rule 12(e) of the Federal Rules of Civil Procedure, and asks the Court to direct Plaintiff to plead the identity of any necessary party who was not joined and the reasons for nonjoinder. Def.'s Br. at 7. Rule 12(e) provides that a party can move for a more definite statement when the complaint is "so vague or ambiguous that the party cannot reasonably prepare a response." Fed. R. Civ. P. 12(e). The Rule is "directed to the rare case where because of the vagueness or ambiguity of the pleading the answering party will not be able to frame a responsive pleading."
For the reasons stated above, Defendant's Motion to Dismiss or, alternatively, Motion for a More Definite Statement (
IT IS SO ORDERED.