991 F. Supp. 2d 523
E.D. Pa.2014Background
- Plaintiffs owned vintage cars stored at West Johnson Garage (leased by Foster from Jefferson); a Writ of Possession issued after unpaid rent and the garage contents remained for months.
- Philadelphia police, invoking the abandoned vehicle statute, removed cars/parts on May 16, 2011 and turned them over to Century Motors; plaintiffs recovered vehicles damaged and some parts were lost.
- Plaintiffs sued the City, Officer Boyle, Jefferson, and Century Motors asserting § 1983 (unreasonable seizure), abuse of process, conversion, and civil conspiracy.
- Jefferson (landlord) filed a Third-Party Complaint against the Foster Defendants seeking indemnification based on an express indemnity clause in the lease.
- Century Motors filed a crossclaim against the Foster Defendants seeking common-law indemnification and/or contribution.
- The Foster Defendants moved to dismiss Jefferson’s third-party indemnity claim and Century Motors’ crossclaim; the court ruled partly for Jefferson (deny dismissal on indemnity for state torts), dismissed indemnity against § 1983 claim, and dismissed Century Motors’ crossclaim with leave to amend.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Jefferson may seek contractual indemnification from Foster for Plaintiffs’ claims | Jefferson: lease contains an express indemnity clause covering losses from Foster’s breach | Foster: lease language does not apply; indemnity unavailable for intentional torts and § 1983 claims | Court: Express-contract indemnity plausibly pleaded for Counts II–IV (abuse of process, conversion, conspiracy); indemnity for Count I (§ 1983) dismissed as inconsistent with § 1983 deterrence/policy |
| Whether common-law indemnity is barred because Jefferson allegedly committed intentional torts | Jefferson: relies on express contract, not common-law indemnity | Foster: intentional torts preclude indemnity at common law | Court: Inapplicable — Jefferson pleads express contractual indemnity; common-law rule against indemnity for intentional torts does not defeat an express contractual right at this stage |
| Whether Pennsylvania law can supply indemnity/contribution for § 1983 claims under 42 U.S.C. § 1988 | Jefferson: state indemnity law can apply where federal law is deficient | Foster: indemnity/contribution unavailable for § 1983 actions | Court: Federal law is deficient on indemnity; but indemnification that would shift liability for a § 1983 violator would conflict with § 1983’s deterrence purpose, so indemnity for Count I is barred |
| Whether Century Motors’ crossclaim for indemnity/contribution against Foster survives pleading standards | Century Motors: if held liable, Foster may be liable over to Century Motors for all/part of plaintiffs’ claims | Foster: crossclaim procedurally improper or conclusory; fails to plead Foster’s liability to Century Motors or joint-tortfeasor status | Court: Crossclaim procedurally permissible as a Rule 13(g) crossclaim, but factually deficient — Century Motors fails to plausibly allege legal basis for indemnity or that parties are joint tortfeasors for contribution; crossclaim dismissed, leave to amend granted |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading must contain sufficient factual matter to state a plausible claim)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility standard governs dismissal under Rule 12(b)(6))
- Allegheny Gen. Hosp. v. Philip Morris, 228 F.3d 429 (3d Cir. 2000) (indemnity available by express contract or where defendant is only secondarily liable)
- Moor v. Alameda Cnty., 411 U.S. 693 (1973) (when federal remedy is deficient courts may look to state law under 42 U.S.C. § 1988)
- Wyatt v. Cole, 504 U.S. 158 (1992) (purposes of § 1983 include compensation and deterrence)
- City of Newport v. Fact Concerts, Inc., 453 U.S. 247 (1981) (deterrence is an important purpose of § 1983)
- Robertson v. Wegmann, 436 U.S. 584 (1978) (federal courts may look to state law where federal law is deficient)
- Builders Supply Co. v. McCabe, 366 Pa. 322, 77 A.2d 368 (Pa. 1951) (common-law indemnity where one party pays damages occasioned by another and is only secondarily liable)