N. B. v. Red Roof Inns, Inc., 2:22-cv-03771

Plaintiff N.B. alleges she was sex trafficked and subjected to serious abuse at a Red Roof Inn in Terre Haute, Indiana, and brings claims under the Trafficking Victims Protection Reauthorization Act (TVPRA).
N.B. seeks to hold Red Roof Inns, Inc. and Red Roof Franchising, LLC ("RRI Defendants") liable for knowingly benefiting from a venture violating the TVPRA.
RRI Defendants filed a Third-Party Complaint seeking indemnification and contribution from Kaival Hotels, Terre Haute LLC (KHTH), the franchisee, based on their franchise agreement.
Plaintiff moved to strike the common-law indemnification and contribution claims and to sever and stay the contractual indemnification and breach of contract claims against KHTH.
The Court previously denied RRI Defendants' motion to dismiss and in this opinion decides the Plaintiff's motion regarding the third-party claims.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Strike common law indemnification and contribution claims	TVPRA does not allow contribution or indemnification claims; prior court rulings barred these claims	The argument is premature; governed by Ohio law allowing such claims	Claims struck; TVPRA does not permit these claims
Sever and stay contractual indemnification and breach of contract claims	Contract issue is separate; dispute resolution might prevent need for litigation; prejudicial and complicating	Indemnification disputes are excluded from mediation; overlap in facts supports keeping claims together	Severance/stay denied at this time; facts sufficiently intertwined

Texas Indus., Inc. v. Radcliff Materials, Inc., 451 U.S. 630 (no implicit right to contribution under federal statutes unless expressly provided)
American Zurich Ins. Co. v. Cooper Tire & Rubber Co., 512 F.3d 800 (purpose of Rule 14 is judicial economy in joining potentially liable third-parties)
Parchman v. SLM Corp., 896 F.3d 728 (factors for considering severance under Rule 21)