Universal Green Solutions, LLC v. VII Pac Shores Investors, LLC
5:12-cv-05613
N.D. Cal.Sep 18, 2013Background
- Pac Shores and UGS entered into two retrofit contracts for Pac Shores property, one written for a building and parking and one oral for additional buildings.
- Pac Shores allegedly breached the contracts by not completing the retrofit; UGS sued for breach of contract.
- Cushman managed the Pac Shores property under a Property Management Agreement with Moyer as Cushman’s GM.
- Pac Shores seeks leave to file a third-party complaint against Cushman for indemnity arising from Cushman’s alleged breach of the Management Agreement.
- UGS argues impleader would prejudice UGS and may raise venue issues; Pac Shores argues prejudice is minimal and efficiency favors resolving all claims in one action.
- The court extended discovery cut-off by stipulation and finds Cushman’s involvement in discovery mitigates potential delays.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether to permit a third-party indemnity claim against Cushman | UGS argues impleader would prejudice and complicate the case | Pac Shores contends impleader aids efficiency and Cushman’s involvement already exists | Granted; court allows third-party indemnity claim against Cushman |
Key Cases Cited
- U.S. v. One 1977 Mercedes Benz, 708 F.2d 444 (9th Cir. 1983) (liberal use of impleader to promote efficiency)
- Southwest Adm’rs, Inc. v. Rozay’s Transfer, 791 F.2d 769 (9th Cir. 1986) (balance prejudice and efficiency in Rule 14(a) impleader)
- Lehman v. Revolution Portfolio LLC, 166 F.3d 389 (1st Cir. 1999) (liberal interpretation of impleader and efficiency considerations)