Gross (plaintiff) filed an insurance claim with Hanover (defendant) for a large amount of jewelry that was stolen while on consignment at a retail jewelry store called 3-R Jewelers (3-R). Hanover made a motion to implead Anthony Rizzo (3-R’s owner) and Joseph Rizzo (a 3-R employee) as third party defendants. Hanover’s third party complaint alleged a negligence claim against Joseph, a conversion claim against Joseph, and a negligent hiring claim against Anthony. Hanover alleged that a witness reported seeing a man enter 3-R’s back room with a paper bag after speaking with Joseph on the night of the theft. Hanover also alleged Anthony knew Joseph had a cocaine problem while Joseph was employed at 3-R. Gross argued that Hanover’s motion to implead the Rizzos should be dismissed because Hanover’s third party claims were too speculative, Hanover waited too long to implead the Rizzos, and Gross would suffer prejudice if the motion was granted. The district court granted Hanover’s motion to implead the Rizzos.