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Guaranteed Systems, Inc. v. American National Can Co.

United States District Court for the Middle District of North Carolina
842 F. Supp. 855 (1994)


Facts

Guaranteed Systems, Inc. (Guaranteed) (plaintiff), a North Carolina corporation, sued American National Can Company (National Can) (defendant), a Delaware corporation, in a North Carolina state court, on account of National Can’s failure to pay Guaranteed for construction work performed. National Can removed the case to federal court on the basis of diversity, then counterclaimed against Guaranteed for negligence in its performance of the work. Pursuant to Rule 14(b) of the Federal Rules of Civil Procedure (FRCP), Guaranteed impleaded R.K. Elite-HydroVac Services, Inc. (HydroVac), a subcontractor, alleging claims for indemnity and contribution in the event that National Can prevailed in its counterclaim against Guaranteed. HydroVac moved to dismiss the third-party complaint on the grounds that HydroVac was not diverse from Guaranteed and the federal court, therefore, lacked supplemental jurisdiction over the third-party complaint.

Rule of Law

Issue

Holding and Reasoning (Bullock, Jr., C.J.)

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