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Janney Montgomery Scott, Inc. v. Shepard Niles, Inc.

United States Court of Appeals for the Third Circuit
11 F.3d 399 (3d Cir. 1993)

Facts

Janney Montgomery Scott, Inc. (Janney) (plaintiff) contracted to serve as an advisor to The Underwood Group, Ltd. (Underwood), and all of Underwood’s subsidiaries, including Shepard Niles, Inc. (Shepard) (defendant). Janney brought suit against Underwood in state court and also brought this federal suit against Shepard for breach of contract, but did not join Underwood, the sole signatory of the contract, in the suit. Shepard filed a motion for judgment for failure to join an indispensable party. The United States District Court for the Eastern District of Pennsylvania granted the motion, finding that a decision against Shepard in the case would have an improper negative effect on Underwood in Janney’s pending state action. Janney appealed.

Rule of Law

Issue

Holding and Reasoning (Hutchinson, J.)

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