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Rainbow Management Group, Ltd. v. Atlantis Submarines Hawaii, L.P.

United States District Court for the District of Hawaii
158 F.R.D. 656 (D. Haw. 1994)


Facts

Rainbow Management Group, Ltd. (RMG) (defendant) owned a boat, the Elua. The Elua crashed into the Boston Whaler, which was owned by Haydu. As a result of the crash, the Boston Whaler was lost and some of its passengers were hurt. Passenger George Berry (plaintiff) filed the original lawsuit against RMG and Atlantis Submarines Hawaii, L.P. (Atlantis) (defendant), the submarine tour company for whom RMG ferried passengers from the beach to the submarine. Atlantis then filed a cross-claim against RMG, seeking contribution and indemnity and alleging breach of contract by RMG. After the completion of the original lawsuit, RMG filed a new lawsuit against Atlantis and Haydu for the damage to the Elua. Atlantis then moved for summary judgment on the ground that RMG was required to file its claim in the original lawsuit as a compulsory counterclaim pursuant to Federal Rule of Civil Procedure (FRCP) 13(a), because when Atlantis filed its cross-claim against RMG, RMG effectively became Atlantis’s “opposing party.” RMG opposes the motion, claiming that RMG was merely Atlantis’s co-party and any claim RMG had was a permissive cross-claim under FRCP 13(g).

Rule of Law

Issue

Holding and Reasoning (Fong, J.)

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