United States District Court, D. New Jersey
MEMORANDUM OPINION AND ORDER
KEVIN MCNULTY, U.S.D.J.
an action for damages based on a written contract. The
plaintiff, Engineered Devices Corporation, is a supplier (by
lease or sale) of materials, equipment, to the construction
industry. The defendant, Paramount Builders Group LLC
("PBG"), engaged in a construction project in New
York known as 310 West Hotel (the "Project").
Engineered's complaint alleges that PGB failed to return
leased equipment or pay for purchased equipment. PBG blames a
third party contractor, Martins, which worked on the Project.
According to PBG, it was Martins who used, and failed to
return, the equipment. Thus, says PBG, Martins is a necessary
party under Fed.R.Civ.P. 19, and the action must be dismissed
because Engineered did not name Martins as a defendant. For
the reasons stated herein, the motion is denied.
complaint alleges that Engineered maintains a rental
inventory of shorting and forming equipment, and also
manufactures equipment to order. (Cplt. ¶¶ 4-6) On
May 27, 2015, Paramount (by its president, Gary Labovskiy)
executed a commercial credit application, release, and Master
Rental Agreement with Engineered. (Cplt. ¶¶ 13-15)
Copies are attached to the Complaint. On the same date, PBG
delivered a job information sheet for the 310 West Hotel
Project, naming ZDG LLC as the general contractor. (Cplt.
¶ 18) Engineered approved Paramount's credit and
delivered the equipment to PBG. (Cplt. ¶ 19) PBG failed
to make payment for the goods sol, rented, and delivered.
(Cplt. ¶ 20) Engineered claims damages in the total
amount of $380, 823.17. (Cplt. ¶ 21) Jurisdiction is
founded on diversity. (Cplt. ¶ 22)
Complaint has four counts. Count 1 asserts claims of book
account and unjust enrichment in the amount of $156, 319.31.
Count 2 asserts breach of contract and unjust enrichment in
that Engineered, at PBG's request, delivered equipment
and materials valued at $136, 621.59 to the project site, for
which it was not paid. Count 3 alleges conversion of the same
materials referred to in Count 2 and seeks the same damages.
Count 4 seeks a contractual 30% collection charge in the
amount of $87, 882.27.
moves to dismiss the Complaint for failure to join Martins as
a necessary party defendant under Federal Rule of Civil
(a) Persons Required to Be Joined if Feasible.
(1) Required Party. A person who is subject to
service of process and whose joinder will not deprive the
court of subject-matter jurisdiction must be joined as a
(A) in that person's absence, the court cannot accord
complete relief among existing parties; or
(B) that person claims an interest relating to the subject of
the action and is so situated that disposing of the action in
the person's absence may:
(i) as a practical matter impair or impede the person's
ability to protect the interest; or
(ii) leave an existing party subject to a substantial risk of
incurring double, multiple, or otherwise inconsistent