Tuesday, October 07, 2003

Pleading contribution, indemnification, and a third-party complaint in a case about bad water meters

In AMCO Water Metering Systems, Inc. v. Travelers, Judge Michael upheld the recommendations of Magistrate Judge Crigler to deny in part the third-party defendant's motion to dismiss the third-party complaint seeking contribution and indemnification. In particular, the Court ruled that the elements for a contribution claim were satisfied, even though there was no privity between the parties and the losses for which recovery was sought were purely economic. On indemnification, the Court held that the claim was premature. Regarding whether the claims were properly brought as third-party claims, the Court concluded that they were derivative, not independent, and therefore properly brought as third-party claims.

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